Pom Omo Unilever

HANOI UNIVERSITYFACULTY OF MANAGEMENT AND TOURISMPRINCIPLE OF MARKETING REPORTOMO UNILEVER VIETNAMTutor Ph? m Th? Phu? ngStudents Khuong Du KimTr? n Th? H? ng NgaD? Qu? nh TrangHoang Thanh LoanTutorial Tut 5 Second MajorHanoi, whitethorn 2012 PRINCIPLE OF MARKETING REPORT Subject Principles of selling Tutorial 5 Second Major Tutor Ph? m Th? Phu? ng Group members 1. Khuong Du Kim- ID 0907010110 2. Tr? n Th? H? ng Nga- ID 0907010161 3. Hoang Thanh Loan ID 0807010102 4. D? Qu? nh Trang- ID 0907010232 Date of submission whitethorn 4th, 2012 TABLE OF CONTENTS Executive summary4 I.Introduction5 II. slip analysis5 1. Company analysis5 1. 1 missionary post statement5 1. 2 Company bearing6 2. Environmental analysis7 2. 1 economic means7 2. 2 demographic factor7 2. 3 Cultural factor7 2. 4 scientific factor8 2. 5 Political factor8 2. 6 Natural factor8 3. Competitive analysis8 4. Customer analysis12 4. 1 Geographic segmentation12 4. 2 demographic segmentation12 4. 3 Behavioral segmen tation12 4. 4 Psychographic segmentation12 5. dirt analysis13 5. 1 check offs online per public prototypeance 13 5. 2 The current trade st appraisegy using framework 4 Ps13 6. mug up analysis16 6. 1 Strengths16 . 2 Weaknesses18 6. 3 Opportunities19 6. 4 Threats19 III. Conclusion20 REFERENCES21 Executive summary In novel yrs, the surprising growth of scrimping along with the involvement of Vietnam into WTO has brought to a greater extent than opportunities for the purchase, sale and exchange of satisfactorys and servicings. Therefore, the brotherly clubs success mostly depends on how it carries pop the line of point of intersections to utilize these advantages in effect(p)ly. OMO is a proudly aw be rinse pulverisation return of Unilever Vietnam mutual Venture Company (formerly Lever Vietnam) a joint venture peculiar(a)izing in Home and Personal C be stigmatizes.Since the spring of Unilevers operation in Vietnam in 1995, Unilever Vietnam has successfull g rown to receive a lead story fast-moving consumer legals society in the local starting lineet This reputation presents the industry and tilt analysis of the OMO product and shows the strong and weak features of the Unilever Vietnam to recall out the suitable way coping with the current situation by suggesting some recommendations. In the grand analysis, prototypical, this report indicates the over heap about the club operations. Next, it describes the big surround trend that affects the foodstuff and the companys competitors.Then, the customer segments and defacement argon analyzed, followed by the SWOT analysis. Finally, some recommendations argon recrudescen for the company. OMO has break one of the detergent-leading cracks in Vietnam market, that the competition depart never dispel there. Therefore, this look is essential to maintain the position of the OMO market as nearly as to economic aid Government design better policies that aim to render a better surround where local line of products weed tour a greater role in the k right offledge of the society and economy of Vietnam. I. INTRODUCTIONVietnams involvement in WTO has brought in some sizeable results in e truly aspect of invigoration, especially in the economy. In recent years, Viet hitse businesses comport became much(prenominal) than interested in and made better accustom of the big opportunities which WTO brought them. On guide of that, there is a gro lureg business arrangement about the purchase, sale and exchange of goods and go. How to facilitate Vietnamese consumers in doing the shopping, proviso them with better choices, better goods and better costs is always the deep preoccupation of Vietnamese companies.OMO is a highly aw are airstream grindize product of Unilever Vietnam Joint Venture Company (formerly Lever Vietnam) a joint venture specializing in Home and Personal Care brands. According to the recently issued report by the Central Institute for Economic Management (CIEM), by 2007, UVN ranks the 27th largest business in Vietnam and the largest in the Fast Moving Consumer beneficials (FMCG) sector. Unilever Vietnam is a long-term investor, who has been deeply rooted in the economy, having strong forward and backward linkages and, by and large, luck domestic consumers. This drives us to conduct research about this product.The economy of Vietnam is little by little growing that enables merchandise enjoy higher active standard. Higher maintenance conditions demand higher quality products. As the world changes so the business mustiness change to meet revolutionary consumer gets. It is inevitable that washing spot is very a necessary consumer product in around househ seniles. OMO has been part met customer expectations for their quality products. Now this product has formed its brand honor on the market in some(prenominal) domestic and world- colossal market. This paper attempts to make a deeper understandin g about the OMO product in equipment casualty of the current arket, the merchandising environment, the organization, the customers, and the competitors all of which influence the weakenment of the OMO marketing plan. Further more than, it is conducted to go out the actual situation of customer and the situation of the company. Through this study, the advantages, disadvantages and the competition of the OMO product was clearly highlighted II. SITUATION abstract 1. COMPANY ANALYSIS 1. 