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DƯỢC LIỆU NGUYÊN XUÂN SWOT ANALYSIS, Assignments of Principles of Marketing

DƯỢC LIỆU NGUYÊN XUÂN SWOT ANALYSIS

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ASSIGNMENT COVER SHEET
STUDENT DETAILS
Student
name: Trần Khánh Nguyên Student ID
number: 31211025685
UNIT AND TUTORIAL DETAILS
Unit
name: Principles of Marketing Unit
number: PMK06
Tutorial/
Lecture: A2_Business Analysis
Report Class day and time: Thursday, 3:30 PM
Lecturer or Tutor
name: Dr. Khanh Ngo
ASSIGNMENT DETAILS
Title: A2_Duoc Lieu Nguyen Xuan brand analysis
Length
: 2230 words Due
date: 30 November
2021 Date
submitted: 30 November
2021
DECLARATION
I hold a copy of this assignment if the original is lost or damaged.
I hereby certify that no part of this assignment or product has been copied from any other
student’s work or from any other source except where due acknowledgement is made in the
assignment.
I hereby certify that no part of this assignment or product has been submitted by me in
another (previous or current) assessment, except where appropriately referenced, and with
prior permission from the Lecturer / Tutor / Unit Coordinator for this unit.
No part of the assignment/product has been written/ produced for me by any other person
except where collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator
concerned.
I am aware that this work may be reproduced and submitted to plagiarism detection
software programs for the purpose of detecting possible plagiarism (which may retain a
copy on its database for future plagiarism checking).
Student’s
signature: Tran Khanh Nguyen
Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above
declaration has not been signed.
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ASSIGNMENT COVER SHEET

STUDENT DETAILS Student name: Trần Khánh Nguyên Student ID number: 31211025685 UNIT AND TUTORIAL DETAILS Unit name: Principles of Marketing Unit number: PMK Tutorial/ Lecture: A2_Business Analysis Report Class day and time: Thursday, 3:30 PM Lecturer or Tutor name: Dr. Khanh Ngo ASSIGNMENT DETAILS Title: A2_Duoc Lieu Nguyen Xuan brand analysis Length : 2230 words Due date: 30 November 2021 Date submitted: 30 November 2021 DECLARATION I hold a copy of this assignment if the original is lost or damaged. I hereby certify that no part of this assignment or product has been copied from any other student’s work or from any other source except where due acknowledgement is made in the assignment. I hereby certify that no part of this assignment or product has been submitted by me in another (previous or current) assessment, except where appropriately referenced, and with prior permission from the Lecturer / Tutor / Unit Coordinator for this unit. No part of the assignment/product has been written/ produced for me by any other person except where collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned. I am aware that this work may be reproduced and submitted to plagiarism detection software programs for the purpose of detecting possible plagiarism (which may retain a copy on its database for future plagiarism checking). Student’s signature: Tran Khanh Nguyen Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has not been signed.

Table of Contents

  • I. Introduction and background of the brand..........................................................................................
  • II. Microenvironment.............................................................................................................................
      1. The company.................................................................................................................................
      1. Suppliers........................................................................................................................................
      1. Marketing intermediaries............................................................................................................
      1. Competitors...................................................................................................................................
      1. Publics...........................................................................................................................................
      1. Customers.....................................................................................................................................
  • III. Macro Environment..........................................................................................................................
      1. Political..........................................................................................................................................
      1. Economic.......................................................................................................................................
      1. Social..............................................................................................................................................
      1. Technological................................................................................................................................
      1. Environmental..............................................................................................................................
      1. Legal..............................................................................................................................................
  • IV. SWOT analysis.................................................................................................................................
      1. Strengths.......................................................................................................................................
      1. Weaknesses...................................................................................................................................
      1. Opportunities................................................................................................................................
      1. Threats...........................................................................................................................................
  • V. Marketing issues..............................................................................................................................
  • VI. Appendices.....................................................................................................................................
  • VII. References.....................................................................................................................................

