M E R C H A N D I S E M A N A G E M E N
SUBJECT: RETAILING MANAGEMENT
LECTURER: MR. NGUYEN DINH CUONG REPORTED BY: - Vo Ngoc Truc Vy - Doan Thi Thu Minh - Nguyen Thi Thuy Ngan - Le Kim Ngan - Nguyen Cam Tho - Phan Hoang Chan - Pham Thanh Tuyen 1 TABLE OF CONTENTS
Introduction of company.............................................................................................. 3
I. MERCHANDISE...................................................................................................... 3
1. Product Category............................................................................................... 3
2. Product Line of TRESemmé..............................................................................6
2.1. Keratin Smooth........................................................................................ 6
2.2. Salon Detox Ginger & Green Tea.............................................................7
2.3. Platinum Strength Shampoo.....................................................................8
2.4. Fragrant.................................................................................................... 9
2.5. Texture of Shampoo.................................................................................9
3. Product Life Cycle............................................................................................. 9
3.1. Introduction Stage.................................................................................... 9
3.2. Growth Stage........................................................................................... 9
COMPETITION & CHALLENGES..........................................................................10
3.3. Maturity Stage........................................................................................11
3.4. Decline Stage.........................................................................................11
II. BUYING MERCHANDISE.................................................................................. 12
1. SCM................................................................................................................. 12
INDIRECT CHANNEL................................................................................13
DIRECT CHANNEL.................................................................................... 13
1.1. Supplier.................................................................................................. 13
1.2. Production Unit......................................................................................13
1.3. Retailers................................................................................................. 14
1.4. Customers..............................................................................................16
2. Evaluation........................................................................................................ 16
2.1. Credibility.............................................................................................. 17
2.2. Quality................................................................................................... 17
2.3. Price - Promotion...................................................................................17
2.4. Risking................................................................................................... 18
2.5. Service - Shipping..................................................................................18
3. Source.............................................................................................................. 19
III. PRICING.............................................................................................................. 19
1. Price segment................................................................................................... 19
2. Price comparison............................................................................................. 21
3. Setting price..................................................................................................... 21
3.1. Legal restrictions....................................................................................22
3.2. The cost of the merchandise and services...............................................22
3.3. The price sensitivity of consumers.........................................................22
3.4. Competitors............................................................................................ 22
3.5. Unique.................................................................................................... 23
IV. RETAILING COMMUNICATION MIX..............................................................24 2 MERCHANDISE MANAGEMENT Introduction of company
TRESemmé is an American international hair care brand that was first founded in St.
Petersburg by the Godefroy Manufacturing Company in 1947. It is named after Edna
L. Emme, a popular hair care professional. The brand name is a transliteration of
“well-loved" and "très-aimé" in French. The original aim of TRESemmé product line
is selling only the brand's products in beauty salons. Nevertheless, they have started
to be sold in supermarkets and pharmacies as the product lines became more popular.
Alberto-Culver purchased the TRESemmé brand in 1968 - a company was bought by
Unilever in 2010. Moreover, at several fashion catwalks, prestigious beauty events
such as Vietnam's Next Top Model, New York Fashion Week, Fashion Designer - US
Project Runway, the products are also present. I. MERCHANDISE 1. Product Category
Products of TRESemmé are very diverse. There are 5 types of products which
TRESemmé purchase in Viet Nam. They have got softening Shampoos, nutrient rich
Conditioners, Dry Shampoo, Hair Spray, Hair Gel and Hair Care Cream.The
company has various products which can serve demand of customer from hair
regenerating, hair styling, hair care, etc.