1. Mission Statement Attracting and building long long-lived human relationship with customers through effective communication is what the OMO product has been doing.It brings the wealth of k immediatelyledge and international expertise to the service of local consumers. Its mission is to add continuously vitality to the quality of life story of consumers. OMO meets every day conveys for hygiene and individualal care with brands that help citizenry feel good, look good and get more out of li fe. Its long term success requires a summate commitment to portentous standards of performance and productivity, to working together effectively, and to a willingness to embrace new ideas and condition continuously.This is its road to su bladeable, profitable growth, creating long-term value for our contribution asserters, our people, and our business partners. 1. 2. Company objectives a. fiscal In society to compass the good result for the future development and the mission of maximizing profit, pursuing a business growth strategy, year after year, OMO aggressively pursues the long term profitability and growth objective with the goal of doning plus financial performance, specifically * Earn an annual rate of return of at least 30% over the next 12 months. Produce net profits ( beforehand interest and tax) of 250 billion VND in 2013. b. Marketing objectives In the long run for the next 12 months, our company aims at becoming a market share leadership in the world of deterge nt powder. Specifically, the objective is to gain a market share of 68% of the domestic market. In order to reach this target, we have to * Achieve total gross revenue r counterbalanceue of 900 billion VND in 2011, which names a 28% increase. Therefore, achieve a unit sale bulk of 800 trillion products. Increase product cognizance of OMO brand among target audience to 98% over the proviso period. * Inform target audience about features and benefits of our product and its competitory advantage, leading to a 10 percent increase in sales in one year. * Enter the higher-income segment of the 30 to 35 year old market with internet services and ordering capability. * Enlarge our distribution meshing by 200% by the next 12 months. * Aim for an primer coatable expense of 28,000 VND per kilo in the long run. * Increase loyalty among current customer Increase customer satisfaction and relationships 2. ENVIRONMENTAL ANALYSIS 2. 1. Economic factor As the national living standard impro ves, the demand and need for common products are higher. However, when the inflation has been increasing in Vietnam in recent year, prices of many other(prenominal) goods to a fault increases uncontrollably and Vietnamese consumers have to pay more for daily-using products, including washing powder. Some recent statistics show that OMOs price has change magnitude by about 10,000 VND per kilogram since 2002 (Group 9 NH03, 2009).This can makes most of consumer more reluctant when purchasing washing powders with higher price. They are akinly to retrieve cheaper substitutes to satisfy their demand. If OMO keeps such a high price level, the number of consumer may reduce significantly no matter how overmuch the company advertises for their products. This will be a big obstacle for OMO in the near future. 2. 2. Demographic factor The Vietnamese existence is increasing quickly, as the total population now reaches 90 million and this figure is believed to rise by 1 million per year (Vietnam Demographics Profile 2012).Washing powder is a necessary good used crossways the outlandish, hence Unilever has many opportunities to increase their sale volume and develop OMO product. Anformer(a) good news for OMO is that Vietnams population c at one timentration is higher and higher in big cities, especially Hanoi and Ho ki Minh City (Vietnam Demographics Profile 2012). In addition, the fact that people are leaving the estateside for the city center to find better-paid jobs reduces the distance of delivery surrounded by buyers and sellers and saves ecstasy cost for the company. . 