alaxan market understanding

Alaxan Market Understanding

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Alaxan Market Understanding Report Document

Prepared for: Vo Phuong Hong Cuc TNS consultants: David Watts

Phuong Huynh Trang Vo

Project: 2012-562 Nov 2012


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Contents

1 Research Backgrounds and Objectives 03

2 Research Methodology & Design 07

3 Key Findings 09

4 Understand target consumers 11

5 Pain Understanding 15

6 Pain Reliever – Brand Understanding 22

7 TVC Evaluation 32

8 POSM Evaluation 35

9 Moving Forward 37

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1 Research Backgrounds & Objectives


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Research background

Alaxan is a UIP’s brand positioned for muscle & body (M&B) pain treatment

According to Brand Health Tracking of H1-2012,

Panadol Extra, Efferagan, who are targeting to headache relief market, are trying to own image of

total pain reliever. And achieved leading scores in most of key attributes – Penetration, Brand Awareness, Trial in M&B pain

Alaxan shows high retention among its users though its share is behind Panadol Extra (HCM & HN) & Efferalgan (HN), proving high satisfaction among Alaxan users.

Alaxan’s brand equity is good in HCMC (strong at Presence & Bonding) but weak in Hanoi (very weak at Presence & Bonding) in compare to the key competitors

Mid of 2012, Alaxan launched a new campaign focusing on “Body Pain Relief” aiming to build Alaxan an “Expert of Body Pain Relief”, together with the new image and packaging

Internal sale data show HCMC/SE & Mekong are the biggest contribution of Alaxan revenue, while North region contributes the least. Of which, Mekong achieved biggest growth ave 17% as NAT with 5% only; HCMC/SE & North faced downing trends

Among the top 10 contribution cities/provinces, 7 are from Mekong region (most of them grow from 26% to 50% compared with 15% NAT); 1 city (Hanoi) from the North but has negative growth (-13%)

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Business Objectives

To explore market gaps & opportunities for Alaxan and appropriate strategies to increase Alaxan business in the regions where it is strong (HCM & Mekong), as well as to expand Alaxan to regions where it is still weak (North, Central regions)

To determine business expanding strategy for Alaxan – utilizing the brand’s capacity & ability

To ensure no dilute/ impact to other regions of Alaxan business

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Research Objectives

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Key Objectives:

Mekong Delta:

To explore what makes Alaxan grows so well in An Giang

To understand the Perception and Performance of Alaxan in AnGiang v.s other provinces in Mekong Delta

How to grow Alaxan in the whole Mekong Delta?

North and Central:

To understand Alaxan’s Performance and Perceptions

To explore opportunities for Alaxan to grow further

To determine when, what and how to invest more on the North & Central that still not dilute investment in other regions where Alaxan has been doing well

Secondary Objectives:

Check if consumers saw the new campaign and get feedback if it is delivering the right messages or if it is a good tvc.

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2 Research Methodology & Design


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Research Methodology & Design

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Standard Focus Group Discussions – FGDs

6 respondents per FGD

Length: 120 mins per FGD

Location: An Giang, Tien Giang, Danang, Hanoi

Description ALAXAN USERS COMPETITORS

USERS TOTAL

An Giang 1 FGD 1 FGD 2 FGDs

Tien Giang 1 FGD 1 FGD 2 FGDs

Danang 1 FGD (Mixed Alaxan & competitors users) 1 FGDs

Hanoi 2 FGD 1 FGD 3 FGDs

Total 4 FGDs 4 FGDs 8 FGDs


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3 Key Findings


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Key Category Learnings…

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Shoulders, neck and low back are the primary pain areas for most consumers. Moreover, stiff muscles are skewed to young people & sport players; joint pains occur among old respondents

Mekong Delta consumers often suffer from muscle/body pain due to high level of manual working, yet in Danang and Hanoi, work pressure, over exercising, and changing weather are key reasons which lead to their muscle/body pains

However, level of pains is not too extreme, sometimes can let it pass, otherwise seeking several solutions including taking medicine to help relieve the pain effectively