About shampoo, this is the most well-known in product lines, especially Keratin
Smooth Shampoo. TRESemmé’s shampoo products are promoted by the company
and distributed to consumers more than the other. 3 TRESemme Shampoo Hair Spray Hair Gel Conditioner Compressed Flawless Curl Keratin Smooth Salon Detox Platinum TRES Two TRES Two Keratin Dry Shampoo Micro Mist Hair Red Color Green Color Strength Smooth Color Ultra Fine Mist Level 1 Texture Mega Firm Salon Detox Fresh & Clean 580ml 580ml 580ml Price: 150.000- Price: 150.000 - Price : 120.000 180.000 VND 260.000 VND VND Freeze Hold Level 2 Smooth Ultra Firm Salon Rebond Volumizing Extra Hold Level 3 Boost Extra Firm Platinum 330ml 330ml Strength Price: 120.000 Price:70.000- 330ml VND 100.000 VND Price: 145.000 - 180.000 VND
2. Product Line of TRESemmé
TRESemmé have 3 main function lines. Those are function lines of TRESemmé that
are prevalent in the Vietnamese industry. Each type has different uses in particular,
such as: Keratin Smooth line helps restore keratin and nourishes each strand to leave
hair straighter and smoother, Salon Detox with Ginger for detox and Green Tea for
nutrients, dye-free and paraben-free formula deeply cleanses and replenishes lost
nutrients or Platinum Strength line make customer restore the surface of hair, repair
up to two years of damage to help release natural shine. 2.1. Keratin Smooth
This is the most popular product line of TRESemmé so the brand produced 5 products
consist of shampoo, conditioner, hair spray, hair serum and hair mask in this line to serve customer.
Main Ingredients and Uses
TRESemmé Keratin Smooth for dry - frizzy tangled hair, with a formula containing
essential oils of Argan and Keratin and low concentrations of sulfate which helps to
deeply cleanse and gives hair 5 effects after 1 use: hair in line - smoothness - softness
- decrease fibers - tangles. Besides, there are vitamins that are beneficial to the skin
and hair such as vitamins D, E, A, B ... Thus, the product gives hair the necessary
moisture and important nutrients, making the hair shiny, evenly colored and in perfect folds. 2.2.
Salon Detox Ginger & Green Tea
The products are suitable for hair that has signs of breakage, loss of shine... due to
impacts such as dust pollution, sweat, styling, etc. There are 3 products in this line
include shampoo, conditioner and hair mask.
Main Ingredients and Uses
With natural ingredients include ginger and green tea, this type of products remove
harmful dirt and provide essential nutrients for hair. Specifically, the product contains
an extremely gentle formula, does not contain parabens and colorants. Therefore, the
product helps to gently clean hair and effectively detoxify the hair. 2.3.
Platinum Strength Shampoo.
The TRESemmé Platinum Strength collection protects your hair from the high
temperatures of heat styling, which can often lead to frizz and damage. There are 3
main products are bought in Vietnam : shampoo , conditioner , hair gel and hair mask.
Main Ingredients and Uses
The TRESemmé Platinum Intensity’s ingredients include the Renewing Complex, an
excellent hair - regenerating complex. It produces a hair defensive barrier that is
normal. Silicone, at the same time, is responsible for deeply penetrating, smoothing
the hair surface, making the hair roots protected, clear of damage and shine from the
inside. The product can prevent and combat weak roots or hairline breakage due to
excessive styling. The product is particularly safe, so it can be used for postpartum women and lactating women. 2.4. Fragrant
In all 3 lines of TRESemmé products, each type has a different characteristic scent.
But the plus point about the smell, in general, it is not too dark and causing
discomfort. For too long, the scent would also not stick to the hair. 2.5. Texture of Shampoo
The shampoo's color is transparent and eye-
catching. Nor is the oil too thick. A moderate
amount of foam would be formed if rubbing
on the scalp. Several articles report that
shampoos of TRESemmé create as little foam as possible. 3. Product Life Cycle 3.1. Introduction Stage
TRESemmé was bought by Unilever in 2010 after realizing potential growth of brand.
In 2014, TRESemmé began its publicity efforts in entering market Vietnam as a
professional hair care brand. In early years in Vietnam, TRESemmé focused on
positioning themselves as a brand creating salon-like quality hair care and styling
products, which do not have high prices like a salon. 3.2. Growth Stage
TRESemmé officially was a sponsor of many popular TV programs, the
company also associated with other fashioned shows and runway. Therefore,
TRESemmé is successful in creating brand awareness and becoming familiar to
customer in Vietnam. TRESemmé has used both direct and indirect distribution
channel such as mobiles sales, lines sales, e-commerce sales pages to easily provide
choices and widely approach to customers and the market. People can easily identify
the products on shelves in supermarket or common e-commerce such as Shopee,
Lazada, Tiki,etc. The company is successful in brand positioning that they are high
quality brand and deserve “salon-grade” reputation. TRESemmé provides exclusive
product for every hair type with great ingredient and formulas that make a real
difference in hair's care and styling. So TRESemmé has been ranked as one of the top
hair care brands and a great competitor in the Vietnamese market due to the
emergence of high-quality products.
