TRƯỜNG ĐẠI HỌC MỞ TP. HCM

UNIVERSITÉ LIBRE DE BRUXELLES

HO CHI MINH CITY OPEN UNIVERSITY

SOLVAY BRUSSELS SCHOOL

MBMM5

TRAN CAM LOAN

BRAND STRATEGIES FOR PIATTOS
POTATO SNACK IN 2012-2015

MASTER PROJECT
MASTER IN BUSINESS & MARKETING MANAGEMENT

Tutor’s Name: Dr. Tran Ha Minh Quan

Ho Chi Minh City
(2012)


i

COMMITMENT
I hereby, Tran Cam Loan, commit that the study is my own work with information
retrieved and obtained from reliable sources which has been acknowledged in the reference
page. This work has not been submitted for a degree or diploma in any university. To the
best of my knowledge and belief, the project contains no materials previously published or

written by another person except where due reference is made in the project itself.
HCM City, Feb 19th, 2012.

Tran Cam Loan (Ms).


ii 

ACKNOWLEDGEMENT
Firstly, I wish to express my deep gratitude to Professor Tran Ha Minh Quan for his
strategic advises and involvement in my final project for the program of Master in
Business and Marketing Management. His continuous guidance and insightful comments
has motivated my successful completion of the research paper.

Secondly, I am also greatly indebted to respectful professors of the MBMM program. They
have lifted up me to a new level of profession in marketing career thanks to their advanced
marketing knowledge and useful experience sharing during the course.

Thirdly, I would like to express great gratitude to Ms Ruby Dela Cruz, Marketing Manager
of URC Vietnam Company who has provided me the data and has input a lot in my
project, as well as Mr. Serge Bywalski and Ms Nguyen Thi Mong Thuy of the
Postgraduate Office of Open University HMC and Solvay Brussels School for their
assistance and coordination for my due completion of this thesis.

Finally, I would like to thank all of MBMM5 classmates for their sharing of experience
and knowledge during the course and my family for their encouragement during my study
and thesis completion.




iv

TABLE OF CONTENTS
COMMITMENT ................................................................................................................... i
ACKNOWLEDGEMENT .................................................................................................. ii
TUTOR’S COMMENTS ..................................................................................................... iii
TABLE OF CONTENTS .................................................................................................... iv
LIST OF ABBREVIATIONS ............................................................................................. vi
LIST OF FIGURES .............................................................................................................. vii
LIST OF TABLES ................................................................................................................ viii
EXECUTIVE SUMMARY ................................................................................................. vix
CHAPTER 1: GENERAL INTRODUCTION ................................................................ 1
1.1 Company introduction ..................................................................................................... 1
1.2 Problem statement ............................................................................................................ 1
1.3 Project Objective .............................................................................................................. 2
1.4 Scope and limitation ......................................................................................................... 2
1.5 Structure of the Project .................................................................................................... 2
CHAPTER 2: LITERATURE REVIEW ......................................................................... 4
2.1 Theoretical knowledge of brand ...................................................................................... 4
2.1.1 Brand ....................................................................................................................... 4
2.1.2 Brand equity ............................................................................................................ 4
2.1.3 Brand identity .......................................................................................................... 4
2.1.4 Brand image ............................................................................................................ 5
2.1.5 Brand personality .................................................................................................... 5
2.1.6 Brand positioning..................................................................................................... 6
2.2 Brand strategies ................................................................................................................ 6
2.2.1 Pioneering strategy ................................................................................................. 6
2.2.2 Late -Entry Strategies ............................................................................................. 7
CHAPTER 3: RESEARCH & ANALYSIS ...................................................................... 8
3.1 Desk research .................................................................................................................. 8

