Re-entering a well-guarded market – the journey of a loser who becomes a winner
Re-entering a well-guarded market – the journey of a loser who becomes a winner
Nowadays, every brand will have some up and down moments in their development. Some brand managers can make a big mistake and therefore lost their position in the market. The key question here is ‘How can these brands, which already lost the market share and reputation, can overcome many obstacles and harsh competition to successfully re-enter a potential and well-guarded market?’. To answer this question, Mr. Ho Kwang Kit, General Director of Mosfly Vietnam, will share his experience from client perspective about how the Mosfly brand successfully re-entered Vietnam market to claim the 2nd rank in the market after his failure few years ago.
Figure 1: Reproduced from trafficfundi.com (2009)
This topic will be very beneficial for not only brand managers who want to recover fast and gaining back their position after the failure, but also useful for future client managers in communication industry who wish to successfully suggest new strategy for these clients to re-enter the competitive market with a new image and good impression in target audiences’ mind via communication strategies.
About Mr. Ho Kwang Kit and Mosfly Vietnam
Figure 2: Mr. Ho Kwang Kit (on the right)
Photo taken by Tu Do Viet
Mr. Ho Kwang Kit is General Director of Mosfly Vietnam Company. He is from Malaysia and he has been in Vietnam for one and a half year. He has a lot of experience in marketing field of the client side from his previous jobs in other countries in Asia. He is also experienced in working with many advertising agencies, research agencies and TV stations to develop marketing strategy for Mosfly. Established since 1995, Mosfly Vietnam is a brand of mosquito spray products and it is gradually expanding the product’s variety and focusing on the quality to avoid harmful effects for customers (Mosflyvn.com 2012).
According to Bryce and Dyer (2007), there are three main key strategies for cracking into well-guarded markets, which include leverage existing assets, reconfigure value chain and establish niche market. The case of Mr. Ho Kwang Kit with Mosfly brand is an excellent combination of leverage existing assets and establishing niches to help Mosfly brand successfully re-enter Vietnam market. As a result, Mosfly successfully gained 25.2 % of the brand share in insecticide market, just below the SC Johnson and Son ( Euromonitor International 2012).
Leverage existing assets- focus on the strength
Firstly, leveraging existing assets is defined as the use of all resources we have and reinforce them with a partner (Bryce and Dyer 2007). This is a good strategy as the innovative use of existing resources can be beneficial for incumbents (Teece 1986). Mr. Ho Kwang Kit expressed his experience about applying this strategy: ‘We are strong in our sales/ distribution channel. Our distribution channel covers the entire country’. He explained that the strength of Mosfly, in comparison with other competitors, is the distribution channel. Acknowledging this strength, he took a good use of Mosfly’s distribution channel in Vietnam to spread his products all over Vietnam, from urban to rural areas, so that he can reach more customers. Furthermore, Mr. Ho also partnered with some dishwasher brands to promote each other’s product. He reached an agreement to buy products from these brands at a very cheap price to attach these products to Mosfly insecticide products in the distribution channel. By creating this partnership, the customers of these partners can try free Mosfly products and if they like Mosfly products, next time they might decide to purchase Mosfly products directly.
Establishing niches- Find the ‘un-served’ market
The final strategy for cracking into well-guarded market is establishing niches, which is defined by Kotler (1990) as targeting a different market or customer that competitors do not notice or not interested in targeting.
Figure 3: Reproduced from gaenzle.com (2012)
Mr. Ho found out that other competitors targeted housewives as their main market, whilst the young generation of 30 years old and less have not been targeted: ‘‘People below 30 years old don’t know Mosfly brand, they even said that they heard about it but they don’t know what it is’. Realizing this problem, Mr. Ho focused his marketing strategy to attract this market. In this strategy, the role of agency is vital, as Mr. Ho worked with advertising agencies to come up with ideas for new TVC, even promoted Mosfly products on the Internet and Facebook so that they can reach the youngsters, which other competitors also have not tried. As a result, Mosfly products became increasingly attractive to young customers, which means Mr. Ho have found a new profitable market for Mosfly products to gain profit and claim a strong position in these customers’ mind, whilst other competitors have not even paid attention to these customers. This is a very smart strategy that reversed Mosfly’s situation, from a loser in the market that lost almost everything in the past to a winner who has its own unique potential market that other competitors have not even thought about.
In conclusion, based on Mr. Ho’s experience, it is reasonable to say that a brand that used to be a failure can re-enter a well-guarded market. It is very important about whether the strategy used to crack into the market is effective or not. The key is always thinking outside of the box and trying new things by exploring all possibilities like Mr. Ho always try to differentiate his strategies from other competitors.
Figure 4: Reproduced from 4minutewriter.wordpress.com (2011)
In order to do this, perhaps a business owner like Mr. Ho needs to understand clearly the strength and weakness of his brand as well as the current trend or changes in competitors’ strategy. A good cooperation between client and agency is also vital because just the client side does not know everything about the market and other competitors, so the agencies, with the perspective of people from outside the client’s business, can share the workload with clients so that they can both work on the final strategy to be used.
For future client managers, Mr. Ho stated that agencies need to understand clearly about clients’ requirements, keep these requirements in mind and then try to satisfy these requirements. Next, Mr. Ho advised that agencies should focus more on the accuracy of information by investigating more in depth to provide more accurate information for clients. Finally, according to Mr. Ho, agencies should have a good persuasion skill because agencies should give reasonable explanations and rationales for everything they suggest in order to successfully convince clients to accept the proposal.
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4minutewriter.wordpress.com 2011, ‘Impractical’, image, 4minutewriter.wordpress, viewed 29 August 2012, < http://4minutewriter.wordpress.com/2011/07/26/impractical/>.
Bryce, D and Dyer , J 2007, ‘Strategies to crack in well-guarded markets’, Harvard Business Review, vol. 85, no. 5, pp. 84-92.
Euromonitor International 2012, Home Insecticides in Vietnam, Euromonitor International, Euromonitor, London, England.
gaenzle.com 2012, ‘Niche market online – Finding the best one’, image, gaenzle, viewed 29 August 2012, < http://www.gaenzle.com/2012/02/niche-market-online-finding-the-best-one/>.
Kotler, P 1990, Marketing Management-Analysis, Planning, Implementation and Control, 7th ed., Prentice-Hall, Englewood Cliffs, NJ.
Mosflyvn.com 2012, homepage, Mosfly Vietnam, Vietnam, viewed 29 August 2012, <http://www.mosflyvn.com/vn/info/c3-a13/Gioi-thieu/Cty-TNHH-MOSFLY-Viet-Nam.html>.
Teece, D 1986, ‘Profiting from technological innovation: implications for integration, collaboration, licensing and public policy’, Research Policy, vol. 15, issue 6, pp. 285–305.
trafficfundi.com 2009, ‘Seo Competitor Analysis’, image, trafficfundi, viewed 29 August 2012, < http://www.trafficfundi.com/services/seo-competitor-analysis.html>.
Do Viet Tu S3297051