ECO4FAMI

MARKETING Plan
The Work by MBA9_GROUP 8

Leading company in pharmaceutical industry

Group 8 Member Names
1. o Thy H

4. Trn Ngc Qunh 5. Nguyn Minh Phng

2. V Kiu Chi 3. Nguyn Hng Trang

GILEAD CONFIDENTIAL

Modern technoly &Traditional character A listed company with the capital of 6 million USD The most famous brand in Vietnamese Pharmaceutical sector.

. One of the leading companies in development and promotion of Vietnamese traditional medicines, average growth rate of 25%. Wide range of product with strong R&D.

Two WHO GMP-complied factories. Nationwide distribution with 7 branches GREEN PLAN for substainning input of natural resource in the company.
GILEAD CONFIDENTIAL

ECO4FAMI- Brand of 4 fuctional products

FOR MAN
Ingredients: Combine of Polycias with Sea cucumber Benefits: enhancing memory and sexuality

FOR WOMAN
INGRIDIENTS: Combine of Polycias with Radix Angelica sinensis Benefits: Easy mind, enhancing memory, healthy skin

FOR OLD
INGRIDIENTS: Combine of Polycias and Panax Ginsen Benefits: Enhancing memory, awaken

YOUNG
Ingredients: Combine of Polycias with Chrysanthemum Benefits: Enhancing memory, good for eyes
GILEAD CONFIDENTIAL

ECO4FAMIs vision and mission

OUR VISION

To be a famous brand of functional food accepted by wide majority of Vietnamese people.

OUR MISSION

To offer the superior natural health care products at reasonable price, to help women smartly care her family. GILEAD CONFIDENTIAL

Why to choose
The well- known Brand TRAPHACO in healcare sector. The ability of R&D in TRAPHACO. The trend of social: like to use the natural products The policy : Vietnam has policies to help the farmers, so the policy of creating a material area for Traphacos products will be strongly supported by State agencies Legal regulations on FF is not as strict as drugs, especial in advertisement The price of FF will not be imposed ceiling price like drugs The relationship between Traditional Pharmaceutical product and fuctional products: Exploiting the biodiversified natural resouce in Vietnam that have been experienced long time ago. Use the current distribution system of TRAPHACO.
GILEAD CONFIDENTIAL

Market need
The income of Vietnamese is increasing, they have more money to spend on
heath protection and beauty care In big cities, modern life with stress, environmental and food contamination leads to the change of disease patterns. Chronic diseases related to nutrition and food, lifestyle are increasing. Consumers have switched from an emphasis on satisfying hunger to an emphasis on the promising use of foods to promote well-being and to help reduce the risk of disease A number of factors are responsible for changing consumer attitudes toward foods and reshaping food supply trends. These include an aging population, increased health care costs, consumers desire to enhance personal health, change in consumer awareness and expectations, advancing scientific evidence that diet can alter disease prevalence and progression, advances in food science and technology, and changes in food regulations.

Functional Food Vietnam Market

Fuctional Food started entering Vietnam
in1993 Currently, FF accounts for 1/3 of total products in the pharmaceutical stores. Observe an increasing number of foreign FF products imported to Vietnam Market. Vietnam pharmacy companies especially traditional pharmacy companies started R&D and market their own products

Functional Food Vietnam Market

Functional Food growth in Vietnam

Domestic

Functional Food by categories (2000-2005)

200 150
Billions (VND)

Foreign
Number products

100 50

Number firms

Number of firms

0 200020012002200320042005
Others Cod-liver oil Calci suplimented Ginseng Minaral suplimented

2005-2006

2007 Year

2008

2009

COMPETITION
Imported Products Domestic products

Time of appear
Price Chanel

2000

2002

High price Multi- level Distribution Retailer online Dailly for healthcare

Reasonable price Pharmacies, supermarkets

Use

-To support treatment. -Improve function

WHO BUYS ECO4FAMI

The middle to upper income class ( VND 15 mio/ per month)

Two income working professional families Women typically 35- 60 year olds living in urban areas Consumers prefer natural products

GILEAD CONFIDENTIAL

Solution - People today have more brain activities. Work, schooling and life always have a lot of pressure. This leads to less fatigue and lightheadedness - The house-wifes always want to take care of their family. Simultaneously, they also want to show their knowledge and intelligence by using modern and high quality products. -Eco4brain creates peace of mind to buyers that their relatives are adequately cared

Cost -The total cost is very small in comparison with the total income. - It is a daily consuming product, so the price must not be too high

Customer

Covenience Can buy the products from every where (drug stores, supper markets), multi-channel. No need a description of the doctor to buy the products Easy to take products when they are out

Communication - Office workers can go online, reading papers - Mass media (TV at dinner time) - Social network - Take advice

SWOT ANALYSIS

Strength
- Trafaco is one of leading pharmaceutical

Weakness
-Lack of experience of marketing for functional food. -Technology is less modern than foreign manufacturers. -Dont have experience in Multi level sale channel which is most effective way of foreign manufacturers. -Design and packing of product is not attractive.

companies with 2 modern factories in Vietnam which achieved WHO GMP - Have 40 years experience in R&D, marketing herbal remedy. - Advantage in finance - Very successful with Polyscias" image with "Hoat huyet duong nao" product. - Enthusiasm and experienced staffs and managers.

