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Hochiminh City University of Foreign Languages andInformation Technology

----ooo----May 2016

Basic Marketing ProjectE-mask - mask for people getting motion sickness

Lecturer: Lê Hoàng Ngọc Thanh

Team No.3: PMG

Team member:

Đinh Trường XuânVũ Phương NghiPhạm Lê Kim TúĐinh Thanh NhànTạ Hoàng Thúy TrangNguyễn Đình TuânNguyễn Thoại LamNguyễn Vĩnh ThiệnĐào Đăng KhoaLê Trung Hồng PhátHuỳnh Ngọc Kim HânHoàng Mai Ngọc HạnhĐặng Thụy Nhật HoàngVõ Tiến LongBạch Kim Đan

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PART A: MARKETING PLAN1. EXECUTIVE SUMMARY

The purpose of this report is to provide a marketing plan for the new product of Neovision- E-mask’santi-motion sickness masks to enter mask market in TPHCM, Vietnam. First, Vietnam has the fastestcosmetic and skincare industry in the world. SWOT analysis indicated that although E-mask has someentry barriers to enter Vietnamese market such Lack of brand-awareness among in Vietnamese maskmarket as a new entry , Vietnamese industry’s trend overview and market growth provide an opportunityfor E-mask to make profit in the future. Second, females and males aged 18 to 25 are chosen for our targetmarket. This target group has fair disposable income and their lifestyle and behaviour suggests that theyrequire premium and high quality products and not sensitive to price much. E-mask will suitable for thembecause of its natural ingredients offers more radiant skin and ,not harmful to their skin. According toperceptual map, E-mask will position itself as a niche to gain competitive advantage. Third, marketingobjectives will be changed over time. For short term, 20 percent brand awareness will be achieved,20-30 percent profit margins and 5 percent market share will be achieved in medium and long run,respectively. Fourth, market strategies will be developed, including product & brand, service, price,distribution and promotional strategies. Joint venture will be used as entry mode to gain access to localknowledge effectively. E-mask has to commit to deliver product quality and services to customers. Pricingstrategy suggests to lower price of E-mask’s masks in Vietnam. In this way, it enables E-mask to attractmore customers. Furthermore, implementation, control and monitoring plans are developed for E-mask toimplement the marketing strategies and adapt to the changing efficiently. Overall, this marketing plan willallow E-mask’s masks to enter Vietnamese mask market successfully. It is essential that E-mask mustretain its position and commit to implement strategies to achieve its marketing objectives and deliver highquality product and services to maximise customer value.

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Table of Contents1. EXECUTIVE SUMMARY ...............................................................................................................22. COMPANY SITUATION.................................................................................................................5

SWOT analysis ......................................................................................................................................53. ENVIRONMENT ..................................................................................................................................6

3.1. Environment factors that shift Customer demands ..........................................................................63.2. Technological changes .....................................................................................................................63.3. Governmental regulations ................................................................................................................73.4. Economic forces ...............................................................................................................................73.5. Competitor analysis ......................................................................................................................73.7. Position of brand compared to competitors’...............................................................................10...............................................................................................................................................................10

4. TARGET MARKET .......................................................................................................................104.1.Customer analysis: ..........................................................................................................................104.2.Market Segmentation ......................................................................................................................144.3.Target market ..................................................................................................................................154.4.Customer portrait.............................................................................................................................15

5. OBJECTIVES......................................................................................................................................166. STRATEGY .........................................................................................................................................16

6.1. Product strategy ..............................................................................................................................166.1.1. Product description ..............................................................................................................166.1.2. Product Strategy: .................................................................................................................18

6.2. Promotion strategy .........................................................................................................................186.3. Advertising Strategy.......................................................................................................................226.4.Distribution Strategy .......................................................................................................................23

6.4.1. Customer analysis and distribution channel ............................................................................236.4.2. Distribution system..................................................................................................................246.4.3. Distribution plan in 2 next years .............................................................................................246.4.4. Policy for wholesales...............................................................................................................25

