Marketing Planning Essay Example

have improved customers' lives. Brands like Sunlight, CIFS, Nor, and Lifebuoy have achieved success in Vietnam, exemplifying Milliner's ability to produce exceptional products.

Furthermore, leadership vision and action are crucial determinants of Milliner's capacity for planning future marketing activities.

Strong leadership vision is vital for ensuring a promising future for the company. Milliner recognizes the global challenges we face, such as climate change, as they focus on expanding their business. They are committed to reducing their environmental impact and increasing their positive social influence. With a workforce of over 1600 carefully chosen employees, Milliner offers numerous development opportunities and rewards creativity to attract and retain top talent. This enables them to innovate in creating groundbreaking products while considering the environment.

By analyzing all relevant aspects, it is evident that Milliner is well-equipped to develop their products and surpass their competitors. They employ auditing and analysis techniques to assess external factors affecting marketing planning in Vietnam, allowing them to identify problem areas, opportunities, and make informed decisions for their next steps in the country. This task involves examining three techniques: product life cycle (PL), Porter Five Forces, and BCC Matrix.

The product life cycle analysis will focus on two brands: Lifebuoy soap and Wall's Ice cream. Lifebuoy Royal Disinfectant Soap, one of Milliner's oldest brands, was launched in 1894 as an affordable new product in the UK.Lifebuoy, currently at a 15% market share (source: wintertime's.Economists.Initiatives.Com), is in the decline stage despite its long presence in the market. In contrast, Wall's Ice Cream, owned by Milliner, had a significant presence in Vietnam with a 52% market share and â?5 billion annual turnover in 1997 (source: www.Studded.Com). However, due to economic

and situational factors not aligning with its development, Milliner transferred ownership of Wall's Ice Cream to Kink Do company in 2004. After five years of absence, Wall's Ice Cream made a comeback in 2009 and expanded its distribution network to include 130 distributors and 4,000 retail outlets (source: whom.Joyce.Com). It is now an international brand and one of Milliner's most profitable units (source: www.Commercials.Logout.Com). Lipton ice tea aims to make a significant impact on the global beverages market by providing various health benefits such as improving vascular function, combating fatigue, reducing cholesterol levels, and increasing vitality. Lipton dominates both leaf and ready-to-drink tea globally with a market share almost three times larger than its closest competitor.Lipton ice tea is currently in the Maturity stage. In the BCC Matrix, Lifebuoy soap falls under the Question Mark category with a low market share value of 15% and a high market growth rate of 85.3%. With multiple soap varieties now available in the market, there is potential for Lifebuoy to succeed by offering intangible value to customers. The company is investing in this product to achieve cash cow and star status in the BCC Matrix. Wall's Ice Cream has made an unexpected return to the Vietnam market and has seen great success. They have a wide distribution network consisting of 130 distributors and 4,000 retail outlets. This allows them to meet customer demands effectively in Vietnam. Additionally, the ice cream market in Vietnam presents excellent opportunities for Wall to expand its market as it is projected to reach $125 million this year according to Remuneration data. With a high market share and significant growth, Wall can be considered

a Cash Cow within this industry. Lipton Ice tea holds a substantial global market share as it is the leading brand of tea worldwide, capturing half of the global market (whom.Strategy.Van). Mr. Kumara Yokes, Head of Marketing at NAG Shrink Company, commented that from 2004-2010, there were limited brands in Vietnam's beverage market which created ample opportunities for green tea products like Lipton Ice tea thriveThe market for green tea appeared to be saturated with the introduction of numerous new products. However, this market continues to thrive and is seen as a potential future opportunity. Therefore, Lipton Ice tea can be considered a Cash Cow. When analyzing the Porter Five Forces for these brands, it becomes apparent that Lifebuoy soap offers various health benefits at competitive prices. Nevertheless, it faces competition from rivals who not only provide health benefits but also offer intangible value to customers. Moreover, Wall's ice cream competes indirectly with cafe shops and specialty ice cream shops like Baskin Robbins. Furthermore, Lipton faces challenges due to low switching costs and young customers' preference for enjoying ice cream outside with friends rather than at home with popsicles. Competitors such as Nestle and HTTP have stronger marketing strategies which help establish their brand image in customers' minds. If Lipton fails to meet customer demands while keeping switching costs low, they may easily switch to competitors like Nestle or HTTP. Additionally, supplier bargaining emphasizes the significance of accessible hygiene and health solutions for customers on the production line. The choice of supplier can impact the quality of Lifebuoy's products, especially considering the high risk and cost associated with changing suppliers.There is a concern that suppliers

