Shield Hand and Body Sanitizing Lotion

Shield Hand & Body Sanitizing Lotion Marketing Plan Rochelle Bellinger Jennifer Jarvey Chantia Lewis Alexis Nathavong Wendy Stallings July 2, 2014 Marketing Plan

CONTENTS Section Ten ‐ Budgets, Control, and Accountability 1

Section Eleven ‐ Global Marketing 9

Appendix C: Target market select product survey results 16

References 19

1

Section Ten ‐ Budgets, Control, and Accountability Based on consumer survey results, target market calculations were developed for a primary target market of females age 25‐44 and a secondary target market that represents 12% of the primary target market. The new product survey, conducted June 2014 had 122 participants. As part of the survey, purchase likelihood was measure at three price point ranges. Participants indicated purchase probability by selecting definitely buy, probably buy, probably not buy and definitely not buy. Purchase probability measured highest for females age 25‐44 over two price point ranges ($4.00 ‐ 6.99 and $7.00 ‐ $9.99), resulting in a selected retail price of $7.00. Likely to purchase figures were determined by adding all definitely buy responses in both price point ranges and multiplying by 30% to account for actual purchase drop off; probably buy responses were also added for both price point ranges and multiplied by 15%. Figures from each response group were combined and that final calculation used in the likely buy category. This accounts for single respondents with multiple, relevant responses and incorporates both price point ranges, justifying the retail price of $7.00. Based on frequency of use survey responses, an estimate of 12 units per market share in both the primary and secondary target markets was used to determine purchase unit numbers for both year one and two domestically. Per unit cost calculations were estimated by considering a material and labor cost combined of just over 1/3 wholesale price. Overhead was determined at 20% of material and labor, or just 7% of wholesale price. Minimum profit percentage of 40% was subtracted from remaining per unit cost calculation and the balance allocated to advertising, selling and promotion. Year two calculations demonstrate a decrease in promotion per unit cost calculations by 2%, resulting in a 2% increase in profits with all other allocations remaining the same.

2

Figure 1 Target Market Calculations based on new product survey responses (Wholesale)

TARGET MARKET CALCULATIONS

Age

Likely to

Purchase

Survey

Total

% of Survey

Population

US Female

Pop

Market

Potential

5% share

of Market

15‐24 2.1 7 30.00% 19,105,073 5,731,522 286,576

25‐34 7.8 27 28.89% 19,771,195 5,711,679 285,584

35‐44 9 28 32.14% 22,700,729 7,296,663 364,833

45‐54 7.35 26 28.27% 19,180,722 5,422,243 271,112

55‐64 3.3 13 25.38% 12,629,328 3,205,906 160,295

65‐74 0.75 2 37.50% 10,087,712 3,782,892 189,145

All Remaining 6.75 19 35.53% 5,096,631 1,810,645 90,532

30.3 122 29.42% 103,474,759 31,150,904 1,557,545

Target 42,471,924 13,008,341 650,417

Secondary Market (12% of primary target market) 1,810,645 90,532

Purchase Frequency Calculations

Monthly

Purchasing

Total Target

Market

Responses

Total Target

Market

% of Target

Market

Potential

Market 5%

Units

Bought Per

Year

Total Units

Purchased

Year 2 Total

Purchases

(+20%)

Primary 55 122 45.08% 650,417 12 7,805,005 9,366,006

Secondary 67 122 54.92% 90,532 12 1,086,384 1,303,661

total 122 100.00% 8,891,389 10,669,667

Per Unit Cost Calculations

% of Costs Cost in $ % of Costs Cost in $

Material 24% 1.08$ 24% 1.08$

labor 12% 0.54$ 12% 0.54$

overhead 7% 0.32$ 7% 0.32$

advertising 7% 0.32$ 7% 0.32$

promotion 7% 0.32$ 5% 0.22$

selling 3% 0.14$ 3% 0.14$

profit 40% 1.79$ 42% 1.89$

wholesale price 100% 4.50$ 100% 4.50$

Year 1 Production Year 2 Production

3

Figure 2 Pro‐Forma Income Statement (Wholesale)

4

Figure 3 Vietnam Target Market Calculations based US survey responses (Wholesale)

