RMIT International University Vietnam Bachelor of Commerce Program

ASSIGNMENT C VER PAGE !o"r assessment #ill not $e acce%te& "nless all fiel&s $elo# are com%lete& S"$'ect Co&e( S"$'ect Name( /ocation #here yo" st"&y( Title of Assignment( 1ile2s3 S"$mitte& St"&ent name( M)TG*+,C NSUMER BE.AVI RS RMIT Vietnam 0 City Cam%"s Pro&"ct analysis Pro&"ct analysis4G,4Nivea ."a 5"an Thinh Ng"yen )hanh Toan Ngo Ngoc Ph"ong Tran Ngoc My 6"yen S-*-*78S-*,,999 S-*+-,,: S-*7,-:; S-*-*78-<rmit=e&"=vn S-*,,999<rmit=e&"=vn S-*+-,::<rmit=e&"=vn S-*7,-:;<rmit=e&"=vn Mr Melvin -r&> May> +::8 -r&> May> +::8 None

St"&ent N"m$er(

St"&ent Email A&&ress(

/earning 1acilitator in charge( Assignment &"e &ate( 6ate of S"$mission( /ate S"$mission A%%roval

N"m$er of %ages incl"&ing +9 this one( (Please number your pages like this: page 1 of 7, page 2 of 7, etc) ?or& Co"nt( (Main Content) -+87

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E@ec"tive s"mmary
Ni ea !as establishe" in 1#$% in &ermany by 'r()scar *ropo!it+, this company has a long time operation an" strong position in skin an" beauty care market !ith many "ifferent pro"uct lines to ser e for "ifferent preferences from its consumers( )ne of the most famous pro"ucts of Ni ea !hich has been gaine" high a!areness in both foreign an" ,ietnamese market is Ni ea bo"y lotion for both male an" female( Pro"uct portfolio inclu"es four pro"ucts !hich arious functions for female an" one con enient pro"uct (- in 1) for male( .n ,ietnamese market in particular, Ni ea has t!o main competitors, they are / on an" 0a+eline but the company still keeps highest market share( *arget market of Ni ea are mainly people li ing in many big cities such as 0anoi an" 0o Chi Minh City, !ho are from 21 to 1- years ol", both a ailable an" marriage, ha e mi""le income from 1 millions ,N' to abo e( 0o!e er, the company also still plans to e2pan" its market to other pro inces such as Can *ho, 'a Nang, 'ong Nai, 3inh 'uong( .n a""ition, Ni ea can take a" antage of the increase in income of ,ietnamese people to target to higher income people in the future( No!a"ays, ,ietnamese people are more a!are of their appearances than before, therefore, the nee" for beauty care pro"ucts that can protect an" take care of their skins ha e become essential( *his type of pro"uct has me"ium purchase in ol ement because the consumers also limit the pro"uct choices "epen"s on their specific nee"s( *o seek for pro"ucts they !ant, they can look at both internal an" e2ternal sources of information after making "ecision( /s a beauty care pro"uct, 4uality seems the most important criteria that customers care most not price( Ni ea also pays attention to "ifferentiate its pro"ucts to others by free gifts, free trail pro"ucts, or stan" out label( 5urthermore, ho! the customers select outlets an" in6store influences factors are also "iscusse" in "etail in this section(

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*he report has gone through ho! Ni ea affects the perception of customers by analy+ing four steps: e2posure, attention, interpretation an" memory( 3e"si"e con"itioning learning, the consumers also learn by obser ing beha iours, reactions an" results of per ious users !hen choosing suitable pro"ucts for them( /ccor"ing to Maslo!7s hierarchy nee"s, Ni ea a" ertisements has emphasi+e" stan" out beauty in the cro!", help users become more confi"ent an" satisfy !ith their appearance( /pplying Mc&uire7s Psychological Moti es, 2%%#, !e can see that Ni ea has use" all cogniti e preser ation, cogniti e gro!th an" affecti e moti es for its pro"ucts( *hen, !e !ill look at three "ifferent components of attitu"e to see ho! the consumers percei e Ni ea bo"y lotion pro"ucts(

/fter analy+ing all information about consumer7s beha iours, !e ha e come up !ith some recommen"ations that Ni ea can use to impro e its bran" image as !ell as consumers7 perception about this pro"uct( 5irst, !e recogni+e that Ni ea "oes not focus enough on its potential markets for bo"y lotion for men in ,ietnam( *here is no *, a" ertisement for this pro"uct, so the company nee"s to change male7s perception in using bo"y lotion by in esting more in making interesting an" close a" ertisements( 8econ", the company nee"s to upgra"e its !ebsite to create better interaction !ith its customers by up"ating latest beauty care ne!s an" offering forum for sharing i"eas among customers(

