MINISTRY OF EDUCATION AND TRAINING

NATIONAL ECONOMICS UNIVERSITY

-----------------------------------------------------

REPORT
COURSE: PRINCIPLES OF MARKETING
ADVISOR: NGUYEN VU THANH AN
BRAND: OMO
MEMBERS

Vu Quynh Trang 11215940

Tran Ha Phuong 11216464
Nguyen Phuong Quynh 11216467
Nguyen Minh Tam 11216470
Thach Thu Ha 11211951
Truong Thi Hao 11216421
Mai Thu Nga 11216452
Nguyen Huy Khanh 11216433

Hanoi, 03/2024
 TABLE OF CONTENTS
CONTENT ......................................................................................................... 3
I. The Microenvironment ............................................................................. 3
1. Company: ................................................................................................... 3
2. Marketing Intermediaries ........................................................................ 5
3. Competitors ............................................................................................. 6
4. Suppliers .................................................................................................. 7
5. Publics ..................................................................................................... 8
6. Customers ................................................................................................ 8
II. The Macroenvironment.......................................................................... 9
1. Political Environment ............................................................................ 9
2. Economics Environment .......................................................................10
Cultural Environment .................................................................................11
3. Technology Environment ......................................................................12
4. Demographic Environment ...................................................................14
6. Natural Environment ..............................................................................16
III. Factors affecting customers’ behavior ......................................................18
1. Cultural factors.......................................................................................18
2. Social factors ..........................................................................................20
3. Personal factors ......................................................................................21
4. Psychological factors ..............................................................................22
IV. Marketing Mix .........................................................................................23
1. Products ...............................................................................................23
2. Price .....................................................................................................29
3. Place ....................................................................................................30
4. Promotion .............................................................................................31
VI. Suggestions:.............................................................................................33
REFERNCES ....................................................................................................35
 CONTENT
I. The Microenvironment
1. Company:
About Unilever
Unilever, a globally recognized multinational corporation specializing in personal
care, home care, and food products, was founded on September 2, 1929. Operating
in more than 190 countries and territories, Unilever is dedicated to improving the
quality of life for individuals worldwide through its diverse range of products and
services.

Since establishing its presence in Vietnam in 1995, Unilever has invested over
300 million USD in modern manufacturing facilities located in Ho Chi Minh City
and Bac Ninh province. Leveraging a network of over 150 distributors and an
extensive retail network of over 300,000 retailers, Unilever Vietnam has directly
employed over 1,500 individuals and indirectly facilitated employment for over
15,000 people working with third-party entities, suppliers, and distributors.
Unilever Vietnam has experienced remarkable growth, with annual revenue and
profit increasing by an average of 30-35% since achieving stability and
profitability in its projects. For instance, from a revenue of 20 million USD in
1995, it doubled to 40 million USD in 1996, reaching 85 million USD by 1998,
and soaring to around 240 million USD by the end of 2002. This exceptional
growth trajectory solidifies Unilever Vietnam's position as the most successful
foreign enterprise in Vietnam today.

About OMO
OMO is a brand belonging to Unilever Vietnam Limited Liability Company, a
subsidiary of Unilever. OMO first appeared on the domestic market in 1963.
Currently, OMO detergent powder is leading the laundry detergent market in
Vietnam, and OMO is increasingly establishing its brand positioning firmly in the
minds of consumers.

With a full range of products suitable for consumers, from liquid detergents to
detergent pods, tablets, and small packets, OMO's laundry products whisk away
even the toughest stains, even at low temperatures.

OMO is present globally under various names such as Persil, Skip, Ala, Wisk,
Surf, and Rinso. OMO's superior laundry technology ensures that every family
can explore and get dirty without worries, as OMO takes care of even the toughest
stains with absolute confidence.

1.1. Strengths
Supported by the global Unilever corporation, it has strong financial stability
The Unilever's Omo product has successfully combined three elements: hand skin
safety, whitening power, and fragrance of detergent into one product released in
the market, which has attracted a lot of favor and trust from Vietnamese
housewives, making up 60% of the consumer market share.
Unilever has a strong corporate culture, with an intellectual workforce possessing
a high sense of responsibility. Understanding the Vietnamese sentiment of valuing
compassion, Unilever implements humanitarian programs such as OMO -
Brightening White Shirts for the Future, Million Golden Hearts, and Tet Charity
for Prosperity throughout the Year, which have garnered significant attention
from all segments of the population.
The price is relatively acceptable while maintaining very high quality, comparable
to imported products.

1.2. Weaknesses:
As a European-origin company, Unilever's product promotion strategy may not
fully align with East Asian cultures
The price of OMO is still higher than that of regular detergents. Consumers in
rural areas often opt for lower-priced detergents, so Unilever cannot capture
market share in rural areas
There are still some technologies that cannot be implemented in Vietnam due to
high costs, necessitating imports and incurring additional expenses. This situation
leads to underutilization of the abundant labor force and capabilities in Vietnam
Recently, the company has reduced its budget somewhat due to the economic
challenges posed by the global Covid-19 pandemic

1.3. Opportunities
Infrastructure in major cities is receiving significant investment, leading to more
development in the domestic market. Against the backdrop of terrorism,
epidemics, and wars in recent times, Vietnam's political landscape is considered
relatively stable, making it the safest investment destination for investors.
Vietnam is a country with religious freedom, so product distribution and
advertising are not subjected to as many strict constraints as in European
countries. The geographical location and natural conditions of Vietnam are
relatively favorable for product distribution on an international scale

1.4. Threats:
Because OMO is an essential consumer product, it faces significant competition
from brands like Tide, Viso, and others.
Counterfeiting and imitation products with OMO labels affect the company's
reputation and market profits.
Vietnam is primarily an agricultural country, with a majority of the population
residing in rural areas. People in these areas typically have lower incomes,
resulting in limited spending on OMO or other Unilever products. Therefore,
Unilever needs to research how to capture this market share.

2. Marketing Intermediaries
In 2017, Lazada, often referred to as the "Amazon of Southeast Asia," announced
a partnership with Unilever, the world's third-largest consumer goods corporation.
According to Metric.vn, as of December 2023, the revenue of Omo laundry
detergent on the Lazada platform has reached nearly 50 billion VND.