TARGET MARKET CALCULATIONS

Age

Likely to

Purchase

Survey

Total

% of Survey

Population

Vietnam

Female Pop

Market

Potential

5% share of

Market

15‐24 2.1 7 30.00% 8,023,377 2,407,013 120,351

25‐54 24.15 81 29.81% 20,861,243 6,219,741 310,987

55‐64 3.3 13 25.38% 3,763,309 955,302 47,765

65‐74 0.75 2 37.50% 3,260,435 1,222,663 61,133

All Remaining 6.75 19 35.53% 2,503,349 889,348 44,467

30.3 122 29.42% 35,908,364 10,804,719 540,236

Target 20,861,243 6,219,741 310,987

Secondary Market (12% of primary target market) 889,348 44,467

Purchase Frequency Calculations

Monthly

Purchasing

Total Target

Market

Responses

Total Target

Market

% of Target

Market

Potential

Market 5%

Units

Bought Per

Year

Total Units

Purchased

Year 2 Total

Purchases

(+20%)

Primary 55 122 45.08% 310,987 12 3,731,845 4,478,213

Secondary 67 122 54.92% 44,467 12 533,609 640,330

total 122 100.00% 4,265,453 5,118,544

Per Unit Cost Calculations

% of Costs Cost in VND $ Conversion % of Costs Cost in VND $ Conversion

Material 24.0% 12783.000 0.60$ 24.0% 12783.000 0.60$

labor 12.0% 6391.500 0.30$ 12.0% 6391.500 0.30$

overhead 7.2% 3834.900 0.18$ 7.2% 3834.900 0.18$

advertising 6.9% 3675.113 0.17$ 6.9% 3675.113 0.17$

promotion 6.9% 3675.113 0.17$ 6.9% 3675.113 0.17$

selling 3.0% 1597.875 0.08$ 1.5% 798.94 0.04$

profit 40.0% 21305.000 1.00$ 41.5% 22103.94 1.04$

wholesale price 100.0% 53262.500 2.50$ 100% 53262.500 2.50$

Year 1 Production Year 2 Production

5

Figure 4 Pro‐Forma Income Statement Vietnam (Wholesale)

Fiscal 2015

Sales Qty

Fiscal 2015 Sales

VND

Fiscal 2015 Sales $ Percent of

Net Sales

Fiscal 2016

Sales Qty

Fiscal 2016 Sales

VND

Fiscal 2016

Sales $

Percent of

Net Sales

Retail Sales

Primary market 3,731,845 238,520,846,401.72 $11,195,533.74 87.5% 4,478,213 286,225,015,682.06 13,434,640.49$ 87.5%

Secondary market 533,609 34,105,596,017.04 $1,600,825.91 12.5% 640,330 40,926,715,220.44 1,920,991.09$ 12.5%

Total Net Retail Sales 272,626,442,418.75 $12,796,359.65 100.0% 327,151,730,902.50 15,355,631.58$ 100.0%

Wholesale Sales

Primary market 3,731,845 198,767,372,001.43 $9,329,611.45 87.5% 4,478,213 238,520,846,401.72 11,195,533.74$ 87.5%

Secondary market 533,609 28,421,330,014.20 $1,334,021.59 12.5% 640,330 34,105,596,017.04 1,600,825.91$ 12.5%

Total Net Wholesale Sales 227,188,702,015.63 $10,663,633.04 100.0% 272,626,442,418.75 12,796,359.65$ 100.0%

Cost of Goods Sold

Material 54,525,288,483.75 $2,559,272 24.0% 65,430,346,180.50 3,071,126.32$ 24.0%

Labor 27,262,644,241.88 $1,279,636 12.0% 32,715,173,090.25 1,535,563.16$ 12.0%

Overhead 16,357,586,545.13 $767,782 7.2% 19,629,103,854.15 921,337.90$ 7.2%

Total cost of Good Sold 98,145,519,270.75 $4,606,689 43.2% 117,774,623,124.90 5,528,027.37$ 43.2%

Gross Profit 129,043,182,744.88 $6,056,944 56.8% 154,851,819,293.85 7,268,332.28$ 56.8%