6.5. Pricing Strategy ..............................................................................................................................266.5.1. Target-return pricing and breakeven point: .............................................................................266.5.2. Recommended price for E-mask .............................................................................................26

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6.5.3. Quality leadership Strategy: ....................................................................................................276.5.4. Pricing strategies / tactics for price control .............................................................................27

8. ACTION PLAN ...............................................................................................................................299. ANTICIPATED RESULTS............................................................................................................3010.CONTINGENCY PLAN....................................................................................................................30PART B: APPENDICES.........................................................................................................................31...................................................................................................................................................................32PART C:REFERENCE ..........................................................................................................................33

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2. COMPANY SITUATIONNeoVision brand is a pioneer in the field: technology oriented apparel to health (health - technologyoriented garment).Founded in 2002 , spent 12 years in the construction of coal and development , is proud to presentleading NeoVision area: production of air filtration masks and other activity as more than a sunscreenproduct in Vietnam market Men like hats , masks

On the interE-masknal market, has also been organized NeoVision ACP Global (Singapore) appreciateand certification provider and trusted supplier of Alibaba.com Gold. Currently, NeoVision exported tomany countries around the world and trusted by customers such as the US, Canada, Singapore, India,Taiwan, Thailand, ...

2013, signed a contract NeoVision quality insurance for their goods in the US & Canada, with the levelof compensation of up to 2 million / case . Currently, these products are sold in more NeoVisionsupermarkets in the United States and other countries, particularly sold on Web sites world-famous tradingas Amazon.com or Ebay.com .

SWOT analysisSTRENGTHS WEAKNESSES

- Monopoly on Technology- Pioneer in health-oriented garment- Available wide distribution channel.

-Lack of brand-awareness among in Vnesemask market as a new entry- Number of competitors that may pose threatwhen enter to this market.

OPPORTUNITIES THREATS

-potential niche market-wide distribution channelMask industry is expected to grow further.-Increase in GDP- Advanced technologies such as social mediaand Internet will be another way to buildreputation

- Health issues- Awareness of consumers about the necessityof using mask for motion sickness.- Possibility of new market entries

These achievements have helped somewhat on voice quality of the product NeoVision provided by , theproducts that NeoVision always want all consumers will be able to own , to protect the health ofconsumers and their relatives

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Neovision’s market in Vietnm

3. ENVIRONMENT3.1. Environment factors that shift Customer demands

Vietnam’s air pollution is so serious that people need to take special care to protect the skin and to avoidrespiratory diseases, such as using natural and healthy masks. With the increasing number of travellerseach year, both domestic and foreigners, there is a increase in the number of main means of transportationin Vietnam, which are buses and coaches. Among them, the rate of motion sickness people is becominghigher, and there is not any masks in market specializing in this problem

3.2. Technological changes

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The rapid development of online shopping has a powerful impact on the life of Vietnamese people. Morepeople are willing to shop online due to the convenience of the Internet. Many famous masks brands havetheir online stores, or website not only served for consumers but wholesales and retailers. Internetdevelopment is an effective tool to optimize administration process and business activities in differentenvironment. Specifically, technology allow products and service to be produced at lower cost with higherquality. It also help designers gather customer information via packages to modificate products moreperfectly.

3.3. Governmental regulations

Political stability is one of the indispensable elements which help Vietnam can persevere economicdevelopment policy. Political stability Vietnam has been created for peace and prosperity. If look into anumber of countries in the region, easy to see that, except for Singapore, then from 1990 onwards, mostcountries in the region have experienced coups or political crisis. Meanwhile, Vietnam's political stability,which is a guarantee for the cohesion to implement a consistent economic policy.