More importantly, after many years of relying on foreign Production Houses,

OMO Vietnam boldly nominated LeeFilms as a new star to successfully produce
its innovative advertising clips.
 3. Competitors
Competitors of OMO include other brands of laundry detergent and fabric
softeners in the same or higher segments. The laundry detergent market in
Vietnam is quite unique, primarily dominated by OMO, a brand owned by
Unilever, known for owning not just one but many other laundry detergent
products. This categorizes OMO's competitors into several groups:

 Within the Unilever group: Surf, Viso, Comfort are products under the
Unilever conglomerate, providing product diversity in the market and
enabling Unilever to reach various customer segments with different needs.
However, most people do not pay attention to this and still perceive OMO
as a separate brand, leading to a comparison mentality regarding the quality
of Unilever's products.

 Imported brands: Tide, Ariel (owned by P&G), Aba (owned by Colgate-

Palmolive), Attack (owned by Kao Corporation) are all well-established
 brands originating from abroad. Among these, Tide is particularly
noteworthy as a longstanding laundry detergent brand in the Vietnamese
market, trusted by a large community.

 Domestic brands: Lix, My Hao, Net, Duc Giang are all products
manufactured by domestic brands. Although their coverage in major cities
is not extensive, they have their own specialties and characteristics.

4. Suppliers

As individual organizations supplying

production factors, one of the suppliers to the
company is the Vietnam Chemical Group
(Vinachem), according to the Unilever Group's
board of directors. On September 21, 2010, the
Vietnam Chemical Group (Vinachem) and
Unilever signed a memorandum of
understanding to further strengthen the supply
relationship between the two companies.
Currently, Unilever is purchasing some key
ingredients from Vinachem and its subsidiary
companies for manufacturing activities in
Vietnam. However, the company still needs to import some other raw materials
(estimated at over 100 million US dollars per year), so Vinachem and its member
units will collaborate with Unilever to produce these materials.
Having a stable input of raw materials will stimulate business development,
leading to increased production volumes and product quality.

Combining production cooperation for raw materials in Vietnam will save costs
for raw materials, facilitating more convenient production. This can lead to the
formulation of pricing policies. As 80% of Vietnamese consumers live in rural
areas with low incomes, producing materials locally will facilitate consumer
choices (such as choosing Omo laundry detergent) with reasonable prices. As a
result, sales will increase.

5. Publics
The success of OMO in the Vietnamese market stems from its impactful
community-oriented communication campaigns. Here is a list of the top 5
noteworthy PR campaigns by OMO that have contributed to the brand's
reputation:

6. Customers
Consumers have a significant influence on the existence of Omo products;
therefore, focusing on gaining their trust is crucial. Unilever Vietnam always
emphasizes "winning over" customers through a series of advertising activities
such as "bombarding" consumers with advertisements or conducting consumer
interviews. Additionally, community activities (charity, organizing fundraisers,
sponsoring events, school programs, etc.) attract attention to Omo.

State agencies and non-profit organizations: For this group, OMO utilizes
marketing for purposes such as providing for employees or community campaigns
such as relief efforts. In 2019, as part of the campaign "Trồng cây, trồng trải
nghiệm", OMO collaborated with the Central Youth Union to plant 30,000 new
trees, provide infrastructure for 10 children's playgrounds in 10 provinces and
cities, and partnered with "Green Hanoi" to donate additional green heart-shaped
tree patches throughout the capital city.
International customers: OMO not only supplies domestically but also
internationally. This group helps OMO expand internationally, making the OMO
brand renowned globally, hence requiring further policy development and
advancement.

Customers are an extremely important factor for any company or enterprise.

Gaining the trust and attention of customers is the key to the success of one's
business.

Targeted customers
The target customers of OMO specifically, and the laundry detergent market in
Vietnam in general, are housewives, sisters, women who play the roles of wives
and mothers, taking care of their family's daily life. They lead busy lives, taking
care of their husbands and children, and are increasingly inclined to overlook
traditional boring advertising.

To create a truly engaging advertising strategy, OMO has relied on the insight that
parents always want their children to develop both physically and mentally
through games and beneficial activities, helping others instead of stressful study
hours

II. The Macroenvironment

1. Political Environment
This is a factor that affects all business sectors throughout the territory, legal
institutional factors can threaten the existence and development of any industry.
When doing business in an administrative unit, businesses will be required to
comply with the legal institutional factors in that area. The political security
situation and the government's operating mechanism Unilever recognizes that
Vietnam is a country with high political stability, people have awareness and
positive views on foreign direct investment and We value these companies, so
identifying and forming a long-term business strategy in Vietnam is completely
reasonable. Besides, OMO has well implemented environmental protection
policies, creating trust for consumers.

The legal system, especially economic policy, regulates business behavior,

consumption, and trade relations. Currently, our country implements an open
policy.
The market door thus creates conditions to access a variety of good and profitable
products highly beneficial. However, besides that, there are some obstacles such
as increased tariffs and taxes. OMO is also affected by the increase in prices of
some products due to customers. There are many considerations and the
commercial code has many disadvantages for investors foreign countries,
especially tariff policies and high tax rates.

2. Economics Environment
The main factors in the economic environment are the performance of the
economy and level of consumer trust. These are two parts that are closely related
but not the same. The performance of the economy is what it actually is
happening, and what level of consumer confidence is there in what is happening.

Economic industry structure: The economy is increasingly developing in the

direction of industrialization, modernization and mechanics. Industry demand has
changed according to the development trend of trade and service industries and
shrinking the agricultural sector. Being aware of this enables the company to offer
OMO washing powder products that are suitable for market consumer needs. It
works influence customer consumption and create product variations. OMO
meets consumer needs: convenience, quality, aesthetics. Unilever's OMO has
partly met that need:
- OMO static bleaching
- Diverse designs and weights: 100g, 800g, 3kg, 6kg.

Economic growth rate:Vietnam's economic growth rate has continuously in

recent years been among the highest in the region but is not really sustainable, the
economy is quite sensitive to negative external influences such as economic
recession. The global economy has lasted since 2007 until now. The inflation rate
in the last 3 years has been approximately double digits, causing many businesses
to struggle due to increased input costs. People tighten their own targets. Unilever,
the Omo washing powder business, also encountered certain difficulties.