Selling Expenses

Advertising 15,676,020,439.08 $735,791 6.9% 18,811,224,526.89 882,948.82$ 6.9%

Promotion 15,676,020,439.08 $735,791 6.9% 18,811,224,526.89 882,948.82$ 6.9%

Selling 6,815,661,060.47 $319,909 3.0% 4,089,396,636.28 191,945.39$ 1.5%

Total Selling Expenses 38,167,701,938.63 $1,791,490 16.8% 41,711,845,690.07 1,957,843.03$ 15.3%

Net Operating Profit 90,875,480,806.25 $4,265,453 40.0% 113,139,973,603.78 5,310,489.26$ 41.5%

Shield Hand & Body Sanitizing Lotion Pro‐Forma Income Statement 2015 & 2016

Wholesale represented below

6

The figure below depicts theoretical timeline for Shield over a two year period. Timeline includes task line, projected costs and resources required, revenues and department/group accountable for meeting milestone. Estimated costs and revenue represent domestic wholesale income and expenses. Figure 18 represents a theoretical timeline for Shield in Vietnam, again using wholesale calculations. Figure 5 Domestic Projected timeline

Q1 2015

Focus Group: test market samples to determine target consumer match to survey results. Market location: Atlanta, HQ of CDC.

Estimated Cost: $50,000

Revenues: $0

PM/group: Promotion

Q2 2015

Soft Launch with social media awareness campaign. Market locations: New York, Chicago, Los Angeles, Detroit and Washington DC (US News top cities w/ top hospitals)

Hard Launch US broadcast, print and social media campaigns live

Cost: $2,300,000

Qtr Revenues: $2,550,000

PM/group: Promotion & Advertising

Q3 2015

Special promotion for wholesales ‐ all markets

Cost: $1,550,000

Revenues: $10,750,000

PM/group: Selling

Q4 2015

Holiday promotions, Customer loyalty pricing

Cost: $1,750,000

Revenues: $26,700,000

PM/group: Promotion & advertising

Q1 2016

re‐launch global market during Vietnam New Year ‐ Vietnam and celebate domestically global appeal (social media, wholesale contact meetings)

Cost: $1,750,000

Revenues: $10,500,000

PM/group: Advertising & Selling

Q2 2016

Summer Olympic advertising

Cost: $2,500,000

Revenues: $10,500,000

PM/group: Advertising

Q3 2016

Back to School & cold/flu advertising

Cost: $1,800,000

Revenues: $15,000,000

PM/group: Advertising & Promotion

Q4 2016


Cost: $1,150,000

Revenues: $12,500,000


7

Figure 6 Vietnam Projected timeline

Three areas are used to measure success in launching Shield domestically and in Vietnam: sales, market

share and cost. For each of these segments department checks and analysis is required weekly in the 1st

and 2nd quarters and bi‐monthly after launch. Teams from sales, advertising and promotion are held

accountable for goal achievement as defined in each timeline.

Sales

Q1 2015

Consumer Survey luanch online

Focus Group: test market samples to determine target consumer match to survey results. Market location: Hanoi, Vietnam capital

Estimated Cost: $10,000

Revenues: $0

PM/group: Promotion

Q2 2015Soft Launch with social media awareness campaign. Market locations: Da Lat, Ho Chi Minh City, Danang, Hoi An and Phu Quoc Island (NY Times Travel Guide)

Hard Launch social media campaigns live

Cost: $350,000

Qtr Revenues: $1,500,000

PM/group: Promotion & Advertising

Q3 2015

Special promotion for wholesales ‐ all markets

Cost: $600,000

Revenues: $3,600,000

PM/group: Selling

Q4 2015


Cost: $830,000


PM/group: Promotion & advertising

Q1 2016

relaunch global market during Vietnam New Year ‐Vietnam and celebate domestically global appeal (social media, wholesale contact meetings)