3.4. Economic forces

Vietnamese economic development has achieved smooth and rapid growth in recent years. Vietnameseare now spending more money on FMCG and enjoying a high quality of life more than just satisfying theirbasic needs.General Statistics Office announced , the total domestic product ( GDP ) was estimated at 6.68% comparedto 2014 , higher than the target of 0.48 % NA 6.2% . This is the highest growth rate last 5 years. Scaleeconomies this year in current prices reached 4192.9 trillion. GDP per capita in the country was estimatedat 45.7 million, equivalent to $ 2109 / person / year , 57 % increase compared to 2014. The increase in GDP leads to higher living standards , then higher income will cause people to spend

more, especially FMCG.Besides, the General Department announced , this year the lowest inflation in 14 years , only 0.6% , whichis a good news for enterprises.

3.5. Competitor analysis

E-mask is a totally new products, which focuses on a niche market for people getting motion sickness.Therefor, there would not be any direct competitors at the time lauching product. However, E-mask hasmany indirect competitors including normal masks serving for mass market and medical products (pads,medicine) used for motion sickness symptoms, which is shown in the following competitor analysistable and perceptual map. Masks

In masks market, masks can be categorized into 3 types :

1-time using mask: surgical mask Reusable mask: cloth mask

Active Carbon mask: active-fiber, activated carbon nonwoven. Anti motion sicknessproducts: medication, pads,etc.

Competitor analysis table:

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Types Strenghts Weaknesses1-time using

Wear 2-3 maskesNot prevent car smelleffectively

Low price Convenient use Prevent dust,

sunshine, germs Sterilized Design

No deodorant. Fragment as

exposed to sweat,moisture.

Quite Thin

Reusable

Not prevent car smelleffectively

Low price Convenient use Prevent dust,

sunshine, germs Design Economical

Wash after use No special feature Need to choose the

right size

Active carbon

High priceNot focus on smell filter

Filter dust airpolution smoke,gasoline, SO2, COH2S,etc.

Reduce risks ofrespiratory disease.

design

High price. Not specialize in a

specific feature. Wash after use Glue against carbon

particles

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Activated-carbonnonwoven

Not thick enough to preventsmell Not effective much

Filter dust airpolution smoke,gasoline, SO2, COH2S,etc.

Active-fiber. design: folding

Active-fiber inshort time

Glue against carbonparticles

Medication and PadTypes Strenghts Weaknesses

Medication Easy to use Convenient Good sleeping

Overdosing:(drowsiness , dry mouth,accommodation disorders,constipation, urinaryretention, memory loss orimpaired concentration ,especially for older people)

Pad Easy to use Convenient

Apply 4-6hours beforedeparture

Overdosing:(dry mouth, constipation,headache, drowsiness,vomiting, eye disorders,etc.)

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3.7. Position of brand compared to competitors’

4. TARGET MARKET4.1.Customer analysis:

I. RESEARCH:

- Sample: 148 people (61 male, 87 female)

42.2%57.8%

RATE OF SICKNESS

Yes

No

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In which 86 people (57.8%) do not experience motion sickness, 63 people (42.2%) were sensitiveto car’s smell. 41 of 63 sickness people reach “always” and “often” sensitive to the smells.

_ In 41 peole who most sensitive to car’s smells, there are:17 people who have the monthly icome as about 1-3 million VND (41.7%)5 people as 3-5 million VND (12.2%)4 people as 5-10 million VND (9.7%)2 people are more than 10 million VND (4.9%)13 people have no monthly income (31.7%)

The occupation of those 41 people, there are:33 students (80.5%)2 pupils (4.9%)6 workers (14.6%)

41.7%

12.2%9.7%4.9%

31.7%

MONTHLY INCOME

1 - 3million3 - 5million5 - 10million

80.5%

4.9% 14.6%

OCCUPATION

Student

Pupil

Worker

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•The level of sensitivity to the smell of the cars of those surveyed were divided into 5 levels:Always: 28 people (44.4%)Often: 13 people (20.6%)Sometimes there are 17 people (27%)Rarely, there are 4 people (6.3%)Never: 1 people (1.6%)

The level Often and Sometimes have high percentage shows that the sensitivity with the car’ssmell mainly in high and medium level.

