A REPORT ON ANALYZING AND PROPOSING MARKETING STRATEGIES FOR PASTEURIZED FRESH MILK OF MOC CHAU MILK IN VIETNAM

VIETNAM NATIONAL UNIVERSITY INTERNATIONAL SCHOOL -0-0 - A REPORT ON ANALYZING AND PROPOSING MARKETING STRATEGIES FOR PASTEURIZED FRESH MILK OF MOC CHAU MILK IN VIETNAM Lecturer: Assoc Prof Pham Thi Lien Course: Principles of Marketing Course ID: INS2003 - 07 Researcher: Group Hanoi, June 2022 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat TABLE OF CONTENTS CHAPTER 1: EXECUTIVE SUMMARY Overview of this marketing plan The reason we selected moc chau milk for our research CHAPTER 2: COMPANY’S OVERVIEW 2.1 Introduction 2.2 Business Model Canvas CHAPTER 3: CURRENT MARKETING SITUATION 3.1 Marketing Environment 3.2 Competitive Situations 3.3 Current STP Analysis 3.4 Current Marketing Mix (4P) CHAPTER 4: SWOT ANALYSIS OF MOC CHAU MILK 4.1 Strengths 4.2 Weaknesses 4.3 Opportunities 4.4 Threats CHAPTER 5: OBJECTIVES AND ISSUES 5.1 Common goals in one next year (from 6/2022 to 6/2023) 5.2 Ideas for marketing strategies for Moc Chau Milk pas 28 CHAPTER 6: MARKETING STRATEGIES IN NEAR FUTURE FOR PASTEURIZED FRESH MILK OF MOC CHAU MILK 6.1 STP Analysis 6.2 Marketing Mix (4P) CHAPTER 7: ACTION PROGRAMS AND BUDGET CHAPTER 8: CONTROLS CHAPTER 9: CONCLUSION REFERENCES TIEU LUAN MOI download : skknchat123@gmail.com moi nhat WORK BREAK DOWN STRUCTURE Full Name Lê Thị Ngọc Linh (Leader) Imamura Keita Lê Thu Phương Phạm Mai Chi Phạm Thị Quỳnh Trần Thùy Dương Vũ Như Mai TIEU LUAN MOI download : skknchat123@gmail.com moi nhat CHAPTER 1: EXECUTIVE SUMMARY Overview of this marketing plan We will describe a 1-year marketing plan for Moc Chau Milk pasteurized fresh milk from 1/6/2022 to 1/6/2023 In order, we referred to the current information and data which is in 2021 This report is divided into CHAPTERS For these chapters, we will show the following report will analyze the current marketing situation in the macro environment, market strategy, marketing mix, and SWOT of Moc Chau Milk, specifically in the current Vietnamese market This report also will cover new marketing strategies and new objectives for the pasteurized fresh milk products In addition, its major action programs and budgets are also recommended to advertise products and promote sales, revenue, and profits by 2022 The reason we selected moc chau milk for our research We have two main reasons to select Moc Chau Milk for our research The first reason is we think it’s better to propagate ordinary Vietnamese milk rather than international milk The second reason is that Moc Chau Milk’s quality is maintained by the company’s efforts and by some high institutions What we discovered recently is that Vietnamese people tend to prefer to drink imported milk from overseas because people think Vietnamese milk is not well maintained Although, it’s different from Moc Chau Milk’s case It’s already being pasteurized as a beverage TIEU LUAN MOI download : skknchat123@gmail.com moi nhat CHAPTER 2: COMPANY’S OVERVIEW 2.1 Introduction Moc Chau Milk (MCM), or Moc Chau Dairy Cattle Breeding Joint Stock Company, is one of the most famous, largest and oldest domestic dairy brands in the North and Central regions of Vietnam, as well as one of subsidiaries which is indirectly owned by Vinamilk through GTNFoods Joint Stock Company (Moc Chau Milk’s Annual Report, 2019) The Company supplies, processes and manufactures a wide range of dairy products, primarily milk and yogurt Moc Chau Milk, formerly known as Moc Chau Military Farm, was established on 8th January, 1958 with the task of raising dairy cows, providing dairy cow breeds, manufacturing and processing dairy products, and producing livestock feed It is also the first unit which initiates an animal husbandry and dairy producing industry in Vietnam The Company currently operates 02 pasteurization and sterilization factories that produce and package high-quality, nutrient-dense dairy products using imported modern processing equipment from Tetra Pak (Sweden) and completely sterile automatic packaging technology from Korea Taking advantage of the Moc Chau plateau's perfect climate and soil, Moc Chau Milk owns more than 27,138 dairy cows from over 600 dairy farming households and 03 dairy breed centers To ensure the quality of raw milk materials, all dairy farms must commit to fully meeting 73 strict criteria of the VietGAP1 process on dairy cattle raising, ranging from food and water management to livestock sanitation Before being purchased at the 21 milk collection places throughout the livestock area, all milk expressed from cows will be preliminarily tested and checked by Moc Chau Milk’s expertise team based on 10 quality criteria The purchased milk will be refrigerated and 1VietGAP: Vietnamese Good Agricultural Practices TIEU LUAN MOI download : skknchat123@gmail.com moi nhat transported immediately to factories, where it will be manufactured and packaged before being delivered to consumers across the country Product portfolio of this dairy brand is fairly diverse, including fresh milk products, products made from milk Not only does the Vinamilk brand offer various products ranging from core dairy products like liquid milk (both UHT and pasteurized fresh milk) to value-added dairy products like drinking and spoon yogurt, milk cakes, pure butter, cheese and milk scum, but it also caters to the different needs of children, as well as other uses such as bartending, baking and making desserts Moc Chau Milk’s products must all go through a rigorous quality management process based on ISO2 and HACCP3 international standards to ensure that they fulfill international quality requirements for food safety and hygiene, thereby meeting almost all nutritional needs of consumers which are increasing