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Executive Summary

Otsuka Pharmaceutical Co., Ltd. is a Japan based firm that was


incorporated in 1964. Having a history of 50 years of operating
business, Otsuka Pharmaceutical has gained reputation in the
field of manufacturing pharmaceutical and nutritious products.
Based on its business philosophy: “Otsuka-people creating new
products for better health worldwide”, the company has always
been striking to coming up with new products.

POCARI SWEAT is a health drink that contains a balance of ions


(electrolytes) that resembles the natural fluid balance in the
human body. Quickly and easily replenishes the water and ions
that your body needs, and quenches every part of you.

Otsuka Thang Nutrition is a Vietnam based subsidiary of Otsuka


Pharmaceutical. Setting up its base in Ho Chi Minh city, Otsuka
Thang plays an active role as a distributor of Pocari Sweat, an
ion supply drink that is preferred in not only Japan but also other
countries. With advantages, Pocari Sweat proves to be beneficial to people’ health and
beauty. In Vietnam, Pocari is available in Vietnamese supermarkets.

Although the bottled water market in Vietnam is maturing, the functional water
category — and more specifically the ion supply water category — is still growing.
However, many Vietnamese potential consumers are lack of awareness of Pocari Sweat
and its benefits. Therefore, the primary marketing objective is to raise Vietnamese
customers awareness of this product and thereby increasing the sales of Pocari Sweat
in Vietnam by 40%, achieving the net profit of 20%.

We will target teenagers, adults (those who play sports or do heavy works), athletes,
and the health conscious.

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Situation Analysis
Industry Analysis
With a forecasted annual growth rate of 6% to 2020, the beverage industry in Vietnam
is among the highest growth fast-moving consumer goods industries. Beverage
consumption is estimated to reach 81.6 billion litres in 2016 with an outlook to reach
109 billion litres in 2020. Vietnamese consumers are shifting towards consumption of
beverages with higher value, creating gaps for penetration to upperclass beverage
segments. Though both local and foreign players have attempted to act in response to
this shift, overseas companies are currently at edge due to the favourability of using
international brands of Vietnamese consumers.

Besides an improvement in demographic profile, it should be noted that Vietnamese


consumers are the most health-conscious in Southeast Asia, calling for manufacturers
to start rethinking market offerings which calibrate towards healthier product portfolio
such as fruit juices or herbal teas. Based on the analysis, Otsuka Thang Nutrition can
take advantage of this health-conscious trend and promote the ion supply drink –
POCARI SWEAT.

Competitive Analysis
Direct competitors:

1. 7UP Revive from PEPSICO: Containing Electrolytes and vitamins B3, B6, B12,
7UP Revive ISOTONIC drink refreshes and replaces the fluids your body needs.
 7UP Revive comes inconvenient packs: Pet 500ml, Pet 390 ml, Can 330ml
 New flavor – Salted Lemon is now available to better quench your thirst,
especially during hot days!
2. ICY Salty Lemonade from Vinamilk with these features:
 Made from fresh water
 Sodium Ion helps balance electrolytes
 Natural delicious taste, good for health

Indirect competitors:

1. Fine Sports Drink Powder from Fine Japan Vietnam


2. C2 Green Tea from Tan Hiep Phat
3. ‘Zero Degree’ green tea
4. Aquafina high-quality pure-water
5. Aquarius from Coca-Cola
6. Others products in Vietnam beverage products.

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Despite the strong competition, we believe that Porica Sweat can create a relative
brand image and gain recognition among the target customers. The brand offers strong
points of differentiation with a formula of isotonic water that is similar to your body
fluid, with no carbonation, no caffeine, no preservatives and a small amount of sugar.
According to a study conducted by the Kyoto Prefectural University of Medicine, the
body absorbs Pocari 2.2 times faster than water. In addition, a survey conducted by
Emsley Corporation, Japan's largest medical professional website, found that out of
1000 doctors surveyed in Japan, 90% recommends Pocari Sweat. With other strategic
assets, Otsuka is confident that it can establish a competitive advantage that will allow
Porica Sweat to grow in the Vietnamese market.