In the “always” and “often” sickness people, the most comfortable smells chosen when they in cars are:Pepermint: 8 people (19.5%)Medical oil: 6 people (14.6%)Fresh ginger: 2 people (4.9%)Cinnamon, gingergrass: 1 person (2.4%)Tangerine: 20 people (48.8%)Oderless: 2 people (4.9%)Do not care about the smells: 2 people (4.9%)

9.5%

20.6%

19.0%

19.0%

15.9% AlwaysOftenSometimesRarelyNever

19.5%

14.6%

4.9%2.4%

48.8%

4.9%4.9%

COMFORTABLE SMELL

Peppermint

Medical oil

Fresh ginger

Cinnamon,gingergrass

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Following these peole, they are:Interested in: Thickness, materialQuite interested in: size, priceInterested = very interested: colorLess interested = interested: convenienceLess interested in: brand

They care most about the size, price and color.

-5% 5% 15% 25% 35%

Thickness

Material

Size

Price

Color

Convenience

Brand

DECISION-MAKING FACTORS

Do not interest Less interestedQuite interested InterestedVery interested

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4.2.Market Segmentation

Market segmentation could be classified by four segmentation variables; geographic, demographic,

psychographic and behavioural segmentations. Table below shows keys of relevant segmentations of

customers based on mask market in TPHCM, Vietnam.

Behavioural

Benefit sought Seek for the high

products volume

with low or

affordable prices

that suitable with

their incomes.

Price sensitive

Seeking for

premium products

than mass products

Loyal to one specific

brand that served their

satisfactory and used

for over a period of

time

Segmentation Segment A Segment B Segment C

Demographic

Age 18-25 26-35 36-65

Gender Female & male Female & male Female

Life-Cycle stage Young, high school kids

and university students

Single, in labour force

or/and newlyweds

Mature women and men

with family and children

Income Limited income or

financial dependent

High disposable income Higher disposable income

and wealthy

Geographic

Location Vietnam Vietnam Vietnam

Psychographic

Lifestyle Highly influenced

by trends, family

and friends’ opinion

and media

(eg. Make-up

tutorial on

YouTube)

Concerns and

conscious of health

and beauty

appearances

Prefer products with

natural ingredients

Prefer the brand that

provides health

specialist knowledge

and suitable for their

types

Likely to stick with the

products that used over

a period of time

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4.3.Target marketPeople live in in HCMC, aged from 15-25, male and female. They are tend to use convenient maskfor 1 time only. (light usage rate) .Those who often travel on holidays, often get motion sickness astravelling because of car smell or those do not but be sensitive to car smell. They concern about theirown health, quality, price and convenience of products, not too sensitive to price.

4.4.Customer portraitFemale- Income: < 3 million .- Age : 18-25

- Live in urban -Live- Insight : want the mask clean , can irritate , handy , sewing aesthetic , quality , suitable price- Behavior : Into purchase said products against holidays , home , hang out with family , friends ,colleagues . Frequency of purchase January 1 box mask , said car buyers seasonal products .- Media behaviour : regularly updated news from online media , social networks , news of interest to health, safe product . Have the habit of using the smartphone much frequently , watch television in the evening, mainly all programs . ideal target audience to apply media tool.

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5. OBJECTIVES

Increase market share by 5% for this kind of mask in mask market. Increase the number of customer users in HCMC by 10000 per month, 20000 in peak seasons. In the first year we want to capture 5% of the market HCMC." Increase sales with this product to the point where profits reach 50 milion per month, and continuous

in 12 months

6. STRATEGY6.1. Product strategy

6.1.1. Product description

Product Brand: E-mask

Tagline: Breath you life

Components:

Features:

o +Filter dust , odor filter , air filter , to prevent dust intrusion ... .. + Filter harmful gases and bacteria . + Remove car smell + Straps for Garments is good elasticity , do not allergic .

1. Super Absorbent Polymer (SAP)2. Silver Nano Fabric3. Activated Carbon4. Nonwoven

Logo

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+ Splint stored fixed plastic nose mask.

