Marketing Plan For Thorakao
Marketing Plan For Thorakao
Marketing Plan For Thorakao
Thorakao products
Developed by Group D:
7. Huỳnh Trúc My
2018
EXECUTIVE SUMMARY
The facial cleanser industry in Vietnam is at the high growth rate and there are
now many heavy competitors in this category. In 2017, it increased to 34%. Thorakao is
considered as most well-known cosmetics brand of the Lan Hao Cosmetics Company
Limited, focusing on manufacturing turmeric facial cleansing milk in particular,
products extracted from natural herbs in general and receiving a great deal of attention
as well as winning the customers’ trust by its quality and well-established image. The
company now has more than 70 types of products, including products for hair care, skin
care and body care. It is extending not only the domestic market, but also the
international market such as Singapore, Taiwan, Cambodia, Laos, China, Australia,
New Zealand, the USA, Saudi Arabia, Russia, African nations.
Thorakao turmeric facial cleansing milk targets the female people in the rural,
low and middle class segment. Nowadays, Vietnam market includes 20 million women
in the age of 15-39, accounting for 40% female poplulation. This facilitates increasing
demand for cosmetics products and have the potential customer gain for the company.
The other opportunities of Thorakao are created from understanding about the customer
behaviour and the Government encouragement.
The tactical marketing tools, 4Ps, are used to seek the strategies to aid the
marketing activities. Thorakao turmeric facial cleansing milk will be innovated with the
new appearance. Thorakao will use a market-skimming pricing strategy for this product
early because of the unlimited competition in the facial cleansing milk business. We
will start to run a television ad as well as launch a health and beautifying magazine for
promotion activities. Moreover, Thorakao seeks third party distributors to expand the
distribution channel of the company through different ways.
Thesedays, the facial cleanser industry has many foreign brands holding 80% market
shares. Applying the strategies mentioned above, therefore, helps Thorakao regain as
well as increase the domestic market shares and the customer perception. Our aim is to
increase the market shares to 10% within the next two years while simultaneously to
boost the brand regconition to 15% in 2019.
TABLE OF CONTENTS
I. INTRODUCTION ................................................................................................. 4
1. THE HISTORY OF THORAKAO ...................... ERROR! BOOKMARK NOT DEFINED.
2. THORAKAO’S BUSINESS ACTIVITIES...................................................................... 5
2.1. Production .................................................... Error! Bookmark not defined.
2.2. Distribuition ................................................. Error! Bookmark not defined.
2.3. Branch .......................................................... Error! Bookmark not defined.
3. AWARDS....................................................... ERROR! BOOKMARK NOT DEFINED.
4. THE PRODUCT CONCEPT ........................................................................................ 5
5. THE MARKET AND COMPETITION .......................................................................... 5
6. PLAN PURPOSE ...................................................................................................... 6
II. SITUATION AND SWOT ANALYSIS ............................................................... 6
1. TARGET MARKET .................................................................................................. 6
2. EXTERNAL ANALYSIS (MACRO ANALYSIS) AND INTERNAL ANALYSIS (MICRO
ANALYSIS).................................................................................................................... 6
3. SWOT ANALYSIS .................................................................................................. 8
III. BRANDING STRATEGY AND MARKETING OBJECTIVES ...................... 9
1. POSITIONING ......................................................................................................... 9
2. MARKETING OBJECTIVES.................................................................................... 10
IV. MARKETING MIX STRATEGIES............................................................... 10
1. PRODUCT............................................................................................................. 10
2. PRICE .................................................................................................................. 11