3. Social/ Cultural factor Culture is a vital part of every society and the all- implicationant(a) cause of peoples wants and behaviours. Recognizing the important role of culture in promoting products, Unilever has focaliseed on Vietnamese culture in many advertisements. For example, OMO flower fragrance is associated with the envision of Vietnamese diligent housewives, OMO TET with address tos of a happy family on Tet holiday with such impressive slogans as T? t lam di? u hay ng? i gi v? t b? n, T? t lam di? u phuc, sung tuc c? am OMO too participates in social welfare programs funding for poor students or impart to the social facilities with meaningful slogans like V? n tim vang cho tri? u t? m long vang, OMO, ao tr? ng ng? i render tuong lai, all of which are very consistent with Vietnamese culture and win many customers heart (Chi? n lu? c marketing c? a Omo, 2011, TNO, P. , 2005). In addition, Unilever has designed many product lines with diversify features to meet the needs of various customer pigeonholings, for instance, OMO 99 Stains, OMO blanching agent out, OMO Comfort and OMO Matic Frontload. 2. 4.Technological factor In the technological era, every company tries their best to apply the newest engineering to produce new products. In recent years, Unileverhas invested much in R&D to have modern achievement lines and new engine room which hel p reduce costs and add more features to their products (Unilever, 2011). Because of the technology advance, advertisements of OMO appear everlastinglyin the media, hencebring OMO much closer to the consumers (Danh gia hi? u qu? qu? ng cao, n. d. ). Therefore, technology enables OMO non only to enhance its quality but in like manner to reach target consumers easier. . 5. Political factor The organisation has a vital role in operating the business over the solely country. Vietnamis nowimplementing an open market policybyfacilitatingaccess to a massive figure ofproducts. However,obstacles liketariffs and quotason materials increase the price of many goods including OMO. Moreover, the regulations in Vietnamare not strict enough and people may commit illegal actions as in the case of a unshakable in Thanh Hoa province which produced fake OMO with a circulate of stone (Huy, Q. , 2010).Such chore may leave negative impressions of OMO brand in the customers mind. Nonetheless, the stability of Vietnams politics is still a significant factor that draws the interests of many international firms. 2. 6. Natural factor Today, most industries have to face a stark lack of resources and OMO is not an exception. Resources for OMO production have been increasingly exhausted because the main ingredients are fat acids derived from crude oil. In recent years, the oil price keeps going up, leading to the rise in costs of production and causes the price of OMO to increase.Oil price increases overly cause delivery cost to increase too. Moreover, nowa long time, environment is a very hot issue many companies have failed because they rationalize the environmental concerns. The case of Vedan is one typical example. Producing environment friendly products is a good way to close in customers who want to do something good for the surround environment. To save the environment, every company needs to follow the government laws, and handle their responsibility to protect environ ment even when that will make their product more expensive.Unilever is successful with their waste treatment water process and receives good feedbacks from society (Unilever, n. d. ). 3. COMPETITIVE ANALYSIS Nowadays, washing powder has become a common good and there are pretty much washing powder brands of divergent manufacturers in the market competing with each new(prenominal) for customers concern. Specifically, OMO are facing many competitors such as billow, Hoa Mo, Surf, Viso, Vi Dan. However, Viso and Surf are both products of Unilever art object P&G owns billow and Vi Dan belongs to Vico.These 2 brands, especially billow, are the most threatening rivals to OMO in the market at the moment. According to the statistics, OMO currently accounts for 60% of the market share, magic spell Tide makes up 30% and other brands only contribute 10% (Group 9 NH03, 2009). 3. 1. aim and in enjoin competitors a. Indirect competitors Indirect competitors are businesses that are offer ing products and services that are close substitutes. These competitors are probably targeting ones markets with a same or similar value proposition, but delivering a divergent product.In Vietnam, there are many indirect competitors for OMO like Ariel, Amway, Lix, Lifeboy, Pamolive, Enchanteur, Lux, as they also provide washing products but concentrate more on washing water and soap. b. Direct competitors Direct competitors are businesses that are offering very(a) or similar products or services as a persons business. These are companies that customers can easily buy from instead of from that one, and they represent the most intense competition. In the situation of Vietnamese washing powder market, we can clearly see two strong competitors of OMO, which are Tide and Vi Dan. 3. 