Cost: $350,000


PM/group: Advertising & Selling

Q2 2016

Summer Olympic advertising

Cost: $5,500,000



Q3 2016

Back to School & cold/flu advertising

Cost: $330,000


PM/group: Advertising & Promotion

Q4 2016


Cost: $750,000



8

Domestic projected quarterly revenue figures for Q1 and Q2 in 2015 allow a negative 12% deviation. This deviation decreases in Q3 to 7% and 5% in Q4. Deviations that exceed threshold over Q3 and Q4 will require promotional and advertising adjustments to marketing plan. Domestic projected quarterly revenue figures for Q1 in 2016 allows a negative 5% deviation. This deviation decreases across Q2 and Q3 to 3% and less than 1% in Q4. Deviations that exceed threshold over Q1 and Q2 will require advertising and selling adjustments to marketing plan. Vietnam projected quarterly revenue figures for Q1 and Q2 in 2015 allow a negative 20% deviation. This deviation decreases in Q3 to 15% and 10% in Q4. Deviations that exceed threshold over Q3 and Q4 will require advertising and selling adjustments to marketing plan, namely social media contact and distribution. Vietnam projected quarterly revenue figures for Q1 in 2016 allows a negative 8% deviation. This deviation decreases across Q2 and Q3 to 6% and 5% in Q4. Deviations that exceed threshold over Q1 and Q2 will require advertising and selling adjustments to marketing plan.

Market share

Health products contribute 15% of all net sales for P&G and 16% of market share price. With the introduction of Shield domestically and in Vietnam, an increase from 15% to 16% in net sale contribution for the segment by Q4 2015, is anticipated based on 2013 net sales contribution equaling $12.63 billion and estimated net sales retail and wholesale equaling $125.7 million in 2015. Selling is accountable for reaching this goal.

Cost

P&G values affordability for its consumers. Although a new product survey was conducted domestically, an additional survey and focus group will be required when launching in Vietnam. Cost estimates for the Vietnam market are based on cost of goods reported in 2011 for health and beauty products. (vietnamonline.com, 2011) domestically, should costs increase over 59% after Q3 in 2015, operations will need to investigate and informally report on cost deviation. Operations is also tasked with investigating cost effective and green production measures domestically and in Vietnam. Investigation costs are allocated from segment general ledger and will not impact marketing projections for Shield.

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Section Eleven ‐ Global Marketing In analyzing the feasibility of marketing of Shield globally following figure reports data, quoted from The World FactBook, unless noted, produced by the Central Intelligence Agency allowing for a comparison of environmental variables between the United States and Vietnam.

Figure 7 Global marketing comparison United States and Vietnam

United States Vietnam Comparison Impact on marketing

Geograp

hy

North America, bordering both the North Atlantic Ocean and the North Pacific Ocean, between Canada and Mexico Climate: Mostly temperate, but tropical in Hawaii and Florida, arctic in Alaska, semiarid in the great plains west of the Mississippi River, and arid in the Great Basin of the southwest; low winter temperatures in the northwest are ameliorated occasionally in January and February by warm chinook winds from the eastern slopes of the Rocky Mountains Airports: 13,513* Railways: 224,792 km+

Energy production: Electricity‐ 4.099 trillion kWh (2011 est.) Crude oil ‐ 11.11 million bbl./day^ Refined Petroleum ‐ 18.45 million bbl./day (2010 est.) Natural gas ‐ 681.4 billion cu m^

Southeastern Asia, bordering the Gulf of Thailand, Gulf of Tonkin, and South China Sea, as well as China, Laos, and Cambodia Climate: Tropical in south; monsoonal in north with hot, rainy season (May to September) and warm, dry season (October to March) Airports: 45* Railways: 2,632 km+

Energy production: Electricity‐ 117 billion kWh^ Crude oil ‐ 363,500 bbl./day^ Refined Petroleum ‐ 112,000 bbl./day^ Natural gas ‐ 9.3 billion cu m^

Vietnam is just over 3% of the size of the United States in total area. Temperatures are more tropical for the country versus the regional temperatures in the United States. Transportation in the United States is vast; in contrast Vietnam has few airports proportionately to area size. The United States significantly outpaces Vietnam on energy production for every segment.

The higher and more humid temperatures in Vietnam likely lead to increased sweat and odor, increasing the need for our product. Additionally, the lotion feature helps nourish and hydrate the skin, alleviating dryness. Limited transportation in Vietnam influences distribution negatively when reaching more rural areas. A lower energy production impacts the ability to produce Shield in Vietnam. This challenge can be overcome by employing energy efficient/green technologies.