2.1. Estimate demand .......................................... Error! Bookmark not defined.
2.2. Determine costs ........................................................................................... 12
2.3. Develop pricing strategies ........................................................................... 12
2.3.1. Competition-based strategies ................................................................... 12
2.3.2. New product pricing strategies................................................................. 14
2.4. Choose pricing tactics .................................................................................. 14
2.4.1. Pricing for multiple products ................................................................... 14
2.4.2. Distribution-based pricing ........................................................................ 14
2.4.3. Discounting for channel members ........................................................... 14
3. PLACE ................................................................................................................. 15
4. PROMOTION ........................................................................................................ 15
4.1. Promotion objectives ................................................................................... 15
4.2. Communication channels ............................................................................ 15
4.2.1. Media (Pull Strategy) ............................................................................... 16
4.2.2. Sales promotion ........................................ Error! Bookmark not defined.
4.2.3. Public relation .......................................................................................... 17
4.2.4. Personal selling ........................................ Error! Bookmark not defined.
4.2.5. Trade promotion (Push Strategy) ............. Error! Bookmark not defined.
V. IMPLEMENTATION ......................................................................................... 18
VI. CONCLUSIONS AND RECOMMENDATIONS ............................................. 19
VII. REFERENCE LIST ........................................................................................... 20
I. INTRODUCTION
With his strength in the Internet, CEO Nguyen Van Dung came up with the idea of
creating Luxstay, a model of sharing economy into real estate and tourism., focuses on the
high-end segment. Luxstay acts as an intermediary and gains fees of the connection between
customers and service providers through websites or software.
Luxstay is also the first startup which officially operating the Sharing Economy model
in Vietnam.
By June 2018, there were more than 3000 accommodations including homestays, high-
class villas stretching across many cities and tourist destinations in Vietnam, serving over
10,000 reservations per month. The average growth rate is 20% per month.
2. Luxstay’s business activities
Problem: customer complaint about Luxstay app (difficult to use, some properties is hidden)
Luxstay focus on the local market in Vietnam. In the next few years, Luxstay intend to expand
to international market,.
In general, these competitors still offer online booking platform (via website or app) for
vacation rental in Vietnam for short-term accomodations
One of Luxstay’s remarkable competitors is Airbnb which is well-known all over the
world. Therefore, it has 4 million posts for renting accomodation in more than 190 nations by
2017. Once Airbnb officially penetrate on Vietnam, it can take advantages of reputation.
In this plan, we analyze the current status of Luxstay, service, and business activities.
These are the bases to determine suitable marketing strategies, SWOT analysis, perceptual map,
4Ps.
5. Plan purpose
Making the brand’s regconition
1. Target Market
Geographic: Vietnamese and foreign visitors, but mainly local customers
Age : young and middle ages
Income: Above Middle-income
Job: stable job
Life style: be interested in travelling, resting, relaxing in local houses with reasonable
price, enjoying the natural landscapes and feeling of the warmth like family; be fond of
realistic experience and local values (culture, specialty, history)
Amount/Percentage of potential customer: 8 million people/13% of middle-income
Vietnamese (12,6 million people)
Spending on beauty caring products: $4/person/year for cosmetic product.
Past behaviors: directly book in hotels and resorts
Reason for purchase: relaxing, travelling, business trips.
How they are informed to make their choice: advertisement in the social media (fan
page, youtube and website)
Common language: Vietnamese.
Major competitors
Luxstay’s major competitors are Airbnb, Agoda, Traveloka, Booking.com,
Homeaway, Housetrip. They also provide a model of connecting travellers all over the
world with local hosts like Luxstay, both domestic and foreign rivals.
Customers
Demographic factor and travel behavior
Vietnam is a developing country and the number of middle and high- income
people account for 13% of total population (about 97 million) in 2019 and is predicted
to increase to 34% in 2020 (Southeast Connections report, 2016). It means that people
spend a lot of time for work, so they should nourish their mental health by travelling,
leading to high demand of travel and short-term accomodations.
Suppliers
Local hosts who would like to share their houses or accommodations to give
travellers a space for resting and relaxation for a profit.
Employees:
Luxstay’s staff play an important role to connect travellers with local hosts via
its website. They are mainly in charge of technological work in its app and other
services like consluting hosts about room’s design, furniture and so on to assure
security, convenience and automaticity.
Publics:
Luxstay mainly works with customers and suppliers indirectly via the Internet.