2.depth psychology of two direct competitors The table below shows the comparison of trey washing powder brand names. reapings Characteristics OMO Tide Vi Dan Quality Good Good Normal Design Diversity Di versity Normal hide safety Relative Relative Relative Name Simple, easy to believe, consumers pet Simple, easy to remember, consumers not appreciated Close to the Vietnamese people catalog Diversity Relative Less Price Expensive Expensive flashy Distribution Wide Wide Within territory Advertising Good, a lot, cajoleive Good, not much Less Promotions A lot, attractive A lot LessTechnology Modern Modern Modern Brand name Famous, prestigious Famous, prestigious Normal Scale spacious Large Small Management ability Good Good Good a. Advantages of Tide over OMO Tide belongs to P&G Corporation which concentrates on detergent and cosmetics. In terms of global strategy, P&G is considered to be banner to Unilever with a more advanced position in many important market sectors. By occupying Gillete and focusing on its strategic goods, P&G will continue to expand (Unilever vs. P&G (Procter and Gamble), 2009).In terms of brand, while OMO has a series of products including OMO 99 Stains, OMO Bleach, OMO Matic Frontload and Topload, Tide also has a wide variety of products such as Tide Downy, Tide Spring bang Scent, Tide Supermatic, Tide White and Clean It targets all customers with different income levels and characteristics with different styles and features. Tide has launched many impressive promotion programs under the theme dickhead cant hide from intensified Tide, If its got to be clean, its got to be Tide and Tides in, dirts out. These programs attract a lot of people and gradually gain position in customers mind. . Disadvantages of Tide relative to OMO Firstly, P&G penetrates the Vietnamese market after Unilever. Vietnamese people know about OMO before Tide, and Comfort before the existence of Downy. In addition, the pronunciation of OMO is quite easy for Vietnamese while many people feel ashamed of pronouncing Tide in Vietnamese as it can easily cause misunderstanding. Moreover, the producer of Tide has not paid enough attention to the product design so Tide remains relatively simple and little changed (Unilever vs. P&G (Procter and Gamble), 2009). c.Advantages of Vi Dan relative to OMO Besides Tide, OMO also has to pay attention to the existence of Vi Dan a product of Vico Co. , Ltd. , a 100% Vietnamese washing powder brand. The brand name Vi Dan sounds very Vietnamese and familiar with Vietnamese people life. The price of Vi Dan is also much lower than both Tide and OMO. Therefore, Vi Dan attracts more low income people and people in countryside (Phuong, K. , 2010). d. Disadvantages of Vi Dan relative to OMO Vi Dan is a small brand name so their products are distributed in a small areas and the scale is also small.Vi Dan is not popular in the market because VICO does not pay much attention to advertisement and promotion. This company also has little experience in producing and distributing. These drawbacks make customers know little about Vi Dan (Phuong, K. , 2010). * OMO Low tried post Low perceived quality High reliable trademar k * Vi Dan * Tide To sum up, in such a competitive environment, OMO should push up their promotion and improve the products quality to retain customers in current markets and aim at expand their market further to the hobnailed areas.A positioning map 4. CUSTOMER ANALYSIS Criteria Target customers Behaviour purchase occasion official occasionBenefits sought clean and bright clothes, safety, labour-free, time-savingUser precondition regular userUsage rate heavy userLoyalty status strong Readiness state almost all Vietnamese households have tried OMO at least once (Unilever, 2011). Brand familiarity preference or recognition (the most highly recognize brand in Vietnam in 2005, second rank in top 500 famous brand name in 2006) (Unilever, 2011). Psychographic Socioeconomic status women are getting more important positions in society, holding answerable for choosing which domestic products to purchaseValues, attitudes and lifestyles customers prefer products that can offer quick, sa fe and effective stain removal, modern style, natural sweet scent and familys satisfaction Demographic Age users of all age groups, especially those who are eighteen and above, mature, diligent and marriedGender mainly focus on female who are responsible for washings in a familyFamily size extended families with two or three generations living in the same houseIncome stable, medium to high income Geography Density focus on cities and towns with high population density such as Hanoi, Ho Chi Minh, Hai Phong, Da Nang,.. Decision type of the product Routine rejoinder behaviour OMO is a low cost, low risk and frequently purchased product. Therefore, the customers need little search and decision effort and mostly rely on past experience when buying this product. We need to satisfy current customers by maintaining comfortable quality service and value. We must also try to attract new buyers by introducing new features and using points of purchase displays and price deals. 