3.1.1 Market analysis ....................................................................................................... 8
3.1.2 Competitor analysis ................................................................................................ 8
3.1.2.1 Poca competitor - market pioneer ............................................................. 9


v
3.1.2.2 O’star competitor - early follower ............................................................. 10
3.1.2.3 Tatos competitor - late entrant ................................................................... 12
3.1.3 Brand analysis ......................................................................................................... 13
3.1.4 Consumer analysis .................................................................................................. 14
3.1.4.1 Consumer insights ...................................................................................... 14
3.1.4.2 Consumer behavior and attitude ................................................................ 15
3.2 Primary research- Brand health survey ........................................................................... 17
3.2.1 Research design and methodology ........................................................................ 17
3.2.2 Research results and findings ................................................................................. 17
3.3 SWOT analysis .......................................................................................................... 20
CHAPTER 4: RECOMMENDATIONS FOR BRAND STRATEGIES IN 2012-2015
4.1 Brand re-targeting and re-positioning ............................................................................. 22
4.2 New brand identity ........................................................................................................... 22
4.3 Recommendation of brand strategies in 2012-2015 ....................................................... 23
4.3.1 Differentiate product strategy ................................................................................. 23
4.3.2 Value for money pricing strategy ........................................................................... 25
4.3.3 Expansion distribution plan with exclusive sales team development................... 25
4.3.4 Integrated communication plan in non-traditional channels ................................. 26
4.3.4.1 Concentrated communication objectives ................................................... 27
4.3.4.2 Consistent communication message .......................................................... 27
4.3.4.3 Aggressive communication activities on various digital means .............. 28
4.3.4.4 Teenager channels with celebrity endorsement......................................... 29
4.3.4.5 Long-standing school advertising .............................................................. 29
4.3.4.6 Long-term cinema advertising and trading ................................................ 29

4.3.4.7 Visibility campaign and cross merchandising programs .......................... 30
4.3.4.8 Co-branding with new on-premises customers ......................................... 30
REFERENCE......................................................................................................................... ...i
APPENDIX ............................................................................................................................. ..iii
Appendix 1: Quantitative questionnaire ................................................................................ ..ix
Appendix 2: Main analysis charts of quantitative research .................................................. .xii
Appendix 3: Pictures of Piattos and competitors’ communication activities in 2011 ........ .xv


vi

LIST OF ABBREVIATIONS
A&P

Advertising & Promotion

BTL

Below-the-line

FMCG

Fast Moving Consuming Goods

GT

Traditional Trade Channel

HCM


Ho Chi Minh

MT

Modern Trade Channel

OOH

Out of Home

POSM

Points of Selling Materials

SKU

Stock Keeping Unit

TVC

Television Commercial

VND

Vietnam Dong

U&A

Usage & Attitude


URC

Universal Robina Corporation


vii

LIST OF FIGURES
Figure 2.1 Identity Structure ................................................................................................. 5
Figure 3.1 Brand penetration level ....................................................................................... 17
Figure 3.2 Key message take-out of Piattos ........................................................................ 18
Figure 3.3 Brand image associations.................................................................................... 19
Figure 3.3 Brand associations chart ..................................................................................... 19
Figure 4.1 New flavor ideas from new product launch in Asian countries ....................... 23
Figure 4.2 Current packaging of potato snack product in Vietnam market ....................... 24
Figure 4.3 Packaging options for Piattos potato snack ....................................................... 24
Figure 4.4 Snack shape options for Piattos potato snack .................................................... 24
Figure 4.5 Bulky transportation for a food salesman to carry 4 cases of snack daily…...26
Figure 4.6 Proposed communication models....................................................................... 27


viii

LIST OF TABLES
Table 3.1 Market share review based on Nielsen audit of six key cities (Nov 2011) ...... 8
Table 3.2 Snack moments .................................................................................................... 16
Table 3.3 SWOT analysis .................................................................................................... 20
Table 4.1 Proposed quantity of exclusive snack salesmen for South market ................... 25