Overall, low involvement in the category, especially in Mekong Delta region and less knowledge on pain reliever brands in general. However, Alaxan users seem to be able to better define key product benefits (i.e Alaxan is muscle/body pain reliever, Panadol is used for head-ache and cold), yet competitor users are less acknowledged

WOM plays an important role in influencing brand trial and purchase, while TVC is main source of initial brand awareness

WOM is key to trigger purchase and brand choice in Mekong Delta. Consumers are more concerned on side effect which is driven from WOM

Pharmacist’s recommendation to reconfirm product benefits has influenced on purchase decision in Danang and Hanoi


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1 Understand Target Consumers

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Least image driven

Simple and more practical

Behind the trends

Most conservative

Moderately exposed to media and communication

Pharmacist is the most reliable source for recommendation highly credible

More health conscious – focus more on doing exercisesr egularly to maintain good health

Most image driven

Much more scrutinizing when purchasing

Reflective

More conservative

More exposed to health care related information through TV advertising and internet channels

More health conscious – focus more on doing exercise regularly to maintain good health

Overview of target consumers

Straight forward

Optimistic – live for today rather than tomorrow

Practical minded, yet less updated

Price sensitive

Tradition oriented

Most of them are blue-collar workers or store owners at wet markets. As they do manual work, they often have muscle pain.

Strongly influenced by word of mouth

MEKONG DELTA DANANG HANOI

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Understanding the role of Health in consumers’ minds

Active and full of energy ready to do things and

achieve their goals

Always smiles and enjoys life optimistic

Bright appearance and agile manner

Health is considered as top priority. Having good health is critical to achieve happiness and wealth

A healthy person is one who …

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How do they maintain their good health?

Proper exercise to maintain good health Do physical exercise and

playing sports

Relaxation and entertainment mental nourishment for a healthy body and life

Healthy eating regimes (less fat, less alcohol), keep regular schedule for eating, sleeping

Managing work schedule successfully able to manage time to accomplish work without being stressed out


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2 Understanding Category Dynamic Muscle and Body pain management


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Causes of Muscle/Body Pains

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Work related Pain

Sleeping Position Related pain

Sport or Heavy Activity Related Pain

Weather Change Related Pain (skew to

Hanoi)

Shoulders, low back & neck are the most

common pains

Muscle pains (legs and hands) are more

skewed to men due to playing sport and

heavy work activities


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Muscle/ body pain areas

Shoulder

(Đau vai)

Neck

(Đau cổ)

Upper/ Middle back

(Đau lưng)

Lower back

(Đau vùng thắt lưng)

Calf

(đau bắp chân)

Arm

(Đau tay)

Legs

(Đau chân)

Muscle/body pain = đau cơ

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Causes of pains

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OVERALL

Mostly suffer from various types of muscle/body pains which are caused by working condition, wrong sleeping position, heavy activities, playing sport and changes in the weather

Shoulders, neck and lower back are the primary pain areas for most respondents Stiff muscles are skewed to young people & sport players; joint pains occur among old

respondents However, the level of pains is not too extreme, some can “ live with the pain” and let it

pass. If they suffer from ongoing aches and pain , taking medicine is considered a good long term treatment.

YOUNGER AGE

Pains occasionally occur in the shoulder, neck, low back caused by working condition and heavy activities

Working continuously for many hours; sitting without changing body position leads to tense muscles

Playing sport and over exercising Carry heavy objects

OLDER AGE Mostly suffer from joint paint as a result of aging Pains occur in neck/shoulder due to sleeping position Pans built up over time due to working condition and weather changing

MEN Muscle pains in hands, calves due to work, playing sport and heavy activities

Playing football, over exercising Carry heavy objects

WOMEN

Suffer from body pains due to working condition, over exercising, and doing housework Yet, women in Mekong Delta mostly do manual work, thus suffer from

pain/stiffness more often


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Levels of Pain

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MILD MODERATE SEVERE

Duration of pain

Pain Intensity Degree

Medication/ Treatment Given

Lightly hurts

Initial pain occurs

Bearable

No treatment, let it pass

Rest for very short time

Medicated Oil

Gentle massage

Apply hot/cold compresses

1-2 hours

Some last for 24hours yet pain less tense

Hurts even more

develop from mild pain

OR pain occurs at once

Caused discomfort

Still within the pain tolerance

Hurts worst

develop from moderate pain

OR pain occurs at once

Definitely frowning

Mood changed

Intolerable

Current therapy (massage, patch/gel etc) hardly palliate the pain

Take medicine

Professional visits

More than 2 hours and keep getting worst

Last 1-2 days and more severe

Apply patch/ gel

Start taking medicine


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Solutions for current pains

Patch

MUSCLE/

BODY PAIN

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Solutions for current pains – Strengths and weaknesses