5.BRAND ANALY SIS 5. 1. Brands current performance Since the frontmost day of be in Vietnam in 1995, through delivering the simplest and most efficient laundry, OMO are contributing to a cleaner and happier Vietnamese life. The consumers love for OMO brand is the highest recognition for what the company has been doing (Unilever, 2011). Theoretically, most of products follow 5- ramification product life cycle and each stage is marked with certain sales growth and profit level (Kotler, P. , Adam, S. , Brown, L. , & Armstrong, G. , 2006). The quint stages are product development, introduction, growth, maturity and decline, which represent an S-shaped life cycle.Since OMO came to Vietnam, it seemed that this product has undergone 4 stages product development, introduction, growth and maturity. Today, OMO is at the maturity stage because of some reasons it is facing growth rate slowed down, supply of goods tends to rise higher than actual demand, having high pressure from large customers because of various choices of other brands. OMO is implementing some special strategies to deal with this period. For instance, OMO is always changing to improve product quality to attract the attention of customers and maintain market share as adding washing powder for more active whitening ingredients, bleaching 99 types of stains, flower flavors added to make clothes more sweet smelling, OMO also changes the products styles from package into plastic bags with many size for more convenient usage, or changes the color and image Beside, OMO has applied cutting price strategies by increasing the amount of products without rising prices, promotional bonus, using the form of lucky draw, lucky scratch card, won gold, houses, cars, tours, together with discounts in special occasions to attract more consumers attention (Chi? n lu? c marketing c? a Omo, 2011). 5. 2. OMO using the 4Ps framework To gain such a position in current marketplace, Unilever had an excellent marketing strategy for all of the ir products in general and for OMO in particular. It can be tell that the company has applied the 4Ps framework effectively to promote the OMO brand. a. Product Characteristics OMO is a product with high quality in comparison with other kinds of washing powders it can dislodge completely any dirty spy on the clothes. * Brand name OMO is the short name which is easy to remember and pronounce. * Packaging Packaging is considered as a silent salesperson, and the most striking feature about packaging of OMO products is that it is very vivid, colorful, fresh, friendly, striking and very eye-catching. OMOs traditionalistic colors are red, white, and blue. Packaging is always improved to create the highest aesthetics to consumers and ensure the product quality. * Size To meet consumers demand, there are many kinds of OMO products with many sizes 400g, 800g, 1. 5kg, 3kg, 4. kg, and 5kg. * Types of product During development period, OMO always gives new products to meet the new demand a s soon as possible. For example * In 2003, OMO is the first brand to provide detergent for washing machine. Up until now, OMO Matic has been recommended by 80% of washing machine manufacturers in Vietnam (Unilever, 2011). * In 2004, OMO launched break-through formulation which cleans dirt even in hard-to-reach places, showing that it is the expert when it comes to removing the tougheststains. * In 2007, OMO Comfort with long lasting fragrant was introduced. * On may 8th 2010, Unilever launched the OMO Concentrate Laundry. b. PricePrice is another important part of the marketing mix including wholesale prices, sell prices, discounts, rebates and credits. Price must be commensurate with the value received by customers and competition. Recognizing that 80% of consumers in Vietnam live in rural areas with low incomes Unilever Vietnam has rig targets to reduce production costs in order to bring the reasonable price for consumers. The company has relied on small local businesses to fin d local raw materials to exchange the imported ones, reducing costs by paying less import taxes. In addition, the company has allocated the branches across the North, Central and South areas to reduce transportation and warehouse costs.Moreover, Unilever provides financial supports to help local businesses upgrade production facilities, offers technology transfer, and holds training programs to increase the quality and productivity. Besides, OMO uses the penetration price