vix

EXECUTIVE SUMMARY
Potato snack segment is potential market and fast growth industry but highly
competitive, especially for new players because the market is now cluttered with many
players and two biggest players (Poca and O’star) are dominating the market with 66%
share. As the latest entry in last year, although Piattos has offered some attractive better
product and price benefits combined with big A&P budget to support the launch, sales
growth after one year has been very modest and market share in terms of sales volume is at
5% only.
The strategic marketing knowledge gained from this Master course and marketing
theories combined with the practice of research and analysis skills of secondary data and
primary data will be used in this project to find out and solve brand issues, strengths,
opportunities and threats. Based on the findings of low brand awareness, weak brand
image, ineffective promotion activities and weak distribution which are main challenges
for Piattos, the proposal is to apply the positioning model of Keller (2002) with the concept
of Frame of reference, Points of Parity, Points of Difference; the Value Proposition model
of Aaker (1996) and the theoretical competitive strategies for late-entry brands of Gregory
S. Carpenter and Kent Nakamoto (2005) to solve those brand issues. Self-expression
positioning with the consistent communication message “Stand out and win the crowd”
throughout four years’ marketing plan will be the main recommendations for Piattos to be
more differentiate compared with current competitors. The consumer trend of “hyper
digitalization” and “search for role models” combined with the findings of snack
consumption habit and source of awareness information are the foundation for the proposal
of new brand strategies for Piattos to explore the brand building programs in nontraditional or less-cluttered advertising channels such as digital, school, cinema and POSM
with long term and integrated plan.


CHAPTER 1: GENERAL INTRODUCTION
1.1 Company introduction

1.2 Problem statement
1.3 Project Objective
1.4 Scope and limitation
1.5 Structure of the Project


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CHAPTER 1: GENERAL INTRODUCTION
1.1 Company introduction:
Universal Robina Corporation (URC) is one of the largest branded food and
beverage product companies in the Philippines with a growing presence in Asia.
URC Vietnam which started operations in 2005, is the newest addition to URC
International. URC Vietnam manufactures Biscuits, Snacks and Candies, and is the very
first URC subsidiary outside the Philippines to manufacture and successfully market C2
Green Tea.
In Philippines and other Asian subsidy, URC succeed in food products, under the
“Jack ’n Jill” megabrand, which are widely available in most trade channels in Thailand,
Malaysia, Singapore, Indonesia, China, and Hong Kong. In contrary, URC Vietnam
succeeds in beverage brand (C2 Green Tea). In the effort of building food industry, during
recent years, URC Vietnam has started to invest and build successfully some leading
brands under “Jack’n Jill” mega brand such as Cream O and Dynamite in Biscuit and
Candy category.
One of the key strategies of URC Vietnam during 2010-2015 is to build successful
snack category by focusing in developing different snack segments, in which the most
important segment is potato snack with Piattos brand- the leading potato snack brand in
URC Philippines.
1.2 Problem statement
Potato snack segment is potential market and fast growth industry but highly
competitive, especially for new players because the market is now cluttered with many

players: Poca (Pepsi), O’star (Orion), Tatos (Oishi), Swing (Orion), Slide (Kinh Do),
Pringles (P&G), etc. Among those, Poca and O’star are the two biggest players with 66%
share of the potato snack business. The late entry Piattos was launched by URC Company
in Dec 2010 to compete directly to Poca and O’star. Piattos was positioning as a fun and
innovative snack with unique hexagon shape and targeted in teenagers who are open to try
new things. Besides unique shape, Piattos was differentiated from its competitors with nongreasy and crispier product quality with more acceptable price (4,000 VND/pack in
comparison with Poca and O’star at 6,000 VND). Despite a high A&P investment of
around US $700,000 for marketing launching activities, sales growth after one year has
been very modest and market share in terms of sales volume is at 5% only.


2 

1.3 Project Objective
Through this project, the strategic marketing knowledge gained from this Master
course and marketing theories will be applied to solve a real marketing problem. The
positioning framework of Keller (2002) with the concept of Frame of reference, Points of
Parity, Points of Difference; the Self-Expressive benefit model of Aaker (1996) and the
theoretical competitive strategies for late-entry brands of Gregory S. Carpenter and Kent
Nakamoto (2005) will be used to solve the current brand issues. Moreover, the study of
secondary data and the analysis of a self-conducted quantitative survey will provide the
detailed customer analysis, competitor analysis and brand analysis to identify brand issues
and recommend efficient strategies to increase brand positioning and performance in the
following years.
1.4 Scope and limitation
This project is concentrated in recommending brand strategies for Piattos to compete
successfully in the tough competitive market with giant brands like Poca (Pepsi) and O’star
(Orion). As Piattos is potato snack product, the market analysis hereinafter is only potato
snack, not the whole snack market. Due to the constraint of time and geography, the
primary research of brand health check in this thesis is conducted in Ho Chi Minh only