Income per capita:In recent years, Vietnam has achieved significant

achievements in economic development to improve people's lives. However, the
majority of Vietnamese people are still at a low income level when compared to
some countries in the region such as Singapore, Thailand, Malaysia, Philippines...
Therefore, when forming their business strategy, The company encountered
certain difficulties such as determining which type of OMO washing powder to
provide to suit the budget of Vietnamese people. The company must deal with
both at the same time. That's just right to adapt their products to the local area
while offering low-cost products on the market. At the same time, the company
must be profitable.
This is a really difficult problem for the company. However, according to the
company's assessment, Vietnamese people, although low-income, are numerous
and the company's demand for OMO washing powder is very high, so the
company can still conduct long-term business activities. , earn profits by matching
the company's products to consumers' ability to pay. If income is low, consumers
pay special attention to price. On the contrary, people with high income care more
about quality than price. Usually, low-income people living in rural areas and
small families often buy small amounts but often (detergent powder is an essential
product). People with high incomes often go to supermarkets, retail agents... With
the current situation, people's income is increasing, time is limited, so we need
convenient products to help save costs. Time consuming, but highly effective led
to the birth of OMO Fragrance Thousand Flowers to help housewives save time
on shopping and meet their targets.

Cultural Environment
OMO washing powder manufacturing company found that Vietnamese people
accepted what is new and have an innovative perspective, an attitude of
welcoming new things that suit their way of life and way of thinking. In addition,
businesses also realize that Vietnamese people's preferences are very diverse and
suitable for diverse and rich product types. Vietnamese people will not like any
particular color more than China likes red as the color of happiness. Moreover,
Vietnamese people in general have a mentality of buying foreign products not
only because of the quality and design but also because of the brand reputation of
foreign businesses. This has created opportunities for foreign goods to penetrate
deeply into the Vietnamese market and gradually develop steadily. Unilever is no
exception, that's why culture deeply affects product choice such as product
convenience, product features they need, design,... to see that Unilever has
launched many OMO product lines to meet diverse preferences.
- People who like clean white clothes: OMO is clean white, removes 99% of
stains
 - Group of people who want to assert themselves with scent: Unilever
launched the OMO product with a thousand-flower scent, омо Matic.

-
Language affects Omo's popularity in the market: In general, Vietnamese
people do not have high foreign language skills, but most imported products use
English as the common language. Initially, this hindered the consumption of
Unilever's OMO products. For example, people will not know all the uses of
washing powder as well as how to use washing powder effectively. Recognizing
this, Unilever quickly resolved it by designing the packaging for its OMO washing
powder product in Vietnamese to create conditions for Vietnamese consumers to
understand more about the product and choose the product. In advertising
campaigns, companies often use national language and symbols that are familiar
and easy to understand for consumers.

Religion: Vietnam is a religiously free country, so distribution and advertising is

not subject to as many strict restrictions as many other Asian countries.

The role of Unilever's target customers in its manufacturing business OMO

washing powder: OMO is a consumer product serving family activities, so the
main target customers are women and housewives, so in OMO promotion
programs the company focuses on middle press emphasizing that it always
accompanies Vietnamese women in performing their role of caring for and
protecting their family's health. Good quality and convenient products are always
women's top criteria when choosing to shop.

3. Technology Environment
The Fast Moving Consumer Goods (FMCG) industry in Vietnam is experiencing
a profound transformation driven by technological advancements. As one of the
fastest-growing sectors in the country, FMCG companies are increasingly
leveraging technology to streamline operations, enhance customer engagement,
and gain a competitive edge in the market. This analysis delves into the key
technological trends shaping the FMCG landscape in Vietnam and explores their
implications for businesses operating in this sector.

Digitalization has emerged as a game-changer for FMCG companies in Vietnam,

revolutionizing the way they interact with consumers and distribute products.
With the rise of e-commerce platforms such as Lazada, Shopee, and Tiki, FMCG
brands have gained access to a vast online marketplace, enabling them to reach a
wider audience and tap into previously untapped markets. The convenience of
online shopping has fueled the growth of e-commerce in Vietnam, with
consumers increasingly opting for the ease and accessibility of purchasing FMCG
products online.

Mobile technology plays a pivotal role in shaping consumer behavior and driving
the adoption of omnichannel retailing in the FMCG industry. With a significant
portion of the Vietnamese population owning smartphones, mobile devices serve
as powerful tools for accessing product information, comparing prices, and
making purchases on the go. FMCG companies are capitalizing on this trend by
developing mobile-friendly websites, mobile apps, and leveraging social media
platforms to engage with consumers across multiple touchpoints. The seamless
integration of online and offline channels is essential for delivering a cohesive
shopping experience and building brand loyalty in an increasingly digital world.
Data analytics has emerged as a strategic imperative for FMCG companies
seeking to gain deeper insights into consumer preferences, behavior, and market
trends. By harnessing the power of big data and advanced analytics tools,
companies can unlock valuable insights that inform product development,
marketing strategies, and supply chain management decisions. Personalization is
key to enhancing customer engagement and driving sales in the FMCG sector. By
leveraging data analytics, companies can tailor their offerings to meet the unique
needs and preferences of individual consumers, thereby increasing customer
satisfaction and loyalty.

Supply chain digitization and automation are revolutionizing the way FMCG
companies manage inventory, production, and distribution processes. Advanced
technologies such as Internet of Things (IoT), RFID tagging, and blockchain are
enabling real-time tracking and monitoring of goods throughout the supply chain,
enhancing visibility, transparency, and efficiency. Automation technologies, such
as robotics and AI-powered systems, are streamlining warehouse operations,
reducing labor costs, and minimizing errors. By embracing supply chain
digitization and automation, FMCG companies can optimize their operations,
minimize waste, and respond more effectively to changing market dynamics.

Sustainability has become a growing concern for FMCG companies and

consumers alike, prompting a shift towards eco-friendly practices and green
technologies. Companies are increasingly investing in sustainable packaging
solutions, renewable energy sources, and environmentally friendly production
processes to reduce their carbon footprint and minimize environmental impact.
Green technology initiatives, such as energy-efficient manufacturing equipment
and biodegradable packaging materials, are not only environmentally responsible
but also resonate with eco-conscious consumers, driving brand loyalty and market
differentiation.