6.1.1.3.PackagingPackaging: 5masks/pcsUnit price: 7000-8000VND (floor price after survey: 8000VND)Price of package: 34000VND (plastic package)

39000VND (paperbox package)

Nonwovenabsorbent , soft , breathable , elastic , durable,nonalergic, decomposed material

Siver nano particles fabricNon-toxic, antibacterial and water-proof.

Activated-carbon fabricabsorbs odors , toxic gases and dust filter (5mm)

Super Absorbent Polymer (2mm)

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6.1.2. Product Strategy:

The product E-mask will be modificated continuously in majurity stage to broaden more access to

customers as long as possible to remain share and push sales and will be innovated (big size, change package, more

fragrance) before decline stage.

6.2. Promotion strategy

4 layersNano silversterilziedDoubleactivatedcarbon…

INTRODUCTION

No change

GROWTH

ModificationFragrance2.Categorize:Size (L,M,S);Nanomaskscent;carbonmasks scent.

MAJURITY

Innovattion:big sizeChangepackageAdd variousfragrance.

DECLINE

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In the introduction stage, (the first 3 months) the products is released to the market; pricing and branding

decisions are made and marketing begins. During this time sampling products for travellers on coach, PR

plan would be executed in order to raise awareness of customers about social message and functional

measage related to product (service quality on coach, car-motion sickness symptoms, and so on).

In the growth stage, which is the time encourage customer interaction to the brand E-mask to increase

brand recognition and market share. In this 3 next months, Neovision should attempt to lauch PR activities

such as PR articles, endorsements, social experiment , online marketing (SEO, SEM, facebook ads,..) and

other above -the-line activities to boost brand identity : booth activation, leaflet, banner, poster, sampling,

and so on.

In the maturity stage,(7-12 months) market saturation has been achieved. The attempt is to maintain

market share. Then enterprise have to run discount program for intermediaries and execute advertising

program at high frequency via TV or online channels. The goal of promotion strategy at this stage is

remain sales as long as possible, so it is extremely crucial to co-ordinate ATL and BTL (appendix 5) to

push and pull and keep the product in the maturity stage. Otherwise, the product is soon in its decline

stage and an exit strategy may be set in motion.

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PR PLAN

PR ACTION PLAN

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6.3. Advertising StrategyThere’s a growing tendency to use viral clip to promote products instead of traditional TVC because oflower cost and inspirational message such as Thailand TVC. Therefore, it is possible for E-mask tobecome a pioneer in mask market to promote products via one of the most popular media channel:Youtube.Targe audience: youth aged from 18-25Concept: You Only Live OnceExcecution time: From April to JuneChannel: YoutubeIdea: Every moment passing is valuable. You just have one life to live, so cherish every moment toenjoy happiness and don’t regret about what you have done the key of happiness.Description:The main character is a girl, who is a student in university. The scene begins when she had a quarrel withher parents about her career orientation.Her parents wanted her to inherit family business, so forced herto become a business woman while her dream job is to be a tour guide.

Then she left the house and take a couch no matter where it goes. During the coach, she felt dizzy andvomit becaused of car sickness while others did not. Afterwards, it turns out to be that travellers on coachwere volunteers in a charity campaign named YOLO to remote area in order to help orphan children.After 5 days living with the group and the native people, she thought a lot about meaning of life. On the

day coming back to the city, she was given a mask (E-mask) from her new friend in the YOLO team andfeel very well during the rest of the journey.

When she came back home, she apologized her parents and seriously asked her parents to follow herdream as a tourguide and be accepted. The clip end with the emotional scene in which she hug her parentsand still holding an E-mask. showing logo E-mask and slogan : Breath your life – YOU ONLY LIVEONCE.