because this is the key market in South area where Piattos was launch. However, the
sample size of one hundred random respondents is qualified for reliable data in quantitative
research.
1.5 Structure of the Project
Chapter 1 provides general introduction about company background, problem
statement, project objective, project scope and limitation as well as the structure of the
project.
Theoretical knowledge of brand and brand strategies will be introduced in Chapter
2. The chapter will explain briefly the basic terms related to brand concept and aspects.
Then, it will explore the value proposition model of Aaker (1996) for brand position and
some competitive brand strategies of Gregory S. Carpenter and Kent Nakamoto (2005:7477) which is applied for late-entry brands in the highly competitive market.
Chapter 3 will concentrate on research and analysis which is divided into two parts.
The first is secondary research with available company data and research to under to have
basic understanding about Piattos and competitor’s portfolio, positioning, pricing strategies


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and marketing activities, consumer usage and attitude. The second is primary research with
a quantitative survey of brand health check to evaluate current brand association, brand
image, brand performance and brand choice factors.
Based on the findings on Chapter 3, the final chapter -chapter 4- will summary the
conclusion and will provide the recommendation for brand strategies in 2012-2015. It will
include 4P’s strategies with detailed concept for marketing plan.
Last but not least, the appendix section consists of all research data, research
questionnaire, important analysis charts and pictures of previous communication activities.


CHAPTER 2: LITERATURE REVIEW
2.1 Theoretical knowledge of brand

2.1.1 Brand
2.1.2 Brand equity
2.1.3 Brand identity
2.1.4 Brand image
2.1.5 Brand Personality
2.1.6 Brand positioning
2.2 Brand strategies
2.2.1 Pioneering strategy
2.2.2 Late-Entry Strategies


4 

CHAPTER 2: LITERATURE REVIEW
2.1 Theoretical knowledge of brand
2.1.1 Brand
According to the American Marketing Association (AMA), a brand was defined as
“a name, term, sign, symbol, or design, or a combination of them, intended to identify the
goods and services of one seller or group of sellers and to differentiate them from those of
competitors”. With same viewpoint, Kotler (2000: 396) also believed that a brand was “the
name, associated with one or more items in the product line, which is used to identify the
source of character of the item(s)”. Later, Kotler (2005: 232) recognized that brands are
more than just names and symbols. He admitted that “brands represent consumer’s
perception and feelings about a product and its performance - everything that the product
or service means to consumers”. James C. Anderson and Gregory S. Carpenter (2005:180)
contended that “brands are intellectual assets-the thoughts, feelings, and images that a
brand evokes in customer’s mind”. And Kapferer (2008:28) mentioned that “the brand is a
sign - therefore external - whose function is to disclose the hidden qualities of the product
which are inaccessible to contact”. Therefore, the brand served to identify a product and to
distinguish it from the competition.

2.1.2 Brand equity
Aaker (1996: 7) defined brand equity as a set of assets (and liabilities) linked to a
brand‘s name and symbol that adds to (or subtracts from) the value provided by a product
or service to a firm and/or that firm’s customers. Then, Kotler (2005: 232) contributed a
new aspect for brand equity, he believed that “brand equity is the positive differential effect
that knowing the brand name has on customer response to the product or service”. Viewing
in this way, the Marketing Science Institute defined brand equity as the set of associations
and behaviors on the part of the brand’s customers, channel members and parent
corporation that permits the brand to earn greater volume or greater margins than it could
without the brand name and that gives a brand a strong, sustainable and differentiated
advantage over competitors. This implies that any brand which aims to be the powerful
brand should try to build high brand equity with strong associations.
2.1.3 Brand identity
In 1992, Kapferer claimed that brand identity comes from the company’s side; its
aim is to specify the meaning, intention and vocation of the brand. Identity precedes image


