tiểu luận CTCP sữa việt nam (vinamilk) VINAMILK YOGURT MARKETING PLAN 2019

VINAMILK YOGURT REPORT 2019 CTCP Sữa Việt Nam (Vinamilk) Email: vinamilk@vinamilk.com.vn Website: vinamilk.com.vn VINAMILK YOGURT MARKETING PLAN 2019 Prepared by: Hoang Khanh Huyen Nguyen Thi Thu Van Nguyen Hoang Truong Ngo Duy Hieu Class: INS3042 TABLE OF CONTENTS EXECUTIVE SUMMARY _ INTRODUCTION Vinamilk Overview Product and Distribution Vision Statement _ Mission Statement 5 Core Value _ 6 Revenue SITUATION ANALYSIS _ Vietnam yogurt market overview _ Products Competitive analysis Macro-environment: _ CURRENT MARKETING STRATEGY & MARKETING MIX 12 Marketing Strategy: _ 12 Marketing mix (4Ps) 12 Projected marketing budget: _ 15 Controlling: _ 17 SWOT ANALYSIS 19 Strength: _ 19 Weakness: _ 19 Opportunities: _ 19 Threats: _ 19 OBJECTIVES _ 20 CONCLUSION _ 21 REFERENCE 22 WORKING DISTRIBUTION TABLE 23 Auditor’s Report _ 23 EVALUATION OF TEACHER _ 24 EXECUTIVE SUMMARY T h i s ma r k e ti n g p l a n w i l l a n a l y z e s e v e r a l p a r ts o f V i n a m i l k Y o g u r t, w h i c h i s t h e most popul ar a nd su cces sful yogu rt b rand in th e Vie tna m mar ket The inve stigat ion focu ses o n an alyzi ng the yogu rt ma rket, in cludin g the ov ervie w, prod uct, compe tito rs an d the mac ro -en viron ment Be sides, the resea rch figu res ou t t he cu rrent marke ting stra tegy , ma rket ing mi x an d S WOT ana lys is as well From t he info rmat ion resea rched , an off icial a nd sp ecif ic ma rke ting plan for Vina milk Yogu rt du ring 201 wi ll be deve lope d 5 INTRODUCTION Vinamilk Overview • The Viet Nam Dairy Products Joint Stock Company (Vinamilk) is the country's largest private enterprise in Vietnam The company was founded in 1976 For more than 40 years of development, Vinamilk has been contributing to the development of the Vietnam economy and dairy industry as well Product and Distribution • • Vinamilk has more than 20 brands and 200 products including liquid milk, yogurt, infant cereal, powdered milk, condensed milk, ice cream, beverages, cheese and soymilk So far, Vinamilk has 251.000 retail outlets, more than 200 distributors across the country Besides, it is exported to 53 countries in the world (2019’s report) Vinamilk yogurt is a dairy product produced by bacterial fermentation of milk Recently, it has yogurt brands with nearly 30 kinds of yogurt and different flavors Vision Statement grade industry, “To become a world g rade brand in ffood ood and beverage in dustry, where pe ople put al rient and health produc ts” people alll their trust in nut nutrient products” Mission Statement deliverr the valuab valuable “To delive le nutrition to community with our respect, love and respons ibility” responsibility” Core Value Vinamilk focuses on values: • Integrity: Integrity and transparency in actions and transactions • Respect: To have self-respect, to respect colleagues Respect the Company and partners • Ethics: Respect established ethical standards and act accordingly • Fairness: To be fair with employees, customers, suppliers and other parties • Compliance: To comply with legal regulation, the Company Code of Conduct, and the Company’s procedures and policies Revenue • At the end of 2019, Vinamilk’s revenue reached VND 56.400 billion Profit before tax was VND 12.796 billion Profit after tax was VND 10.554 billion 7 SITUATION ANALYSIS Vietnam yogurt market overview a Demand of growth potent potential ial According to Euromonitor International, sales of yogurt in 2009 the total market in Vietnam increased by 11% compared with 2008, reaching 2.000 billion However, until 2010, yogurt products sales reached 3,300 billion VND, 2012 was 5,737 billion VND and this figure is estimated at 12 465 billion VND in 2013 Accordingly, the rate of annual compound growth (CAGR) in sales is over 31%, 14% own production According to the VP Bank Securities Company, yogurt is quite a potential item, with strong growth of 30% compared to other milk products The rate of using yogurt is higher than milk in some countries recently In France, it is 80:20; Singapore and Thailand are 70:30 to 50:50, Vietnam is about 50:50 b Yogurt market structure In general, yogurt is very diverse and has many kinds In 2009, the analysis report showed that sales of Vinamilk yogurt scale 60% industry wide sales to 105.3 million This growth is not small Nowadays, Vinamilk holds 84% of the domestic market for yogurt, 16% held by other brands such as TH true milk, Ba Vi, Moc Chau, etc Products Vinamilk Yogurt has diverse kinds of yogurt with many flavors Firstly, the original yogurt of vinamilk such