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6.4.Distribution Strategy

6.4.1. Customer analysis and distribution channel

First of all, E-mask is the special product, which is especially focused on those who regularly travel andsensitive to car smell. According to the survey conducted in sample 148 shown in previous part, there areup to 89,2% people choosing pharmacy as an expecting place to buy the product, followed by conveniencestores (66,2%) and coach station (24,3%) respectively. Based on these statistics, it would be better forNeovision to build an appropriate distribution channel systems effectively to optimize costs,maximize thesales and boost promotional activities easily.

With a view to combining factors drawn from the bar chart, it is good to use 2-level distribution channel

including : producer, wholesalers and retailers, which is very essential in order to increase sales volume,

such as pharmacy, coach station, wholesales. Placing and selling masks in these locations will be a good

opportunity to expand selling channels. Besides, Neovision can directly sell products to consumers

through Neovion online shopping website.

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6.4.2. Distribution system

In the illustrations of distribution channel of E-mask, products after finished from OEM (appendix 1)are

transported into wholesales, retailers and then to end-users or can be directly accessed to consumers from

producers by online shopping website.

6.4.3. Distribution plan in 2 next years

According to Product Life Cycle (Appendix 4 ) , distribution strategy of E-mask will be executed :

In the introduction stage, there's heavy marketing activity, product promotion and the product is put into

limited outlets in a few channels for distribution. Sales take off slowly in this stage. The need is to create

awareness and build up using behaviours, not profits. Hence, E-mask products is intended to be distributed

to a coach brand at coach station, serving free for travellers on coach as add-in service besides tissues and

bottled water (about 2500 masks released for sampling, the coach brand such as Phuong Trang will be

offered a certain amount of masksin the first 3 months) in order to get feedback from customers, while

executing PR activitiies to educate customers.

In the growth stage, when customers know more about E-mask, Neovision will distribute products to

pharmacy in the surroundings of coach station (Mien Dong, Mien Tay) , and activate promotional

activities (booth activation, leaflets, POSM, PR,…) and support Phuong Trang sell products for travellers

on coach with lower price if possible.

In the majurity stage, sales grow at slowing rates and finally stabilize. In this stage, products get

differentiated, price wars and sales promotion become common and a few weaker players exit. So the

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company have to expand distribution channels to take as much share as possible along with advertising

and discounts.

In the decline stage, sales drop, as consumers may have changed, the product is no longer relevant or

useful. Price wars continue, several products are withdrawn and cost control becomes the way out for

most products in this stage. Therefore, the effective solution for company at this time is lauching a new

products, innovate the current products or expand beyond target market such as Da Nang, Can Tho, Binh

Duong, not in HCMC anymore.

6.4.4. Policy for wholesales

• Attractive discount: 20-30%

• Advertising, free media: when progamming

• Support and free shipping

• Easy product returns: after 10 days

• Reward for the agent reaching monthly sales target: SIM card, voucher, gold.

• Testing regularly : responsible for checking retailer’s knowledge about products for a certain

amount of times. The retailers which pass the test will get vouchers.

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6.5. Pricing Strategy

6.5.1. Target-return pricing and breakeven point:

1. Total investment : 675.000.000VND

2. ROI: 20% Expected profit : 135.000.000VND

3. Total fixed cost: 450.000.000VND

4. Expected unit sales: 150.000units

5. Variable cost per unit: 1500VND/unit

6. Total average variable cost: 225.000.000VND

7. Average profit per unit: 900VND/unit

8. Monthly target revenue : 50.000.000VND (about 9260units sold)

Unit cost = Variable cost + fixed cost/ unit sales

= 1500 + 450000000/150000 = 4500 (floor price)

Selling price = Avarage cost +

= 4500 + 20% 675000000150000 = 5400VND (Price for wholesales)

Breakeven point = − = 4500000005400−1500 = 115384( )Breakeven revenue = breakeven point * Unit price = 115384 x 5400 = 623.073.600VND

Breakeven time = revenue/ monthly target revenue = 623073600 : 50.000.000 = 12,46 (month)

Therefore, if the quantity of masks consumed in the first year is lower than 115384 units, there will be a

loss and the enterprise will get profit when there are more than 115384 masks sold.