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TABLE OF CONTENTS
ASSIGNMENT COVER PAGE........................................................................................1 Executive summary.................................................................................................................... T!e re"ort !as go#e t!roug! !o$ Nivea affects t!e "erce"tio# of customers %y a#a&y'i#g four ste"s( ex"osure) atte#tio#) i#ter"retatio# a#* memory. +e*si*e co#*itio#i#g &ear#i#g) t!e co#sumers a&so &ear# %y o%servi#g %e!aviours) reactio#s a#* resu&ts of "ervious users $!e# c!oosi#g suita%&e "ro*ucts for t!em. Accor*i#g to Mas&o$,s !ierarc!y #ee*s) Nivea a*vertiseme#ts !as em"!asi'e* sta#* out %eauty i# t!e cro$*) !e&" users %ecome more co#fi*e#t a#* satisfy $it! t!eir a""eara#ce. A""&yi#g McGuire,s Psyc!o&ogica& Motives) --.) $e ca# see t!at Nivea !as use* a&& cog#itive "reservatio#) cog#itive gro$t! a#* affective motives for its "ro*ucts. T!e#) $e $i&& &oo/ at t!ree *iffere#t com"o#e#ts of attitu*e to see !o$ t!e co#sumers "erceive Nivea %o*y &otio# "ro*ucts....................................................................................................................0 ....................................................................................................................................................0 I#tro*uctio# ...............................................................................................................................1 1.Com"a#y overvie$..............................................................................................................1 .Pro*uct "ortfo&io ................................................................................................................2 0.Target mar/et a#* "ositio#i#g.............................................................................................3 a.Target mar/ets(................................................................................................................3 i.Geogra"!ic ......................................................................................................................4 ii.5emogra"!ic...................................................................................................................4 iii.Psyc!ogra"!ic................................................................................................................4 %.Perce"tua& ma""i#g ............................................................................................................................................. I.Co#sumer *ecisio# ma/i#g "rocess.......................................................................................11.Nee* recog#itio#...............................................................................................................1.Co#sumer *ecisio#s...........................................................................................................11 0.I#formatio# searc!.............................................................................................................11 6.Eva&uati#g a#* Se&ecti#g A&ter#atives..............................................................................1 a.Eva&uatio# criteria..........................................................................................................1 %.Surrogate i#*icators ......................................................................................................10 c.7ust8#oticea%&e *iffere#ce( ............................................................................................10 *.Out&et Se&ectio# a#* Pro*uct Purc!ase.........................................................................16 e.I#8store i#f&ue#ce( .........................................................................................................11 f.S!o""i#g orie#tatio#......................................................................................................12 g.Perceive* ris/ ...............................................................................................................13 !.Post "urc!ase %e!aviour................................................................................................13 i.5is"osa& situatio#...........................................................................................................13 II.I#ter#a& i#f&ue#ces................................................................................................................13 1.Perce"tio#..........................................................................................................................13 a.Ex"osure........................................................................................................................13 %.Atte#tio#........................................................................................................................14 c.I#ter"retatio#.................................................................................................................1. .9ear#i#g.............................................................................................................................1. a.Co#*itio#i#g..................................................................................................................1. %.Cog#itive &ear#i#g......................................................................................................... i.Vicarious mo*e&&i#g....................................................................................................... 0.Motives.............................................................................................................................. 1 a.Mas&o$,s :ierarc!y of Nee*s....................................................................................... 1 ;igure 11( Mas&o$,s :ierarc!y of Nee*s........................................................................ 1 i.Cog#itive Gro$t! motives ................................................................................................ 1 ii.Affective Preservatio# Motives......................................................................................... 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iii.Affective Gro$t! Motives............................................................................................... 6.Attitu*e.............................................................................................................................. III.Recomme#*atio#s............................................................................................................... 1.<"gra*i#g t!e mai# $e%site(............................................................................................. a.Pro%&em i*e#tificatio#................................................................................................... %.So&utio#s........................................................................................................................ .5eve&o"me#t of Ma&e +o*y 9otio#................................................................................... a.Pro%&em i*e#tificatio#................................................................................................... %.So&utio#s........................................................................................................................ IV.Refere#ces........................................................................................................................... V.A""e#*ix.............................................................................................................................. 1.Nivea +o*y 9otio# Pro*ucts............................................................................................. .Eva&uatio# criteria amo#g %ra#*s...................................................................................... 0.Pro*ucts a#* Price com"ariso#......................................................................................... .................................................................................................

0 0 0 0 6 6 6 1 1 1 2 3 .