COMPETITION & CHALLENGES
Although TRESemmé had certain success in marketplace, they still face to dominant
and competition from big brands in shampoo line like Dove, Sunsilk, Clear, Pantene,
etc.Their product just distribute typically in supermarket, some popular e-commercial
sites such as Tiki, Shopee, Lazada, etc. About region, because of limited market share
due to intense competition in this segment so they can only afford to distribute the
goods to urban regions, big city without covering all marketplace by distributing both
urban and rural regions as well as distributing well in traditional trade include grocery
stores, local markets like their competitors.
About brand awareness, TRESemmé has been appearing in Vietnam for 6 years,
while their big competitors had top position in here more 10 years. Top brands in
shampoo line such as Doves, SunSilk, Clear, Pantene almost of people knows those
brand. TRESemmé is identified by young generation who care about fashion, social
media. Therefore, TRESemmé places between Growth and Maturity Stage. 3.3. Maturity Stage
In this stage, sales and profits peaked. TRESemmé will start to competing directly to
popular, important competitor and they are likely to overtake market share. The
company need to broaden market share by expanding distribution channels, especially
in rural areas . In additional , the brand should make strategy “product extension” ,
diversify product category like developing in skin care, beauty, and cosmetics
segmentation .For example in the skin care segment , there are a lot of products such
as body washes, shower gels, soaps, face washes, those are segments where
TRESemmé can easily venture into. Finally, TRESemmé should also try infiltrate into
the men’s hair care market.Today male also have demand for hair and skin care as
same as female's demand. This is a potential opportunity for company can approach a new segmentation. 3.4. Decline Stage
During this stage the sales reduce, maybe because consumer taste change. The sales
might go low or might even diminish as low as nil. Therefore,the only way in which
product can make money is by reducing the price. The company must be more active
in lowering prices, promoting, developing more product lines, improving existing
product lines, opening new distribution channels. II. BUYING MERCHANDISE 1. SCM
The structure of the supply chain
Unilever is the main producer of TRESemmé products, without any form of intermediaries.
TRESemmé uses 2 distribution channels. They include direct channel and indirect
channel. On the one hand, the direct channel means products from manufacturers to
retailers (supermarkets, convenience store chains, e-commerce sites, etc) and to
consumers finally. On the other hand, indirect distribution channel means products
from manufacturer to wholesalers then retailers (drugstores, online retailing, general
stores, etc), finally to the end users.
Retailers will use the form of wholesaler to import and deliver to consumers.
Currently, in the world and Vietnam, there are many reputable wholesaler supplying
TRESemmé products to retailers such as Alibaba, RAKHOI Wholesale Co., … INDIRECT CHANNEL SUPPLIERS WHOLESALERS CONSUMERS RETAILERS MANUFACTURES DIRECT CHANNEL SUPPLIERS MANUFACTURES RETAILERS CONSUMERS 1.1. Supplier
As products and services companies are necessary input materials for the production
and business process. Usually, suppliers are understood as direct suppliers of raw
materials such as raw materials, product details, and companies providing services for
production and business are called service providers. 1.2. Production Unit
It is a place where raw materials and services are used and applied to production
processes to create the final product. Production management operations are used to
the maximum in order to increase efficiency, improve product quality, and create a smooth supply chain. 1.3. Retailers
Retailer is the bridge between consumer and wholesaler, and is also the bridge
between manufacturer and wholesaler.
TRESemmé has gradually built up the brand name and trust of customers over the
years. Its products are sold to major wholesalers and retailers. The company has built
a diversified retail system, rich in sizes and forms. There are 5 types retailers that
TRESemmé distribute their products to. They include supermarkets, chain stores,
shopping mall, online retailing, grocery stores.
Supermarkets such as Lotte mart, Co.op mart,
Big C, E-mart, Mega market, Vinmart, etc.
Personal care chain stores such as Guardian, Watson, etc.
Shopping mall, typically Aeon mall.
Online retailing include prestigious e-commerce sites such as Shopee, Lazada, Tiki,
Amazon, etc and. In addition, although TRESemmé’s website does not directly sell
products, customers can also search information on the brand's website before buying
through this e-commerce sites.
