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UNILEVER Group report

MKT 201 - Consumer BehaviorGroup 1 - MKT1725

Lecturer: Bui Thi Hanh Thao

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Table of contents

<small>Introduction</small>

<small>Short profile of company (history, vision, mission) and it’s productTarget market and target customer </small>

<small>Objectives: make a research and analyze the consumer behaviour inbuying product of company.</small>

<small>4Ps Marketing strategy Analysis</small>

<small>Secondary researchPrimary research</small>

<small>Analysis consumer’s behaviour</small>

<small>Problem recognition (motivation)Imformation search</small>

<small>Purchase decision (Culture, Social, Personal, Psycological)After</small>

<small>Post purchase evaluation</small>

<small>Conclusion and recomnendation</small>

<small>46</small>

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Introduction

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Company introduction

Unilever is a multinational corporation formed by the merger oftwo prominent companies, Lever Brothers from the UK andMargarine Unie from the Netherlands, in 1930. It specializes inproducing a wide variety of consumer goods, including fooditems, toothpaste, cleaning supplies, shampoo, and cosmetics. The company's present headquarters is in London, England.Unilever has established itself as a known company working on aworldwide scale with a long history and experience in manyproduct categories.

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Unilever Vietnam was established in 1995 as part of Unilever'soverarching strategy. Over the years, it has emerged as one of themost successful investors in Vietnam, operating through twoentities: Unilever Vietnam Joint Venture Company, focusing onpersonal and household care products.

Since its inception, Unilever Vietnam has been committed toincreasing investments, expanding production and businessoperations, nurturing and developing its workforce, fosteringcollaboration with local enterprises, adhering to governmentpolicies, and actively contributing to community development. Since its establishment, Unilever has attained remarkableachievements both in the global market and specifically inVietnam. The company has consistently delivered impressiveresults and numbers.

Company introduction

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Leadership in sustainabilityPurpose-led and future-fit modelSuperior business performance

Goods for daily use

Various aspects of consumers’ livesPositive effect on quality of life

Unilever’s corporate vision is “to be the global leader insustainable business. We will demonstrate how our purpose-led,future-fit business model drives superior performance,consistently delivering financial results in the top third of ourindustry.” ( Unilever )

Unilever’s corporate mission is “to meet everyday needs fornutrition, hygiene and personal care with brands that help peoplelook good, feel good and get more out of life.” ( Unilever )

Company introduction

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Since Unilever entered the Vietnamese market in 1995, OMO hasbecome one of the most well-known brands among the company'sassortment of personal and home care goods. It has establisheditself as a leading consumer brand in Vietnam.

OMO laundry detergent, made by Unilever, presently occupiesthe top spot in the consumer market in Vietnam, according todata from the Competition and Consumer ProtectionDepartment in 2020. It is acknowledged as the most reliablebrand throughout the entire nation, including North, Central,and South Vietnam.

OMO holds the top position in the detergent market, making itthe number one brand in its category. Impressively, every second,four packs of OMO are sold, highlighting its popularity andwidespread usage. With such a significant market presence, OMOhas played a crucial role in cleaning the clothes of 44 millionVietnamese individuals on a daily basis.

According to Euromonitor, a renowned UK market researchorganization, OMO has been the dominant force in the domesticmarket in Vietnam. From 2008 to 2011, OMO consistentlymaintained an average market share of 65%.

Company introduction

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OMO offers a diverse range of product models, which can becategorized into three main categories:

OMO laundry liquid detergent: This category includes variousformulations of liquid or powder laundry detergents designed toeffectively clean and remove stains from clothes.

OMO washing power detergent: This category encompassesspecific variants or specialized formulations of detergent productsunder the OMO brand. These variants may cater to specificneeds, such as sensitive skin or eco-friendly options.

OMO washing capsule: This category comprises convenient andpre-measured washing tablets or pods that provide an easy andmess-free way to do laundry. These tablets are designed to delivereffective cleaning results while ensuring convenience andsimplicity for users.

