Marketing Audit

November 2, 2009

Introduction

Brand background
OHUI is a premium, luxury cosmetic mannufactured by LG DeBon. The parent company – LG
Household & Health Care is located at LG Twin tower, 20 Yoido dong, Youngdungpo gu, South
Korea. OHUI the first is launched in October, 2003.

The product
OHUI includes four different types of product – skin care, make up, body care and for men.
OHUI focus on fostering and taking care of skin hence their products’ strong point is protecting
skin from harmful factors such as dust, sunlight, time, etc. Skin care and body care products are
developed thoroughly with many kinds of product while few make-up are manufactured. For
men line is new but it has got more products than make-up line. Preventing skin from harmful
factors also plays an important role in for men line. Customers spend much interest in
moisturing, whitening and age prevention product. Moreover, the coordination of technology and
ingredients in each product reduces spot, wrinkle, minimizes pore and brings elastic and smooth
state to skin. Because of that, women upon 25 years old whose skin is getting old , prefer
OHUI’s products.
With simple and delicate design, OHUI brings customer feelings about a modern and youthful
product.

Pricing
OHUI’s product cost about 500.000 VND to 5 milions VND.
Here are some of the products with price:

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Age Prevention Skin Elumision (150ml) – 765.000VND

Ohui The First Cell Redesigning Treatment (50ml) – 4.050.000VND

The market
Nowadays, women have high demand in caring skin and making up. They do not only focus on
a beautiful make up face but also need power, elastic skin which helps them to conceal their
age and to prevent the ruin of time. OHUI’s product are suitable with women upon 25 years old
whose skin is getting old.

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Details
Task 1
1a. [ Appraise the processes and techniques that your client company can use for auditing the
marketing environments]

Marketing environment is all factors around an organization impact directly or indirectly to that
organization. This environment is divided into three types named macro environment, micro
environment and internal environment.

• Micro environment
This includes factors affect organization directly such as suppliers, ditributors, competitors,
customers, etc. This can be applied the Five forces analysis as below.

Five forces Analysis

(source - http://student.dcu.ie)
Threat of new entrants
OHUI lauched the first products in October, 2003 – 6 years since now. Compare to others
brands such as Shisheido (1897), L’Oréal (1907), Lacome (1935), etc, OHUI is such a kid in

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cosmetic industry. To establish a stand in the industry which has got many great names like that
is a really difficult beginning for OHUI.
Threat of substitutes
Now, almost of cosmetic firm focus on make-up line, the products of this line is developed fast
with many kinds for customer to choose. Because of that, marketshare for skin care line is quite
huge. Moreover, customer now interested in taking care of skin as much as making up. The
need for this line is increasing. If OHUI has got relevant marketing planning, they do not worry
about this threat for near future about 10 years.
Buyer power

Suppliers power

Competitive Rivalry

• Macro environment
Including all the factors impact the organization but out of the organization’s control.
Political
OHUI now is lauched in 5 markets – American, Vietnam, China, Taiwan and domestic. Each
market has its own advantages and disadvantages. For example, Vietnam has stable politics
but the legal procedure and taxation policy wastes much time. America has got good taxation
policy, foreign trade regulations, social welfare policies but their politics is unstable.
For each market OHUI should have the suitable approach.
Economic
This is an important aspect that organizations need to take care. The matters of economic could
damage organizations such as inflation, economic crisis, unemployment, etv. An typical
example is the 2008 economic crisis which pull many organization into stormy status.
Socio-cultural

Technological

• Internal environment

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SWOT analysis can be applied for this.

Strengths
The first strength of OHUI is that its high quality which is certified not only by the experts but
also the customers. The ingredient of plants helps OHUI’s products be suitable with all kinds of
skin. It has not been recorded any cases that’s got negative reaction to OHUI’s products while
this occurs commonly with others cosmetic brand. Most of customers satisfy with the results
they receive when using OHUI.
The second is its delicated and convenient design that helps customers use the products much
more easily and effectively.
The provided services are close to client. Everyweek OHUI organizes a meeting to give
customers steps of taking care of skin; how to use OHUI’s product effectively. Moreover,
customers are massaged free with OHUI’s product.
Besides that, there are multiple products, variety choices for customer.

Weaknesses
Using media to advertise is a common way to expand potential market. However, OHUI does
not exploit thoroughly media for advertising. They only advertise on some of magazines for high
society.
The high price is also one of the most weaknesses of OHUI. Most of customers in Vietnam are
in middle class, their income is just about 3mil per month. It is difficult for them to accept such a
high price product as OHUI.

Opportunities
Rehalibitation period after economic crisis is relevant time to take a stand in cosmetic industry.
Because in this time, most of companies

Strengths Weaknesses

 High quality products  Not exploit thoroughly media for

 Delicated design advertising

 Taking care of customer sevices is  There is no difference in taking care of

close to client. customer sevices.
 Create using habit for customer by

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organize massage for them every

week.
 Multiple products, variety choices for
customer.