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Demograp

hics

Population: 318,892,103+

Age structure: 15‐24 years: 13.7% (male 22,436,057/female 21,321,861) 25‐54 years: 39.9% (male 63,452,792/female 63,671,631) 55‐64 years: 12.6% (male 19,309,019/female 20,720,284) 65 years and over: 13.9% (male 20,304,644/female 25,874,360)#

Population growth rate: 0.77%#

Birth rate: 13.42 births/1,000 population#

Population 93,421,835# Age structure: 15‐24 years: 17.8% (male 8,598,360/female 8,023,377) 25‐54 years: 44.8% (male 20,983,638/female 20,861,243) 55‐64 years: 7.4% (male 3,149,494/female 3,763,309) 65 years and over: 5.6% (male 2,034,721/female 3,260,435)#

Population growth rate: 1%# Birth rate: 16.26 births/1,000 population#

Vietnam has just under 1/3 the population of the United States (29.3%), however Vietnam has a younger population indicated by the low percentages of people over the age of 55. Both the United States and Vietnam have higher percentages of people age 25‐54, 39.9% and 44.8% respectively. Vietnam outpaces the United States for both growth rate and birth rate.

Having a smaller population than the United States, Vietnam will have smaller primary and secondary target markets, resulting in lower sales. Vietnam has faster growth and birth rates than the United States. As an estimate, at current rates, Vietnam surpasses the United States population in 2443.

Cultural

Two‐tier labor market resulting in large gap between groups of educated and higher income and low education and income. Languages: English 82.1%, Spanish 10.7%, other Indo‐European 3.8%, Asian and Pacific island 2.7%, other 0.7% (2000 census) note: the US has no official national language, but English has acquired official status in 28 of the 50 states; Hawaiian is an official language in the state of Hawaii

Commitment to economic modernization in recent years. Part of the World Trade Organization promoting more competitive, export‐driven industries. Also, Vietnam is an official negotiating partner in the Trans‐Pacific Partnership trade agreement in 2010. Languages: Vietnamese (official), English (increasingly favored as a second language), some French, Chinese, and Khmer, mountain area languages (Mon‐Khmer and Malayo‐Polynesian)

Unlike Vietnam, the United States has no official language. The United States is market driven, where Vietnam is agricultural. These market and industry differences may be the driving influencer behind population below poverty line rates (estimated 15.1% in the United States and 24.1% in Vietnam for 2010)

As the Vietnamese government focuses on economic improvement, disposable income should increase for consumers resulting in increased sales. Having an official language, production and marketing of Shield may cost less proportionately than in the United States, where production and marketing has to be done in at least two languages (English and Spanish).

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Economy

GDP: $16.72 Trillion* Per capita GDP: $52,800* Industries: highly diversified, world leading, high‐technology innovator, second largest industrial output in world; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining Occupations of labor force: farming, forestry, and fishing: 0.7% manufacturing, extraction, transportation, and crafts: 20.3% managerial, professional, and technical: 37.3% sales and office: 24.2% other services: 17.6% Unemployment: 7.3%* Inflation: 1.5%* Interest rates: as of June 16, 2014 Commercial paper (nonfinancial and financial 3 mth) 0.101 Money exchange rate: $1 equals 0.73 Euro2

GDP: $358.9 billion* Per capita GDP: $4,000* Industries: food processing, garments, shoes, machine‐building; mining, coal, steel; cement, chemical fertilizer, glass, tires, oil, mobile phones Occupations of labor force: agriculture: 48% industry: 21% services: 31%^ Unemployment: 1.3%* Inflation: 6.8%* Interest rates: between 2009‐2013 2.3%3 Money exchange rate: 1 Vietnamese Dong equals 0.000034 Euro4

Vietnam is sixth in comparison to the rest of the world in unemployment rates; however the much lower GDP and higher rate of inflation will affect pricing in the Vietnam market and drastically changes Pro‐Forma calculations.

