Closeup Brand Analysis Report hi hi hi hi hi

As written by Unilever PLC (Unilever, n. d. ), in 1929, Margarine Unie, one of the Dutch largest margarine companies, cooperated with the soap giant Levers Brothers to form Unilever. Passing 90 years, Unilever is now available in more than 190 countries, owns over 400 household brands, and has a workforce of about 150, 000 employees. Unilever first entered the Vietnam market 25 years ago. According to Unilever Vietnam’s official website, nearly 35 million products were sold to Vietnamese households every day from the Lifebuoy soap, the Sunsilk shampoo, the P/S toothpaste, and the OMO washing powder. They now have 1700 employees nationwide and indirectly provide jobs for about 15, 000 workers through third parties; they also collaborated with more than 150 distribution agents and 300, 000 retail stores, helping the company fulfill its committed mission of "Enhancing the Lives of Vietnamese People" (Unilever, 2016). In 1967, Unilever renewed the old chalk-based toothpaste market with its foundation of Closeup brand, the product of which was reported as the combination of "the efficacy of silica base, infused with mouthwash, with the transparency of a gel. " that not only brighten our teeth but also maintain our fresh breath (Closeup, n. d. ). Introduced to the Vietnam market in 1994, it was the first gel toothpaste in Vietnam and the first toothpaste to be accompanied with mouthwash. While other competitors concentrated on strengthening the consumers' teeth, Closeup realized the value of "breath" when witnessing teenagers becoming more aware of themselves when communicating. Its Closeup Nature Boost mouthwash is described as giving "natural, long-lasting freshness" by adding Cardamom and Tulsi to its ingredient and alcohol-free formulation thus no burning sensation or dryness (Closeup, n. d. ) According to the consumer panel in 4 big cities in Vietnam in 2007-2008 (Phạm, 2009), mouthwash has been a potential market with a popularity rate of up to 29% and total revenue of more than 29 million VND. Its target customer is primarily young people who need to take care of every centimeter on their body, including their morning breath. Research also shows that female consumers are likely to use mouthwash more than males (Macfarlane et al. , 2011). However, the most significant challenges to Closeup are the consumer's penetration and its competitors. Only 34% of people in this survey said they had used the mouthwash while the percentage of people who have heard about mouthwash products is doubled (Phạm, 2009). In the same survey, nearly 80% of Vietnamese were using mouthwash from the two giants Listerine and P/S while Closeup failed to have their name in the list. Firstly, when Unilever first came to Vietnam, it still successfully attracted customers due to its existing reputation and popularity in nearly 190 countries. Therefore, Closeup also received a certain acceptance as a brand of the famous Unilever company when established in this new market. Secondly, Unilever always makes its best effort in innovating and developing its products to satisfy the continuously changing demands of the customers. Last year, Unilever spent up to 800 million euros on R&D activities with the participation of 5000 experts from all over the world and 20000 patents to protect their ideas (Unilever, n. d. ). Furthermore, with Closeup, Unilever successfully aims its target segment of young people through its marketing campaign. As Close Up message is "Free to love, " its first campaign, "Love Story" in Vietnam, telling about a shy man who became more confident to pursue his love had been viral among the youth; this campaign also won the Silver Award for Most Effective use of Direct Marketing at the Asian Marketing Effectiveness Awards 2008-2009 (Adobo Magazine, 2009). However, a giant like Unilever still has some weaknesses. As it mainly sells convenience products, consumers buy them frequently with little involvement and comparison between the brands (Kotler & Armstrong, 2018). Therefore, a bottle of mouthwash can be easily replaced the opponents' products or the local and traditional alternatives. In addition, being a fast-moving consumer goods (FMCG) manufacturer means their business depends heavily on the distributor. "Our business relies on a thriving distribution network, " says Unilever on its official website (Unilever, n. d. ). As a result, the customer's decision may be partly influenced by the advice of small retailers. As Closeup joined a competitive market, its rivals are divided into two main groups: one group includes its direct competitors in the mouthwash market share, and the other are products that have the same oral care function apart from mouthwash. According to