Marketing Planning Jordan Toothbrushes
Many companies have invested in this field, including Vietnamese companies, like P/S, and foreign companies, such as Colgate Palmolive and Oral-B. However, as family income, life standard, and the attention to health care of Vietnamese people are increasing, the demand for high-quality toothbrushes has also been rising. Being aware of this large demand in Vietnam, Jordan Company – a Norway company producing high-quality toothbrushes – chose Diethelm Co. , Ltd. as its distributor to launch Jordan toothbrush in Vietnam. Facing a fierce competition, the only way for Diethelm Co. Ltd. to penetrate and win in the market place is to set up a good marketing plan appropriate to current conditions of the Vietnam market. Therefore, this project aims at developing a marketing plan for Jordan toothbrushes for one year, from July 1999 to July 2000. The main objective of this marketing plan is to build brand awareness and to help Diethelm Company in getting an increasing sales in Vietnam. Company profile Diethelm was founded in 1887. Its headquarters are located in Zurich, Switzerland. In the beginning it was mostly involved in trading.
Today, the company expands its activities into many business fields. With its subsidiaries and affiliates in Asia, Africa, and North America, and with its manufacturing and operation in Europe, the Diethelm group has developed into a global company. The company’s relationship with Vietnam started as far back as 1890, when Diethelm Co. , Ltd. was incorporated in Saigon. Later on, offices were established in Ha Noi and Hai Phong. For more than half a century, the company was engaged in manufacturing activities, export of commodities, import of essential goods as well as banking, shipping, insurance and travel services.
In 1956, company’s activities were interrupted due to difficulties caused by the turbulence of war. In 1991, Diethelm returned to Vietnam and is now operating in Ho Chi Minh City, Hanoi and Danang. Now it employs 250 local staffs and is involved in the following business fields: Pharmaceutical and healthcare products Engineering equipment and instrumentation Chemical and Industrial supplies/ animal health products Hotel and office supplies Travel and tourism Consumer specialities Diethelm Co. , Ltd. was chosen by Jordan Company as its distributors in Vietnam at the end of 1998.
At present, Diethelm Co. , Ltd. is trying its best to launch Jordan toothbrush in Vietnam. Situation analysis 4. 1Situational Environments 4. 1. 1Demographic Situation Vietnam is the second most populous country in the fast growing ASEAN region. At present, the population is about 78 millions people. Eighty percent (80%) of which are living in rural areas. The population is quite youthful, approximately 50% are under the age of 30. High population results in a high demand for toothbrushes. 4. 1. 2Economic and Business Conditions
Average annual GDP growth rate over the recently ten years was 8. 2%. In 1998, due to the regional currency crisis, Vietnam could not reach the budgeted 9% economic growth this year. In August, the National Assembly of Vietnam approved the revised economic growth of about 6% in 1998. See Figure 1 for GDP growth rate of the period 1988 to 1998. Figure 1: GDP Growth Rate for the Period 1988 to 1998 (Source: Data from 1988 to 1997 – Vietnam Economic Times, Sep. 30, 1997, Statistical Yearbook 1997; Data for 1998 – Statistics Committee of Vietnam).