Average retail price for health and beauty products in Vietnam is significantly lower than in the United States. GDP, per capita GDP, unemployment influence pricing in Vietnam. A lack of diversity in occupations negatively impacts unemployment and per capita GDP. Limited Industries in Vietnam have a pervasive impact on large populations, directly affecting sales; negatively in recession and positively in ‘boom’. Pricing for affordability and appeal reduces net sales and profit margins significantly in Vietnam; however Shield should have appeal, resulting in a steady increase in sales over time, making Vietnam a viable and profitable market.

1 http://www.federalreserve.gov/releases/h15/current/ 2 https://www.google.com/intl/en/googlefinance/disclaimer/ 3 http://data.worldbank.org/indicator/FR.INR.RINR 4 https://www.google.com/intl/en/googlefinance/disclaimer/

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Technology

Main line telephone lines – 139 million^

Mobile telephone lines – 310 million^

Internet users ‐ 245 million (2009) Internet hosts ‐ 505 million (2012); note ‐ the US Internet total host count includes the following top level domain host addresses: .us, .com, .edu, .gov, .mil, .net, and .org Media: The United States has four major terrestrial TV networks with affiliate stations throughout the country, plus cable and satellite networks, independent stations, and a limited public broadcasting sector that is largely supported by private grants; overall, thousands of TV stations broadcasting; multiple national radio networks with many affiliate stations; while most stations are commercial, National Public Radio (NPR) has a network of some 600 member stations; satellite radio available; overall, nearly 15,000 radio stations operating (2008)

Main line telephone lines – 10.191 million^

Mobile telephone lines – 134.066 million^

Internet users – 23.382 million (2009) Internet hosts – 189,553 (2012) Media: Broadcast media is government controlled operating a network of nine channels with several regional broadcasting centers; programming is relayed nationwide via a network of provincial and municipal TV stations; law limits access to satellite TV but many households are able to access foreign programming via home satellite equipment; government‐controlled Voice of Vietnam, the national radio broadcaster, broadcasts on 6 channels and is repeated on AM, FM, and shortwave stations throughout Vietnam (2008)

Vietnam is limited in technology in comparison to the United States. Because broadcast media is government controlled in Vietnam, marketing measures will be affected. Marketing strategy will rely heavily on social media.

Broadcast media, government controlled in Vietnam, is a challenge for advertising. More accessible for P&G and consumers is social media. However, there are fewer internet hosts and just under 10% of number of US internet users based on 2009 data. This limits our marketing across social media as well. Social media reach increases if most mobile device uses have data access; Vietnam has approximately 134 million mobile device users as of 2012.

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Competition

Globally, the P&G brand outperforms its competitors according to Forbes; ranking 40 globally, 81 for sales and 16 in market value. P&G brands are in major retailers with prominent placement on shelves. Pricing is affordable and often, nearly weekly, P&G offers product coupons via newspapers, online, and through social media.

Vietnam has six avenues of distribution: “hypermarkets, supermarkets, commercial centers, shopping centers, convenience stores and specialty supermarkets” (vietnamonline.com, n.d.) however most distribution points are cramped and crowded, on the outskirts of cities. (vietnamonline.com, n.d.)

Diana Joint Stock Company manufactures and distributes hygiene products and is based in Hanoi, Vietnam5 Annual Sales Volume is below $1 Million US6 Additionally Johnson & Johnson, L’Oreal, and Kimberly‐Clark are domestic competitors with market share in Vietnam. Pricing in Vietnam is significantly lower than in the US.

Vietnam is experiencing increasing growth in market retail “far exceeding many other economies in the world, behind only India and Russia” (vietnamonline.com, n.d.) Additional points of distribution increase net sales and profit margin. Pricing for Shield is on average for Health and Beauty item sin Vietnam, however additional features make Shield more desirable than competitor products.

+July 2007 estimate, ^2012 estimate, *2013 estimate, #2014 estimate

5 http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=114982700 6 http://www.alibaba.com/countrysearch/VN/hand‐sanitizer‐supplier.html

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Figure 8 Vietnam market segmentation

Demographic Segmentation Behavioral Segmentation Benefit Segmentation

Growing demographic of expatriates working for US companies in Southeast Asia

Vietnam caters to convenience shoppers – this behavior translates to other portions of their daily lives (Nguyen, 2014)

Customers who see the convenience of using the product, Customers who feel they are currently missing this product

Advantages: This group is familiar with brand name

Advantages: This group enjoys the great values that exceed expectations and benefits, which Shield does. Product longevity would be a great selling point for this segment.

