KISSY VIETNAM Marketing Plan May 6, 2010

2010
[MARKETING PLAN]
KISSY VIETNAM
GROUP NAME: 5IVE
Lecturer: Kieran
Tierney

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 KISSY VIETNAM Marketing Plan May 6, 2010

Table of Contents

Executive Summary..................................................................................4
I. Current Marketing Situation................................................................4
1. Introduction......................................................................................4
Members: 2. Situation Analysis.............................................................................4
Luc Anh Thu – 2.1. Macro-environment.....................................................................4
s3256188
2.2. Microenvironment:......................................................................4
Nguyen Minh Phuong – s3256173
II. SWOT Analysis...................................................................................4
Nguyen Hong Nhung – s3260830
III. Objectives.........................................................................................4
Phan Thuy Chi – s3258137
1. Financial objectives:.........................................................................4
Nguyen Duc Minh – s3258312
2. Marketing objectives:.......................................................................4
IV. Segmentation, Targeting and Positioning.........................................4
1. Segmentation....................................................................................4
1.1. Geographic..................................................................................4
1.2. Demographic...............................................................................4
1.3. Behavioral...................................................................................4
2. Evaluating.........................................................................................4
3. Positioning........................................................................................4
V. Marketing Mix Strategies....................................................................4
1. Product strategy................................................................................4
2. Pricing Strategy................................................................................4
3. Place/Distribution Strategy...............................................................4
3.1. Distribution....................................................................................4
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3.2. Location.........................................................................................4
3.2.1. Ho Chi Minh City.....................................................................4
3.2.2. Da Nang....................................................................................4
4. Promotion Strategy...........................................................................4
4.1. Advertising:.................................................................................4
4.2. Public relations:...........................................................................4
4.3. Direct marketing:........................................................................4
4.4. Sales promotion...........................................................................4
VI. Action program.................................................................................4
VII. Control..............................................................................................4
VIII.References........................................................................................4
IX. Appendix..........................................................................................4
Appendix

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KISSY VIETNAM Marketing Plan May 6, 2010

Executive Summary

Established in 2001, Kissy Vietnam is now recognized as one of the most well-known brands
of high-quality mask in Vietnam. Over the last nine years, the company has continuously
improved the product and service quality to maintain the position as the leading brand in its
industry. As economic growth gives rise to new enterprises, however, Kissy is now faced with
increasingly tough competition, thus posing major threats to its development. It is, therefore,
required that Kissy's management take immediate action to retain control of the situation. With a
view to accomplish this goal, a marketing plan containing solutions to consolidate the strengths
and surmount the shortcomings of Kissy is to be designed so as to gain the company an
advantage in the brutally and increasingly competitive environment of Vietnam. A brief
description of this marketing plan is as follows:
First, a detailed analysis of the company's current situation is to be presented for the purpose
of sketching out the overall picture, helping readers to acquire a deep understanding of the
factors that contribute to the strengths and weaknesses as well as opportunities and threats of the
company. Based on this analysis, desired objectives will be listed out, serving as a guideline to
the next part of the marketing plan, in which appropriate strategies are selected in order to
achieve the goals that are previously stated. Finally, information on implementation and project
monitoring will be provided.

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I. Current Marketing Situation

1. Introduction
Kissy Vietnam is the manufacturer and distributor of high-quality active-fiber mask – the
first product to be issued Vietnam’s Exclusive Invention Certificate. Kissy has been activated
on the market for nine years, distributed in 36 cities and provinces. Offering both health
protection and fashion, Kissy is the preferred brand by Vietnamese customers.
Research has shown that Kissy mask possesses outstanding features that help protect
customers’ health. Made from active-fiber, it prevents lungs from micron-sized dust,
exhausts and toxic substances such as SO2, CO, H2S, etc. Unlike active coal-embedded
fabric, masks made from active fiber can be reused by appropriately washing to omit dust
and exhausts absorbed. Kissy mask protects your skin from UV rays during summer and
keeps your face and ears warm in winter. Furthermore, Kissy mask is well-designed,
convenient and fashionable.
Kissy mask has been manufactured in countries such as Norway, Japan with different
sizes and colors to suit diverse customer needs and wants.

2. Situation Analysis
2.1. Macro-environment
2.1.1.Economic
According to the General Statistic Offices (GSO) (2010), the GDP growth of Vietnam for
the first three months of 2010 has increased by 5.83% compared to the same period in 2009,
indicating that the economy is still growing moderately. These evidences show that
Vietnamese economy is gradually recovering after the global crisis. Moreover, Folkmanis
(2010) reported that Vietnamese inflation rate is at a very high level. 2010 saw the most
drastic increase in consumer prices, from 8.46% in February to 9.46% in March. As this
causes price rising, customers tend to spend less and consider carefully before purchasing
products.