Opportunities Threats

 Rehalibitation period after economic  Uncompetitive price

crisis is relevant time to take a stand in
cosmetic industry.

1b. [ Apply organizational and environmental auditing techniques to assess the impact to your
client company in the Vietnam market]
In Vietnam market, organizational va environmental auditing could be applied:
Organizational auditing
- Resources: The manufacturer of OHUI is one of the leaders in manufacturing household and
cosmetic industry in Korea. There are 4 factories in Korean and one in China, OHUI has ability
in producing and supplying high quality. Tai VN, cong ty lien doanh voi LG trong viec phan
phoi nhan hang OHUI co chinh sach treat nhan vien cong bang dua tren kha nang va ket qua
cong viec. Nhan vien phat trien thi truong duoc huong luong theo che do luong cung cong voi
phan tram doanh thu san pham. Dieu nay se khich le moi nhan vien lam het suc minh de dat ket
qua cao trong cong viec. Kha nang tai chinh on dinh cung giup cho LG co the phat trien nhan
hieu OHUI cua minh tren thi truong va phat trien cong nghe giup nang cao chat luong cua san
pham.
- Competencies: Nhac den OHUI la nhac den nhung ket qua rat dang ke danh cho khach hang sử
dụng sản phẩm. Nhung nguoi da dung san pham OHUI deu co phan hoi rat tich cuc. Do la nho
cong nghe tham thau vao sau trong lan da, nuoi duong va bao ve cac te bao da ma OHUI tich cuc
phat trien cho san pham cua minh. Dap ung mong muon co mot lan da thuc su deo dai va xoa
nhoa vet tich thoi gian tren co the cua khach hang chinh la kha nang cua OHUI

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Environmental auditing
Hien tai o VN, co 3 nhan hieu my pham chat luong cao dang cung nhau chia se phan lon thi phan
cua cosmetic industry do la Shisheido, Vichy (L’Oresal), Ohui (DeBon). Tuy tiếp cận thị trường
VN cùng một thời điểm với Shisheido, nhưng OHUI có phần lép vế hơn do sản phẩm còn mới và
do thói quen của người tiêu dùng VN coi sản phẩm của Nhật bản là tốt hơn so với sản phẩm của
Hàn Quốc. Tuy nhiên Shisheido là nhãn hiệu mạnh về trang điểm còn OHUI lại thiên về dưỡng
da nên 2 nhãn hiệu này ít có sự đối kháng nhau. Đối với nhãn hiệu Vichy, đây là một nhãn hiệu
có xuất xứ từ một hãng mỹ phẩm có thâm niên trên thị trường là L’Oréal, nhưng quả thật chất
lượng của Vichy là không thể phủ nhận. Không chỉ có thể cạnh tranh với OHUI ở chất lượng sản
phẩm, Vichy còn có một lợi thế hơn hẳn OHUI đó là giá thành rẻ hơn OHUI tuy cùng nằm trong
top những sản phẩm chất lượng cao.

Sau khi apply organizational and environmental auditing cho mỹ phẩm OHUI tại VN, có thể rút
ra được rằng:
- Lợi thể mà OHUI đang có đó là thị phần còn khá lớn, sản phẩm chất lượng cao và nhận được
sự ủng hộ lớn của khách hàng, organizational auditing có đủ khả năng để đáp ứng các marketing
plans cần thiết.
- Khó khăn là tên tuổi của OHUI còn mới ở thị trường Vn, và nhất là giá thành của OHUI chưa
cạnh tranh được với đối thủ. Tuy vậy, có thể khai thác một điểm mạnh đó là một sản phẩm của
OHUI có thể dùng được một thời gian dài từ 1-2 năm, vì vậy nếu một sản phẩm có giá khoảng
500K, dùng trong 2 năm có nghĩa là một ngày chỉ tốn 1K đồng. Như vậy, với một sản phẩm chất
lượng cao mà chỉ tốn 1K/ ngày liệu có gọi là “đắt” hay không?
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Task 2
2a. [ Identify the main barriers to marketing planning in the case of your client company]
Failure to prioritise objectives
Hiện nay, để phát triển san pham cua minh tại VN, LG đã liên doanh với LG Vina, tuy nhiên tôi
cho rằng LG Vina chua danh nhieu su quan tam cho viec marketing dong my pham OHUI, thay
vao do la su tap trung cho nhom san pham household. OHUI chi duoc quang cao o mot so tap chi
chuyen ve lam dep chu chua rong rai tren cac kenh thong tin dai chung khac nhu internet, tivi…

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2b. [ Suggest how your client company may overcome barriers to marketing planning]

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