Intro&"ction
1. Company overview
3eiers"of Company foun" by 'r()scar *ropo!it+ in 1#$% at 0amburg, &ermany( .t is an international lea"er in research an" "e elopment of 9skin an" beauty care7 fiel"( *he globally successful 3eiers"of group has a mo"ern skin research center, locate" in &ermany !ith more than 1-% e2cellent researchers, pharmacists, an" chemists (N.,:/, 2%%#)( .n 2%%$, 3eiers"orf earne" ;-(#7 billion in sales < the best among 12-6year history( :2pectably, it !ill gain the global market share to -(-= by 2%1% (3eiers"orf /&, 2%%#)( 3eiers"orf globally operates strong bran"s in skin care in"ustry such as >abello, N.,:/, $21, la prairie, ?@,:N/, atri2, :ucerin, 0ansaplast, an" 5lorena( /mong of them, N.,:/ < the mother of all mo"ern creams since 1#116 is their core successful bran" that has recei e" the first pri+e for the 9Most6truste" 8kin Care 3ran" in :urope 2%%#7(3eiers"orf /&, 2%%#)( N.,:/ has been "e elope" through years into big bran" family inclu"ing N.,:/ bo"y, N.,:/ cream, N.,:/ isage, N.,:/ 8oft, N.,:/ 8oap, N.,:/ han", an" N.,:/ "eo"orants, sol" on markets of 1A% countries in the !orl"( /ccor"ing to 8aigon *imes )nline 2%%7, N.,:/7s pro"uct in ,ietnam reaches ery high le el of bran" a!areness #7= of the market( 5urthermore, -1= ,ietnamese !omen trust an" like N.,:/ pro"uct after using( Particularly, the highlights of N.,:/ bran" in ,ietnam market is N.,:/ 3o"y inclu"ing bo"y lotions for both male an" female(

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1ig"re *( Nivea Bran&s

2. Product portfolio Refer a""e#*ix 1 MaBor ri al of N.,:/ bo"y are 0a+eline an" / on, !hich are the bo"y lotion pro"ucts of t!o huge corporations: 0/C:>.N: an" /,)N( *hey are also high reputation 5MC& Company, especially in skin care fiel"( 0o!e er, N.,:/ al!ays takes a ery high position in this market6 -1= of bo"y lotion market share, 0a+eline 22=, / on 1-=, an" 12= left is the market share of other bran"s mostly from China an" *hailan"(

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1ig"re +( Bo&y lotion marAet share in Vietnam

Currently, competition is mainly through "istribution net!orks, !hich are supermarkets an" hypermarkets( 0o!e er, the "ifference bet!een those bran"s is about the pricing strategy an" 4uality( Dhile N.,:/ is using premium pricing metho" that is high price for premium 4uality pro"uct, 0a+eline is applying skimming pricing for its lo! price pro"uct(

3. Target market and positioning a. Target markets:

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i.

Geogra%hic

*he "istribution net!ork of N.,:/ bo"y is the !hole ,ietnam but more focusing on big cities such as 0CMC an" 0anoi

ii=

6emogra%hic

Gender: both male E female are primarily targete" customer of N.,:/ bo"y pro"uct Age: from 21 < 1- years ol" Family Life Cycle: single, but mostly be marrie" Income: mi""le to high class !ho ha e income o er -, %%%, %%% ,N' per month Occupation: o )fficers: !ho usually !ork in air6 con"itioning or "rie" en ironment, thus they nee" N.,:/ bo"y to moisture their skins( o 0ouse!i ies: !ho ha e a lot of free time more than others to care for their bo"y skin Education: me"ium to high e"ucational le el, this kin" of people !ill ha e more kno!le"ge an" a!areness about high reputation bran" as N.,:/( *hus, they can accept the higher price for the goo" 4uality pro"ucts( Social Class: the main net!ork "istribution of N.,:/ bo"y is supermarkets, hypermarkets, markets an" grocery stores( Lifestyle: N.,:/ bo"y targets on people !ho are fashionable an" care about their appearance, they like shopping an" shop fre4uently in markets, supermarkets(

iii=

Psychogra%hi c

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b. Perceptual mapping

1ig"re -( Perce%t"al ma%%ing

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I=

Cons"mer &ecision maAing %rocess

1. Need recognition
DESIRED CONSUMER LIFESTYLE +eauty Co#fi*e#ce CURRENT SITUATION :ot $eat!er Po&&utio#

DESIRED STATE =!ite s/i# Smoot! Moisture

ACTUAL STATE Im"urity S/i# com"&exio# S/i#,s "igme#tatio#

NATURE OF DISCREPANCY

.t is ob ious that almost e eryone, especially !omen !ant to ha e beautiful skins to become more attracti e an" more confi"ent in their "aily communication so as they can gain more success "uring their lifetime( *here are a number of factors that influence the "esire" state of the consumers, lea"ing to the nee" for the bo"y lotion( *he change in financial status is one that affects the "esire" state of the consumers( /s the salary increases, the !omen start concerning more about their self6 esteem, one of !hich is beautyF hence, bo"y lotion !oul" be a reasonable choice for them( 5urthermor, the ol"er the !orse their skins become "ue to the effect from the en ironment such as hot !eather an" pollution( *hese factors cause the impurity issue skin comple2ion an" pigmentation that makes people less attracti e( Conse4uently, the "ifference bet!een the "esire" state an" actual state has in"uce" people to purchase Page 10 of 29