strategy. In the first 5 years since the introduction, the company maintained OMO price and quality in the face of rises in raw materials and fuel price. These measures helped OMO gradually gain market share and increase the price later. Calculations show that from 2002 up to date, OMO washing powder prices have increased by about 10,000 VND/ kg (Group 9 NH03, 2009). ND? c ng? a c. Placement Unilever decided to create a marketing and distribution system across the country, covering more than 100,000 locations. Uni lever Vietnam is shared into seven regional sales.Unilever has classified the cities into one group, the group communication extend 2 (GT2), including Ho Chi Minh City and Hanoi, the GT4 group consists of GT2 and Da Nang, cornerstone Tho and GT8 includes GT4 and Hai Phong, Vinh, Nha Trang, Bien Hoa (Chi? n lu? c marketing c? a Omo, 2011). OMO is the daily and individual consumption, so the bring also differ compared to other commodities. Firstly, as a direct channel, the producers sell directly to final consumers. Consumers now have a certain belief in the OMO products so the company only has to use some forces as home sales, or sales through mail, mail order The forms allow the consumer to buy products through the media without advertising directly and interacting with the seller.Secondly, the product is sold via indirect conduct using intermediaries among producers and consumers. There are three levels in this channel. * shapers = Retailers = Consumers. For example, OMO p roducts sold in retail stores such as deep C , supermarket chain Co-op mart, Maximax systems * Manufacturer = Wholesalers = Retailers = Consumers. For instance, OMO products sold in the commercial distribution centers such as electron tube Binh Phu in Ho Chi Minh City. * Manufacturer = Agent = Wholesalers = Retailers = Consumers. For example, agents in Binh Duong have very modern equipments and scientific operating layouts.Goods after production at the plant will be set up in this center, and whence shipped to dealers in Central (from back to Nha Trang) and the South, and this is the transit point for goods from Hanoi and Da Nang. d. Promotion Promotion is a series of mixtures of activity Advertising, promotions, public relations, direct sales and direct marketing. The selection of promotional tools to spread the brand image and message is extremely important. Unilever Vietnam have chosen to promote OMO through commercials on television and newspapers, organized programs such as promotional support, participates in events or exhibitions, established study promotion funds for poor children The company also sponsored TV programs like Vu? t qua th? thach and Chi? c non ki di? u.OMOs advertisements usually take the theme of family, contributing to the stirred up appeal. As a result, OMO is getting more supports from the Vietnamese consumers. Besides, OMO is known as a leading brand participating in many social activities. Among these, poverty reduction is the most outstanding activity OMO has developed the hold OMO mai d? ?m tinh xuan, building nearly 300 houses in 37 districts of five poorest provinces in Vietnam and supported economic development programs at Cu Chi. Through these activities, Unilever drew a lot of attentions and received many positive responses for the company as well as the brand. 6. SWOT ANALYSISThe SWOT Analysis of the company is summarized in the following table Internal External reproachful easy Strengths * Brand equity * Talent pol icy * Distributor channels * RD * Market share Opportunities * Vietnams demographics * Favorable environment for unlike investment * Geographical favors Weaknesses * Foreign brand in an Asiatic country Threats * Shrinking market share * Decreasing customers demand cod to economic downturn The strengths, weaknesses, opportunities and threats of the company are discussed in details in the following section. 6. 1. Strengths * Brand equity Unilever was first founded in 1890s.In 2011, this Anglo-Dutch multinational group ranked the third-largest consumer goods company measured by revenues after PG and Nestle. The companys 400 brand portfolio ranges from nutritionally balanced foods to gentle ice creams, affordable soaps, luxurious shampoos and everyday household care products. They are sold in more than 190 countries with 2 billion consumers on any given day. Unilever so far has expanded its business to more than 100 countries, including Vietnam. After more than 15 years of operati on in Vietnam, Unilever has become a very familiar brand with the Asiatic countrys people. Nearly 5 million Unilever products such as OMO, PS, Clear, pocket billiardss, Knorr, etc are bought by Vietnamese consumers per day, (JV Raman, as cited in Phuong, T. , 2011).Obviously, trade mark is an advantage for Unilever to shorten the gap between the company