Advantages: This group is currently marketed US products and Vietnamese products (sanitizing wipes). However Shield lasts longer has convenient, value‐based sizing and affordable pricing.

Disadvantages: Existing loyalty to other US brand. Desire for cultural fit may lead to buying Vietnamese products.

Disadvantages: Shifts to increase work/life balance may slow down this segment making convenience products less desirable.

Disadvantages: Convince group of truth in advertising, that product performs as indicated and outperforms current products they may be familiar.

Volume: Price and distribution are key for sales for this demographic.

Volume: This group maintains a high paced lifestyle making Shield with 1 or 2 applications daily a desirable product.

Volume: Potential for product sales is high if consumers are convinced of product performance.

Differences domestically to the Vietnamese market require changes to marketing mix, positioning, and

pricing strategies. Product design requires minimal changes. Namely, adapting the translation of Shield,

bảo vệ, (Translate.google.com)(Nguyen, 2014) is important for product success in Vietnam. Product

color may require tinting as green is interpreted as jealousy or lustiness and white is equated with

purity, death and “the end” (bảohouse.net, n.d.). The blue in the Shield logo is highly desirable because

it means “calmness, hope, growth” ” (bảohouse.net, n.d.) connotations that benefit sales and brand

loyalty over time.

Thanh Nien News online report from May 2014, indicates that since 2005, foreign retailers have flooded

the Vietnamese marketplace, pushing Vietnamese stores out. Familiar store names and the brand logo

P&G will likely be appealing to expatriates, increasing sales. Domestically, offering Shield in diverse

cultural areas goes above and beyond consumer expectations, especially if adapting language and

product design.

Product position domestically focused on using national retailers, middle shelves at eye level in the hand

sanitizer section or health and beauty departments in major retailers. In contrast, although Vietnam has

six main distribution types (“hypermarkets, supermarkets, commercial centers, shopping centers,

convenience stores and specialty supermarkets”) (Vietnam Travel & Living Guide, 2011), smaller retailers

along the outskirts of major cities are more desirable as a point of distribution. These “no‐name

convenience stores that still make up the majority of the Vietnamese retail market” (Vietnam Travel &

15

Living Guide, 2011). Hypermarkets and supermarkets are often cramped and crowded. When

positioning in Hypermarkets it is imperative that endcaps be used, almost exclusively, since aisles of

narrow, congested and difficult for consumers to navigate.

Pricing was significantly reduced for the Vietnamese market because of it lower GDP and per capita

GDP. After reviewing Vietnam Travel & Living Guide’s article on comparable costs, a retail price of $3 or

63,915 VND and a wholesale price of $2.5 or 53,262.5 VND was set to stay affordable for consumers and

competitive with other sanitizing products.

Media avenues for promotion are stymied in Vietnam. Broadcast television is under government

control. The best and most efficient use of resources is to limit promotion to social media, sampling and

collaborating with distributors to increase consumer awareness and market share.

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Appendix C: Target market select product survey results 1. How often do you wash your hands in a day?

2. How concerned are you with your contact to germs and bacteria?

3. What product(s) do you currently use to avoid contact with germs?

0

2

4

6

8

10

12

14

16

18

1‐3 times 4‐6 times 7‐9 times 10+ times

25‐34 years old

35‐44 years old

0

2

4

6

8

10

12

14

16

Not concerned Somewhat concerned Very concerned

25‐34 years old

35‐44 years old

0

2

4

6

8

10

12

14

16

18

Soap/Wateronly

Hand Sanitizeronly

Soap/Water &Hand Sanitizer

All selections

25‐34 years old

35‐44 years old

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4. What benefit of this product is of MOST VALUE to you…?