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2.1.2.Demographic
According to Information Technology Associates (ITA) (2010), Vietnamese population
up to July 2009 is 88,576,758 and female median age is at 28.5 years old. Therefore, Kissy
focuses on young female aged 20-30. Also, GSO (2010) points out that the number of
schools and universities have increased quite fast in recent years (from 178 schools in 2000
to 393 in 2008). Throughout education system helps increase people’s knowledge of health,
thus leads to increasing demand for health protection.

2.1.3.Technology:
Vietnamese textile and garment industry has developed strongly through Government
support and foreign investments (‘Vietnam Saigon Textile & Garment Industry Expo’ 2010).
This positive movement allows garment companies to produce and distribute products to
customers. Besides, taking advantage of the growth of mass media and internet makes it
easier to keep contact with customers.

2.2. Microenvironment:
2.2.1.Competition:
Kissy’s biggest competitors are Vinamask (appeared from 2009) and Tomato (appeared
from 2010). Although both brands are new to mask market, they are redoubtable competitors
as they offer the same products as Kissy’s but with lower prices, which lowers Kissy’s
market share, for instance, while the average price of Kissy mask is 35,000VND, that of
Tomato is only about 32,000VND. Beside those direct competitors, China is another
competitive rival which provides cheaper masks with various styles.

2.2.2.Intermediaries:
Kissy masks are widely sold at clinic, private hospitals, clothes shops, cosmetic shops
and supermarkets. Kissy shops can be easily found in 36 cities in Vietnam:
• Northern Vietnam: Hanoi, Hai Phong, Nam Dinh, Quang Ninh, Vinh Phuc, Son La, Thai
Nguyen, Bac Ninh, Phu Tho.
• Southern Vietnam: Ho Chi Minh City, Da Nang.
• Middle Vietnam: Vinh, Thanh Hoa, Nghe An, Ha Tinh.

1.1.1.Suppliers:
Raw materials (chemical cotton and fiber) are mainly supplied by VINATEX, a
prestigious garment entrepreneur.

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I. SWOT Analysis

Strengths Weaknesses

Internal factors (IFAS) - Tested at the Pasteur - Higher prices than other
Institute and Directorate brands (Tomato, Vinamask).
for Standards and Quality. - No products for people with
- Financially supported by sensitive skin.
ASBF (Norway). -Products are not applicable to
- Extensive distribution all types of weathers.
network in 36 cities and
provinces.
- Strong advertisement
(Shopping TV, VCTV1,
newspaper).

External factors

(EFAS)

Opportunities SO Strategies WO Strategies

- Higher-income, more white-collar
population.
- Advanced technology that allows
for better design to help protect
health better.
- Strongly promote - Improve production
outstanding features of efficiency to reduce price.
product.
- Develop new product types to
- Establish partnerships meet different customer needs.
with resellers.
- Diversify product line.

Threats ST Strategies WT Strategies

- Inflation - Keep prices at a -Reduce price to attract more
reasonable level. customers
- Tough competition (products with
lower prices). - Continuously improve -Offer more features and styles
product quality and that are suitable with young
- Products easy to be copied.
features. female
- Much cheaper Chinese masks
- Position brand through -Use new technology (natural
appropriate for changeable teenagers

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fashion trend. service, people, channel, materials) for people with

and image differentiation. sensitive skin.

II. Objectives
1. Financial objectives:
Kissy is trying to increase the annual sales from 8 to 9 billion VND by the end of May 2011.
Besides, the company is concerned about reducing the cost of production to lower the price from
35,000 VND - 45,000VND to 25,000VND - 30,000VND by selling by-product.

2. Marketing objectives:
Kissy’ current market share is 8% and we aims to increase to 10% by the end of May 2011.
From 2011 we will advertise our products in HCMC and DaNang to raise customers’ awareness
about our brand.

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I. Segmentation, Targeting and Positioning

1. Segmentation
Kissy offers health protection and fashionable styles. Based on three basic segmentation
variables: Geographic, Demographic and Behavioral, Kissy hopes to deliver superior value to
consumers.
1.1. Geographic
Density: Kissy finds that urban area now needs protection most due to serious air
pollution problems.
1.2. Demographic
Age: 20-30. Female in this age look for health protection and well-designed masks.
Gender: Women who want fashionable design and convenience.
Income: people who earn from 5 million/month to 10 million/month. It is neither too low
nor too high income level which leads to the demand of health protection as they cannot
afford convenient cars.
Education: Vietnamese citizens nowadays are more educated. As a result, it raises their
awareness of environment pollution and health-protection.
1.3. Behavioral
Occasions: There are two main seasons to increase sales. Firstly, summer in tropical
countries is always very hot that brings UV which is harmful to people’s health and skin.
Secondly, winter’s low humidity dries up women’ sensitive skin and lips so they will get
cold easily without coverage.