GEL

Deeply absorbs into skin perception of stronger and longer efficacy (than the patch)

Provides high comfort – cooling effect and does not limit body movement

HOWEVER Slippery – may leave

unpleasant feeling when product on skin and need to wash hands after using.

Product absorbed by clothes/ garments particularly when lying/ sleeping

Topical solutions

MEDICINE

Quick and strong pain-relief – works inside the body to kill pain, therefore directly impacts on the muscle

HOWEVER, Side effects are major

concern for long term usage – stomached, drowsy, liver

Concern on reducing effectiveness of medicine due to long term use

Oral solution

PATCH

Immediate pain relief thanks to heating effect

Longer effect than oil or massage solution

HOWEVER Skin irritation/ allergy, Stains

left after pealing off Easily drops off, does not

stay on skin for long hours. Not aesthetically appealing,

particularly for visible areas of body

Heating effect appealing instant pain relief , yet long-lasting effect is not perceived

Most up to date, flexible

and convenient -

applicable to all pain

areas

Most effective solution - used for long term pain

relief, when other solutions for external use are not

highly effective

COMMONLY USED SOLUTIONS – Medicines are seen to effectively reduce the muscle/body pain for long term

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Solutions for current pains – Strengths and weaknesses

MEDICATED OIL

Heating-effect can relieve pain/ stiffness immediately

HOWEVER Not used specifically for pain

relief as heating effect does not last long, more suitable for headache or cold

Less convenient - Leaves medicinal smell unpleasant for other people around

SKIN RUBBING (Mekong Delta only – a few mentioned)

Usually applied for neck, shoulders, back areas; and for relieving cold/ tiredness/ slackness

Instantly reduces stiffness/ slackness by soothing muscles + heating-effect of medical oil

Applied when medicine is not available at home

HOWEVER, Leaves rubbing marks & oil

smell on skin – not suitable when user is socializing, at work

MASSAGE

Instantly reduces stiffness by soothing the muscles make the muscle less tense

HOWEVER Not a typical treatment for

pain Need other’s assistance for

massage on some areas that cannot be reached

More for relaxation rather than pain relief

A solution primarily for instant relief, yet not long lasting

Applied for pain-relief as an emergency solution; still

traditionally used by older people (skewed to some

Mekong Delta consumers)

OCCASIONALLY USED SOLUTIONS – Instantly relieves muscle/body pains , but efficacy is not high.

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Topical solutions


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Understanding Category Dynamic

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OVERALL PERCEPTION REGARDING MUSCLE/BODY PAIN MANAGEMENT

Moderately concern on muscle/body pain management as it directly affects to their activities in daily life

Work less productive less active and flexible to deal with daily work,

need more time to complete the job

Affected on social relationship tired body leads to unexpected changes in daily mood easily leads to loss of anger management

Thus, seeking solutions is needed to manage muscle/body pains depends on the level of pains/stiffness. Medicines are seen the most effective treatment method for muscle/body pains with high efficacy.

HOWEVER, LOW INVOLVEMENT IN THE CATEGORY

Low involvement in muscle/body pain relief brands across regions

Several pain relievers are aware including Panadol, Alaxan and Efferalgan

Perceived pain relievers are used for both headache and muscle/body pains(skewed to competitor users) while Alaxan users are more knowledgeable about product benefits

Mostly spend less time on purchase process thanks to recommendation from friends, relatives, family members and pharmacist

Not a serious ailment, thus less involvement in searching for solution information


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Understanding Category Dynamic