In conclusion, the technological environment in the FMCG industry in Vietnam

is undergoing rapid evolution, presenting both opportunities and challenges for
companies operating in this sector. By embracing digitalization, mobile
technology, data analytics, supply chain digitization, and sustainability initiatives,
FMCG companies can adapt to changing consumer preferences, enhance
operational efficiency, and drive growth in the Vietnamese market. However, to
fully capitalize on the potential of technology, companies must invest in talent
development, infrastructure, and innovation capabilities. By staying abreast of
technological trends and leveraging them strategically, FMCG companies can
position themselves for long-term success in Vietnam's dynamic and competitive
market landscape.

4. Demographic Environment
The demographic landscape of Vietnam plays a pivotal role in shaping the
dynamics of the Fast Moving Consumer Goods (FMCG) industry. With a
population exceeding 97 million people and a median age of approximately 30
years old, Vietnam represents a lucrative market for FMCG companies seeking to
capitalize on the country's youthful demographics and rising disposable incomes.
This analysis explores the key demographic trends influencing the FMCG
industry in Vietnam and their implications for businesses operating in this sector.
Vietnam's youthful population, characterized by a large proportion of millennials
and Generation Z individuals, is driving significant shifts in consumer preferences
and shopping behaviors. Younger consumers are more digitally savvy, socially
conscious, and open to trying new products and brands. They value convenience,
authenticity, and experiences, which has led to the emergence of trends such as
online shopping, healthy eating, and eco-friendly consumption. FMCG
companies must adapt their marketing strategies and product offerings to cater to
the evolving tastes and preferences of Vietnam's younger demographic segments.

Rapid urbanization is transforming the socio-economic landscape of Vietnam,

with an increasing number of people migrating from rural to urban areas in search
of better job opportunities and living standards. Urban dwellers tend to have
higher purchasing power, diverse dietary preferences, and busy lifestyles, driving
demand for convenience foods, ready-to-eat meals, and on-the-go snacks. FMCG
companies can capitalize on this trend by offering products that cater to urban
consumers' fast-paced lifestyles while addressing their health and wellness
concerns.

Vietnam's robust economic growth has led to the expansion of the middle-class
and affluent segments, resulting in a significant increase in disposable incomes
and discretionary spending. As consumers become more affluent, their
consumption patterns shift towards premium and high-quality products across
various FMCG categories, including personal care, household essentials, and
packaged foods. FMCG companies can seize opportunities in the premiumization
trend by introducing upscale product lines, investing in branding and packaging,
and targeting affluent consumers through targeted marketing campaigns.

Traditional family values remain deeply ingrained in Vietnamese society, with

extended families often residing together and playing a central role in daily life.
As a result, purchasing decisions are influenced by collective preferences and
considerations, rather than individual choices. FMCG companies must take into
account the diverse needs and preferences of multi-generational households when
developing product assortments, packaging sizes, and promotional strategies.
Additionally, the increasing number of dual-income households and working
mothers has fueled demand for time-saving solutions and convenience-oriented
products in the FMCG sector.
Vietnam's regional disparities and cultural diversity pose both challenges and
opportunities for FMCG companies operating in the country. Consumer
preferences, dietary habits, and shopping behaviors vary significantly across
different regions, necessitating localized marketing strategies and product
assortments. Understanding the cultural nuances and regional preferences is
essential for FMCG companies to effectively penetrate diverse markets and build
strong brand loyalty. Moreover, the proliferation of social media and digital
platforms provides FMCG companies with opportunities to engage with
consumers on a more personal level and tailor their marketing messages to
resonate with specific regional demographics.

In conclusion, the demographic environment in Vietnam exerts a profound

influence on the FMCG industry, shaping consumer behaviors, preferences, and
market dynamics. By understanding and adapting to key demographic trends such
as youthfulness, urbanization, rising affluence, family structure, and regional
diversity, FMCG companies can position themselves for success in Vietnam's
rapidly evolving market landscape. Tailoring product offerings, marketing
strategies, and distribution channels to meet the diverse needs and preferences of
Vietnamese consumers is essential for driving growth and maintaining a
competitive edge in the FMCG sector.

6. Natural Environment
The natural environment plays a critical role in shaping the operations, supply
chains, and sustainability initiatives of the Fast Moving Consumer Goods
(FMCG) industry in Vietnam. As concerns about climate change, resource
scarcity, and environmental degradation continue to escalate, FMCG companies
are under increasing pressure to minimize their ecological footprint, adopt
sustainable practices, and mitigate environmental risks. This analysis examines
the key aspects of the natural environment affecting the FMCG industry in
Vietnam and explores how businesses are responding to these challenges.

Vietnam's regulatory framework governing environmental protection and

conservation has become more stringent in recent years, with stricter enforcement
of laws and regulations aimed at reducing pollution, conserving natural resources,
and promoting sustainable development. FMCG companies operating in Vietnam
are required to comply with environmental standards and regulations related to
waste management, emissions control, water usage, and packaging materials.
Failure to adhere to these regulations can result in fines, penalties, and
reputational damage, underscoring the importance of environmental compliance
for FMCG businesses.

Sustainable sourcing and supply chain management are critical considerations for
FMCG companies seeking to minimize their environmental impact and promote
ethical practices throughout the value chain. In Vietnam, FMCG companies are
increasingly focusing on sourcing raw materials from sustainable and responsibly
managed sources, such as certified organic farms, fair trade cooperatives, and
renewable resource suppliers. Additionally, FMCG companies are implementing
measures to reduce energy consumption, minimize waste generation, and
optimize transportation logistics to lower their carbon footprint and enhance
operational efficiency.

Water and energy management are key priorities for FMCG companies operating
in Vietnam, given the country's vulnerability to water scarcity and energy
shortages. FMCG companies are investing in water-efficient technologies,
wastewater treatment systems, and renewable energy sources to reduce their
reliance on finite resources and minimize environmental pollution. By
implementing water and energy conservation measures, FMCG companies can
lower operating costs, improve resource efficiency, and demonstrate their
commitment to environmental sustainability.

Packaging innovation and waste reduction initiatives are essential for FMCG
companies to minimize the environmental impact of their products and
operations. In Vietnam, FMCG companies are exploring alternative packaging
materials, such as biodegradable plastics, compostable packaging, and recyclable
materials, to reduce plastic waste and promote circular economy principles.
Additionally, FMCG companies are implementing packaging optimization
strategies, such as lightweighting, downsizing, and eco-design, to minimize
packaging waste and enhance recyclability.