5 

(p.35). Then, in 1995, he pointed out that brand identity lies in the brand’s individuality,
goals, consistency, values and vision. Later, Aaker (1996:68) explained further that the
brand identity system is a unique set of brand associations that a brand stands for and
implies a promise to customers from organization’s members. He proposed that brand
identity consists of a core identity and an extended identity, in which core identity
represent for the timeless essence of the brand and the extended identity included elements
that provide texture and completeness to the picture, adding details that help the brand
stands for.
Figure 2.1 Identity Structure
EXTENDED
IDENTITY


CORE
IDENTITY

2.1.4 Brand image
Kapferer (1992:35) stated that brand image centres upon the way a certain public
imagines a product service, a brand etc. Brand image succeeds brand identity. Aaker
(1996:68) just summary a simple distinction between brand identity and brand image in
which brand identity is how the company want the brand to be perceived and brand image
is how the brand now perceived by consumers. Hereafter, Keller (2008:51) postulated
brand image as the consumers’ perceptions about a brand, as reflected by the brand
associations held in consumer memory. Generally, brand image is the brand perception
from the consumer’s side. And the implications for Piattos brand is to ensure that brand
image is same or of minor gap compared with the brand identity set by the company. This
will be figured out through the frequent brand health check survey with target consumers.
2.1.5 Brand personality
Aaker (1996: 141) and Martin Roll (2006: 102) all defined brand personality as the
set of human characteristics associated with a given brand. Aaker (1996:141) maintained
that brand personality includes such characteristics as gender, age, and socioeconomic
class, as well as such classic human personality traits as warmth, concern, and


6 

sentimentality. And Martin Roll (2006: 102) implied that a strong brand personality helps
customers to express their own belief and attitudes by associating themselves with that
particular brand.
2.1.6 Brand positioning
Martin Roll (2006: 102) asserted that brand positioning is the place that every
brand strives to occupy in customers’ minds and positioning is all about the perception of

the brand. And Kotler (2005: 233) categorized positioning into three levels as product
attributes, desirable benefits, belief and value positioning which touch on emotional aspect.
Keller (2002:3-8) introduced the framework of positioning based on three points: frame of
reference (FOR) being the market segment that is targeted; point of parity (POP)
describing the basic functions and benefits to the needs that are already exist; and point of
difference (POD) referring to the differentiations that a product or a brand make to be a
part from the competitors. Points of difference may take the form of functional or
emotional benefits. Supporting evidence for claims related to the frame of reference and
point of difference, referred to as reasons to believe (attribute, image that is represented by
the people, occasion of use, feeling experience of brand user or attitude information).
Aaker (1996: 176) defined brand position is the part of brand identity and value
proposition. Besides functional and emotional benefits, he also introduced the new concept
of self-expressive benefits in value proposition of brand position in which brand become
vehicle to express a part of consumer’s self-identity or an ideal self that they might aspire.
Thus, the knowledge of brand positioning guidelines Piattos to frame its target market
properly and thereafter strive to figure out the point of difference with strong associations
to position its brand so that it can occupy a unique position in their customers’ mind.
2.2 Brand strategies:
Golder and Tellis (1999), categorized the brands based on their timing of entry as
the market pioneer (the first to market the product), early followers (those that entered soon
after the market pioneer), and later entrants. And Gregory S. Carpenter and Kent
Nakamoto (2005:74-77) analyzed main competitive Brand Strategies for different players
in the market such as pioneering strategy and late-entry strategies.
2.2.1. Pioneering strategy:
To apply this strategy, the brand should be the first to market the product. This
pioneer position will allow the brand the chance to establish the category and become the


7 


standard for later entry competitive brands, to establish the rule of the game and gain
unique role in defining the dimensions on which brands compete, and in influencing the
important buyer attach to perceived differences. Other advantages for the pioneer are high
brand awareness, strong association and wide distribution.
2.2.2 Late-Entry Strategies:
The new comer in the mature market with an established set of players can select
among the following late entry strategies to compete with the pioneer:
-