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WOM AND PHARMACIST ARE KEY INFLUENCERS, THUS BRAND SWITCHING

POSSIBLE

Highly aware from TVC, yet low involvement and less knowledge in the category, thus highly influenced by others e.g. WOM and pharmacists

High brand switching is perceived in Mekong Delta as a result of :

Less product/brand knowledge

Easily being influenced by WOM

Brand switching possible across Danang and Hanoi if there are high involvement from pharmacists


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3 Brand understanding in a competitive context


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Advertising is the most effective source of brand awareness while WOM/ pharmacist is a reliable source of recommendation

ADVERTISING (TVC, print ads)

WOM (parents, relatives, friends, neighbors )

PHARMACIST

Source of initial brand awareness consumers prefer a brand that appears in mass communication especially TV commercials evidence of qualified/ registered brands therefore product quality assured / no faked product.

Delivers product benefits and information e.g. functions/ manufacturer

The strongest influencer professional/ knowledgeable and specialized in medicine (skewed to Danang and Hanoi)

Strongly believe in experienced people but require confirmation again with pharmacist before making final decision(skewed to Mekong Delta)

Higher credibility due to actual experience – encourage product trial 26


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INFORMATION

WOM or Pharmacists recommend

ations

Benefits

Product

Origin

Ingredients

Price

Most important criteria

Key benefits to ensure high efficacy Specialized i.e. Strong and fast relief for muscle/body pain No side effect caused(stomach-ache, allergy, drowsy, tired) – more skewed to Mekong Delta consumers

Advised/ suggested by experienced people proof of evidence highly

credible Confirmation regarding product benefits(aware from TVC or WOM)

reliable expertise and knowledgeable to ensure safe product usage

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Least important criteria

Brand selection criteria


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Pharmacist is key influencer in Danang and Hanoi while WOM is strong in Mekong Delta

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Pharmacists are considered to be knowledgeable about pharmaceutical

products, have knowledge of medicine, therefore, able to recommend for “not serious ailment”, including stiffness/pain, cough, cold highly credible in

Danang and Hanoi

Mekong Delta consumers mostly rely on past usage experience, thus WOM

plays an important roles in influencing product/brand choice

Recommended from friends, neighbors, relatives reliable sources Product benefits are confirmed via real experience of product usage assurance of

efficacy Side effect is key concern, thus although they have not used the product/brand, yet

side effect information is spread from WOM also negatively impact their choice


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TRIGGERS

Recommended by pharmacist or experienced users

Aware of the brand from TVC, then reconfirmed by pharmacists (skew to Hanoi)

Specialized for muscle/body pain (among Alaxan users)

Strong and fast relief, especially for heavy body pains


Commonly used and well-known brand

First use for headache, then apply for muscle/body pains(skewed to competitor users)

Reasonable price No drowsiness


Effervescent format easy to take and absorb into the body

Effectively reduce tiredness and hay fever rather than pain relief

BARRIERS

Not highly aware by some consumers(skewed to competitor users)

Side effects(stomach-ache)- mostly from WOM

Only available in tablet

Communicated for headache and cold only less preferred for muscle/body pain(skewed to Alaxan users)

Only available in tablet

Price is rather high compared to Alaxan and Panadol.

Not specialized for pain relief

Brand/ category involvement is low Consumers have limited knowledge about brands of muscle/body pain relief, especially product benefits (in Danang and Hanoi). Brand involvement is low, especially in the Mekong Delta.

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Alaxan - Specialising in MUSCLE pain relief

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Alaxan users across the regions are well aware that Alaxan is specialised in muscle pain relief , yet competitor users are not well acknowledged on Alaxan product benefits

Some competitor users perceive Alaxan as treatment for both headache and muscle pain – thus Alaxan is not strongly positioned for body pain only in competitor user’s mind

Highly appealing among Alaxan users for its specialised muscle pain relief with high efficacy, yet less appealing to competitor users due to lack knowledge of product benefits

After showing the TVC, Alaxan‘s specialised benefit is well received and appealing to most competitor users thanks to

Clear product benefits – high efficacy for muscle pain relief

Alaxan is positioned as specialised brand for muscle pain relief highly differentiated , especially for heavy body pains high efficacy