2. Evaluating
Segment size and growth: According to Van (2009), the level of air pollution in big
cities in Vietnam is getting worse; there has been an increase of 2.2 times of lead and 1.4
times of benzene in the air, leading to increasing number of respiratory diseases. Besides,
main transportation mean in urban areas is motorbike so Kissy can take it promised market.
Segment structural attractiveness: we have indirect competitor from China offering
cheaper price and 2 direct rivals: Vinamask and Tomato. Vinamask is losing their share due
to poor designs and unreasonable price (35,000VND to 40,000VND) but Tomato is gaining
share with cheaper price (from 32,000VND) and various styles

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Company objectives and resources: With abundant resources, Kissy can achieve long-
run objectives that contain improving the efficiency to reduce production cost for
competitive prices.
Based on those variables, Kissy decides to apply Differentiated Marketing strategy since
we provide 3 main product lines for men, women and kids. Furthermore, we now develop
new products called rainy masks for rainy days to avoid getting wet and couple masks for
young couples or close friends.

3. Positioning
Possible competitive advantages: Though Kissy’s biggest competitor is China because
they have large market share with low-priced products, just some companies can provide safe
and reliable masks such as Vinamask or Tomato, but with higher price. Fortunately, we have
a good distribution network with advertisements in many clothes shops whereas others do
not. Besides, Vinamask entered the market in 2009 and Tomato has just joined early this year
while Kissy has stayed for nine years.

Choosing the right competitive advantages: since Vietnamese nowadays care more about
health protection and their demands for high quality products have increased, Kissy
understands this trend and we have certifications for safe quality masks (issued by National
Office of Industrial Property). The products ensure the highest standard of health protection,
plus fashionable design and variable product lines.

Overall positioning strategy: As to gain a higher market share in the market, Kissy is
offering products with comparable quality at a lower price compared to other competitors,
called “More for less” strategy. A new technology will be applied to produce a new kind of
mask for allergic people and for rainy days.

 Positioning map:

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I. Marketing Mix Strategies

1. Product strategy
Kissy Vietnam provides consumers with active fabric masks and focuses on delivering
additional services to retain loyal customers:

Levels of products Details of current products Product improvement

Core product Health protection Health protection for everyone,
including allergic people.
Actual product • Brand name: Kissy Vietnam Develop new types of mask:
• Features: air filtering to prevent air
• Using natural materials to produce
pollution such as dust, toxic gas,
masks people who have sensitive
exhausts.
facial skin.
• Design: fashionable style with 3
• Masks that can be used in rainy
layers, including the outermost part
days.
make of cotton or silk, the middle part
• Masks for couples.
made of active fiber protecting the
lung from polluted air, the innermost
net creating airiness and protecting
face; high-quality fabric layer; durable
metal rim at nose
• Packaging: eye-catching paper box
with brand name and product
information.
• Quality level: certificated by Pasteur
Institute and Vietnamese General
department of measurement.
Augmented • After-sale services: company address, • Develop customer consultancy:
product website, email address and hotline are Online health advisor.
printed on the label for customer • Return policy: defective products
feedback. can be returned and exchanged for

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• Installation: specific guidance on how another after being carefully

to wash the masks properly. considered if the mistakes belong
• Delivery: delivery service offered to to the producers.
retailers.

Branding Strategy:
Product
category

(Kotler et al 2009)
Line extension would be the appropriate branding strategy for Kissy. New forms of masks
will be introduced to attract more customers. Two remarkable types are masks for customers
with skin allergies and rainy-day masks. We understand that people, especially young women
whose skin is sensitive, pay special attention to face protection. As some chemicals contained in
current masks may cause allergies, thus unable to meet special needs, we will apply new
technology to offer them particular type of mask which is produced from natural materials.
Masks for rainy days will be produced from water-resistant material to protect users’ face from
getting wet.

1. Pricing Strategy

From 2001 Kissy Vietnam has offered high-price masks (35,000 – 40,000 VND/product)
accordingly with its high-quality products. In the future, we will reduce price for our current
product as well as develop new product features to increase demand.