may neglect Lifebuoy's needs and directly sell their own products to consumers. If Wall changes suppliers, it could lead to uncertainty about the quality of the new one, potentially resulting in customer loss if the quality is inferior. Similar to Lifebuoy, Wall also faces risks and high switching costs as suppliers may overlook their interests. Additionally, Milliner has decided to exclusively use tea leaves from Europe for producing Lipton tea in order to compete with Nestle and HTTP. This decision comes with high risks and switching costs as it limits their ability to switch to other suppliers. Moreover, the supplier has the capability to produce and directly sell their own tea products, which sets them apart from competitors like Lipton by offering affordable prices that safeguard customer health. The market growth rate in this area is noteworthy at 85.03% according to www.Studded.Com, but competition is intense with rivals such as Kiddo and indirect competitors like cafe shops and specialty ice cream shops in Methods Wall. Despite this competition, there are still opportunities for Wall to capture the market. In Vietnam, Meditation Tea faces competition from companies like Nested and O Degree.Lipton, despite being in the soft drink industry with a reputable status, still faces challenges from new competitors. These challenges include the need for financial resources, production capabilities, human resources, and a strong distribution network. Government barriers in the soap industry also present significant hurdles for new firms. Lotto, in order to successfully enter and compete with Lifebuoy in this area, must have finance, an extensive distribution network, innovative flavors, and a reasonable pricing strategy.

Wall's and Kiddo are well-known brands with a large base of

loyal customers. This makes it difficult for rivals like them to overcome high barriers. In the tea market, for I Lowlife to compete with Milliner they must have better flavor, higher quality tea leaves, and effective promotion strategies similar to Milliner's. Achieving this requires significant financial resources for research, development, and manufacturing. Accessing distribution channels is also challenging as building good relationships with consumers proved difficult for O Degree tea and Lipton tea.

Furthermore, instant sanitized gel alternatives are not very popular among customers. However substitute products like cocktails,yogurt or soft drinks that offer similar availability and cost pose higher competition to Wall's.
Lipton Tea is currently facing competition from various substitute products such as soft drinks from Pepsi and Coca-Cola, as well as energized water. To assess the external factors impacting their marketing planning in Vietnam, Milliner needs to conduct a SWOT analysis. This analysis will help them develop strategies, capitalize on strengths, and protect against threats.

Milliner has strong financial resources that allow them to expand their market presence in almost 190 countries worldwide. They also benefit from a network of 270 manufacturing sites globally, which gives them economies of scale and a competitive advantage. Additionally, Milliner owns well-known brand names in the fast-moving consumer goods sector like Surf, Dove, Ponds, Sunlit, Nor, Wall's ice cream, P/S, Close up etc., known for their affordability and quality.

The company fosters a dynamic work environment that encourages employees and intellectuals to take responsibility for achieving overall objectives. Their effective talent attraction policies enable them to gather more ideas for company development. Moreover, Milliner leverages modern technology inherited from its global operations to deliver fast and remarkably effective results.