as Vinamilk Yogurt (Sweetened, Low sugar or no sugar), Vinamilk 100% Fresh Milk yogurt The drinking yogurt Vinamilk Probi (Sweetened, less sugar), Vinamilk Probi Melon Favor, Strawberry Flavor, eating yogurt Vinamilk Probi mixed fruit flavor, strawberry flavor Vinamilk aloe vera yogurt, Vinamilk pomegranate yogurt Vinamilk Probeauty Competitive analysis Vietnam yogurt market is the potential market, so there are many new yogurt enterprises willing to enter this dynamic market This is also an important factor that can impact on market share as well as competitiveness of Vinamilk yogurt Currently, Viet Nam yogurt market has many different kinds of products and a lot of yogurt companies such as: TH True Milk, Moc Chau, Dalat Milk, Love In Farm, etc., in which Vinamilk ‘s the strongest competitor having main market share is TH True Milk a Strategies of TH True Milk: TH True Milk is the leading company for producing yogurt in Viet Nam In 2019, TH True Milk gained an impressive growth rate 8% market share after years appearing in the market Development strategies: • Development products for heath • Finding the way to apply normal international practices consistently with corporation management • Implementing financial actions carefully, being aware that risk management, assets safekeeping and liquid maintenance are necessary to the company’s success • Developing and launching product marketing campaigns to meet customers’ demand, building the company’s reputation for competitive price, constant quality, great service as well as new product and service development • Investing in human resource, developing the ability of employees and giving them the opportunities to be shared in the company’s general prosperousness • Respecting standards about food and environment safety b Strengths and weaknesses of TH True Milk • Strengths - Being the new product, the new experiences with consumers - Owning the most modern yogurt processing equipment and technologies - Distribution systems are wide in the whole country - Having loyal customers - Strong marketing in social media, TV… • Weaknesses - Market share is much lower than Vinamilk - Brand is not common with consumers - Price for production higher - The product is not diversified Macro-environment: “There are many factors in the macro-environment that will affect the decisions of the managers of any organization Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change To analyze these factors, managers can use the PESTEL model.’’ (Gillespie, 2007) Macro-environment has a large influence on the growth of a company It brings both opportunities and challenges for a company It is very important for Vinamilk and other companies to analyze macro environment before implementing manufacture and business activities in order to seek profits Analysis below will conduct macro-environment factors having impact on Vinamilk development a Economic factors: Economics factors have a large impact on companies These include interest rates, taxation change, economic growth, inflation, and exchange rates Economic factors play an important role to determine the formation and development of a business environment Highly and strongly developed economy will lead to increased laborers' income, and also increase purchasing power This is an opportunity for businesses to meet customers’ demand, enhance company’s market share, dominate the market, and increase profit According to Vietnam General Statistics Office, average core inflation in the first quarter of 2019 increased by 1.83% over the same period last year Vietnam - Inflation Data Inflation Rate (CPI, annual variation in %) 2015 2016 2017 2018 2019 0.631 2.668 3.52 3.54 2.796 In 2019, consumption growth rate was positive but low, reaching 2.1 - 3.9% compared to 2018, only equivalent to the consumer price index (CPI) Among the FMCG products, dairy products (accounting for 13% of total FMCG sales volume) is one of the categories with poor growth 10 Source: The World Bank.data The gross domestic product (GDP) growth rate in 2019 of Vietnam was at a high level in the last years (7.017%); decreased by 0.059% compared to the last year because of COVID-19 The GDP growth rate of later quarter in 2019 was always higher than the former quarters Source: statista.com 11 In the current economy and yogurt market of Vietnam, Vinamilk has lots of opportunities to develop their brand, along with it, they also have some difficulties and challenges in development business activities b Legal/Political: Creating a business environment whether good or not depends on law factors and the administration