Biodiversity conservation and ecosystem protection are increasingly important

considerations for FMCG companies operating in Vietnam, given the country's
rich biodiversity and fragile ecosystems. FMCG companies are implementing
biodiversity conservation measures, such as habitat restoration, reforestation, and
wildlife protection initiatives, to mitigate their impact on natural habitats and
promote biodiversity conservation. By supporting biodiversity-friendly farming
practices and sustainable land use, FMCG companies can contribute to ecosystem
resilience and safeguard the long-term viability of agricultural supply chains.

In conclusion, the natural environment exerts a significant influence on the FMCG

industry in Vietnam, shaping business operations, supply chains, and
sustainability strategies. By embracing environmental sustainability, complying
with regulations, adopting sustainable sourcing practices, and investing in
resource-efficient technologies, FMCG companies can minimize their ecological
footprint and contribute to environmental conservation efforts in Vietnam. By
integrating environmental considerations into their business strategies and
operations, FMCG companies can achieve long-term growth, enhance brand
reputation, and create shared value for society and the environment.

III. Factors affecting customers’ behavior

Consumer behavior can directly influence the decision to purchase or reject a
business's products. This is significant, including for planning marketing
strategies. Buyer behavior is influenced by four main factors: culture, social,
personal, and psychological. All of these factors provide us with a basis to
understand how to approach and serve buyers more effectively.
For effective marketing, it's essential to understand customers. Listen carefully to
grasp the viewpoints and emotions of target customers - especially when they are
related to the business's products or services - and ensure direct communication
with customers. Study the market to discover new trends and golden opportunities
that could benefit the business.

1. Cultural factors
Culture: It is the most fundamental factor determining the desires and behaviors
of consumers. For example, Vietnamese consumers are always influenced by
cultural factors that reflect the national identity, impacting their choice
preferences. For the target customer group OMO wants to target:
● Women
● Age range: 22 – 45
● Residing in cities, suburbs, towns, or townships
● Having children or grandchildren under the age of 15
● Educated, caring about family care and child-rearing.
This customer group is the decision-maker in household spending and has the
authority to choose the brands of household products. According to the report on
the trends in the use of household care / laundry products in April 2016 of Nielsen
", when it comes to laundry, about two-thirds of Vietnamese respondents (67%)
stated that laundry is their daily chore, while only about a quarter of Vietnamese
people (23%) said they do laundry 2-3 times a week. The responsibility of
purchasing household care and laundry products largely reflects who primarily
does the housework in the family, and unsurprisingly, the result points to women.
Up to 70% of Vietnamese respondents said women are the main factor in
purchasing household care/laundry products, with only 13% stating that it is the
responsibility of men and 11% indicating that it is a shared responsibility between
men and women. Omo is currently portrayed in vibrant red packaging, tapping
into the Vietnamese psyche, where red is considered the color of luck.

Vietnam's cultural heritage, rooted in traditional village customs and agricultural

production, has fostered stability within Vietnamese communities for thousands
of years. This cultural stability has instilled a mindset that favors consistency and
is resistant to change. Moreover, there is a tendency to follow the crowd and
adhere to traditional practices.

In the context of purchasing laundry detergent, these cultural factors may manifest
in several ways:
Preference for Familiar Brands: Vietnamese consumers may be inclined to
stick to well-known and trusted brands of laundry detergent, as they provide a
sense of familiarity and reliability.

Resistance to Change: There may be hesitation or reluctance among consumers

to try new or innovative laundry detergent products, preferring to stick to
traditional options that they are familiar with.

Influence of Social Norms: Social norms within Vietnamese society may dictate
certain expectations regarding laundry practices and product choices. For
example, there may be societal pressure to use specific brands or types of laundry
detergent based on cultural perceptions of cleanliness and hygiene.

Collectivist Mentality: The collectivist nature of Vietnamese culture, where

individuals tend to prioritize group harmony and conformity, may lead consumers
to make purchasing decisions based on the opinions and behaviors of their social
circles, such as family members, friends, or neighbors.

Value of Stability: The long-standing cultural emphasis on stability and tradition

may lead consumers to prioritize consistency and reliability in their choice of
laundry detergent, favoring products that have stood the test of time.

2. Social factors
Consumer behavior is also influenced by social factors such as family, roles,
social status, and reference groups.
The development of online social networks has facilitated Vietnamese
consumers' access to information quickly and easily. It has also enabled brands to
easily disseminate their images and products to a vast customer base. However,
Vietnamese consumers tend to easily believe information on social media without
verification or consideration, and are susceptible to being misled by inaccurate
information circulated by the crowd. Therefore, Omo needs to carefully build its
image on social media platforms.

Word-of-mouth influence can have a powerful impact on consumer buying

behavior. The personal words and recommendations of trusted friends, associates,
and other consumers tend to be more credible than those coming from commercial
sources, such as advertisements and sales people.
In Vietnamese communal culture, close-knit relationships within communities are
often accompanied by a spirit of mutual assistance and daily information sharing.
Therefore, word-of-mouth plays a crucial role and has significant influence on the
marketing process in Vietnam. Once Omo attracts a customer, that customer can
share and introduce the product to many other potential customers. Thanks to this
network, attracting new customers becomes easier and more effective for Omo,
thereby increasing opportunities to expand the market and boost sales.

Family has a strong influence on individual purchasing behavior, especially in

Vietnam where multiple generations often live together in one household. In
Vietnam, decisions regarding household items are typically made by the wife.
Vietnamese society tends to be collective, emphasizing harmony and solidarity
within the family. Purchasing decisions often involve multiple family members
rather than just one individual. Older adults, especially parents and grandparents,
have a significant influence on the shopping decisions of younger family
members. In the case of expensive products and services, usually, spouses discuss
together to make joint decisions. Marketers need to determine which family
member has a greater influence on purchasing various products and services.