cosmestic pro"ucts to help pre ent them from the influences of the en ironment(

2. Consumer decisions

*he consumers ha e me"ium purchase in ol ement an" limite" "ecision making for the bo"y lotion pro"uct( *he "ecision making process aries from "ifferent types of consumers( / bo"y lotion coul" be suitable an" effecti e !ith one person but not for another( 5or the consumers !hose skins are normal, it is likely that the "ecision making process is simple, an" the chosen pro"uct is alternati e until sheGhe fin"s the most suitable one( 5or the consumers !hose skins are "ry or 4uite sensiti e, it takes time an" re4uires some of information such as the ingre"ients an" pro"uct categories that are pro"uce" to suit !ith their particular problem of skins(

3. Information search Internal Search

5or most of the /sian !omen, the criteria usually focus primarily on the function of the pro"uct, such as !hitening pro"uct an" smooth moisture pro"uct Mi""le Class an" @pper Class ten" to appreciate the bran" name, !hich ensure the performance of the pro"uct !hereas >o!er Class refers to cheap pro"ucts

E@ternal Search
)pinions from their parents or frien"s !ho has use" the pro"uct before *he customers 9"iscussion or pro"uct information in some maga+ines, ne!spapers an" !ebsite

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AWARENESS SET Nivea :a'e&i#e Vase&i#e Orif&ame Avo# 9,Occita#e Me#ar* 5erma&ogica +o*y S!o"

EVOKED SET Nivea :a'e&i#e Avo# Vase&i#e INERT SET Orif&ame 9,Occita#e 5erma&ogica INEPT SET Me#ar* +o*y S!o"

5or the me"ium to high6income consumers !ho usually purchase cosmestic pro"ucts at the super markets, the e oke" set inclu"es Ni ea, 0a+eline an" ,aseline an" / on (appen"i2 H)( *hese are the four popular bran" names that the consumers ten" to consi"er an" compare to make a purchase as their price is me"ium an" the function is !hitening mainly( *he inert set contain )riflame bran", >7)ccitance an" 'ermalogical as these are pro"ucts obtaine" through pri ate sale personnel or at lu2urious shopping centres( *he bran" name in the inept set is the ones that are not sol" largely an" not many of ,ietnamese a!are of its 4uality

. !valuating and "electing #lternatives

a. Evaluation criteria
Eval"ative criteria Iuality 5unction 3ran" name Country of origin Price 5ragrance Packaging Total Im%ortance in %oints 22111% *::

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/s !e ha e mentione" before, Ni ea bo"y lotion is me"ium in ol ement purchase pro"uct, therefore, price is not the top priority feature to e aluate among bran"s( .n this case, 4uality seems the most important criteria that customers care of to make sure the performance that pro"ucts bring to consumers( *he secon" one is the function of pro"ucts !hether they suit for their specific nee"s of many "ifferent kin"s of skins an" the ne2t one is country of origin an" bran" name, !here the pro"ucts come from, goo" bran" name can en"orse" the 4uality of pro"ucts( Price seems not ery important for beauty care pro"ucts an" the last ones are fragrance an" packaging(

b. Surrogate indicators
Dhen customers "o not ha e sufficient kno!le"ge about pro"ucts, they use other in"irect in"icators to Bu"ge the pro"ucts an" make "ecisions( .n this case, for beauty care pro"ucts, customers also use price an" bran" name to e aluate( Price( Ni ea "oes not set lo!er price to penetrate the market because lo!er price may prefer to lo!er 4uality( Bran& name( Customers also use bran" name to e aluate among pro"ucts !hen they ha e no i"ea about pro"ucts because goo" reputation !ill guarantee the 4uality of pro"ucts(

c. Just-noticeable difference:
*his is ho! Ni ea can "ifferentiate its pro"ucts many similar function pro"ucts( 1ree %ro&"ct trial: Ni ea gi e customers ne! trial at Ni ea section in the supermarket, so it is recogni+e the "ifferent bet!een Ni ea section names( to others among an" free pro"uct easy for them to an" other bran"