a survey in Vietnam (Phạm, 2009), Listerine was leading the mouthwash market, and 57% of people doing the study are using this brand, followed by P/S with 21%. However, Closeup Nature Boost didn't appear in this list, which means Vietnamese people still were not familiar with this product even when the Closeup has gained particular popularity. The study also showed that customers favor two preceding brands: affordable price, reputation, and wide distribution. On the other hand, there are still many people preferring other types of products to take care of their mouths, such as traditional toothpaste or saltwater. In the above survey, the participants who do not use mouthwash said that they found it helpless (40%) or toothpaste was enough for them (38%). Some consumers also buy bubble gums or lozenges for instant aromatic breath. Those mouthwash brands still have not thoroughly conveyed their functions in dental care and protection to the Vietnamese people. Since 2009, Unilever Vietnam has collaborated with a complex network of local Small and Medium-scale Enterprises (SMEs). It has worked with 76 raw materials and 54 packaging suppliers, as well as 16 third-party SMEs. Unilever's goal is that as long as those SMEs can maintain their capacity, they can still cooperate despite not being an adequate supply chain (A case study of Unilever Vietnam, 2009). Marketing intermediaries help sell the products to the final consumers. Unilever's resellers include retailers ranging from big supermarkets such as Big C, Co. opmart to small convenience and miscellaneous stores on every corner of the street. One of the marketing agencies in partnership with Unilever is Lowe Vietnam, a leading agency in the media advertising industry in Vietnam. They work with OMO, P/S, Lifebuoy, and the brand Closeup (Trần, 2014). In terms of customers, every household is the potential consumer of Unilever Vietnam, ranging from Beauty & Personal Care, Foods & Refreshment to Home Care products. However, there is also a notable difference in the usage rate between the city and the countryside consumers. While in the urban, up to 80% of Vietnamese people pay for the more "luxurious" group of products, which in rural areas accounts for only a half to two-thirds of the urban areas (Unilever, 2009). The reasons for this distinction may vary from the income difference, high competition with the cheap local products to the product accessibility in the rural areas. As Closeup mainly aims at the youth generation, the age structure exerts a considerable effect on the market. According to the Statista website (Aaron, 2021), in 2020, the percentage of children under 14 was 23, 19%, while that of people aged from 15 to 64 years old was 68, 94%, showing a slight fall compared to previous years. This is also the timespan when most Generation Z – the generation born between 1997 and 2012 (Kotler & Armstrong, 2018) - reached their adolescence or began to work. As a result, having a fresh breath is for better communication is indispensable. Some economic factors that may affect the market include the cost of living, gross domestic product (GDP), or income. In a 10-year-period, the monthly average revenue per Vietnamese person had increased dramatically from 1. 39 to 4. 19 million VND in 2020 despite a negligible drop from 2019. Consequently, this might help raise the consumption and revenue of both Closeup and Unilever company. Recognizing the importance of the environment, many companies have integrated environmental sustainability into their core values in recent years, and Unilever is no exception. This year, the campaign "Revive Plastic Waste" was carried out by Unilever Vietnam and their two partners VietCycle and Duy Tan plastic. They target to achieve the Circular Economy model in plastic waste management by sorting waste at the source, collecting and recycling plastic waste (Unilever, n. d. ). In conclusion, Closeup Nature Boost mouthwash has the potential market in Vietnam, although they still have not successfully positioned themselves in the customers' minds. The existing Closeup campaign about confidence in love also gained a lot of notice from the community, especially the young teenagers; therefore, they should concentrate more on this type of marketing. Moreover, during the COVID-19 pandemic, the marketing team must maintain contact with their loyal customers mainly through their official Facebook page or other social media channels. As the Closeup vision contains "love" and "confidence, " it can consider collaborating with the famous and viral couple on the Internet such as the "Tizi Đích lép" couple – two popular influencers or the couple of "Giang ơi – Anh bạn thân" – the well-known YouTube vloggers for better awareness in the future.