day by day The Vietnamese dairy market is usually a competitive industry, drawing a lot of interest and investment from enterprises Moc Chau Milk presently holds roughly more than 2% of the country’s milk market share and 23% of the milk market share in the North market after Vinamilk and TH True Milk, according to the Company’s Annual Report 2021 Although these numbers are a modest amount in comparison to other domestic and foreign dairy brands in the Vietnamese market, the Company nevertheless has a significant presence in the Vietnamese dairy sector, with over 60,000 retail stores In the context of worldwide socio-economic instability and struggles due to detrimental impacts of the Covid-19 pandemic, the supply chain crisis has caused serious damage to many businesses around the world, including Vietnam Domestic demand for dairy products, on the other hand, is less impacted because milk is an essential product, and people's demand remains to increase for more fresh milk and yogurt during epidemics As a result, some fortunate dairy businesses have been able to maintain positive revenue and profit levels Moc Chau Milk has put a lot of effort into developing the revenue growth over the last 02 years Unlike 2020, net revenue increased by 3.6% to VND 2,926 billion, and profit after tax increased by 13.7% to VND 319.1 billion in 2021 Mrs Mai Kieu Lien, Chairwoman of the Board of Directors of Moc Chau Milk, stated that the Company has been promoting the core strengths of the sustainable and self-contained agricultural value chain, developing high-tech dairy cow breeding projects, investing in a modern milk processing factory, and increasing the quality of raw milk materials in order to bring healthy products and increase resistance to improve the quality of life of Vietnamese families Moc Chau Milk has also been working on enhancing the distribution and sales system, being flexible in coordinating production plans, ensuring the supply of commodities, and focusing on implementing both shortterm and long-term investment and development initiatives Vision, Mission and Values 2ISO: International Organization for Standardization 3HACCP: Hazard Analysis and Critical Control Point System TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Vision statement “Bringing the desire to dominate the Vietnamese dairy market with love and enthusiasm for the homeland, as well as serious investment and methodical strategy, Moc Chau Milk strives to become the number one dairy brand in Vietnam, trusted and loved by everyone.” Mission statement “Moc Chau Milk has been offering Vietnamese people with the most scrumptious, fresh, and high-quality products from the Moc Chau - Son La motherland By delivering the message “Green grassland - Fresh cool milk”4, the Company is contributing to boost the quality of life of people, particularly children, both physically and emotionally.” Core values Connection - “Moc Chau Milk is proud to be a company that has a solid relationship with farmers, creating the highest value for their products.” Innovation - “Constantly learning and embracing the quintessence of technology in order to retain the full delicious taste and nutritious quality in each product.” Trust - “Moc Chau Milk thrives on the trust of its entire workforce, consumers' confidence in the product's quality, and its partners' and shareholders' deep faith and seriousness for the Company.” Responsibility - “Moc Chau Milk recognizes that success can only be achieved by always attempting to add value to the lives of consumers while also acting responsibly toward the environment and society as a whole.” In gist, through 64 years of establishment and development, Moc Chau Milk has confronted challenges and overcome limits to continuously transform, evolve and thrive When the vision, purpose, and core values all come together at the intersection point, it can be concluded that this Company is not only steadily affirming the position of the Vietnamese dairy brand in the domestic market but also strengthening its competitiveness when reaching out to the global market Along with that, Moc Chau Milk increasingly demonstrates positive imprints in bringing values to the community, in the direction of a better and more sustainable development Other information Moc Chau Milk’s CEO: Mr Pham Hai Nam Address: Moc Chau Farm Town, Moc Chau District, Son La Province 4“Green grassland - Fresh cool milk”: “Thảo nguyên xanh - Sữa mát lành” TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Email: mocchaumilk@mcmilk.com.vn Website: www.mcmilk.com.vn Tel: 0212 3866 065 / Fax: 02123 866184 2.2 Business Model Canvas COMPONENTS Customer Segments Value Propositions Channels Customer TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Relationships Revenue Streams Key Resources Key Activities TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Key Partners Cost Structure 10 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat CHAPTER 5: OBJECTIVES AND ISSUES 5.1 Common goals in one next year (from 6/2022 to 6/2023) 5.1.1 Future orientation a Target - Leading the Vietnamese clean F&B market - Creating a dairy brand that is recognized not only in the country but also around the world b Market growth - Consolidate, improve, and broaden the distribution system Moc Chau milk must continuously try to expand the market to all provinces and cities across the country, particularly the Central and Southern markets, in the coming year so that all Vietnamese people have access to clean and excellent dairy products c Branding goals - Moc Chau Milk plans to become a powerful dairy company, which is the first choice of Vietnamese consumers for fresh and clean products - It also wants to be a nutritional brand with scientific