1ig"re B( Nivea $o&y %ro&"ct sam%les

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Stan& o"t la$el on ne# %ro&"cts: Ni ea also uses re" color !ith big si+e letters on the label to emphasis ne! or promotional

pro"ucts( 1ig"re ,( stan& o"t la$els 1ree gift attach for set %"rchase( Dhen customers make three purchases at the same time, they !ill get free gift attach on the pro"ucts(

1ig"re ;( 1ree gift attach for set %"rchase

d. Outlet Selection and Product Purchase

Ni ea has use" mass "istribution strategy to sprea" pro"ucts into "ifferent places to make sure the pro"uct a ailability for customersF therefore, they can shop Ni ea bo"y lotion mainly in almost any markets, supermarkets, grocery stores, an" online outlets( 0o!e er, Ni ea !ebsite is only for pro"uct, price an" promotion references, it "oes not sell pro"ucts ia the internet( )ther online outlets are unofficial as !ell( /fter e2amining many "ifferent factors of outlet selection, t!o belo! seem to be the most important ones( Store image: big supermarkets !ill create more reliable an" frien"ly store image compare" to other locations to attract customers such as Ma2imart, Coopmart, Citimart an" >otte Mart( *hey !ill ensure pro"uct a ailability for customers(

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1ig"re 7( S"%er marAet logos

Retail a&vertising: banners in front of stores to promote for ne! pro"ucts an" special offers in front of super markets an" grocery stores are ery common tool use" by Ni ea( 3y this !ay, the company can inform !i"ely to customers about their latest pro"ucts an" promotional campaigns( (image $)

e. In-store influence:
*here are many factors that may affect the customer7s "ecisions especially the same type pro"ucts are "isplaye" on the same shel es such as: Sale %ersonnel: they are !ho customers !ill ask for information an" a" ices( Ni ea has allocate" their employees at almost any Ni ea section in the super markets to ans!er customer7s 4uestions an" help them to make "ecisions( 2image 83 6is%lays( in store "isplay combine" !ith a"s are more effecti e to influence customers( *his is the reason !hy Ni ea has pai" more for super markets to "isplay their pro"ucts on separate sections to help the pro"ucts stan" out catchable( P)P "isplays are essential to encourage purchase(

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1ig"re *:( InCstore &is%lays

f. Shopping orientation
/ccor"ing to 'a is, *( &rimmer, M( 0a!kins, '( Neal, C( Pettigre!, 8( E 'a is, P( 2%%7, shopping orientation "epen"s in these factors: time po erty, shopping confi"ence, enBoyment an" social nee"s( .n this case, target customers of Ni ea are mostly office employees an" house!i es, !ho like shopping at !eeken" !ith their families or frien"s an" spen" a lot of time to e aluate among bran"s before choosing the suitable ones for them( *his is the reason !hy Ni ea has pro i"e" more sub6pro"ucts for female bo"y lotion pro"ucts to gi e them more options(

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g. Perceived risk

Social risA .igh /o#

1inancial risA .igh /o# NIVEA

Jeferre" to the table abo e, although Ni ea has lo! financial risk because its price is not ery e2pensi e, it has high social risk because it !ill affect appearance (skins) of users(

h. Post purchase behaviour

*here are t!o factors that "etermine the beha iours of customers after purchase: Im%ortance of the &ecision to the cons"mer( /s mentione" abo e, Ni ea has high social risk because it affects the appearance of users( .f the pro"ucts "o not perform as they e2pect, they "o not satisfy an" s!itch to other bran"s( 6iffic"lty of choosing among the alternatives( there are only three alternati es in the markets that focus on mi""le class customers like Ni ea, so their choices are limite"(

i.

isposal situation

Consumers !ill "ispose pro"ucts after use as !ell as the company( Ni ea "oes not reuse package of pro"ucts because of sanitary reasons(

II=

Internal infl"ences
1. Perception
a. E!posure

Ni ea attracts customers from both "eliberate an" ran"om e2posure( 5or "eliberate e2posure, the company has focuse" on many a" ertisements on !omen maga+ines !here their target customers acti ely look for information about beauty care pro"ucts( 3esi"e, Ni ea has also applie" ran"om e2posure to stimulate the nee"s from customers Page 17 of 29

by a" ertisements on *, on the gol"en time as !ell as a lot of billboar"s, banners on main streets an" in front of supermarkets or bus stations(

b. "ttention
Stim"l"s( Color: /t the beginning, Ni ea has chosen !hite an" blue as their main colors for the bran" name, logos an" pro"ucts( Dhene er customers look at these t!o colors, they can recogni+e Ni ea(