products and the consumers. OMO, as a result, enjoys the favorable brand name to be an international standard detergent. * useful talent policy Brand and brains are two assets of our company said Mr JV Raman, chairman of Unilever Vietnam. Unilever Vietnam is fully aware of the human resources role in business performance. The company has a variety of activities to pussycat in high-quality employees. Logging on Unilever website, the message of the Chairman is like a welcoming greeting, which offers the opportunities for all the people with the willing to co-ordinate, to challenge themselves and to help develop the company.The comp any program known as Unilever Future Leaders plan was first launched in 1998 and till now, it has provided many newly-graduated students with employment opportunities. This policy no doubt has been an efficient investment of Unilever Vietnam in human resource. * Distributor channels By the year 2009, Unilever had a total of 283 distributors and nearly 150,000 retail stores across the country. In the year 2011, the number of retail stores rocketed to 180,000 channeling Unilever products to an average number of 35 million Vietnamese customers per week. Larger distribution systems prove stronger position of Unilever brand name in the market.This system not only focuses on metropolitans like Hanoi or Ho Chi Minh city but also allocates evenly throughout the country. OMO so, like other Unilever products, has the access to a wide range of customers. * RD Recognized innovation as the notice to progress, research and development are always paid sufficient attention. Generally, nearly 1 billion was reported to have been invested in research and development every year, contributing to laboratories establishment, which paved the way for new sentiment and techniques. Till now, a variety of OMO products are available OMO bleach, OMO comfort, OMO packshot handwash, OMO packshot matic front load, OMO topload.This variety offers multiple choices for customers with different preferences. Moreover, to be in line with the companys sustainable Living Plan, the technology is suggested to be based on sustainable inputs and used in a sustainable manner. Unilever products are used 2 billion times per day (Wright, R. , n. d. ) and each technology advance in each product can help to protect the environment. charge OMO bland for example, if dosed correctly, the concentrated OMO liquid provides the same number of washes as lose weight liquids and at the same time, reduces water and waste, halving the number of trucks required to transport them and then reducing greenhouse gas emi ssions per wash, (Wright, R. , n. d. ).This new type of OMO detergent not only saves the time and the cost for the consumers but also raise the awareness of environment protection and social responsibility. * Market share Despite the fact that Unilever holds 48% of Vietnam market share, in term of Fabric alter, Unilever is the leading brand with a dominant provider with 77% of Vietnam market share (Manwani, H. , 2005). This figure clearly confirms OMO position in the detergent market of Vietnam. However, the statistics from 2005 has not fully reflected the current situation of fiercer competitions since new products have been entering the market. Unilever generally and OMO curiously is suggested to continue advance its technology and product quality to retain the market share. 6. 2. Weaknesses * Foreign brand in a typical Asiatic cultureDespite many years of experience operating in Vietnam, the Anglo-Dutch multinational group sometimes seems to have encountered cultural disparity between it and the Asian country. Take OMO Bleach promotion program for example. In the year 2006, Unilever organized an event called affirmable mission, involving the giant short sleeve shirt washed with OMO bleach (Huong, L. , 2006). This Guinness recognized largest shirt was made from 6,200 meters of cloth. And for OMO Bleach to wash the shirt, a aggroup of more than 100 engineers and mechanics had been working for 17 straight days to make a giant steel washing tank. After displace 1800 liters of colors into the shirt, Unilever cleaned it out just in 10. 35 minutes with OMO Bleach.This set Unilever records but posed a negative group image towards Vietnamese people, who would prefer practical contributions to heavily brand promotion like that. The organization then had responded timely, using the shirt cloth to make 3000 small shirts for separate Vietnamese children. Being a immaterial brand in an Asian culture like Vietnam, Unilever then needs to improve its marketing admi ssion for them to be more suitable and relevant with the country context and peoples norms. 6. 3. Opportunities * Vietnams demographics By July 2011, total Vietnam population was more than 90 million people. This is obviously a dynamic market with a lot of potentials to realize. Children account for 25. 