3. Personal factors
Buyer’s decisions are also affected by personal characteristics that vary from each
group.

Age: As mentioned above, the main target groups of the brand are women whose
ages range from 22 to 45. Adults who have a stable income, a job, or a family.
This group is often the primary caretakers of the family so naturally they are very
concerned with the quality, effectiveness and reputation of the brand. Those under
the age of 22 are usually single or not directly responsible for doing laundry in
the household which leads to a lack of brand awareness. Therefore, OMO focuses
on this specific target group of consumers and modifies their products according
to the customer needs.

Occupation: Laundry detergent is a common product among households in

Vietnam regardless of the occupation or source of income. As a brand, OMO
would want to reach as many customer groups as possible. From high-income and
middle-class office workers to those who work hard manual labour jobs such as
construction workers, and mechanical engineers. Different occupation leads to
different needs which is reflected in OMO’s wide range of products promising
long-lasting fragrance and stain-busting power.

Income: The middle-class and upper-class markets were the initial focus of the
OMO market. Subsequently, OMO has been working to reduce expenses and
product prices to attract low-income customers in rural and mountainous areas,
all while maintaining a dedication to offering the finest advantages for people's
lives. Many middle-class and upper-class families in Vietnam now own washing
machines so OMO creates specialized products for such devices and even goes as
far as to market toward different types of washing machines ( front load, top load,
etc). Low-income residents however prefer washing by hand and smaller
packages. OMO then packages their products in various quantities and forms, both
sachets and boxes to meet different requirements of consumers. The price also
varies according to the quantity of the package.

Lifestyle: With housewives as the brand’s main target, OMO often features and
promotes traditional family values in its advertisements. Advertisement campaign
often includes the image of “mothers”- the main caretakers of the family doing
laundry with a reliable OMO product to assist her. The logic is simple: clean and
fresh-smelling laundry is the fruit of the mother’s love and care for the entire
family. Moreover, as Gen Z consumers slowly grow, the brand leans more heavily
toward the convenient and colour-locking characteristic of their products- two
aspects that Gen Z look for in their fast-paced and sustainable-conscious lifestyle.

4. Psychological factors
A person’s buying choices are further influenced by major psychological factors:
motivation and perception. These forces are largely made unconsciously by
buyers when it comes to purchasing decisions.

Motivation: A motive is defined as a need that is sufficiently pressing to direct

the person to seek satisfaction. Outside of its cleaning properties, a customer
might purchase OMO products to satisfy a personal need. In this case, perhaps a
customer might seek traditional family values and a strong connection between
each family member as is often seen in OMO advertisements. Buyers could use
the choice of OMO as a display of affection for their loved ones: a simple purchase
that demonstrates a mother’s attention to making sure every family member's
clothes always look and smell their best. Other customers might decide to use
OMO to showcase that they take care of their clothes, their looks and how they
are perceived by others.

Perception: This is a process in which people select, organize, and interpret

information in an individual way. One of the perceptual processes is selective
retention: consumers arelikely to remember good things made about a brand they
favor and forget good points made about competing brand. As OMO is priced in
the premium tier, the brand wanted to give its consumers more reasons to purchase
the products than mere functionality. Consumers need to perceive the brand as
more than just cleaning product supplier but rather a brand with the mission to
better the lives of their buyers and the community. Throughout the year, OMO
has done multiple charity projects and campaigns to spread positive messages
such as “ Lấm bản vì màn chắn xanh Việt Nam” (2022) or “ Lời chúc hóa hành
động - Lấm bẩn mang điều hay” (2021).

Learning: Learning describes changes in an individual’s behaviour arising from

experience. Marketers can build up demand for a product by asscociating it with
strong drives and providing positive reinforcement. Such as explained above,
OMO provides buyers plenty of drives to buy their products: convenient, wide
range of products, long-lasting fragrant, stain-busting power, ect as well as an
emotional response of caring, loving, connecting with loved ones. These facts
along with positive reinforcement through advertisements and commercials raise
the interest of buyers in trying or repurchasing the product.

IV. Marketing Mix

1. Products
1.1. Core Product
The core product is the fundamental benefit or service that the consumer receives.
For OMO, this is the promise of clean, stain-free clothes after washing. The core
product addresses the basic need for cleanliness that consumers expect from a
laundry detergent.

1.2. Actual Product

Packaging: OMO’s packaging is designed to be vibrant and eye-catching, which
helps in brand recognition and shelf impact. The distinctive logo and color scheme
make OMO products easily identifiable, which is essential in crowded
marketplaces.

Functional Packaging: OMO ensures that its packaging is not only aesthetically
pleasing but also functional. The packaging is designed to protect the product,
ensure ease of use, and provide convenience in storage and handling. For example,
OMO liquid detergent bottles often come with a handle for easy pouring.
Sustainability: As part of its commitment to sustainability, OMO focuses on
creating packaging that is environmentally friendly. This includes using
recyclable materials and reducing the amount of plastic used. OMO’s move
towards more concentrated formulas allows for smaller packaging, which reduces
waste and environmental impact
Communication: The packaging of OMO products also serves as a
communication tool. It conveys important information about the product, such as
its features, benefits, usage instructions, and safety warnings. Additionally, OMO
uses its packaging to communicate its brand values and campaigns, such as the
“Dirt is Good” initiative
Innovation: OMO continuously innovates its packaging to improve customer
experience and align with market trends. This includes introducing new packaging
formats like refill pouches, which are more economical and reduce plastic waste

Packaging is a key element that supports OMO’s product proposition and helps
to differentiate it from competitors in the market. It’s a vital part of the marketing
mix that contributes to the brand’s visibility, appeal, and message delivery to
consumers.