1ig"re **( Nivea $anner Position: Ni ea has picke" many goo" locations an" positions for its pro"ucts inclu"ing big banners an" billboar"s in front of supermarkets, grocery stores an" bus stations( .solation: ) er si+e banners in the center city7s roun"abouts are common !ays to get ran"om e2posure from a large amount of people(

1ig"re *+(

ver siDe $anner

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c. Interpretation
Compare" to other competitors, Ni ea has set a 4uite high price for bo"y lotion pro"ucts( *his has confirme" Ni ea7s position in the market, the company "oes not !ant consumers to link bet!een lo! price to lo! 4uality especially beauty care pro"ucts are price sensiti ity( Moreo er, !hen using the bo"y lotion, people ten" to scare of !alking in the sun "ue to the interacting of chemical !ith sunbeam !oul" cause negati e effects to the skin( /s a result, Ni ea has offere" a slogan !hich latently means Ni ea 3o"y >otion !ill protect your skins from the sunshine( 8o, Ni ea !ants to gi e consumers more confi"ence !hen using its pro"ucts by a""ing this massage(

2. $earning
a. #onditioning
i= Classical Con&itioning

8ince ,ietnam is kno!n as the agricultural an" tropical country, ,ietnamese skin is not !hite as !estern people( /lso, ,ietnam !as a colony of 5rance, so !hite skin means upper class an" beauty( /ckno!le"ge that, Ni ea gi es out the bello!e" concept: Stimulus Stimulus =!ite =!ite s/i# s/i# Nivea Nivea Offers Offers t!e t!e =!ite#i#g =!ite#i#g +o*y +o*y 9otio#s 9otio#s Response Response +eautifu&) +eautifu&) <""er <""er ca&ss ca&ss

*herefore, as a me"ium in ol ement pro"uct, offer the !hitening bo"y lotions both "ay an" night has moti ate" au"iences the "esire of impro ing their skins e ery time, both protecting un"er sunshine an" impro ing skin7s color at night( ii= %erant con&itioning

Ni ea obtains the customers7 trial ia pro"ucts7 goo" smell an" the e2tra gifts( *hese things moti ate consumers to try the pro"ucts( Page 19 of 29

Moreo er, the samples are sent together !ith the maga+ine so that e ery rea"er has a chance to try Ni ea7s bo"y lotion(

1ig"re *-( Nivea %ro&"ct sam%les

b. #ognitive learning
i= Vicario"s mo&elling

/ccor"ing to 'a is et al( (2%%7), one of the common !ays of learning is to obser e an" imitate the beha iours of others( *his is the reason !hy, Ni ea a" ertisements "i" illustrate the outcomes of using bo"y lotion pro"ucts by sho!ing the mo"el !ith beautiful an" !hite skin !alking in the sun satisfactorily an" confi"ently( .n a""ition, Ni ea al!ays remains high pro"uct performance to take a" antage of !orl" of mouth( .f the pre ious users ha e !hite an" beautiful skins, they are likely aske" by others to share e2perience(

1ig"re *B( Nivea $o&y a&vertisement Page 20 of 29

3. %otives
a. $aslo%&s 'ierarch( of )eeds

1ig"re *,( Maslo#Es .ierarchy of Nee&s

Ni ea bo"y lotion is pro"uce" to satisfy the :go Nee"s of ,ietnamese society( ,ietnamese people initially appreciate their physiological, safety an" security nee"s to ensure the stability of their li es( Moreo er, ,ietnamese culture is collecti ismF hence, keeping goo" long6term relationship is also ery important( /fter these nee"s are satisfie", people !ill start thinking of impro ing their status, prestige an" self6esteem( @sing Ni ea bo"y lotion, people !ill feel that they look more attracti e an" beautiful in the eyes of others( 5or instance, !omen !ill no longer be afrai" of !earing brassieres( *hus, they become more confi"ent in ha ing con ersation !ith a man, a colleague or a business partner, accomplishing the Bob better an" thus fulfilling their prestige an" self6 esteem( *he specific themes that Ni ea use" to appeal the customers is 9 3eing !hite an" shinning un"er the sun7(

i.

Cognitive &rowth motives

*eleological: /sian people are easily affecte" by the en ironment elements, especially the sunlight( 0ence, the a" ertisements of Ni ea bo"y lotion are "esigne" to focus on the consumers7 "esire" stateF that is being protecte" from the impact of the sunlight to ensure the stability an" moisture balance of the skin(

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ii.

#ffective Preservation %otives

:go6"efence: Consumers !hose skin are 4uite sensiti e are ery concerne" about choosing the right cosmetic pro"ucts( *herefore, they are going to seek the bran" information before making a purchase so as they can a oi" skin problem(

iii.

