STP SEGMENTATION

RURAL CONSUMERS Psychology Segmentation

• Have concerns about health
• Willing to pay for premium product that provides the following
attributes: high quality, significantly different product, Japan
origin preference
• Have a growth mindset, yet want something secure and
authentic => perfectly fit the brand proposition

There is a potential segment that has not been well exploited.

The potential segment is for consumers concerning about dental
health and pleasant to pay premium for that

Geographic Segmentaion
Rural market
• 62 million of citizens, 850,000 retail stores, 44% buying power of FMCG
• Residents have a growth mindset, prefer the simplicity, security
Potential market, but need a period of time of change their ingraind
perception and loyalty to the long-standing local. products
Urban market:
• Multifarious channel of distribution: minimart, convenience store,
supermarket
• Convenient for transportation, logistics is also a perk
• Residents in the high-income class have a strong buying power, not
hesitate to spend for the exported products.
Potential but the competitive landscape is pretty fierce, rental cost of
premises is staggeringly high and there is also a high rate of being
blend in in the process of intergration
 Demographics
T
STP
• Income: AB+
A • Living in the urban Southeast & Mekong
R • River Delta areas of Vietnam
G
E Bahavior and Psychological
T
• Concerns about health of a whole family
I
• Easily affected by word-of-mouth
N
• Willing to pay for premium product that provides the following attributes:
G
high quality, significantly different product, Japan origin preference
• Have a strong consideration for ingredients, especially those with natural
Mothers in ingredients.
Southern
P Area Insight
O
S • Being a wife, a mother in a family, I put my family health at the top priority
I and really scared of seeing them suffering the pain and uncomfortable
T feeling when having oral diseases. But they are not pleasant to go to the
I doctor for a periodically dental check and dental treatment. I need an
O effective, reliable and convenient solution for daily usage for my whole
family.
N
I Positioning Recommendation
N
G • To serve customer insights, we recommend Lion to position themselves as
a premium solution for in-house dental treatment from Japan
 1. Rivalry among Existing Competitors:
• International players
remain top of mind,
5 FORCES Threat of especially Unilever (65%)
Substitutes and Colgate (25%)
dominate the market.
• Low differentiation.

Bargaining Rivalry among Threat of

Power of New
Existing
Buyers Entrants
Competitors

2. Bargaining Power of Buyers

• High customers loyalty towards their
familiar products
• Low switching cost
Bargaining • Strong concerns over “prevent caries”
Power of
and “whitening
Suppliers
• Products viewed as necessity
 3. Threat of Substitutes
• Low threat: rarely can any products replace toothpaste
and mouthwash in the oral care routine of Vietnamese
5 FORCES Threat of
people.
Substitutes
• Some substitutional products: Crest white 3D, Marvis
Whitening Mint, Amway Glister,.v..vu Âu

4. Threat of New Entrants

• Comparatively easy to enter
Vietnam market
Bargaining Rivalry among Threat of • Switching cost to the buyer is not
Power of New high
Existing
Buyers Entrants • Easy access to a variety of
Competitors distribution channels, such as
traditional markets, grocery stores,
drugstores, supermarkets...

5. Bargaining Power of Suppliers

Bargaining
Power of
Suppliers
4P MARKETING MIX PROMOTION
High Internet • TVC, PR articles, bumper ads, posters
penetration • Social Media
PLACE fuel the • Cooperate with KOLs, influencers
growth of • Use “Taking care of people's health”
online
Sell online first to service
purchase
adjust geographic • Sponsor hot programs
segmentation • Run “Deep Sale” campaign on Online
appropriately Sales Channel

Focus on minimarts,
supermarkets, E-Commerce size
convenience stores or is still humble but
modern drugstores in with bright
prospects
big city and grocery
retailers in rural areas

Build Online Sales

Channels on E-commerce
Channels
4P MARKETING MIX PRODUCT
• Improve packaging to match with
Vietnam's culture and lifestyle
• Diversify kinds of dental & oral
care, new taste
• Attach promotional gifts such as:
dental floss, teeth whitening
strips, mini toothpaste or selling
those products with lower price
to raise people's brand
awareness

PRICE
• Adjust the price to match with
common and luxury
segmentation
THANK YOU
NIELSEN CASE STUDY

TEAM 5