5. Considering your day-to-day activities how OFTEN would you use this product

6. Based on the product description, at what price range are you LIKELY to buy this product?

Purchasing likelihood representing only definitely buy or probably buy

0

2

4

6

8

10

12

14

16

18

Protects up to 16hours

Is a hand and bodylotion

Is a sanitizer

25‐34 years old

35‐44 years old

0

2

4

6

8

10

12

14

16

18

1‐3 times 4‐6 times 7‐9 times 10+ times

25‐34 years old

35‐44 years old

0

2

4

6

8

10

12

14

16

18

20

$4‐6.99Definitely buy

$4‐6.99Probably buy

$7‐9.99Definitely buy

$7‐9.99Probably buy

25‐34 years old

35‐44 years old

18

7. What is the highest level of education completed or the highest degree you have obtained?

8. How many persons live in your household?

9. How many of those living in your household are children?

0

2

4

6

8

10

12

14

16

Highschool orequivalent

Somecollege butno degree

Associatedegree ‐all types

Bachalor'sdegree

Master'sdegree

Doctoratedegree

25‐34 years old

35‐44 years old

0

2

4

6

8

10

12

1 2 3 4 5 or more

25‐34 years old

35‐44 years old

0

2

4

6

8

10

12

14

0 1 2 3 4 5 or more

25‐34 years old

35‐44 years old

19

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https:\\www.cia.gov\library\publications\the‐world‐factbook\geos\vm.html Coating Systems Laboratories, Inc. ‐ GermFree 24 ‐ Hand Sanitizer and Protectant. (n.d.).

Retrieved from http://www.coatingsystemslaboratories.com/products_germfree.php De Nies, Y., Pirone, J., & Santichen, K. (2009, December 06). Hand Sanitizer: Good Hygiene or

Just Hype. Retrieved from http://abcnews.go.com http://abcnews.go.com/GMA/Weekend/america‐obsessed‐hand‐sanitizer/story?id=9260788 Euromonitor. (2013, July). Beauty and Personal Care in the US. Retrieved from

www.euromonitor.com: http://www.euromonitor.com/beauty‐and‐personal‐care‐in‐the‐us/report

Federal Reserve. (2014, June 23). Selected Interest Rates (weekly) H.15. Retrieved from Board

of Governors of the Federal Reserve System: http://www.federalreserve.gov/releases/h15/current/

Forbes. (2014). Procter & Gamble. Retrieved from www.forbes.com:

http://www.forbes.com/companies/procter‐gamble/ Google Finance. (2014, June 24). Finance data listing and disclaimers. Retrieved from Google

Finance: https://www.google.com/intl/en/googlefinance/disclaimer/ PG.com Investor. (n.d.). IRWeblink. Retrieved June 5, 2014, from

http://www.pginvestor.com/GenPage.aspx?IID=4004124&GKP=208821 Passport ‐ P&G 2012 SWOT Analysis. (n.d.). . Retrieved June 5, 2014, from

http://www.euromonitor.com//medialibrary/PDF/ProcterAndGamble‐Company‐Profile‐SWOT‐Analysis.pdf

PG Annual Report ‐ 2013. (n.d.). Retrieved June 5, 2014, from

http://www.pg.com/en_US/downloads/investors/annual_reports/2013/2013_AnnualReport.pdf

P&G. (2009). Human Safety Brochure ‐ The Tradition & Science of Safe Products. Procter & Gamble. (2013). 2013 Annual Report. Procter & Gamble. (2014). Core Strengths. Retrieved from http://www.pg.com/:

http://www.pg.com/en_US/company/core_strengths.shtml Procter & Gamble. (n.d.). PG.com Home: sustainability, company, brands. Retrieved June 5,

2014, from http://www.pg.com/en_US/index.shtml

20

Procter and Gamble advertising and marketing profile. (n.d.). Procter and Gamble advertising and marketing profile. Retrieved June 10, 2014, from http://www.adbrands.net/us/pg_us.htm

The World Bank. (n.d.). Real interest rate (%). Retrieved from World Bank Data Bank:

http://data.worldbank.org/indicator/FR.INR.RINR Trefis Team. (2014). Procter & Gamble. Retrieved from http://www.trefis.com/:

http://www.trefis.com/company?hm=PG.trefis#