Weaknesses:

One weakness of Milliner Vietnam is its lack of direct connection with final consumers, as it relies on retailers and wholesalers. Additionally, the company does not apply certain technologies due to their high cost. Importing machines from abroad poses a challenge for taking advantage of Vietnam's abundant labor resources and capacity. Furthermore, Milliner's promotional strategy may not be suitable for Asian culture since it is a company with European roots. Out of over 1600 product brands, only 400 account for over 90% of total sales, making the remaining brands unprofitable and considered a weakness.

However, there are several opportunities in the market for Milliner. The domestic market in Vietnam has undergone significant changes recently, particularly in wholesale, retail, and goods flow. The stable political situation in Vietnam also provides more opportunities for business development. Moreover, Vietnam offers abundant and affordable human resources that help reduce costs. Additionally, Vietnam's religious freedom allows for easier distribution of promotional products compared to other Asian countries. The country's young population structure and popular extended family model are advantageous for Milliner as well. Lastly, the fast-moving consumer goods market in Vietnam presents a potential opportunity for high market growth.

However, Milliner is facing threats from strong competitors like Nestle and P, who have their own famous brands with large market shares and millions of customers. Furthermore, the fast-moving consumer goods market has many substitute products that pose a threat to the company. Foreign investors also face disadvantages under commercial law in Vietnam, particularly regarding tariff policies and high taxes on luxury goods. In addition, numerous new companies choose to invest in the market when supply exceeds demand, resulting in fierce competition

for Milliner.

One primary barrier in marketing planning that needs assessment is the confusion between marketing tactics and strategy. Even managers in large companies who deal with these concepts daily can easily become confused. It is possible that Milliner's managers are also facing this problem. This confusion arises because the content of tactics and strategy is extensive, leading to the assumption that they are interchangeable.

There are common reasons for this confusion. Firstly, managers may mistakenly use them interchangeably without understanding their purposes, such as confusing long-term and short-term aspects when making plans. Additionally, they may erroneously believe that missing one component does not prevent them from achieving their targets.

To address this issue, Milliner's managers need to ensure a clear understanding of tactics and strategies.Strategy typically refers to long-term plans (3-5 years), while tactics refer to short-term plans (1-2 years). Moreover, it is crucial for Milliner to develop effective strategies and tactics in order to achieve the company's goals. To create successful tactics, they need to answer questions like "how" a task will be accomplished, who will carry it out, and when it will be done. On the other hand, developing a good strategy requires answering the question of "what" needs to be done and what should not be done. In addition, communicating the significance of implementing strategies and tactics to employees is important for the company. This understanding enables employees to provide relevant information and contribute their own ideas towards developing effective strategies and tactics for Milliner.

One common barrier arises from confusing the marketing function with the concept itself. Some firms mistakenly believe that creating a marketing department alone is enough to adopt a marketing orientation.

However, for Milliner to achieve customer satisfaction, changes must also be made in their operational methods. Furthermore, there are often misconceptions about the true definition of marketing. Without focusing on customer satisfaction across the entire organization, debates over where to allocate marketing efforts become futile. Even if top management acknowledges the importance of considering customers at Milliner, mistakes can still happen.
The company must address customer complaints with reasonable explanations to maintain satisfaction. Integrating quality throughout all processes will deliver true value to the customer. Ineffective advertising that does not accurately reflect product quality needs improvement or it risks losing customers.

It is common for a company entering a new market to lack knowledge and skills. Milliner has faced challenges understanding customer behavior and market segmentation. These concepts may be difficult to grasp at a cognitive level. Milliner recognizes the importance of knowledgeable and skilled staff who can meet customer demands. Without understanding marketing tools, developing strategies based on sustainable competitive advantage is unlikely.

To overcome this barrier, Milliner must ensure individuals responsible for marketing possess necessary knowledge and skills for their roles. It is crucial they comprehend and know how to effectively use important marketing tools.

Marketing plans can be hindered by a lack of data or information and inappropriate systems.If there is no market survey, the marketing team must depend on guesswork to establish the most effective strategy for the intended market.