General store where consumers can easily find to buy products in Viet Nam. 1.4. Customers
TRESemmé products are now on the market, which are suitable for all genders aged
18 and above. Besides, its uses can meet the requirements of variety of hair types. 2. Evaluation
The below table illustrates the features that customers use to evaluate vendors. 2.1. Credibility
First of all, when it comes to supply chain evaluation, credibility is always put first.
Hence, it has the highest rate in the KPI table. The reputation of the vendors, the
chain of exchanges, and the brand of the brand will effect on retailers’ mind. They
tend to choose vendors who has been recognized by the world or the other companies
in order to provide products to consumers. The vendors have to assure their customers
that they was familiar with TRESemmé products. 2.2. Quality
TRESemmé has been successful in many markets around the world thanks to its
quality. It also hits customer insight when "hair specialty products" or is used in
commercially available salons. This makes TRESemmé a lot more believable as it
was once intended only for professional hair stylists, and certified by experts for
product safety. That is why quality of products that vendor supply plays a crucial role.
Retailers will appraise quality of products from vendors in order to meet the need of
their consumers segment in the market. 2.3. Price - Promotion
Price is one of the most important factors that retailers take into account when they
find and choose vendors. There is a balance between price and quality. Although the
price depends on quality, almost retailers wants to have the low price when they get
products from vendors. To conclude, retailers will choose the vendors who can satisfy them about price and quality.
Beside, retailers can have the good price or discount when they buy the large
quantities from reputable wholesalers. Thus, the more preferential treatment retailers
receive from vendors, the more powerful retailers they achieve. 2.4. Risking
Vendors will always face with the risks of the ever-changing market. In fact, every
retailers have risk aversion and want to have a safe choice. The risk of costs,
profitability from products will affect the number of products retailer selling.
Moreover, risk about competitors is remarkable because there are many vendors
providing TRESemmé products. Another risk related to the costs incurred in handling
inventory. Hence, vendors need to manage how damaging the risk occurrence, then
find the way to solve current difficulties that they are stuck. 2.5. Service - Shipping
Retailers always have to estimate the quantity of products they will sell to customers
and giving a specific number of goods that they need. Then retailers require vendors
provide exactly the quantity. Consequently, vendors need to create and bring the best
service to TRESemmé or retailers. At the same time, delivery service is very
essential. It can directly effect on customers’ satisfaction when they choose vendors.
The vendors always try to meet the requirements of retailers and deliver the goods to
their partners as correctly as agreed and on estimated time.
To conclude, every vendors who provide goods or materials to customers will have
both strengths and weakness. The important thing that they need to realize it and find
the best solution to tackle their shortcomings. 3. Source
Since 2010, TRESemmé was officially acquired by Unilever and manufactured its
own hair products. Therefore, its products are exclusive and do not obtain goods or
materials from any intermediary companies. So customers can be completely assured
of the quality of products that are sold in retail stores.
Ingredients: Detergent, fragrance, antioxidants, moisturizers, ginger, green tea,
Keratin, argan essential oil, vitamin E, A, etc. III. PRICING 1. Price segment
The target of TRESemmé is reaching out to potential clients who want to owns a
silken hair like doing in hair salon.
After carrying out a survey, consumers think that price of TRESemmé is at medium
level. The reason is because almost individuals have used shampoo products having
the price over 120.000 VND. Comparing with it, the price of TRESemmé is not too expensive.
Hence, it proves that TRESemmé has medium price and selects mid-end segments. It
is affordable to targeted consumers in both rural markets and urban markets. Besides,
after targeting at this segment, TRESemmé has to face with many competitors, include L'Oréal and Dove. 2. Price comparison The prices of hair products 140 120 120 120 110 110 100 100 100 90 90 80 80 60 40 20 0 TRESemmé L'Oréal Dove Shampoo Conditioner Hair Mousse Shampoo and conditioner: 330ml Hair mousse: 200ml
Overall, products from every brands have same price level. Shampoo and conditioner
have similar prices. Products from TRESemmé are on average about 110.000 VND,
120.000 VND for L'Oréal and about 90.000 VND for Dove. Meanwhile, hair mousse
has lower price. Products from TRESemmé and L'Oréal are approximately 100.000
VND, price of Dove’s is about 80.000 VND.
After careful observation, L'Oréal has the highest prices and better quality than
TRESemmé and Dove. Among them, Dove has the lowest price which is equivalent to its worth. 3. Setting price
There are five factors influencing on retail price including legal restrictions, the cost