#ffective &rowth %otives

/ssertion: /s state" in the Maslo!7 0ierarchy of Nee", the consumers ha e strong "esire to obtain self6esteem an" the possibility of consumers7 complaint on the ineffecti eness of the pro"uct is ery high(

. #ttitude

Ni ea bo"y lotion at first !oul" be percei e" to offer a me"ium price for the mi""le6class consumers( Ni ea @, Dhitening Milk makes the consumers belie e that this pro"uct help !hiten an" protect the consumers7 skin !hile they are going un"er the sun( Ni ea Night Dhitening Milk is belie e" to ha e stronger effect on !hitening the skin as they are use" at night, !hen the sun no longer affects their skin( Ni ea .ntensi e Milk !ill help the consumers enhance more moisture, protecting themsel es from the tropical !eather in ,ietnam Ni ea Dhitening - in 1 has similar functions as @, Dhitening Milk yet is "esigne" particular for men(

Cognitive Com%onent

Affective Com%onent *here are both negati e an" positi e feelings to!ar"

Ni ea bo"y lotion( Positi es: Ni ea bo"y lotion is !ell6kno!n because the price is acceptable for mi""le6class consumers an" !omen feel that their skins ha e become !hiter after using Ni ea( Negati es: 8kin becomes sticky !hen applying Ni ea in the bo"y, especially in hot !eather( Moreo er, stoping Ni ea coul" make the skin turn Page 22 of 29

back to the or"inary state( /!areness about bo"y lotion for men is ery lo!(

Behavioral Consumers, mainly !omen, "etermine to purchase Ni ea as it !orks effecti ely, compare" to competitors( Com%onent

III=

Recommen&ations
1. 'pgrading the main we(site)
a. Problem identification

/s !e ha e mentione" before in pre ious section, Ni ea !ebsite is only for pro"uct, price an" promotion references, so Ni ea shoul" take a" antage of the increase in internet usage in ,ietnam( Koung people no!a"ays are likely to look for information about pro"ucts ia the internet( *herefore, there is a nee" for Ni ea to enhance consumer7s perception about bo"y lotion pro"ucts by upgra"ing its !ebsite( *he company nee"s to ha e interaction !ith consumers an" get their i"eas, opinions to impro e its pro"ucts an" customer ser ices( /lso, in Ni ea !ebsite, there is lack of information about beauty care ne!s for customers(

b. Solutions
/lthough N.,:/ alrea"y has a ery professional !ebsite, it is still lacking of the pages that isitors can make some interactions !ith the !ebsite !here they can "o some acti ities, isitors !ill fin" more interests an" usefulness of this !ebsite( 5or instance, besi"e a" ertising information on the !ebsite, isitor nee"s more real i"eas an" e2perience of N.,:/7s users from the N.,:/ forum before purchasing N.,:/ pro"ucts( .n fact, the real N.,:/ consumers7 e2perience sharing together in forum !ill be more aluable an" trust!orthy than the a" ertising information from its o!n company( 0ence, !e strongly recommen" that N.,:/ shoul" upgra"e the !ebsite by buil"ing a forum an" posting up"ate" ne!s about beauty care( 5orum in N.,:/ !ebsite !ill be the place !here consumers can easily register to be a member to share e2perience, kno!le"ge, an" asking 4uestions about any kin" of N.,:/ pro"uct( 5urthermore, the up"ate" ne!s an" information about beauty care !ill be regularly poste" an" let people freely comment their i"eas( 0o!e er, a"ministrators of the forum nee" to control the 4uality of the "iscussion or comments so that they can create positi e influences to isitors( Moreo er, the number of internet users is significantly increase"( *hey usually access the main !ebsite or search from the internet the information of pro"uct Page 23 of 29

they !ant to purchase, especially to N.,:/7s target group of consumer6 office people( )b iously, upgra"ing !ebsite is a necessary action for N.,:/ to gi e more information about pro"ucts for their consumers( .n a""ition, it is an effecti e !ay of marketing6 !or"s of mouth for N.,:/ pro"uct by taking a" antage of its o!n consumers7 e2perience(

2. *evelopment of %ale +ody $otion

a. Problem identification
Ni ea nee"s to in est in changing the beha iour, attitu"e of male customers about bo"y lotion pro"ucts because most of them "o not recognise the e2istence of Ni ea bo"y lotion for male( /lthough male usually use facial foam an" "eo"orant pro"ucts, men7s using bo"y lotion is still a ne! concept in ,ietnam( 5urthermore, Ni ea "oes not pay attention in a" ertising of bo"y lotion for menF there is no *, commercial a" ertisement for this pro"uct(

b. Solutions
A&vertising 3inh Minh, a goo"6looking mo"el an" popular actor !oul" be chosen to be the mo"el for the a"s to moti ate ,ietnamese men to buy the pro"uct so as they can become han"some an" manly Bust like 3inh Minh(

Be special!!!