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Product-line pricing: Kissy Vietnam will offer both ordinary active fabric masks and
especially designed masks for special demands. Since people with sensitive skin have difficulties
using masks despite their demands to protect their face when going out, we will introduce masks
that are produced from natural materials, which will not cause allergies. Besides, Vietnam is a
tropical country with rainy weather, so the special kind of mask to adapt to this situation is of
great concern. New masks will be offered at lower-than-average price (about
30,000VND/product) to gain market share.

By-product pricing: Fiber waste after the producing progress will be sold to pillow
companies or toy manufacturers, the money gained from which will be used to buy new
materials. This will help reduce the production cost so that the firm could succeed in reducing
price stated above.

Product bundle pricing: As we target young female customers at the age of 20-30, we
also offer couple-mask package. For customers whose want to buy a set of couple-mask, the
price will be 55,000VND/couple compared with buying 2 separate masks.

2. Place/Distribution Strategy
2.1. Distribution
As a low-priced product that can be frequently purchased with little planning, comparison
or effort from customers, Kissy mask falls into the convenience product category (Kotler et al
2009). Taking these characteristics into consideration, the most suitable distribution strategy for
Kissy mask is intensive distribution. Using an administered vertical marketing system, we want
to make this product available in a large number of outlets in order to provide customers with
maximum convenience. In accordance with this objective, Kissy masks will be sold through
retail stores and shops as this enables us to increase brand exposure and demands less financial
efforts (costs of setting up shops, delivering goods, etc.) than does selling directly from
manufacturers.

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2.2. Location
As mentioned above, one of our objectives is to expand Kissy’s market to Ho Chi Minh
City and Da Nang. With a view to achieve this goal, we plan to extend our distribution network
in these cities by increasing by five outlets each (estimated figure).

2.2.1. Ho Chi Minh City

To make our products available as much as possible to customers, we are going to
establish partnerships with Big C, Fivimart, Citimart, Maximark and Metro, thus strongly
promote the sales of Kissy masks at their main stores.

2.2.2. Da Nang

As the first step to build our market in Da Nang, we plan to raise brand awareness from
customers by distributing our product in supermarkets and shops that are situated at locations
with high population density that are easy to find and access, specifically Da Nang Supermarket,
Co-opmart, Big C, Metro and Nhat Linh supermarket.

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3. Promotion Strategy
After setting our objectives and targeted marketing, Kissy uses Push strategy to promote
our products.
3.1. Advertising:
3.1.1.Television:
Kissy products have been introduced on some local channels like Hanoi TV or HTV from
May 2009. In the future, our company would like to move on to other specialized channels such
as StyleTV or TVShopping. The reason for this decision is mostly based on our research about
the company’s target market. Since our main consumers are retailers and wholesalers, they pay
most of their time watching business channels to find more information about the most updated
news of the market. As a result, the most popular business channels StyleTV and TVShopping
would be the best option as they mainly focus on introducing new products. Furthermore, the
cost for advertising is quite cheap as these channels do not include entertainment programs so
our advertisements will be introduced more than on HanoiTV or HTV. The time for each clip is
about 1 minute and we will remake a new clip once per 2 months to ensure we can attract
consumers’ attention and keep them aware of our products.

3.1.2.Newspapers:
Because Kissy products are useful for everyone, we would like to put our advertisement
on the most popular newspapers so that people can know about us easily. The ideal newspapers
are Tiep Thi & Gia Dinh, Nguoi Tieu Dung, Tuoi Tre as they have a large number of readers and
are widely distributed and suitable for our targeted customers with income from 5 to 7 million
VND/month. Another reason for choosing these newspapers is the low-cost-advertising, which
means that we can advertise for the whole year.

3.1.3.Internet:
Nowadays internet and mass media dominate our life and we know that it is necessary to
advertise our products to the consumers via the internet. By establishing our webpage
www.kissyvietnam.com, more and more customers know more about us and we could update the
news about the company and the products easily. From 2011, we will set the contract between
our company and some popular websites like Zing, Channel14 to present our brand name on the
border of the webpage. We choose this type of advertising because these websites have a huge
amount of viewers per day, so it is easy to attract their attention. We have researched about the

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cost on Zing News (see appendix) and decided to use right banner with the size of 300x100
pixels (RB5).

3.2. Public relations:

In 2006 Kissy joint with Hanoi Medical University and other volunteer groups to organize a
program about medical care counseling and give gifts for poor children in Hanoi. In 2011 we will keep
promoting helpful activities for people’s health and environment.

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3.3. Direct marketing:

In 2010 our company will develop a new catalog which contains all types of our product
including masks for allergic people and for rainy days. The catalog will be available in many big
clothes shops so that the consumers are able to keep track of our activity and have more time to
research our products.