6.5.2. Recommended price for E-mask

Producer (20% profit)Wholesales (increased by 20-30% + VAT 5%) Retailers (increased by 5-

15%)

5400VND 6500-7000VND 7000- 8000VND

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The recommened final price for E-mask at pharmacy at average of 7500VND, not excess the

floor price 8000VND.

6.5.3. Quality leadership Strategy:

As being shown in perceptual map and the table showing pricing strategies based on relationship betweenprice and quality, Neovision choose the product-leadership strategy, which is high in quality at a mediumprice, lower than normal cloth mask but higher than activated-carbon paper masks. The reason to belief isthat Neovision monopolized on technology to produce masks with special components and the role as apioneer in niche market as well.

6.5.4. Pricing strategies / tactics for price control

6.5.4.1. Discount - DiscountContents:Discounts onthe purchase invoiceactually takes many forms such discount cash discount (discount when paying with cash), quantitydiscount(discount for bulk orders), functional discount (discount for employees who purchase the

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enterprise or the members of the distribution channel), seasonal discount (seasonal discounts, festival,event) ...6.5.4.2. Allowance - discountContents: 1 Manufacturer pay the money for the retailer to accept the import of manufacturer, as well asassist in promoting governance.6.5.4.3.Discount and reduce price:Discount payment is a price reduction for customers who pay in cash and pay quickly , in order to reducecosts and debt recovery for corporate bad debts.

6.5.4.4.Promotional pricing :A form of temporary price adjustment aims to support the sales promotion activities . There are several

forms of popular promotional pricing as follows : - Low pricing on special occasions such as holidays toentice customers, if the product is to move inventory discounts with coupons (for customers who havepurchased the last time ) in order to encourage customers to buy regularly . Customers need to eliminateas the expiring REASONS , product life-cycle is ending , revolving capital... Increase in sales for salesstrategies Location Balance ( Balance of revenue distribution locations )

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9. ACTION PLAN

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10. ANTICIPATED RESULTS

Expected profit : 135.000.000VND

Administration expenses: 50.000.000VND

Expected unit sales: 150000units

Monthly target profit : 50.000.000VND

Breakeven point = = = 115384( )Breakeven revenue = breakeven point * Unit price = 115384 x 5400 = 623.073.600VND

Breakeven time = revenue/ avarage monthly revenue = 623073600 : 50.000.000 = 12,46 (month)

As we can see, it take 12 months to breakeven we expect to achieve a market share of five percent

and sales of about 623 million in the first year. The E-mask project will break-even in the first year. We

do not expect any Mask technology breakthroughs during this period. Competition is expected to be

based on design, price, and achieving widespread distribution, areas in which we expect to be very

competitive.

10.CONTINGENCY PLANIf the competition increases advertising or our sales are less than expected, we are prepared to add as

much 150 million dong (20% investment) to our advertising budget so that we can push more sales andbrand awareness.In case the company can reach the expected target revenue and face financial crisis (loss over 30%) wewill postpone promotional campaigns and cut operartional and variable cost. In the event of failure inpricing strategy, we will conduct a survey to research customers and change the strategy into perceivedvalue pricing.

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PART B: APPENDICESAppendix 1: Original Equipment Manufacturer (OEM) is a company that makes a part or subsystemthat is used in another company's end product

Appendix 2: The 5 levels of the product

Appendix 3 : Breakeven chart

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Appendix 4: Product Life Cycle

Appendix 5: Above the line (ATL) and Below the line (BTL)

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PART C: REFERENCELink website:http://whatis.techtarget.com/definition/product-lifecycle-in-marketinghttps://vanmarketing.wordpress.com/marketing-mix/kenh-phan-phoi-distributor/kenh-phan-phoi-hien-dai-fmcg-mt/http://www.brandsvietnam.com/4141-Quan-ly-kenh-phan-phoi-thanh-conghttp://letsmarketing.weebly.com/cac-loai-hinh-kenh-phan-phoi-trong-marketing.html