NIVEA

Source( !tt"(>>*ie#a#!.#et>forums>s!o$t!rea*."!"?t@1 36 Page 24 of 29

Personal selling *raining courses for sales an" marketing personnel in the program are nee"e" to impro e their skills in !ays to approach an" encourage male consumers to purchase Ni ea bo"y lotion( .nitially, the company shoul" buil" a telephone system in !hich the marketing staff !ill "irectly call the customers to in"uce them buy the pro"uct( Moreo er, it !ill be effecti e that a number of sale person stan"ing at the supermarkets like CoopMart, 5i imart an" Ma2ima2 to consult to encourage consumers to make a purchase

IV=

References
1( 'a is, *( &rimmer, M( 0a!kins, '( Neal, C( Pettigre!, 8( an" 'a is, P( 2%%7, Consumer beha iour: .mplications for marketing strategy, - th :"n, Mc&ra!0ill, N8D, /ustralia( . 3eiers"orf, 2%%#, 9NIVEA is the Most trusted S!in Care "rand in Europe7, ie!e" on 2%th /pril 2%%#, http:GG!!!(beiers"orf(comG/rea6PressG>atest6 Ne!s(asp2LlM2Ei"M1--H H( 3eiers"orf, 2%%#, 9Our #rofile $ Glo%al "rands $ Glo%al Success7, ie!e" on 2%th /pril 2%%#, http:GG!!!(beiers"orf(comG/rea6/bout6usG)ur6Profile(asp2L lM2 1( Ni ea, 2%%#, Ni ea !ebsite, Nhttp:GG!!!(ni ea(com( nGhomeO ie!e" on 1% th /pril, 2%%#,

-( 8aigon *imes online, 2%%7, ie!e" on 2%th /pril 2%%#, http:GG!!!(thesaigontimes( nGPromote'etail(asp2LPi"M171 2. *he Dorl" E ,ietnam Jeport, 2%%7, 9& 'u h(ng ti)u d*ng l(n + Vi,t nam7, ie!e" on 2%th /pril 2%%#, Nhttp:GG!!!(tg n(com( nG.temG,NGPinh*e,ietNamG2%%#G2G22-1--71H-A37A /3G O

V=

A%%en&i@
1. Nivea +ody $otion Products

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2. !valuation criteria among (rands

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Cons"mer %erce%tions
Eval"ativ e criteria F"ality 1"nction Bran& name Co"ntry of origin Price 1ragranc e PacAagin g Total Benchma rA 2,3 1 H H 2 2 2 2 17GHNivea 1 1 H 1 H 2$ Avon 1 1 1 2 H 2 21 .aDelin e 1 1 1 H H H 2 2H riflam e H 1 1 1 1 1 H 2A Vaseline 1 1 H H 1 H 2A

*argeting to mi""le income customers, besi"e Ni ea, there are three other competitors: / on, 0a+eline an" )riflame( Compare" to the benchmark, Ni ea seems to be the best pro"ucts so far( .t has ery goo" 4uality, many pro"ucts !ith "ifferent functions to meet specific nee"s of both male an" female( Dith long time operation, Ni ea has been famous for a lot of beauty care pro"ucts, so !hen it launche" ne! pro"ucts in the market, it is easy to be accepte" by customers( /lthough Ni ea price are 4uite high than others but it !ill assist pro"ucts "ifferentiate to other lo! 4uality pro"ucts an" create trust!orthiness for consumers( 5ragrance "epen"s on preference of consumers( Ni ea packaging is 4uite simple but elegant an" beautiful(

3. Products and Price comparison

PR 6UCT Nivea 8 <V =!ite#i#g Mi&/ 1-.---v#*>1-m& 13..--v#*>1 1m& 0..3--v#*> 1-m& 23.---v#*>6--m& PRICE

Nivea A Nig!t =!ite#i#g Mi&/

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1-.---v#*>1-m& 0..3--v#*> 1-m& 23.---v#*>6--m&

Nivea A I#te#sive Mi&/ 02.1--v#*> 1-m&

Nivea A Cari#g 9otio# 02.1--v#*> 1-m&

Nivea A =!ite#i#g 1 i# 1 1-.---v#*>1-m& 0..3--v#*> 1-m&

:a'e&i#e A <V =!ite#i#g -.6--v#*>1--m&

:a'e&i#e A =!ite#i#g 1.. --v#*>1--m&

Vase&i#e A 5ai&y S/i# S!ie&*

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121.---v#*>3 1m&

Vase&i#e A Tota& Moisture 121.---v#*>3 1m&

Vase&i#e Cocoa +utter 131.---v#*>2--m&

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