Its official website in Vietnam:
https://www.luxstay.com/vi?utm_source=coccocsearch&utm_medium=cpc&utm_ca
mpaign=ccs_branding&utm_term=%22luxstay%22&utm_content=17175314
It advertises on many channels, mostly on social websites.
3. SWOT analysis
STRENGTHS WEAKNESSES
- Reasonable price
- Abundant supply and Investment
capital
- Simple procedures
+ “Luxstay Instant Book” allowing
travellers to select and book rooms more
quickly without waiting the reply from
local hosts.
OPPORTUNITIES THREATS
1. Positioning
Major rivals competing directly:
− Airbnb
− Agoda
− Booking.com
− Traveloka
2. Marketing Objectives
Increase market share of Luxstay by 10% by 2021
Increase the customer brand identity by 30% by 2020
Create an equally competitive advantage to Airbnb
1. Product
POS:
Luxstay and other competitors are online booking platform (via website or app) for
vacation rental in Vietnam for short-term accomodations. It is also a intermediary linking hosts
and customers: win-win situation (the owners earn money through their rest space in their
homestays, villas and so on and the traveller can find suitable accommodation in their vacation
easily). Luxstay provides basic service (accommodation services) and customers will pay by
credit card.
POD:
Lusxtay is the first “home sharing” model in Vietnam. Not only is Luxstay a pioneer
in this field but also deeply understand local market. Customers can get their own experience
(guests can cook for themselves and have a feeling of closeness and peace when traveling).
Moreover, Luxstay focuses on high-end segment.
However, there still have some problems that customers complain is about the booking
app. Design of it makes users difficult to use (tool bar). Another issue is that the price in the
app is not fix the price at homestay, leading to the fact that users must call to customer service
center for explaining. Therefore, we decide to redesign the website and booking app to improve
the service’s quality for convenient customer’s using.
2. Price
Many factors affecting the price of the Luxstay’s accommodation are different kinds
of room ( Standard, Superior, Deluxe or Suite), location, booking time and different customer
segments. Currently, its price of accommodation is divided into 2 basic types:
+Rack rate: is the original booking price shown in the quotation on the Luxstay’s
website. This kind of price is considered to be the highest price for each kind of room. For
example, the rack rate of a Deluxe room is 1000000 VND/ night.
2.1.:
*Luxstay has FIT/ GIT’s rate applied for its tourism partners who book rooms
for their customers.
*Corporate rate applied for partners (like Rakuten) who book a lot of rooms
for their employees and business customers
*Long staying guest rate applied for those who stay at Luxstay’s
accommodations for a long time will enjoy a preferential price.
*Package rate: is applied for customers who join a planned tour or a large
number of visitors who come to Luxstay’s rooms together.
2.1.b Location-based pricing : Luxstay’s accommodation located in different
places will have different price. For instance, a room in the downtown of Nhatrang will
be more expensive than a room at its suburb.
The price analysis table on 1 gram of products - the same function and major
ingredients:
=> In the domestic market, Thorakao product’s price is the second most expensive after
Lana product’s price.
2.4.2. New product pricing strategies
We use the Market - Skimming Pricing strategies.
When customers buy two 100gram tubes of turmeric facial cleansing milk, they
will get a 30gram turmeric cream free.
1 km = 1.500VND
The bill costs more than 200.000VND - free ship in inner HCMC.
The bill costs more than 500.000VND - free ship in HCMC ’s suburbs.
If retailers and wholesales take the products directly from the warehouse, we will
recoup the costs of distributing them.
4. Promotion
For example:
Outdoors Transit
Billboards
Social Media
Online Website
Magazine
V. IMPLEMENTATION
Implementation & Schedule
− This table below shows the schedule and tasks delivered to each department:
− Regarding price, Finance Department will take responsibility for setting price
product in 1 week (18/9-25//2019) and intrductorying discount programe in 3 weeks
(10/10-31/10/2019)
https://www.luxstay.com/vi/pages/about_us
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