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Customer Analysis and Market Segmentation
Segment Needs and Corresponding Features/Benefits of Porica Sweat

Targeted Segment Customer Need Corresponding


Features/Benefits
Athletes  Hydration and  Electrolytes and
replenishment of carbohydrates
essential minerals (after  No caffeine
training)
 Avoid harmful chemicals
and additives, doping
Health conscious  Maintain optimum  Electrolytes and
weight carbohydrates
 Optimize nutrition levels  All natural ingredients
 Avoid harmful chemicals  No caffeine, no
and additives preservatives
 Desire to consume a  Help to recover from mild
tastier beverage than symptoms and to relieve
water after sickness, e.g. fever,
flu, diarrhea
Teenagers and Adults  Desire to consume a  Electrolytes and
tastier beverage than carbohydrates
water  All natural ingredients
 Hydration and  No caffeine, no
replenishment of preservatives
essential minerals (after  Help to recover from mild
working, studying, symptoms and to relieve
exercising) after sickness, e.g. fever,
flu, diarrhea

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SWOT Analysis

Strengths Weaknesses
Superior quality Lack of brand awareness
Alternative usages Lack of awareness of Pocari Sweat’s
International branded benefits
Modern production lines and plants Price
Expertise in products good for health

Opportunities Threats
Market growths Limited shelf space
Health trends Not in the top-of-choice brands in
Technology advances customers’ mind.

Strengths

Porica Sweat can rely on the following important strengths:

1. Superior quality: Pocari Sweat boasts a formula that is similar to human body
fluid. It is all natural with no carbonation, no caffeine, no colorings, no
preservatives and a small amount of sugar, since the human body also contains
sugar. Pocari Sweat supplements consumers with water and essential Ions such
as Na+, K+, Mg2+, Cl-, Ca2+, helping the body absorb quickly, regenerate energy
and vitality right from inside. In addition, 90% of the Japanese doctors who is
surveyed recommend Pocari Sweat.
2. Alternative usages: Pocari Sweat can be consumed anywhere and anytime,
especially in these situations:
 Before sleeping and after waking up
 Office working
 Sunstroke
 When travelling in cars, buses, planes.
 Hot weather
 Fevers, diarrhea, dengue
 During and After consuming alcohol.
3. Otsuka is a leading in the field of manufacturing pharmaceutical and nutritious
products in Japan and has 194 plants with modern production lines and 48
research institutions around the world. It has succeeded in many markets,
including Japan, South Korea and Indonesia. In addition, the managers and the
marketing staff is highly experienced in developing and promoting the product.

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Weaknesses

1. Porica Sweat has just entered Vietnamese market for a few years. Vietnamese
consumers are lack of awareness of Pocari as well as Pocari’s benefits and the
alternative uses of Pocari. This issue will be addressed through promotion and
distribution strategies.
2. Although the price of Pocari Sweat is affordable for the majority, it is slightly
expensive compared to local sports drink competitors. However, this can also be
seen as a sign of high-quality product compared to other isotonic drinks in the
market.

Opportunities

1. Market growth: The beverage industry in Vietnam is among the highest growth
fast-moving consumer goods industries. The market for isotonic water is still
growing.
2. Vietnamese consumers are more aware of the importance of a healthy lifestyle.
Vietnamese consumers are favored of using international-branded products.
Many Vietnamese consumers are health-conscious and there is a growing trend
towards healthy consumer products in Vietnam.
3. Advances in technology, especially IT, can help customers easily realize and
acknowledge the benefits of ion supply water and help producers as well as
retailers easily maintain good relationships with customers through social
networks, including Facebook, Zalo, and YouTube.

Threats

1. Limited shelf space: Whereas competition is generally a threat for any type of
product, competition in retail beverages is particularly high because of limited
retail space. Carrying a new beverage product requires retailers to reduce shelf
or cooler space already occupied by other brands
2. Not in the top-of-choice brands in customers’ mind: Pocari Sweat need a more
effective marketing strategy to create and maintain the brand awareness among
consumers.