A fast-following strategy relies on playing the game the pioneer has created, but

doing so better or with more resources than the pioneer. By fast following, an entrant can
exploit the innovation of the pioneer and its lack of relative resources. Fast followers do
not challenge the logic of the pioneer’s efforts to create the market. In fact, they embrace
that logic and seek to capture the profits associated with it. (p.81-82).
-

A differentiation strategy recognizes the power of the pioneer and seeks to define

the late entrant as fundamentally different from the powerful pioneer. By differentiating, a
later entrant can exploit the pioneer’s relative inflexibility. Differentiation seeks to offer
value on a dimension that is inventive or unconventional, but is nonetheless valuable to
target customers. The challenge in differentiating from a pioneer is that greater
differentiation increases market share. But a product can also run the risk of being so
different as to be irrelevant. Being too close to the pioneer runs the risk of being
overshadowed- or worse yet, copied- by the pioneer. The degree of differentiation chosen
by the late entrant depends on the power of the pioneer. In some cases, the pioneer is
strongly associated with the category, so the late entrant can move in closer to the
pioneer’s original position. If the pioneer is weaker, it can reach further afield, so a late
entrant needs to position further from the pioneer to be safe from the competitive imitation

(p.83-85).
-

An innovation strategy seeks to redefine what buyers know or perceive about the

established brand and the market. This strategy renders obsolete knowledge created
through the interaction between buyers and the pioneer, allowing the innovative later
entrant to redefine the nature of the competitive game. Innovative late entrants can restart
the learning process and use it to their own advantage, overtaking the pioneer and placing
it in the role of follower (p86-87).


CHAPTER 3: RESEARCH & ANALYSIS
3.1 Desk research
3.1.1 Market analysis
3.1.2 Competitor analysis
3.1.3 Brand analysis
3.1.4 Consumer analysis
3.2 Primary research- Brand health survey
3.2.1 Research design and methodology
3.2.2 Research results and findings
3.3 SWOT analysis


8 

CHAPTER 3: RESEARCH & ANALYSIS
3.1 Desk research:
3.1.1 Market analysis:
According to Nielsen retail audit data of six key cities in Nov 2011 provided by

URC Marketing department, potato snack market in Vietnam is a very potential FMCG
industry with total market value of US $9.15 million and the growth rate of 27% in terms
of sales volume. However, the market is now cluttered with many players: Poca (Pepsi),
O’star (Orion), Tatos (Oishi), Swing (Orion), Slide ( Kinh Do), Pringles (P&G), etc.
Among those, Pepsi and Orion are the two biggest players with 66% share of the potato
chips business in term of sales volume by kilo. In this market, the sale volume by kilo is
main criteria to review market share because different snack product are sold at different
price which makes the analysis in sale value less accurate and meaningful than sales
volume.
As a strategy to entry the VN snack market, URC Vietnam has launched the Piattos
which competes directly to Poca and O’star, Swing since Dec 2010. Piattos is
differentiated from competitors by its unique hexagon shape with more acceptable price
(4,000 VND/pack in comparison with Poca/ O’star at 6,000 VND). Piattos is also crispier,
non-greasy than the others. Although the company invested a big advertising budget of
around US$ 600,000 equal with Poca and O’star to do advertising both in traditional
channel (TV) and non-traditional channel (cinema, digital) combined with many BTL
activities, sales growth has been very modest and market share is at only 5% in term of
sales volume.
Table 3.1 Market share review based on Nielsen audit of six key cities (Nov 2011)
Sales volume (kg)
483,101
Poca
355,969
O'star
114,419
Tatos
101,705
Swing
76,279
Slide

66,109
Pringles
61,023
Piattos
12,713
Others
Total
1,271,318
3.1.2 Competitor analysis:

Market share (%)
38%
28%
9%
8%
6%
5%
5%
1%
100%


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3.1.2.1 Poca competitor_ market pioneer:

According to internal competitive profile tracking of URC marketing department,
it’s Pepsi Corporation who created the “natural potato” market with its Poca Lays brand
since 2007 via its well established distribution and huge media spending. Poca is
positioned as premium and tasty natural potato snack with brand personality of young,

dynamite and sporty. Its target consumers are adolescent at the age of 15 to 24. As the
leader of the market, it always spices up the market by its regular launching of new
products every year. Currently, Poca has the most crowded portfolio with eight flavors at
two pack sizes of 27gram and 60gram which makes the total portfolio of 16 SKUs. The
eight flavors of Poca snack are Natural Classic, Manhattan Rib-Eye Steak, Grilled Lobster
Mornay, Nori Seaweed, Grilled meat Valencia tomato sauce, Perigold pate, and Napoli
pizza. The pricing strategy is premium price at 6,000 VND for small pack and 12,000
VND for big pack. However, the retailer margin is just at lowest level of the snack
industry- 11%.
Through five years of presenting in the market, this brand is consistent with the
slogan of “Irresistibly Delicious”. Thanks to the strength of a giant global corporation,
Poca has a huge A&P budget to support marketing activities every year. In the first four
years of launching, Poca has very strong media investment with the annual budget of
around US$ 600,000 for television advertising using different famous celebrities as talents
in their different TVC version through the years. Poca also frequently invests huge
merchandising campaign with many various POSM tools such as display racks, hangers,
posters, wobblers, signboards and wall boards to support both traditional and modern trade.
It pays a big amount incentive for retailer to display their products in the eye-catching
position in the store. Poca has exclusive sales team to focus to sell snack product only and
its distribution coverage is nationwide with wide network for on-premise and off-premise
channel.
In 2011, Poca launched a huge consumer promotion toward football fan with the
theme of “Poca- Super fan promotion” supported by an integrated communication


10 

campaign in TV, print, Out of Home (OOH) advertising, Internet and Below-the-line
(BTL) activities mainly focus in Ho chi minh and Hanoi market. The Match Attax card
with picture of one from 54 famous football players was inserted into Poca product for the

consumers to make the collection which can be used for a game. 8 lucky consumers who
received the golden tickets in the pack will win a trip to Great Britain to watch the final
match of Manchester United Club. On digital, Poca launched promotion website with
forum discussion to create two-way conversation with consumer in order to create dynamic
social community. For Out of Home, Poca decorated supermarket welcome gate to recall
brand awareness and campaign reminder. In terms of print ads, besides teenager magazines
(Hoa Hoc Tro, Muc Tim), Poca also expanded their target audience by investing in social
news in mass favorite newspaper and magazines of Ho Chi Minh and Ha noi such as
Thanh Nien, Tuoi Tre, Tiep Thi Gia Dinh, An Ninh Thu Do and The Thao Van Hoa.
In summary, the successful story for Poca brand is its pioneer, variety of flavors
with fancy name, huge A&P budget for marketing activities, excellent merchandising and
exclusive snack sales team with well-established distribution network on nationwide for
on-premise and off-premise channel.
3.1.2.2 O’star competitor - early follower:

Based on URC marketing information, O’star brand of Orion Company (a leading
branded Korean food Corporation) entered the potato snack market some months after
Poca. In the first three years, it didn’t work very well to compete with the pioneer position
and huge marketing budget of Poca. However, since 2010, it started to adapt the fastfollowing strategy to compete with Poca by following the rules of Poca but trying to do it
better than Poca. O’star positions as Tasty & Crunchy natural potato snack, similar with
Poca with brand personality of youthful and elegant. Its target consumers are same as Poca,
but O’star calls them teenagers in all of their communication materials. O’star just has
three flavors with normal name such as Salted flavor, seaweed flavor and Korean Kimchee
flavor at two pack sizes of 30gram and 62 gram. Although O’star has fewer flavors than
Poca, the consumers highly prefer its taste than Poca’s. It follows the premium pricing of