of the state The enactment of the legal system having quality and put into life is the first condition to ensure a fair business environment, promoting businesses in the healthy industry’s competition Vietnam's political and law system is stable Vietnam has many incentive policies to attract foreign investors to create favorable conditions for capital and technology to help the yogurt industry open wide production Besides, administrative procedures cumbersome being less improvement is a significant factor hindering foreign investors c Social/Cultural: National Institute of Nutrition has shown a yoghurt 250gr box contains 370mg calcium to (compared to 300 mg of calcium in 250ml milk) In addition, the amount of vitamin D available in yogurt helps your body absorb calcium more easily Especially for children, yogurt can make them taller Just create a habit of eating yogurt every day for 2-3 adults in order to be healthy That would make people tend to buy yogurt more and more Yogurt becomes the beverage popular with Vietnamese families d Technology: Technology factors are a very important competition, new technology will create new products with higher quality Modern technology will enable faster production processes, save raw materials, reduce costs and still ensure quality assurance Modern technology helps employees to perform operations quickly and promote productivity Goods were made abundantly appropriate to customers' needs In order to have the best quality products and reasonable prices, Vinamilk always tries to reduce production costs, lower costs and bring to market products that fit customer needs To that, Vinamilk has used the best technology to create quality products 12 CURRENT MARKETING STRATEGY & MARKETING MIX Marketing Strategy: a Segmentation and targeting: Segmentation Variables • Country: Vietnam Geographic Demographic • Cities: Focusing on the cities • Density: Urban • Age: - 30 • Gender: Unisex, women • Income: Average • Family life cycle: young, married with children, single parents Psychographic • Lifestyle: young and dynamic Behavioral • User status: potential user, first-time user and regular user b Marketing positioning: - In the local country, the brand reputation of Vinamilk has been known for 40 years Vinamilk is in the top 50 of leading listed companies in Asia – Pacific (FAB 50) - The only one milk company in Vietnam which has manufactory in foreign country (New Zealand, Cambodia) - Vinamilk’s local market share is 61% c Market differentiation: - Vinamilk is trying to build more differences from customer care services by implementing nutritional counseling for consumers - Others milk companies make the differences by producing products for specific targets, like Anlene which focus on the old people… Vinamilk concentrates on international quality standards Marketing mix (4Ps) a Product: • Product diversification: 13 o Vinamilk has yogurt brands with approximately 30 products and flavors Meanwhile, TH True Milk now has brands and about 20 products o Always keep researching to provide new product launching the market • Product quality: o Vinamilk commits to bring customers the nutrition solution with international standards, meeting the needs of consumers with delicious and nutritious products and leading favorite brands in the market Vinamilk yogurt always brings the best quality to satisfy customers o Vinamilk has been ranked in Top 10 Vietnamese High Quality Product since 1995 • Branding: o Vinamilk is one of the most popular brands in Vietnam market • Packaging: o Vinamilk always pays more attention to their packaging o Design attractive cover to catch customer’s eye o Cooperate with packaging company from Sweden and Germany to provide highquality packaging for every product • Product support services: o Customer service department is always willing to support and answer customer problems, provide nutritional advice about products b Place: • Product diversification: o Vinamilk has yogurt brands with approximately 30 products and flavors Meanwhile, TH True Milk now has brands and about 20 products o Always keep researching to provide new product launching the market • Product quality: o Vinamilk commits to bring customers the nutrition solution with international standards, meeting the needs of consumers with delicious and nutritious products and leading favorite brands in the market Vinamilk yogurt always brings the best quality to satisfy customers o Vinamilk has been ranked in Top 10 Vietnamese High Quality Product since 1995 • Branding: o Vinamilk is one of the most popular brands in Vietnam market • Packaging: o