Brand Name:
Brand Recognition: OMO is a well-established brand name that resonates with
cleanliness and quality. It’s a name that consumers have come to trust over the
years, which aids in customer loyalty and repeat purchases.
Brand Equity: The strength of the OMO brand name allows Unilever to command
a premium price for its products. The brand’s reputation for effectiveness and
value contributes to its overall equity.
Brand Messaging: OMO’s brand name is closely tied to its marketing campaigns,
such as “Dirt is Good,” which emphasizes the positive aspects of getting dirty in
the pursuit of life’s adventures. This message aligns with the brand’s identity and
values.
Global Presence: As a global brand, OMO’s name has a consistent presence across
different markets, which helps in maintaining a uniform brand image and
marketing message worldwide.
Innovation and Extension: The OMO brand name is used to introduce new
product lines and innovations, ensuring that the brand stays relevant and continues
to meet consumer needs.
Quality:
Product Quality: OMO is recognized for its high-quality detergents that
effectively remove tough stains and provide a deep clean. The brand consistently
works on improving its formulas to meet the highest standards of cleaning
performance1.
Innovation: OMO invests in research and development to innovate and introduce
new products that cater to the changing needs of consumers. This includes
products like OMO Matic and OMO Comfort, which combine cleaning power
with fabric care1.
Consumer Satisfaction: OMO’s commitment to quality is reflected in its efforts
to ensure customer satisfaction. The brand listens to consumer feedback and
adapts its products to deliver a better washing experience1.
Sustainability: Part of OMO’s quality promise includes sustainability. The brand
aims to reduce its environmental impact by offering products that are not only
effective but also have a reduced ecological footprint1.
Brand Trust: OMO’s quality assurance contributes to building and maintaining
trust with consumers. This trust is a key factor in the brand’s longevity and success
in the market
Design:
Aesthetic Appeal: OMO’s packaging design is vibrant and distinctive, often
featuring bright colors and bold lettering that stand out on store shelves. This
visual appeal is important for attracting customers’ attention and differentiating
OMO from competitors
Functional Design: The practicality of OMO’s packaging design is also a key
factor. It includes features like easy-to-open lids, ergonomic handles for larger
containers, and clear usage instructions, all of which enhance the user experience
Brand Consistency: OMO maintains a consistent design theme across its various
products, which helps in building a strong and recognizable brand identity.
Consistency in design reinforces brand recall and loyalty among consumers1.

Innovation: OMO regularly updates its design to keep the brand modern and
relevant. This includes incorporating new technologies, such as spouts on liquid
detergent bottles for spill-free pouring, or using materials that are more
environmentally friendly1.
Communication: The design of OMO’s packaging is not just about looks; it’s also
a communication tool. It conveys the brand’s values, such as its commitment to
sustainability, and provides information about the product’s benefits and features
1.3. Augmented Product
Customer Service: OMO provides excellent customer support for inquiries and
assistance.
After-Sales Support: The brand offers helpful laundry tips and advice for optimal
use of their products.
Environmental Sustainability: OMO includes eco-friendly practices in its
production and packaging, appealing to environmentally conscious consumers.
-> These three levels of product classification help OMO to not only meet the
basic needs of their customers but also to provide added value that enhances the
overall customer experience with the brand. By focusing on each level, OMO
ensures a comprehensive approach to satisfying customer needs and
differentiating itself in the competitive market of laundry detergents.

2. Price

PRODUCTS VOLUME PRICE

OMO Red Detergent 400g 18,500 VND
OMO Red Detergent 800g 34,000 VND
OMO Red Detergent 3kg 107,000
VND
OMO Red Detergent 4.5kg 148,000
VND
OMO Red Detergent 6kg 195,5000
VND
Omo Matic Comfort Laundry Detergent 3.7kg 165,300
Fragrance Essential Oil (bag) VND
OMO Matic laundry detergent top load bag 2.7kg 106,000
VND

Since entering the Vietnamese market in 1995, OMO has realized that this is a
potential market, however, up to 80% of the population lives in rural areas and
has low income. Therefore, initially this brand used a market penetration pricing
strategy with low prices to attract attention as well as match people's income.
Thanks to the application of a market penetration price within 5 years and no price
increase while other washing powder products of the same type on the market
began to increase in price. Finally, with this strategy, OMO has gradually regained
market share and become a familiar product in every Vietnamese family.

In addition, OMO also uses product line pricing strategy. Accordingly, OMO has
diversified its products with different types, sizes, and volumes, bringing
convenience and convenience to consumers, so they also have different prices on
the market. market.

2.3. Competition-based pricing

OMO used a market penetration strategy. During the first 5 years, the company
kept the table price and quality unchanged even though the prices of other similar
products increased due to the influence of raw material prices, gasoline prices,
etc. These measures help OMO gain high market share.

3. Place
3.1. Wide Availability: OMO ensures its products are widely available in various
retail outlets, including supermarkets, convenience stores, and online platforms.
This broad distribution network makes it easy for consumers to find and purchase
OMO products.
3.2. Strategic Partnerships: OMO has formed partnerships with retailers and
distributors to optimize its supply chain and ensure efficient product placement
and availability1.
3.3. Global Reach: As part of Unilever, OMO benefits from a global distribution
network, allowing it to reach consumers in different markets around the world.
3.4. Local Adaptation: OMO adapts its distribution strategy to meet local market
conditions and consumer preferences, which may involve working with local
partners or customizing logistics approaches.
3.5. Online and Offline Integration: OMO leverages both online and offline
channels to create a seamless shopping experience for customers, aligning with
modern consumption patterns.
Currently, OMO products are available on most retail distribution channels in
Vietnam, from large and small supermarkets such as Big C, Winmart, Coopmart,
Mega Market, and Lotte Mart, to retail agents, grocery stores, and convenience
stores. Additionally, OMO is also sold on e-commerce platforms like Tiki,
Shopee, Lazada, Bách Hoá Xanh, through the official page of Unilever or through
various wholesale and retail distributors.
These strategies help OMO maintain a strong presence in the market and ensure
that consumers have convenient access to their products.

4. Promotion
4.1. Advertising
OMO advertises with high frequency on most mass media, affirming the OMO
brand - one of the leading brands in the cosmetics industry.
In Vietnam, the main customers of the fast-moving consumer goods industry are
mothers and housewives, but the people who motivate housewives to consume
washing powder the most are children, mischievous, and eager to learn and
explore. Recognizing that OMO designs advertising programs and TVCs largely
aimed at solving the worries of mothers and grandmothers, tapping into the
psychology of taking care of families and especially preschoolers. hyperactivity
of mothers.
4.2. Sales promotion
Continuously organize promotional activities such as: lucky draw, scratch-to-win
gold prizes, discounts, and giveaways,... and have achieved high efficiency: "90%
of households have used OMO washing powder at least once". OMO's most recent
Marketing Strategy during the epidemic season:
The COVID-19 outbreak causes consumers' shopping habits to gradually change
from offline (direct purchases) to online (online purchases). Because of this, OMO
has used epidemic season promotions to "follow" customers and are implemented
on websites or e-commerce platforms in the forms of: electronic gifts or discounts
and discounts. on orders,…
For each order containing Unilever products, 01 product package will be sent to
people in quarantine areas, blockades or field hospitals. This work of OMO has
brought benefits to the community, demonstrating the spirit of solidarity of
Vietnamese people. Thereby, many consumers will tend to support OMO.
 ✔ Up to 12% discount when purchasing
OMO's Clothing Cleaning Enhancer

✔Freeship 70K, for cart from 399K

✔Free Voucher 40K for orders from 349K.