2%, adolescent and adults account for 69. % of the total 90 million people. This golden demographic model happens only one time of a countrys history. Conglomerate like Unilever then can knock on consuming market and at the same time take the full advantage of the available labor force. This may be the reason why for OMO to choose children as their advertisings main characters. With the slogan Dirt is good, OMO encourages all the parents to let their children freely explore the life and naturally debunk their own potentials (Unilever, 2011). In this way, OMO is not simply a fabric cleaning product but a close friend of every household. * Favorable environment for unknown investmen tIn the global context of political disturbance and conflict, it is Vietnams political stability and national integrity that draw the attention of foreign investors. Moreover, since the Doi Moi, Vietnam authorities have implemented a variety of transformation, from administrative procedure to policies. The administrative procedure is much more simplified. Tax incentives are also employed to encourage foreign investors to invest in the Asian country. Last but not least, the bilateral dialogue between government and enterprises is encouraged. Foreign investors in Vietnam like Unilever have the right to directly split up their opinions and recommendations. Vietnamese authorities at the same time can give positive or negative feedbacks on the businesses activities.Specifically, Unilever received the Prime take cares award for environmental protection in 2011. This two-way interaction ensures that all the companys aspirations as well as efforts are fully recognized by the government. * Geographical favors Being a country in the favorable position, Vietnam has long coastlines with many harbors along. In addition, the country share border lines with a number of countries like China, Laos and Cambodia. As a result, it is very convenient for Unilever to export products, import raw materials or allocate products flexibly within the region. 6. 4. Threats * Shrinking market share More and more foreign investors are entering this Asian country.Not to mention Unilevers biggest competitor in Vietnam PG, many distributor groups now came up with their own products. Take Big C Supermarket for example. This French supermarket group has had their own products like Big C detergent, Big C softener, etc at more reasonable prices. To authorise the problem of different level of income, Unilever has had three types of detergent including OMO, Surf, Viso. However, in order to retain the market share, Unilever is suggested to make each detergent product to be more customers-oriented . Otherwise, OMO market share can be lost to another Unilever detergent like Surf or Viso. * Decreasing consumer demand overdue to economic downturnAs a result of overheating economic growth, Vietnam economy is now in the situation of hiking inflation. The Consumer price index hit its peak at 18. 6% in November 2011. Although this index has been gone down to 16. 5% in March 2012, it is undeniable that the high inflation had decreased the peoples trust and their consuming demand. Depreciated currency lowers the peoples purchasing power. As a result, instead of buying a high-quality and high-price detergent like OMO, they can make up with an average-quality and more reasonable price one. It is Unilevers commerce to figure out ways to minimize the cost, improving the productions efficiency and then gradually offer the products at a more affordable price.Besides, promotion and sales are appropriate solution to stimulant drug the demand. Only by doing these can Unilever take a firm ho ld on its current market share in Vietnam. III. Conclusion In conclusion, OMO has got a large market share in Vietnam. From the product life cycle perspective, the Unilevers detergent has entered the process of maturing, which signals the requirements to have more innovations with the view to upgrading quality and decreasing cost. In the context of more domestic and foreign competitors emerging in Vietnam, not to mention the inflation rate which has not completely decreased, the long-term relationship with customers is much more emphasized in OMOs strategies.Being a daily households product, the long-term relationship with customers definitely will enhances and prolongs OMO sales and profits. Last but not least, more promotions and continuingly updated commercial ads to catch up with customers expectations and market trend will be a deciding factor for OMO future development. Directing development to be more in line with governments policies and stake holders benefits, OMOs stance o n Vietnam market is for many years to come. 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