3.4. Sales promotion

In terms of increasing short-term sales, Kissy offers three effective tools: Price-Packs,
Premium and Games. Along with our objective of reducing price, Price-Packs will reflect the
average price reduction from 35,000VND to 25,000VND. Moreover, a small gift, a powder pad
will be attached to each product since our targeted customer is women. Finally, to get
information about potential market, we offer different codes for different products that can help
consumers win some prizes with the lucky draw each month.

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KISSY VIETNAM Marketing Plan May 6, 2010

I. Action program

Action Responsibility Starting time Estimated finance

Product:

-New material from nature -Manufacturing -May 2010 -about $4/kg

that is smoother and safer for
allergic skin like organic
-Purchasing

cotton.
-Advertising
-couple masks: to be sold on department
Valentine’s Day and
Christmas. - from 1 to 25 -about 16,000,000VND
December 2010 and
from 7 to 15
February 2011

Price:

-Waste fabric to be sold to -Purchasing -May 2010 6,000VND/kg of

Kenzo pillow company garment waste sold

-Improving technology in
order to be able to produce
1,300,000,000VND
raw materials. -Manufacturing
cost of new
producing techniques.
Place/Distribution:

Open 5 Kissy kiosks in -Financing -January 2011 Slot cost at

supermarkets in HCMC 1,000,000VND/m2
-Accounting
and Da Nang.
Promotion:

-Advertising on -R&D -May 2010 -Advertising cost at

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KISSY VIETNAM Marketing Plan May 6, 2010

TV/magazines/newspaper -Financing 20,000,000VND.

-Producing 1,000 catalogs -Accounting -Producing cost at

5,000,000VND.

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KISSY VIETNAM Marketing Plan May 6, 2010

II. Control
An essential element of the marketing plan, control serves as an effective tool to evaluate the
efficiency of the plan and monitor its progress. Within the scope of this project, we are going to
use the following approaches to control:
Sales analysis:
With sales as the primary criterion to assess the effectiveness of the marketing strategy, the
company will build a detailed plan in which monthly and quarterly sales goals are set (in both
figures and increase percentage). This information will then be accumulated respectively at
retailers throughout the distribution network. In order to measure the results against standards,
these statistics can be broken down into categories (regions, products, customer types, etc.),
compared with figures from previous months and quarters or, if possible, compared with
competitors. From this analysis, management can draw conclusions regarding the performance of
the company and thus, suitable solutions to improve the level of sales and profitability; for
example, what type of product to develop or phased out, promotion programs to attract
customers during low-sale hours, and so on.
Customer satisfaction:
Along with sales analysis, control through customer feedback will be carried out. In order to
measure the level of satisfaction among consumers, the company can conduct online and
interviews in the form of questionnaires (delivered through intermediaries). Besides, customer
feedback (complaints and suggestions) will be collected both on the company's website and at
points of sale. Using this information, management can gain a thorough understanding of
customer needs and wants, product quality, based on which necessary actions will be taken to
improve customer satisfaction.

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III. References

• Folkmanis, J 2010, ‘HSBC warns Vietnam’s inflation is ‘worryingly high’ (update 1)’,
Business Week, Bloomberg, viewed 15 April 2010,
< http://www.businessweek.com/news/2010-03-25/hsbc-warns-vietnam-s-inflation-is-
worryingly-high-update1-.html>
• General Statistics Office of Vietnam (GSO) 2010, Monthly statistical information,
Statistics Documentation Centre – GSO, Vietnam, viewed 15 April 2010,
< http://www.gso.gov.vn/default.aspx?tabid=622&ItemID=9615>
• Information Technology Associates (ITA) 2010, ‘Vietnam People 2010’, Theodora,
viewed 15 April 2010,
< http://www.theodora.com/wfbcurrent/vietnam/vietnam_people.html>
• Kissy Vietnam n.d., ‘About us’, Kissy Vietnam, viewed 15 April 2010,
<http://kissyvietnam.vietnamb2b.com/about.html>
• Kotler, P, Amstrong, G, Ang, S, Leong, S, Tan, C & Hon-Ming, O 2009, Principles of
Marketing: A global perspective, 12th edn, Pearson Education South Asia, Singapore.
• Van, N 2009, ‘Air pollution in HCMC getting worse”, Saigon Times Daily, viewed 15
April 2010, <http://english.thesaigontimes.vn/Home/business/investment/5994>
• ‘Vietnam Saigon Textile & Garment Industry Expo’ 2010, Vietnamscout, viewed 15
April 2010,
< http://vietnamscout.com/textile/index.php?view=details&id=3%3Avietnam-saigon-
textile-a-garment-industry-expo&option=com_eventlist&Itemid=75>

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I. Appendix