Panadol and Efferalgan are perceived for lighter body pains, headache and cold treatment thus less differentiated in the category


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Alaxan Brand Perception – difference by regions

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Overall, Alaxan is differentiating in the category

Alaxan is specialized for muscle pain while Panadol and Efferalgan are more generic

which are for head-ache, cold and fever treatment Alaxan is highly differentiated in

the category(among Alaxan users)

In Mekong Delta, Alaxan brand is relatively high aware, also among competitor users via

TVCs and POSM at the pharmacy, thus high brand awareness

Yet, product benefits are not clearly acknowledged by competitor users

Side effect is key concern, especially for competitor users as they used Alaxan before

and experienced side effect i.e stomach-ache as well as driven by WOM and TVC.

Thus, this is considered as key barrier for Alaxan in this location.

In Danang, Alaxan is highly aware. However, not very clear about promised benefits

Alaxan is also perceived as pain/ toothache reliever (a few mentioned)

In Hanoi, Alaxan is not highly aware for muscle pain from competitor user’s perception,

thus product benefits are not clearly conveyed which lead to low trial intention

Therefore, Alaxan brand equity in Hanoi is perceived to be weak and low in

Advantage and Presence opportunities exist to enhance brand awareness and

communicate clear product benefits.


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Brand perceptions - Alaxan

Functional benefits

Emotional benefits

Brand personality

Used mostly by

sportsmen

Specialized for

muscle/body

pain

Strong and

fast effect

Side effect:

causing

stomachache

(Competitor

users)

Strong,

masculine

Male

Middle-aged

Close,

trustworthy

(Alaxan users) Hard to please

(Competitor

users)

Outgoing,

friendly

Not relevant

to me

(competitor

users)


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Brand perceptions - Panadol

Functional benefits

Emotional benefits

Brand personality Multiple use

(headache,

toothache, cold

and fever ,

muscle pain, v.v.)

Less efficacy

for muscle pain

relief

No side

effects, no

drowsiness

Gentle, feminine

Female

Young

Close,

trustworthy

Diverse styles

Lovely, kind-

hearted

Highly popular

Only for

headache ,

cold and fever

(Alaxan users)


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Brand perceptions - Efferalgan

Functional benefits

Emotional benefits

Brand personality

Use when feeling

weak, exhausted

Can be

used by kids

Well-groomed,

elegant

Male Respected Doctor

Reliable

Foreign

brand

(French)

Strong

Easy to take

(effervescent

format)

Pleasant taste

Strong,

immediate

effect

Relieved


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Fast relief is a key functional expectation of a pain reliever

NO SIDE EFFECTS – drowsy, allergy, weary/tired, stomach-ache, liver

FAST RELIEF - recover after 15 – 30 mins

SPECIALIZED IN MUSCLE/BODY PAIN ONLY – high efficacy

EASY TO TAKE - small tablet not stuck in throat

PLEASANT TASTE – not bitter/pungent effervescent is preferred

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2

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4

5

6 REASONABLE PRICE – 1 or 2 thousand VND and CLEAR PRODUCT ORIGIN

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Overall Evaluation

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The Alaxan TVC is moderately appealing across the board thanks to its specialized benefits of muscle/body pain relief, clearly defined pain areas with highlighted product ingredients which effectively treat muscle/body pain.

No comprehension issues – message of Alaxan which is specialized in muscle/body pain and provides strong and fast relief is well understood via image of a football player who suffer from pains, yet still continue to play and win after taking Alaxan.

No significant negative – just some execution regarding side effect which is too brief and fast so that consumers could not catch the message.