11 

Poca with the same price of 6,000 VND for small pack size and 12,000 VND for the big

pack size but it increases more weight for the pack (2 gram for each pack size). And it sets
retailer margin at 12%, one percentage higher than Poca’s retailer margin.
Through five years of competing with Poca, this brand is consistent with the slogan
of “The best natural potato”. For the investment of this brand, O’star also has a big A&P
budget to support marketing activities every year. In the first three years of launching,
O’star has a strong media investment with the annual budget of around US$ 400,000 for
television advertising. O’star also invests various merchandising materials such as display
racks, hangers, posters and wobblers combined with display incentive as Poca competitor
to support sales. Like Poca, O’star has exclusive sales team to sell snack product only and
its distribution coverage is nationwide with wide network for on-premise and off-premise
channel.
In 2011, O’star refreshed it image with teenage association by launching the
promotion “O’star farm” since 18th Sep and cooperate with teenager channel (Yan TV) to
attract teenagers to offline events with teenager celebrities. O’star offered in-pack
promotion with scratch tickets to win free product or free travel trip to O’star farm in Da
Lat with total promotion budget of one million free O’star pack and one hundred free trips
to O’star farm which valued more than US$300,000. Besides TV channel, O’star also
communicates their promotion on varied media vehicles (print, digital and cinema) to get
touch of their target consumers. Unlike Poca, O’star concentrates all their resources in
teenager channels and link it together into 360o communication campaign such as
advertising on teenager television with video of different teenager celebrities to join O’star
farm trip together with teenager consumers, sponsorship teenager games show named
Rung Chuong Vang in VTV3 for Hanoi market and print ads in teenager magazines of
HCM and Hanoi market (Hoa Hoc Tro and Muc Tim). Regarding digital activities, while
Poca invests for short term with promotion website maintaining for about three months,
O’star aims at long term digital strategy with the launching of their official website for the
brand (ostar.com.vn) with forum discussions, direct link with video clips of O’tar farm
trips on Youtube and other social network. As the time of launching the promotion is
summer period, O’star also airs its 60-second-advertising film of O’star farm in Megastar
and Cinebox cinemas combined with brand activation at the booth outside cinema entrance

to recall teenager awareness in their school-off time.


12 

In summary, the successful story of O’star is its fast-following strategy, good taste,
clever spending of limited marketing budget in less cluttered media channels in an
integrated communication campaign (teenager TV channel, teenager magazine and digital
cinema), celebrities endorsers, good merchandising campaign and exclusive snack sales
team with nationwide coverage for on-premise and off-premise channel.
3.1.2.3 Tatos competitor - late entrant:

Liwayway is a big Philippines food corporation who is very successful in extruded
snack for kid consumer with the leading brand Oishi. In the beginning of 2011, this
company decided to enter the potato snack market with new brand Tatos and switch whole
Oishi media spending to support the launch of Tatos. Tatos positions as fun natural potato
snack targeted at teen and young adults with brand personality of youthful and rebellious.
Tatos has three flavors of Natural, Kimchee, Cheese and Onion at the pack size of 30 gram.
Tatos is sold at 5,000 VND, cheaper than the current Poca and O’star. With the cheap
pricing strategy, Tatos tries to converted current consumer of Poca and O’star to switch to
their product. It also provides a higher retailer margin of 16%, than current offer of Poca
and O’star in order to encourage retailer to sell more Tatos snack.
According to the media report of URC marketing department, total media spending
for launching Tatos is about US$ 740,000 for airing TVC in three markets (HCM, Hanoi
and Danang TV channels). Tatos alternates their TVC with three different versions of
funny moments in Fountain, Salon and Karaoke, using consistent communication tagline
of “Real potato – Truly funny moment”. Besides TV channel, Tatos also invests in print
ads and OOH to support. Regarding print ads, Tatos concentrates in Women & Lifestyle
magazines. For OOH advertising, Tatos invest in the billboards at central and high traffic
zones in HCM market. Inherited from well-established distribution network of the current

Oishi snack, Tatos also has exclusive sales team to sell snack product only and its
distribution coverage is nationwide with wide network for on-premise and off-premise
channel.