Opportunity
GILEAD CONFIDENTIAL

Threat

SWOT ANALYSIS

Strength

Weakness

Opportunity

Threat

- Vietnamese functional food market is very - Competition with imported products potential . + Consumer's psychology : like to use + Market develop quickly (200%/year) and imported products. account for 50% total product in pharmacy + Foreign suppliers have good strategy to + Consumer has trend to use product penetrate Vietnamese market. friendly with environment, product from + Attractive packing design. nature. - Competition with domestic products: + Awareness about important of health. Medicine manufacturers not have WHO GMP + Due to pollution of environment and food, will change to produce functional food consumer want to use functional food to -Unapparent management policy leads to improve resistance. unfair competition, imitation. - Ceiling rate is not applied for functional - Consumer has loosen trust of functional food. foods benefit because of exaggeration of - Material is cheap and abundant. some distributors. - Government gives high priority for development. GILEAD CONFIDENTIAL - Chance to export to foreign countries.

SWOT ANALYSIS CRITICAL ISSUE

Traphaco has chance to be successful to develop

functional food.

Should focus on marketing activities to create unique

products and services and make difference with competitors.

Invest in developing technology in long term period to

produce higher quality product.

Regulation for functional food is not apparent, so

Traphaco should pay attention in intellectual property

issue to avoid imitation.

MARKETING STRATEGY
Branding ECO4FAMI as a safety, natural fuctional food with reasonable price that

help to enhance and ensure the health of all member in a family

Target buyer: SMART WOMAN - Work in office. They do not have much time. - The most clever and wise WOMAN when she decides to choose ECO4FAMI to care of her family. Target user: Man (hunsband), the elder(grandparent, child, woman in the FAMILY

GILEAD CONFIDENTIAL

STRATEGY PYRAMIDS

NETWORKING/ LOBBY

ADVERTISING

COMMUNICATION

GILEAD CONFIDENTIAL

NETWORKING/LOBBY

Thru Authorized body such as Woman Association, Business woman Forum Hold specific meeting with outstanding speaker Publicize meeting via sending mail list & newsletter provided by authorized body

Attend, Healthy organize or Programs/campaigns sponsor Name programs/campaigns focusing on FF product like Be a smart woman, Nature & life, For strong Vietnam.

Create belief from signing up social networks www.lamchame.com, www.webtretho.com Play as a member of this network, share experience & opinion

GILEAD CONFIDENTIAL

ADVERTISING
tablet alarm, rewards program, free health check period, schedule sticker..

Holding Q & A booth, introduce on products from nature, benefits of FF

New product or supplementary used as promotion gifts

- Letter sized brochure - Simple & on 01 page - Impressive printing & using high quality paper

GILEAD CONFIDENTIAL

COMMUNICATION
Heath care tendency of the world - new invented -Women & FF .

-Make new habit to customer - co organize seminar, professional conference to attract interest from customer

Public a magazine on benefit & usage of FF

We are friends with all competitors

EASY TO UNDERSTAND

Hotline to consult

-How can I use FF? - FF & Life. - New products of Trafaco - Promotion program - Real story

Suc khoe & Doi Song Health & Life Newspaper, Gia dinh tre Young Family, Tu van tieu dung Wise consumer Newspaper

To be near our customer

GILEAD CONFIDENTIAL

Marketing Mix
P1, Product
- Feature:
+ Product is made from herb. The range of product are developed from the main ingridient that is Polyscias (that was patented for TRAPHACO) plus suitable herbal for each type of user. +Benefits: It is a recognised brain tonic, trengthern of the body and it can be responsible for enhancing memory, improving both short and long term memory, increasing reaction times, and improving mental clarity. + Health care range of product for family: include 4 products for kid, parent and grand parent - Packaging: 2 types: + 30 tablets in 1 plastic box: small box can be brought to everywhere. + 90 tablets in 1 plastic box: saving choice, price is lower per tablets. - Design: + Bright color which is suitable with age range: + Image is simple and impressive. - Additional services: + Free consultant service by phone: create free line at number 18006612 to consult to customer. +Delivery service: Develop delivery team.

GILEAD CONFIDENTIAL

ECO4FAMI

FOR MAN

FOR WOMAN

FOR THE OLD

FOR YOUNG

Marketing Mix
P2, Price:
- Price is cheaper than imported products to make competition advantage. - Price is higher than domestic product to position brand and focus on developing
additional services.