Vinamilk always pays more attention to their packaging 14 o Design attractive cover to catch customer’s eye o Cooperate with packaging company from Sweden and Germany to provide highquality packaging for every product • Product support services: o Customer service department is always willing to support and answer customer problems, provide nutritional advice about products c Price: • Price is an important element in marketing mix, it reflects the quality of products as well as the companies’ revenue Vinamilk yogurt’s average price is not too high compared to the domestic market • Vinamilk yogurt price is shown on the following table (compared with TH True Milk Yogurt) Vinamilk Yogurt TH True Milk Yogurt Normal Yogurt VND 20,400/4jars - VND 22,000/4 jars Drinking yogurt (180ml) VND 26,000/4products - VND 30,000/4products • There are some factors that impacts on Vinamilk yogurt price: o Customer valued-based cost o Cost-based pricing: costs of producing, selling, distributing, etc o Competition-based pricing • Some policies that Vinamilk applied to their products (including yogurt): o Keep the price but higher quality 15 o Stable price • Vinamilk yogurt price: Products Price Packaging ▪ Vinamilk Yogurt VND 20,400 jars ▪ Vinamilk Probi Yogurt VND 28,000 jars ▪ Vinamilk Probi Drinking Yogurt VND 17,000 65 ml x jars ▪ Vinamilk Aloe Vera Yogurt VND 24,000 jars ▪ Vinamilk Strawberry Drinking Yogurt VND 24,300 180ml x boxes ▪ Vinamilk Probeauty Yogurt VND 31,000 jars ▪ Vinamilk SuSu Yogurt (drinking)VND 24, 000 80ml x 6boxes d Promotion: • The promotion mixes tools o Advertising: Vinamilk uses the multimedia to spread their products to the customers From there, it helps customers understand clearly about the product they purchase For example, we often see the dairy cow image in every Vinamilk advertisement, it means that they want to share a message that their products were made from high-quality materials o Sale promotion: Vinamilk yogurt almost does not discount on their product But they often attract small gifts like toys in order to attract customers, especially children o Direct marketing: Sometimes, when Vinamilk launch new products, they usually give it freely to customer o Public relation: Vinamilk usually sponsors for the TV game shows Besides, they often sponsor milk in many schools across the country and they also take part in environmental events Moreover, they have been distributing more in the development of society Therefore, they can build better brand image and public relations as well Projected marketing budget: a Promotion budget: Social welfare (Charity, scholarship…) scholarship…).25 billion VND Vietnam milk festival billion VND Giving samples to customers billion VND Estimating the total cost of promotion is estimated about 30.000.000.000 V VND ND b Advertising media budget: 16 ❖ Television: • YEAH1 TV, VTVcab 1, VTVcab 7: Time 10s 15s 20s 11h - 11h30’ 11h30’:: 12.000.000 VND; 25.000.000 VND; 28.000.000 VND 18 - 20h 20h:: 20.000.000 VND; 27.000.000 VND; 35.000.000 VND 20h – 22h 22h:: 25.000.000 VND; 32.000.000 VND; 40.000.000 VND • VTV1, VTV3, VTV7: Time 10s 15s 20s 18h59’ 18h59’:: 20.000.000 VND 25.000.000 VND 32.500.000 VND 20h30’ 20h30’:: 22.500.000 VND 28.000.000 VND 36.250.000 VND 21h – 21h30': 25.000.000 VND 31.000.000 VND 40.000.000 VND Estimating of advertising in media in gold hours is about 168.000.000 VND VND ❖ Internet (top banner): Size (mm) Price 24h.com.vn: 360*110 15.000 VND/click Webtretho.com: 468*90 20.000 VND/click Facebook.com: 360*90 200.000.000 VND/month Kenh14.com: 980*90 100.000.000 VND/month Estimating advertising in social networks is about 320.000.000 VND ❖ Magazine: Size (page) Price: Tuoi Tre: Whole page 20 million VND/time Lao Dong: Whole page 15 million VND/time Estimating advertising in magazines is about 35.000.000 VND VND c Budget for improvement: Redesign the packaging 30 million VND Improve product line billion VND Total cost for improvement is about 2.030.000.000 VND VND So, the total cost for all the marketing actions in 2019 is estimated about 32.553.000.000 VND 17 Action program for 2019: Activities Responsible Time Remark Budget Q1 Advertising Television Marketing Q2 Q3 Q4 X 523 Department million VND Internet Magazines Promotion Social Marketing welfare Department Vietnam X 30 billion VND X milk festival Giving X samples to customers Improvement Redesign Design the cover Department Improve Engineering product line Department X 2.030 million X VND Total = 32.553.000.000 VND Controlling: In order to achieve the target of the marketing plan for 2019, each department must supervise how they