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Marketing Strategy
With a recording of 43.4 degree Celsius, or 110 degrees Fahrenheit, Vietnam is bracing
for a summer season that could be the hottest in history, which means people are more
likely to perspire easily and will need a product that would help them recuperate quickly
and be healthy – Pocari Sweat. We will run a “be well-hydrated with Pocari” campaign
this summer to inform the public about the benefits and alternative usages of Pocari,
raising consumers’ awareness of our products and therefore increasing sales, revenue
and profits.

Marketing Communication Program

1. TV Storyboard:

 TV channels chosen: VTV and HTV


 Target audience:
o VTV: the general public
o HTV: young generation
 Endorsed celebrity: Cong Phuong footballer
 Scheduling pattern: Pulsating schedule/ Continuous schedule
o Bursts at summer
o Loses more sweat
 TV programs:
o Sports programs: keeping the existing target audience (people who do
sports)
o Health-related programs: introducing other alternative usages of Pocari
Sweat

2. Providing Free Samples: Pocari Sweat’s sales representatives will meet with our
customers in person to introduce and advertise our product, giving them a free 350ml
bottle of Pocari Sweat to experience the taste and quality of our product and then
asking them to help us with our survey.

Places: In these cities and provinces: Hanoi, Ho Chi Minh city, Da Nang city, Dong Nai
and Binh Duong:

- 40 high schools, colleges and universities


- 30 supermarkets (including Big C, Aeon Mall, Lotte, Coopmart)
- 25 big and famous gymnasiums
- 30 mini-football fields

3. Online and mobile marketing:


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 Hire a best advertising agency in Vietnam to create and put our ad clips and
banners on YouTube and Facebook.
 Post customers’ reviews, promotional reviews and create events and small games
on our Facebook Fan page to increase customer interactions, maintaining Polari
Sweat’s image.

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Break Even Analysis

(All the costs provided in this section are estimated.)

Selling Price: 13.000 VNĐ

Cost of Good: 5.000 VNĐ

Fixed Expenses: 800.000.000 VNĐ

𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒−𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑 13 000 − 5000


Gross Margin = = = 62%
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 13 000

𝐹𝑖𝑥𝑒𝑑 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠 800 000 000


Break-Even Point = = = 1.300.000.000 VNĐ
𝐺𝑟𝑜𝑠𝑠 𝑀𝑎𝑟𝑔𝑖𝑛 62%

𝐵𝑟𝑒𝑎𝑘−𝐸𝑣𝑒𝑛 𝑃𝑜𝑖𝑛𝑡 1 300 000 000


Unit of Goods sold = = = 100.000 units
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 13 000

This demonstrates that we will need 1.300.000.000 VNĐ in sales (or 100.000 units) in
order to break-even.

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Appendix: Questionnaires and Surveys
Name: ______________________________________

Phone: ______________________________________

Email: ______________________________________

1. What comes to mind when you think about isotonic water? (Please write just only 03
brands) ______________________________________________________________

2. Have you ever tried the ion supply drink Porica Sweat yet?

 Yes  No

3. How do you know about Pocari Sweat?

 TV commercials  Supermarkets  Friends  Internet

Others: ______________________

4. Which of the followings are the benefits that Pocari Sweat offers?

 Water and essential Ions such as Na+, K+, Mg2+, Cl-, Ca2+

 no carbonation and no caffeine  no preservatives and colorings

 beneficial to people suffering from fever, flu, diarrhea.

5. Do you know that 90% of the Japanese doctors who is surveyed recommends Pocari
Sweat?

 Yes  No

6. How often do you consume Pocari Sweat?

 Once a day  More than once a day

 Few times a week  Only on special occasions  Never

7. How satisfied are you with Pocari Sweat’s taste?

 Extremely dissatisfied  Dissatisfied  Average

 Satisfied  Extremely satisfied

8. Which of the isotonic drink does your local shop offer?

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 Porica Sweat  7UP revive

 Icy Salty Lemonade  Aquarius Others:_______________________

THANK YOU.

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