Products

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Target Market

Target Market: OMO's target market is familiesand individual consumers with daily laundry onglobally. OMO is aimed at consumers who careabout washing and protecting their clothes.OMO products are designed to meet a variety oflaundry needs, from machine washing foreveryday clothes to hand washing for specialtyfabrics.

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The portrait of OMO's target customers can be described asfollows (The Investopedia Team):

Population size and density: OMO mainly attacks big cities andtowns throughout the country. Because this is an attractive andprofitable market. The population density in these areas isrelatively large, so the demand for washing powder is high. Forrural areas, OMO didn't sell much because rural people tend touse products with super cheap prices (Vu Anh)

Age: All subjects have the need to use washing powder. But stillmainly target customers 18 years or older, who are adults, havejobs, have a stable income or are married. People under the age of18 often do not care about washing powder because they are notdirectly responsible for doing laundry in the family. Therefore,Omo's target audience is people aged 18 and over, especially from18-60 because those are the people who decide the brand ofwashing powder for household use.

Gender: Includes both male and female. However, the targetaudience is mainly housewife, who are the main decision makersin choosing brands of consumer products for the family.

Target Customer

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Income: The majority of OMO users are those with low averageincome, because OMO's products are cheap but have highcleaning efficiency.

Occupation: Omo often does not distinguish by profession, butthey often target people who work in dirty environments todemonstrate their outstanding cleaning skills such as mechanicalengineers, construction engineers

OMO's Family Life Cycle ranges from single people, marriedpeople, families with children, to the elderly because they are allpeople who need to use laundry products.

Buying Behavior:

Shopping locations: OMO's target customers often buy productsat stores near their homes such as grocery stores, supermarkets,flea markets, etc.

Shopping purpose: Most of the buyers are buying according tothe previous habit, when they have used and feel good with theOMO product and do not want to change to another brand. Afew want to try and experience OMO products

Quantity and frequently purchased products: An average familyof 4 member often buy OMO Matic, which is a washing liquidwith a 4kg bag that can be used within 1 month

Target Customer

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On the other hand, according to the survey that weconducted, we can see that the urban living rate accounts fora large number of up to 70.3%. Fits pretty well with OMO'sTarget Customer as i mentioned above

Target Customer

With 54.5% of survey participants being men involved inbuying laundry detergent, it can be seen that male customersare also increasingly participating in housework activities, sothis is also the customer segment that OMO should payattention to in the near future

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And about 75% are low-income people becausethe people surveyed are mainly Students

Target Customer

Thus, it can be seen that OMO has successfullyconquered the low-income group with cheap buthighly effective products, which means thatOMO's Price/Performance is highly appreciatedby students of FPT University.

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In the era of International Economic Integration, companiesrecognize that the survival of their goods depends on customerpreferences. In Vietnam, there is fierce competition betweendomestic and imported goods, especially those produced bymultinational corporations like Unilever. The consumer productsmarket in Vietnam is significant, with items like OMO washingpowder playing an essential role in the daily lives of Vietnamesecustomers.

In such a highly competitive industry, it is challenging for aproduct to differentiate itself, retain customers, and build trust.To address this, OMO has been developing marketing strategies,refining product features, and implementing effective advertisingcampaigns based on customer preferences, demographics, buyingtrends, brand loyalty, and usage behavior.

The impact of customer behavior in buying OMO's productsforms the main focus of this report. The report will help us toresearch and analyze the behavior of consumers in buying OMOproducts. Understanding these customer behavior variables iscrucial for shaping OMO's marketing-mix strategies.

Objectives: make a research and analyze theconsumer behaviour in buying

product of company.

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Analysis about the current4Ps Marketing strategy

The OMO brand has consistently made remarkable progress afterimplementing marketing and communication campaigns across theAsian market in general and Vietnam in particular.

