My Hao - Unilever: The fight unequal

My Hao - Unilever: The fight unequal Save
Recently, rumors Hao sold its shares to a consortium made headlines in the business world. Despite rumors, but also shows the public's concern for the "fate" of the American brand Hao dishwashing liquid before the fierce competition from foreign rivals.

The fact contrary to rumors, according to Mr. Luong Van Vinh, general director of JSC My Hao Cosmetics, My Hao continued to invest in equipment, buildings, modern lines in Vinh Loc Commune, Binh Chanh District HCM City, expand the scale of production from 16,000 m2 to 50,000 m2 to increase the number of products.
So far, My Hao dishwashing liquid is still key products, accounting for 40% market share and 65% of company revenue. In 2012, US sales reached 960 billion Hao, the average revenue of 80 billion / month.

After being Unilever dominate the market by product dishwater Sunlight, My Hao redirect investment to the distribution system, marketing aimed at the rural market segment.

Also, My Hao build distribution network with major distributors in 126 cities and provinces across the country and set targets within a radius of 40 km there is an official distributor for that product from spreading everywhere ...

"Of the 600 officials and employees, the sales team, marketing Hao is more than half. Same Hao products, whether sold in Lang Son, Da Nang, Ho Chi Minh City or Bac Lieu, Ca Mau, the price remains the same uniform, "Mr. Vinh said.

This is both a tactic to dodge the fierce competition in the market town, just fix mistakes Hao in the past, leading to the loss of market share to Unilever.

The early 90s of last century, taking up to 50% share of the domestic market, Hao seems less interested in building distribution channels, not even create a common retail price but delivery to the dealer and then to decide on their own selling prices.
So far, instead of spending costs for media, advertising on TV, My Hao investment focus for sales stages and diversify local products such as soap, floor cleaner, fabric softener. The company also launched new product lines such as Lemon, Green Tea and 3X Concentrated ...

However, the rural market domination is no easy thing for America is good. Unilever with strong financial potential, staff were given more powerful marketing promotion, hype, commissions to agents were overwhelmed attractive dishwater businesses in the country, including the US Hao.

From more than 50% market share, My Hao dishwashing liquid remaining just above 40%, the large US dealer Hao gradually fell to Unilever. To bring goods to remote areas, Unilever sales force organization than 100,000 people distributed around the country. According to a report by the Institute for Economic Management Central, the Ministry of Planning - Investment, the average in each province, the city has about 34 points of sale of Unilever.

Besides, in most of the world market, as key elements to the success of Unilever in the plan to attract customers is the promotional advertising program is ongoing. Funding for this activity accounted for 1% of value of goods.
Meanwhile, other difficulties that America is good and cosmetics sector enterprises in the country are encountering counterfeit trademark goods China Vietnam rampant in the markets of Vietnam made goods dislodged. Access to the supermarket is even more difficult.

At the conference that the preliminary first 6 months of 2013 due to HCM City Business Association held recently, Ms. La Thi Lan - Vice President HCM City Business Association, complained and suggested the authorities supermarket power and public need criteria for Vietnamese goods produced domestically can get into supermarkets to compete with mid-range brands such as Lix, Net and cheap private labels of supermarkets.

Before these difficulties, My Hao pose only revenue growth of 15% this year. 2011 was an increase of 10%. In 2012, American Hao targets 25% growth, but economic difficulties and internal weaknesses that the company was only 12% complete.