End benefits of specialized muscle/pain relief found relevant to those who also suffer from muscle pains in some specific areas e.g. shoulder, back, joint pains

Motivate higher trial intention, especially among Alaxan users


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Detailed Evaluations[1]

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Moderate appeal across the board

Fast relief for muscle/body pain is well received - Alaxan can help to treat muscle/body pain effectively

Yet in the end the side effect is communicated too fast unable to get full notice of side effects which are mostly their concern( skewed to Mekong Delta consumers)

Most of consumers are not aware of the TVC A few have already seen the TVC ,yet could not recall the story

Key message is well communicated:

Alaxan is specialized for muscle/ body pain. It helps relieve the muscle/ body pain effectively and instantly well received

Product benefits well understood

Specialized for muscle/body pain - clearly define /present common pain areas appreciated

Strong and fast relief generated from image of a football player who can continue to play and win in the match right after taking Alaxan

Product ingredients (combination of Ibuprofen and Paracetamol) is well received for product effectiveness( skewed to Hanoi only)

Moderate enjoyment – storyline is memorable yet not highly impressive Image of football player fighting and winning in the game is liked – muscle/body pain is

effectively and instantly relieved to help overcome the difficult.

MES

SA

GE

TA

KE O

UT

OV

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ALL

REA

CTIO

NS

LIK

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Detailed Evaluations[2]

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No significant gross negatives

Product benefit is highly relevant Mostly relevant to males who also suffer from body pains when playing sports, yet, less

relevant to female due to only male characters and severe body pains as females’ common pain is not that extreme some misleading feeling

However, somehow relevant to consumers in general as they also suffer those types of muscle/body pains such as back , shoulder, joint pains

High purchase intent among Alaxan users Strong and fast relief Specialized for muscle/body pain only high efficacy and clear product benefit

Moderate purchase intent among Panadol and Efferalgan users Perceived Alaxan is specialized for heavy muscle pains, yet less relevant to them However, expectation for specialized muscle pain relief is met in which other brands are not

specialized.

Include wide range of activities to better fit consumer’s situation Side effect at the end of the story should be clearly and slowly stated for consumers to better

catch the full message

RELA

VA

NC

E

DIS

LIK

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P

UR

CH

AS

E

IN

TEN

T

IM

PR

OV

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POSM Quick Facts

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Advertisement in front of medicine cabinet is strongly appealing across the groups

Most eye-catching

Right eye-sight

Create on-the-spot consumer reaction for purchase

“When I come to the pharmacy, I usually look at the cabinet and hence the ad in it always catch my

eyes first and foremost”

Standee advertisement outside the pharmacy is also welcomed thanks to being easy to be noticed from a distance

“I can see the 2-sided standee from afar when I drive my bike”

Banner outdoor or in front of roof lean-to is not well-received

It is too high for the eyesight to take notice, thus catch less attention from consumers

Advertisement in front of medicine cabinet is considered as the ideal display to draw consumer attention – source of brand awareness and product benefit communication


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Explore Opportunities for Alaxan to grow further

TVC is seen as the trustable source for brand awareness and reference

Need to create more attractive TVCs with clear product benefits message to enhance trial and purchase intention

Word of mouth is a key influencer on purchase decision in Mekong Delta

Event programs organized frequently to help spread the brand message and enhance awareness with attractive games and prizes to encourage recommendations by WOM

Low involvement in the category, thus product benefits are not clear low trial intention(across Danang and Hanoi)

Clearly emphasize product benefit for Alaxan and key differentiator - specialized in muscle/body pain relief Strengthen relationship with pharmacy - key influencer for product purchase decision( especially in Danang and Hanoi) via frequent visits, provision of sample product, training on product benefits, discounts, etc.

Side effects (stomach-ache , drowsy) are key concern in Mekong Delta driven by WOM due to low knowledge of product benefits

Focus on communicating Alaxan’s lack of side effects ATL and BTL in MKD.


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Recommendations to move forward.....

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In order to win in Danang and Hanoi, some key points need to be addressed:

Key product benefits should be clearly stated besides mass media

communication, opportunity exists to invest in pharmacist for product education and recommendation leverage trial purchase

Ensure to emphasize benefit of Alaxan for different level of pains – from light to heavy to address product relevancy to meet competitor user’s needs

Moreover, to grow further in Mekong Delta, side effect perception should be clearly addressed to reinforce Alaxan brand equity and product benefits as specialised muscle pain relief well communicated to attract competitor users

Capsule/tablets are perceived to provide higher efficacy while gel/patch is just for temporary pain relief , less effective . Thus, tablet is seen stronger in treatment. However, it is possible to consider an additional format for Alaxan (patch/ gel) for mild level pain treatment.

alaxan market understanding

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