4.3. Personal selling

Recruit a team of employees capable of marketing and selling to households to
sell and introduce products, answer questions directly and receive consumer
feedback about the product, focusing on Target audience is housewives.
Understanding that Vietnamese people love free things, OMO goes to public
places to give out free small packages of OMO laundry detergent for customers
to try.
Bringing people to localities and rural areas that have little access to advertising
to sell directly, and guide and provide information to customers.
4.4. Public relation
OMO also implements PR programs of a very high social nature.
“OMO – White Shirt Brightens the Future” – a uniform support program for
students in difficult circumstances across the country
OMO understands the boundless love of every Vietnamese mother for their
children, hoping their children will develop comprehensively, be intelligent, eager
to learn, and not afraid to express themselves. The program "Learn from good
things, don't be afraid of stains" has been a great success in dispelling all common
negative beliefs about stains.
(According to Millward Brown's Brand Dynamics report, Brand
Branding/Loyalty brand loyalty metrics) have been growing in all markets since
launching the "Dirt is Good" campaign. Although measurement has only been
done since 2008, since then, OMO has continuously grown in Vietnam (Brand
Branding ratio increased from 66% to 74%).
 - Many other special events and programs...

VI. Suggestions:
With OMO's goals and mission, it will definitely aim for future improvements in
all aspects. So, below are some of our suggestions that may be applied in the
future:
Sustainability and Environmental Stewardship: OMO has been taking
significant steps towards sustainability, a trend that is likely to continue and
expand. The brand has introduced plant-based stain removers and is working to
replace fossil fuel-derived ingredients with renewable sources. This shift not only
aligns with consumer demand for eco-friendly products but also reduces the
carbon footprint of the manufacturing process.
Packaging Innovations: OMO has made progress in reducing the use of virgin
plastic in packaging, with initiatives like using 50% recycled plastic in the UK.
Future developments could include further reducing plastic use, improving
recyclability, and exploring biodegradable packaging options to minimize
environmental impact.
Product Formulation: The brand has launched its most sustainable laundry
capsule yet, designed for top performance in cold, short cycles, which can save
up to 60% energy per use. The capsules’ greenhouse gas (GHG) emissions are
reduced by 16%, and the packaging is plastic-free. OMO may continue to
innovate in this area, focusing on high-efficiency formulas that require less water
and energy
Digital Transformation: With the rise of e-commerce and digital platforms,
OMO could enhance its online presence, offering direct-to-consumer sales
channels, subscription services, and personalized customer experiences.
Leveraging data analytics and AI could also help in understanding consumer
behavior and tailoring marketing strategies accordingly.
Market Expansion and Localization: As OMO explores new markets, it will be
crucial to adapt products to local preferences, water conditions, and washing
habits. This could involve developing specific formulations for different regions
and creating targeted marketing campaigns that resonate with local cultures and
values.
Innovation in Stain Removal Technology Continued research and development in
stain removal technologies will be essential. OMO could invest in creating
advanced enzymes and other ingredients that tackle a wider range of stains while
being gentle on fabrics and skin.

Community and Social Responsibility: Aligning with its philosophy, OMO

could amplify its community initiatives, such as promoting outdoor activities for
children and supporting environmental conservation projects. These efforts can
strengthen the brand’s image and foster consumer loyalty.

Regulatory Compliance and Safety: As regulations around chemicals and

environmental impact tighten, OMO will need to ensure compliance with global
standards. This includes safety testing, transparent ingredient disclosure, and
reducing potentially harmful substances.
Future-Proofing the Supply Chain: Building a resilient supply chain that can
withstand disruptions, such as pandemics or climate events, will be vital. This
includes diversifying suppliers, investing in local production capabilities, and
implementing sustainable sourcing practices.
By focusing on these areas, OMO can continue to lead in the laundry detergent
market while contributing positively to society and the environment. The brand’s
commitment to innovation, sustainability, and consumer engagement positions it
well for future growth and success.
 REFERNCES
1. Nắm bắt xu hướng tiêu dùng hướng đến bền vững, 23/02/2023
(https://www.unilever.com.vn/news/2023/nam-bat-xu-huong-tieu-dung-
huong-den-ben-vung/)
2. Phân tích chiến lược marketing của OMO, 18/04/2022
(https://igenz.net/phan-tich-chien-luoc-marketing-cua-omo-moi-nhat-
2022/?fbclid=IwAR0HfNnXmrpYnsk2NMyGq6XWeFw1Vjtw2O3MAN
hqcGW_imU4lZkzVYk32zw_aem_AS-
eVZ8F2ft3FTj8Y_voxfvmSZHK4LBOXtzUOr2j80ZUfZCtewvfSiy4cKF
kcX9PDS18vUZk0tPQ3ZZzPHyr553B)
3. OMO, Campaign Dirt is good
(https://www.brandsvietnam.com/campaign/4-Omo-Dirt-is-Good)
4. Báo cáo xu hướng thị trường sàn TMĐT 01/2023 – 12/2023
(https://metric.vn/nuoc-giat-
omo?fbclid=IwAR136v5bfmiPtzBIwtJXlxNTQoUjdzUV0sYWF4TUbIt
Us1S_OvWvs00hrxE_aem_AS9p6vAEmzPFpGKu0OYh7XCfbIqVRn-
N6H2Cl8uZ9YAy0Bgd3tB3MsyA15D6ogGIS4YGVivGi7ymPANwq4c
Fgyvt)
5. Tổng hợp Top 5 chiến dịch PR của OMO tại thị trường Việt Nam,
17/11/2023 (https://www.brandsvietnam.com/congdong/topic/336740-
Tong-hop-Top-5-chien-dich-PR-cua-OMO-tai-thi-truong-Viet-Nam)