We’ve seen it firsthand—authentic local products are very hard to competitively beat. This is because they are the only ones that truly adhere to the famous Four Ps of Marketing—product, price, promotion, and place. As many who have attended a business marketing class may recall, each of these “Ps” are essential to a product or service’s success; if any one of the four is missing, the product will likely fail. Implementation of these Four Ps has been critical to THP’s success in developing and sustaining three core brands: Number 1 Energy Drink, Zero Degree Green Tea, and Dr Thanh Herbal Tea.
Here is how THP has integrated the “marketing mix” into our business strategy:
- Product – Successful products are the ones that differentiate themselves from rivals in their specific target market. My father insists that every single THP product needs to have a functional benefit; this is how we’ve set our company apart from the competition. Tasting good on its own is not enough—nor is giving someone a sugar rush. Our company’s drinks need to have a functional benefit as well.
- Price – One of the most basic elements for any brand is its price, the second “P.” The price determines the company’s profit margin and has a profound impact on the marketing strategy it needs to deploy to sell it. When setting a price for any product, companies need to remain keenly attuned to the value customers attach to it, otherwise known as the price-to-value ratio. It is key for this particular “P.” Getting the price-to-value ratio correct is significant, a lesson THP learned firsthand with our product, Laser Beer in 2004. Which you can learn more about in Competing with Giants.
- Promotion – As a product is being readied for launch, the third “P”—promotion— kicks in. It is no good having a great product if nobody knows about it. Promotion embraces all methods of persuasion, which a marketer uses to motivate customers to buy the product. It comprises elements such as advertising, public relations, and sales promotion. Promotion, like the other Ps, requires an acute understanding of how your target consumer is influenced. For example, Vietnam is a fairly traditional market with TV still serving as the lead medium. As a result, THP still spends about 60 to 70 percent of its advertising budget on TV.
- Place – The most important “P” has been left for last. Creating a successful product hinges on understanding the place it comes from or is being sold to. The traditional definition of place is the provision of a product at a location that is convenient for consumers to access. Yet there is another, more important connotation to place—some consumers pay very close attention to the place where a company or product is from, because they want to support their local community. In developing markets, like Vietnam, research shows that place is important, too, but for slightly different reasons. Here, national pride plays an important role. That is a sentiment that we have placed great importance on in driving the success of THP.
The “Four Ps” or the classic “Marketing Mix” are critical to each and every business. Your product, consumer, and environment may differ, but ultimately these four principles of product, price, promotion, and place, will play a significant role in the success of your business. Learn more about how to apply these Four Ps to your business by visiting.