3. Marketing intermediaries

  • Resellers: Due to 20,000 distributors, consumers can find Nguyen Xuan herbal shampoo in drugstores, grocery stores in both urban and rural areas. Moreover, the products are also available on E-commerce platforms such as Tiki, Sendo, Lazada, Shopee, etc. These platforms provide customers with special deals, attractive promotions, and discounts. Therefore, Nguyen Xuan is able to reach a wide range of customers both online and offline and increase the exposure of the brand into the market in Vietnam.
  • Physical distribution firms: Nguyen Xuan has E-commerce shipping services deliver products to customers, and there are also many transportation companies such as Giaohangtietkiem, Viettel post, VN post, GHN that support the brand.
  • Marketing service agencies: Nguyen Xuan promotes its products by advertising on Facebook, television, and working with famous agencies, actresses, singers such as Phuong Oanh, Lam Vy Da, Quynh Kool, etc 4. Competitors
  • In the herbal shampoo market, Nguyen Xuan has numerous direct competitors from domestic and abroad companies such as Thai Duong, Thorakao, Nature Queen, Yves Rocher, Herbal Essences etc.
  • Thai Duong herbal shampoo from Sao Thai Duong and Nguyen Xuan are formidable opponents of each other. Thai Duong has the same targeting segmentation and product prices as Nguyen Xuan. Although Thai Duong was launched in 2002, it has still been favored, trusted by domestic and international consumers and is keeping its top of mind position in the herbal shampoo market in Vietnam. Moreover, this brand has been doing their best in increasing brand awareness by diverse marketing channels such as Facebook advertisements, television video commercials, influencer marketing, sponsoring programs, etc.
  • Thorakao shampoo is also one of the direct competitors. Thorakao has been well- known as a high quality Vietnamese cosmetic brand with a history of establishment and development of over 50 years and therefore this brand has created a trust in consumers.
  • In recent years, a considerable growing number of start-up companies have launched herbal shampoo such as Laiday refill station, Mat Na Tuoi Xinh Lam Co I and gained customer intimacy. They have become potential competitors.
  • In the whole shampoo market, Nguyen Xuan faces fierce competition from big brands such as Dove, Pantene, and Sunsilk, etc. 5. Publics
  • Media publics: Newspapers, Facebook, and television video commercials are playing a vital role in shaping Nguyen Xuan herbal shampoo. Whenever new products are launched, a lot of news about the quality and prominent uses of the products are expressed through newspapers, advertising on television, Facebook.
  • Internal publics: The company ensures to provide a professional and creative working environment, and train the workforce to be skillful , enthusiastic, responsible.
  • General public: Hoa Linh Pharma products such as Da Huong feminine wash, Bao Thanh, Ngoc Chau toothpaste have always been “TOP 1 Vietnamese goods favoured by consumers”.
  • Citizen-action publics: Hoa Linh Pharma has always made a lot of positive contributions to society such as charity to flood victims, disadvantaged children, etc and they also provide scholarships for medical students. For instance, During the Covid-19, Hoa Linh sent 400 boxes of their products to 2,400 doctors and patients who were being isolated at K Hospital. 6. Customers
  • Consumer markets: Nguyen Xuan targeting consumers are women having sensitive scalp, being pregnant, leading healthy lifestyles, or favouring the traditional products. Over one million consumers have favoured and trusted Nguyen Xuan. However, it has low customers’ loyalty, because they can switch to other brands easily with no switching cost.
  • Reseller markets: Nguyen Xuan sells its products to 20,000 distributors nationwide such as drugstores, grocery stores, and retail stores.

As a result, this has affected people’s life, health, production and business activities and created a burden on the Vietnam economy.

  • GDP in the nine months of 2021 increased by only 1.42% over the same period last year because of the outbreak of Delta virant. Many key cities, provinces had to implement social distancing for a long time, blocking all delivery services, causing disruption in the shipping industry.
  • In the first 9 months this year, there were 45.1 thousand enterprises temporarily closed for a short period of time, an increase of 16.7% compared to the same period last year; 32.4 thousand businesses was in the process of ending an official organization, rising by 17.4%; 12.8 thousand enterprises withdrew from the market, an increase of 5.9%.
  • Vietnam's unemployment rate had an increase to 3.72% in the third quarter, the highest since the Covid-19 cases were first reported in the country.