work From there, they need to make the reports about their activities that they are doing Research & Development: • Provide information about the market including competitors monthly 18 • Update the trends of customer habit in the market during each quarter Sales Department • Report the sale activities from the distributors • Promoting to reach the new target during each month Marketing Department: • Manage the promotion strategies via media channels • Expand and introduce products on social networks such as Facebook Finance & Accounting Department: • Report on the budget that the companies have to pay for each event • Calculating how much we gain from the events 19 SWOT ANALYSIS Strength: o One of the products’ lines of Vinamilk company (strong brand, big market share) o Wide distribution network throughout Vietnam and abroad with both traditional and modern channel o Competitive price o Marketing team and product research have highly experienced o One of the most modern and advanced production lines Weakness: o Marketing activities is not uniform in all locations o Products mainly focused on the domestic market Opportunities: o Quantities of potential customers- young population o Perspective "Vietnamese people use Vietnamese goods" is responding of Expanding market share because supply of raw materials are actively construction and investments o More easily in exports through incentives trade agreements- Vietnam has joined o Income tends to increase per year Threats: o Trade agreements bring more competitors o Export markets face many risks o Psychological prefer foreign goods by domestic customers 20 OBJECTIVES • Contributing to the whole company to achieve sales levels and become one of the 50 largest milk companies in the world, with the goal in the period from 2014 to 2019 reaching sales of billion dollars • Boost revenue from 8-10% • Customer satisfaction for quality of yogurt products with reasonable prices and leading distribution system in Vietnam • Marketing objective: • Launching for new product and new product packaging • Attracting more extra potential customers (about 12% new customers) 21 CONCLUSION Based on the information in this report, it can be concluded that Vinamilk Yogurt is having many chances to develop and get more profit in the Vietnam market Since the day this product launched the market, it has become the most leading yogurt product in the Vietnammarket and it tends to expand to foreign markets However, the development of global integration has been bringing many competitive products into the Vietnam market Therefore, Vinamilk yogurt has to build a specific strategy to make the products better and attract more customers This report includes a marketing strategy that is designed as a plan for Vinamilk to continue improving and growing strongly in the future Creating new products with more flavors and improving product quality is the main strategy for product strategy Price strategy is also important, Vinamilk has to keep the price stable so that they can compete with the other competitors and remain their customers Besides, Vinamilk needs to expand the distribution across Vietnam and some new markets as well Finally, they have to promote their sale through promotion activities 22 REFERENCE Báo cáo thường niên Vinamilk 2019: https://www.vinamilk.com.vn/static/uploads/bc_thuong_nien/15852915967f525505f3621558355a60c10f6862cbb3b9c9863921a9b06587f7b42a0f9733.pdf?fbcli d=IwAR2SsOktbzkW0DMTusLjoZEEoXOm13pGE7RF5t-LknVYuNftgC9RTtl7cbc Vinamilk.com.vn Giấc mơ sữa Việt - Vinamilk eShop: Giacmosuaviet.com.vn Statista.com Data.worldbank.org 23 WORKING DISTRIBUTION TABLE Auditor’s Report Member Missions Reviews Hoang Khanh Huyen Introduction; Marketing strategy 25% Nguyen Thi Thu Van Situation analysis; Controlling 25% Nguyen Hoang Truong Marketing mix (4Ps); Projected 25% marketing budget Ngo Duy Hieu SWOT analysis; objective 25% 24 EVALUATION OF TEACHER Grade: Hoang Khanh Huyen Nguyen Thi Thu Van Nguyen Hoang Truong Ngo Duy Hieu Judgment: ... original yogurt of vinamilk such as Vinamilk Yogurt (Sweetened, Low sugar or no sugar), Vinamilk 100% Fresh Milk yogurt The drinking yogurt Vinamilk Probi (Sweetened, less sugar), Vinamilk Probi... Flavor, eating yogurt Vinamilk Probi mixed fruit flavor, strawberry flavor Vinamilk aloe vera yogurt, Vinamilk pomegranate yogurt Vinamilk Probeauty Competitive analysis Vietnam yogurt market... yogurt) : o Keep the price but higher quality 15 o Stable price • Vinamilk yogurt price: Products Price Packaging ▪ Vinamilk Yogurt VND 20,400 jars ▪ Vinamilk Probi Yogurt VND 28,000 jars ▪ Vinamilk