- Price for big box is cheaper than small box. - We spend 30% of sales for marketing to build brand of products in the first year and 20%
of sales in the next years and focus on supplementary service to create perfect product package.
8000 7000 6000 5000 4000 3000

2000 1000

GILEAD0CONFIDENTIAL
Domestic Product 1 ECO4BRAIN Imported product

Marketing Mix
P3, Promotion
Tool Implement 3, Promotion: Time Mass -Advertise in TV through programs for woman and health care -First 6 months : TV, radio, Print and outdoor ads. advertising such as Suc song moi, TV shopping, O2TV - Publish in magazine for woman: Phu New fashion, Hanh - First year - Point of purchase: decorate products cabinet at nu, pharmacies and supermarket which is phuc va gia dinh, The gioi phu nu appropriate with products design Point of -Put banner at pharmacies and supermarkets. - First 3 years purchase -Decorate and cabinet and shelf of point ofin sale withimportant suitable image - Promotion campaign sampling: implement some events of year such and color. as: discount, buy 1 get another product group, exchange 4 empty boxes to get 1 full -Renew decoration once per 6in months box. Promotion -Buy 3boxes get a remaining box in group. -Opening period1 campaign -Discount 5 10% month - Direct marketing and activation: introduce products at pharmacies and supermarkets in -Exchange 4 empty boxed with 1 full box. - Special event: New opening period year, womens day Direct - Team 2 people introduce and consult about product at some - Opening period - Public relation and of event: health care workshop, seminar marketing main pharmacies and supermarkets - Online marketing: Public - Hold 1 seminar per 3 months about health care, role of woman - First 3 years + Build a website for this product group which has online shopping function. relationship and in health of family, functional food. event + Using other online tools: Forum, email-marketing, social networks. GILEAD Online -Develop a website for productCONFIDENTIAL group with online shopping - All period Marketing function. -Put banner in some popular websites: vnexpress; ngoisao.net

Marketing Mix
P4, Place:
Channel
Pharmacy Supermarket

Targeted customer
All customers Woman

Implementation
Distributed by all agent of Trafaco in Vietnam - Sell in big supermarket in big cities: Fivimart, Intimart, BigC -Sell in all supermarkets in cities Call centre has responsibility to call and introduce new product. 1 staff have 20 phone call per day. -Co-operate with VTV, VTC and media company to carry out. -Coordinate tightly with delivery team -Through website eco4fbrain.com - Co-operate with company supply payment method GILEAD tightly CONFIDENTIAL -Coordinate with delivery team

Time
All period -First year

Goals
Sales Branding/sal es

-2nd & 3th year

1 month after advertising in media. All period Branding/sal es Branding/sal es Branding/sal es

Telesale

Existing customers of Trafaco Retired and free customers Office staff

TV shopping

Online shopping

All period

Sale Strategies
4. Sale strategies.
Cold Calls

Customer get customer

HIGH SALES QUALITY

Face to face meeting

Professional Association, seminar or presentation

Sale Target
Year 1 - 300 top shops(*) sells average 4 big boxes/month, 8 small boxes /month. - Other chanel: 200 big boxes, 200 small boxes/month - Focus on the 10 biggest cities of VIET NA M

Year 2: - Increase the number of shops by 20%, 15 cities and provinces - Other chanel by 30% - Increase the sales by 25%

Year 3: - Increase the number of shops by 20%, all cities and provinces - Other chanel by 20% - Increase the sales by 25%

(*)Select the top shops base TRAPHACOs CRM data

Sale Forecast
Sales
20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Year 1 Year 2 Year 3 Sales Linear (Sales)

Sales year 1

Sales year 2

Sales year 3

Boxes Small one Big one Total 40,800 21,600

Price (000VND) 120 300

Revenue (000VND) 4,896,000 6,480,000 14,220,000 17,775,000

GILEAD CONFIDENTIAL 11,376,000

BUDGET PLAN

Year 1 Sales Commision Salary COG Marketing Other expence 11,376,000.000 1,137,600.000 511,920.000 6,256,800.000 3,412,800.000 341,280.000

Year 2 14,220,000.000 1,422,000.000 711,000.000 7,821,000.000 2,844,000.000 426,600.000

Year 3 17,775,000.000 1,777,500.000 888,750.000 9,776,250.000 3,555,000.000 533,250.000

Profit

(284,400.000)

995,400.000

1,244,250.000

Marketing Mix other issues

People:
- Build company culture to make objective of company become objective of each staff. - Delivery team is professional, friendly (wear uniform) and amusing - Customer services staff is enthusiasm, friendly with precept Customer is relative

Process
- Flexible process but In time - Evaluate effectiveness of each step, each method to control and revise to make it more
reasonable

Physical evidence:
- 2 mordent factories: - Call centre: 8 staffs serve from 8 AM to 22 PM - Free line: 18006612 serve from 8 AM to 22 PM

- Convenient website: www.smartwoman.vn (in plan)

GILEAD CONFIDENTIAL

Thank you!