3. Social

  • According to Worldometer, Vietnam is ranked 15 for the most populated country with 98,570,511 people in 2021, and is expected to have more than 100 million people in the future.
  • In recent years, there has been an increase in the Vietnamese women population, reaching over 50 million people (The World Bank, 2020). Therefore, there will be a high demand in the shampoo market.
  • Moreover, there has been a modification in Vietnamese citizens’ lifestyle. They are more health conscious, and prefer organic products which benefit their health. 4. Technological
  • Digital transformation, artificial intelligence and machine learning are widely utilized to boost efficiency and productivity, and reduce the product prices. Nguyen Xuan has continuously applied technology in its manufacture to give customers the high quality products at affordable prices. 5. Environmental
  • Vietnam climate and weather have been advantages in cultivating herbs, providing a wide range of ingredients for the company.
  • In recent years, climate change has become the hottest issue, and it has negative impacts on agriculture. 6. Legal
  • The government has introduced many legislation to support the business and protect customers:
  • Consumer protection.
  • Copyrights, patents, intellectual property law.
  • E-commerce law.
  • However, the enforcement is notoriously weak, there have still been many fake products appearing in the market. IV. **SWOT analysis
  1. Strengths**
  • Nguyen Xuan herbal shampoo comes from Hoa Linh Pharma Co Ltd , a big company, that will ensure the brand in terms of financial statement.
  • Nguyen Xuan products meet GMP standards , bringing the best quality to consumers at an affordable prices.
  • Nguyen Xuan has a wide distribution system. Nguyen Xuan products are currently available nationwide, in both urban and rural Vietnam, customers can buy products directly at drugstores, and grocery stores where they live and work. Moreover, they can be purchased on E-commerce platforms such as Shopee, Lazada, Tiki, etc.
  • Nguyen Xuan herbal products are high quality. Nguyen Xuan combines quintessence of 13 traditional herbs and natural ingredients such as Ginkgo biloba, Ha Thu O, Bo Ket, pomelo extract, lemon extract, olive oil, vitamin E, etc. These ingredients help nourish the hair deeply from root to tip, minimize hair loss, reduce dandruff and itchy scalp, and promote hair growth. 2. Weaknesses
  • Nguyen Xuan has a poor spectrum of product portfolio which is suitable for each hair style. It only has three shampoos, one hair conditioner, and two sizes which are 200ml and 250ml for each product so that customers might not have many choices to choose from. (Appendix A)
  • During Covid-19 , under the strict quarantine policy, consumers have been staying at home for a long time and working from home, and the delivery services have been limited. Therefore, those will prevent Nguyen Xuan from reaching potential customers.
  • No switching cost : The consumers can easily switch to another product.
  • Climate change can slow down the process of finding quality raw materials and the speed of manufacturing products. V. Marketing issues Nguyen Xuan has been doing their best in manufacturing high quality products at affordable prices, satisfying customers. However, they still have problems with marketing strategies. The brand awareness is low that when it comes to searching herbal shampoo on google or supermarket, Nguyen Xuan is inferior to their competitors. Therefore, the company should diversify their marketing channels, and launch some marketing campaign. VI. Appendices Appendix A

Nguyen Xuan’s product portfolio. Retrieved from DuoclieuNguyenXuan https://daugoiduoclieunguyenxuan.vn/ Appendix B Nguyen Xuan’s customers. Retrieved from DuoclieuNguyenXuan https://daugoiduoclieunguyenxuan.vn/ Appendix C

  1. Press release social-economic situation in the 3rd quarter and the 9 months of 2021. (n.d.). Retrieved from https://www.gso.gov.vn/en/data-and-statistics/2021/10/press-release-social- economic-situation-in-the-3rd-quarter-and-the-9-months-of-2021/
  2. Press release social-economic situation in the 3rd quarter and the 9 months of 2021. (n.d.). Retrieved from https://www.gso.gov.vn/en/data-and-statistics/2021/10/press-release-social- economic-situation-in-the-3rd-quarter-and-the-9-months-of-2021/
  3. The trend of inequality in income distribution in Vietnam 2016-2020 period. (n.d.). Retrieved from https://www.gso.gov.vn/en/data-and-statistics/2021/06/the-trend- of-inequality-in-income-distribution-in-vietnam-2016-2020-period/
  4. VietNamNet News. (2017, April 29). Phát hiện hoa chat gay Ung thư trong các San Pham tam Goi. Retrieved from https://vietnamnet.vn/vn/suc-khoe/phat-hien-hoa- chat-gay-ung-thu-trong-cac-san-pham-tam-goi-370242.html
  5. Vietnam population (2021). (n.d.). Retrieved from https://www.worldometers.info/world-population/vietnam-population/
  6. Population, female (% of total population) - Vietnam. (n.d.). Retrieved from https://data.worldbank.org/indicator/SP.POP.TOTL.FE.ZS?locations=VN
  7. Shampoo market in Vietnam | Market research report | Lucintel. (n.d.). Retrieved from https://www.lucintel.com/Vietnam/opportunities-for-the-shampoo.aspx