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2/ Direct marketing

Omo also uses direct marketing channels about customers'income, customer care centers to advise and provide moreinformation about the company's promotions. In addition,building sympathy with customers is also a factor for thecompany to score points with customers. (Lương, 2022)

3/ Publicity

Omo's community-oriented activities are greatly responded tosuch as: "Talent bags festival", "White Omo bright future","million hearts of gold" festival... high sociality, thereby scoringpoints to the audience, customer psychology always wants thebrand to be used as a brand "clean in form and value",integrating products into those programs is a wise step.company to promote its products. (Lương, 2022)

Promotion strategy

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Promotion strategy

4/ Sales promotion

In addition, OMO alsolaunched many promotions toattract customers such as:+Comes with practical giftssuch as pots, pans, plasticbuckets, dishes, hand sanitizer,water bottles, etc. with Omologo printed when buying itswashing powder and liquidproducts.

+Organize lucky drawprograms: Thousands ofattractive prizes both in cashand valuables are given tolucky customers.

+Apply many discount codes,discount combos for all OMOhome products when shoppingat e-commerce platformsShopee, Lazada, …

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Promotionstrategy

Although consumer market trends havechanged a lot, OMO always knows how tocreate meaningful advertising content tosatisfy customers.

Building trust and meeting all consumerneeds for detergent products has helpedOMO gain the highest market share in thehome and personal care market in Vietnam.

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First of all about the product, 75% agree and strongly agreeabout the effective washing quality of OMO, only 2% disagree onthis issue. 70% agree and strongly agree about safety when using.Only 10% do not like the scent of OMO, 6% are not satisfied withthe packaging of OMO, 6% disagree and strongly disagree withthe variety of products. Thus, most users have a good view ofOMO's products. However, OMO needs to look at the limitationsto improve the quality of washing, packaging, especially the scentin its products to satisfy all customers.

Primary research

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Regarding the cost of OMO, only 6% feel that the price of OMOis not suitable for their income. 47% feel that the price is normal,they seem to pay more attention to the quality of laundryproducts than the cost of the product. Also 47% feel that it issuitable and very suitable for the price of OMO.

For advertising and promotions, 5-6% of consumers feel thatOMO's promotions and advertisements are meaningless, they arereally dissatisfied with the quality of TVC as well as the wayOMO product information to consumers.

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Regarding the cost of OMO, only 6% feel that the price of OMOis not suitable for their income. 47% feel that the price is normal,they seem to pay more attention to the quality of laundryproducts than the cost of the product. Also 47% feel that it issuitable and very suitable for the price of OMO.

For advertising and promotions, 5-6% of consumers feel thatOMO's promotions and advertisements are meaningless, they arereally dissatisfied with the quality of TVC as well as the wayOMO product information to consumers.

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Regarding the distribution system, over 75% of consumers agreewith the convenience of buying OMO products, they can easilyaccess the product when they can buy it anywhere from markets,supermarkets to supermarkets. small grocery stores. This makesa big impression on consumers. Also shows the right move ofOMO in product distribution.

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CONSUMER DECISION MAKING

5 STEPS

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In fact, problem recognition occurs when we experience asignificant difference between our current state of affairs andsome state we desire. It must be strong enough to trigger adecision. (Solomon Michael, 2017)

In the case of laundry detergent, the consumer may becomeaware of a problem when their clothes are not coming clean;they are experiencing allergic reactions to the detergent theyare currently using; or they simply run out of detergent.According to survey data, 90% of consumers have the need tobuy laundry detergent when they need to wash their clothes.

Problem Recognition

The first step of the consumer decision-making process isrecognizing the need for a service or product. Needrecognition, whether prompted internally or externally, resultsin the same response: a want. (Lucid Content Team)

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Basic wants

From there, the basic wants forwashing powder are formed:bright white, bactericidal,fragrant, not harmful to hands,saving water, convenient forwashing machines. For men, aclean shirt is enough. But forwomen, a shirt is not onlyclean but also fragrant to beattractive.

OMO understands thatconsumers' problem whenwashing clothes is the desireto wash quickly and cleanly,so OMO's branding andcommunication methods alsoaim for that. For example,OMO's slogan ‘S ch nhanhạvết b n c ng đ u ch trongẩ ứ ầ ỉmột l n gi t’. ầ ặ

Problem Recognition

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