reputation and trust for all Vietnamese people through the strategy of researching and developing many product lines with optimal quality 5.2 Ideas for marketing strategies for Moc Chau Milk pasteurized fresh milk products Evaluation and product export strategy In general, Moc Chau milk has produced product samples with eye-catching packaging In recent activities, Moc Chau has not hesitated to design and print packaging with new designs and better quality As well as domestic competition, packaging design always occupies an important position in the marketing strategy Because of the current consumer trend, a lot of attention is paid to product appearance, beautifully designed products are always appreciated by customers' hearts - Strategy: To meet the increasing demand of consumers, it is necessary to add products with many different flavors to increase features and flavors to stimulate the baby's scent when drinking milk Like adding chocolate, fruit flavors to pasteurized milk to make it easier for children to drink and love Evaluate and recommend pricing strategies With the current milk price, Moc Chau milk has a cheaper price than other brands in the market of pasteurized milk products 29 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat - Strategy: Products with low positioning use the higher positioning price but keep the same price At the same time, Moc Chau milk should also offer pricing according to product lines to target consumers and target customers and meet the needs of customers more Like launching a line of dairy products with flavors for younger customers and low-sugar/no surgar milk to help people lose weight Evaluate and recommend distribution strategy The company has a quite large distribution network, and cities with distributors who are dedicated and committed to developing the Moc Chau milk brand Regarding the distribution market, Moc Chau milk is still concentrated in the North due to its huge potential Distributors are located throughout the provinces and cities across the country according to the market map that Moc Chau milk has outlined - Strategy: When the company has grown significantly in the North, it will encroach on the Central and South regions in the coming years Furthermore, Moc Chau Milk should select distribution channel members based on quality rather than quantity, developing the most appropriate evaluation criteria for recruitment, in order to make more efficient Evaluate and propose promotion strategy 4.1 Advertising: Moc Chau milk has maintained fun advertising programs combined with the image of a 100% dairy cow that has become familiar to consumers, keeping the message: "100% pure fresh milk" Created feeling safe for consumers and trusted by consumers - Strategy: Nowadays, the Internet has become popular, and consumers have a habit of searching for information about certain products through the Internet, so in addition to advertising on television, Moc Chau milk needs to have advertising products on the Internet, Moc Chau milk can use the following methods: + Place banners to advertise products on Websites with a large number of visitors such as Dantri.vn, vnexpress.vn, etc + The company's website mcmilk.com.vn also needs more information about the product, which is a place for customers to search for information about the product 30 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat + Viral marketing campaign on the Internet, using coded messages in the form of clips with unique and interesting content so that it can spread itself in the online community, using social networks such as Youtube or Facebook to send these messages 4.2 PR activities Moc Chau milk's PR activities are doing very well such as going to charity to help people during the current epidemic situation and many other charity activities - Strategy: Vinamilk should pay more attention to internal PR issues in the enterprise to build a strong and united Vinamilk collective * Promotions Moc Chau currently has quite a few promotions for consumers - Strategy: Moc Chau Milk should create more programs with discounts, freebies, trials, and points For example: + Exchange 10 used boxes for new product, which is both a way to stimulate purchases, recycle as well as increase consumer sympathy with similar community education measures Increase discounts or bonuses according to sales, which stimulates distributors to promote products Activities such as giving away washing machines, televisions, and travel tickets are ways for businesses to stimulate purchases Or upgrade the dealer's booth, store so that the product can be in the best display position, helping the brand become more and more known + 4.3 Sales promotion strategy: Organize many promotional activities for consumers, for the method of paying promotional gifts for consumers and the method of paying rewards for retail agents Use a variety of tools, promotions, and coupons when buying 31 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat CHAPTER 6: MARKETING STRATEGIES IN NEAR FUTURE FOR PASTEURIZED FRESH MILK OF MOC CHAU MILK 6.1 STP Analysis 6.1.1 Segmentation In fact, after reading the customer segmentation in Current STP Analysis of Chapter 3, we assume that if the segmentation is like that, it is severely inadequate, preventing Moc Chau Milk from fully exploiting potential customers and executing effective marketing tactics As a result, Moc Chau Milk should first segment its diverse market into smaller segments that can be reached more efficiently and effectively with products and services tailored to their unique needs, as well as those of their customers, in order to successfully implement marketing strategies that contribute to achieving the plan's objectives, as well as maximize its revenues and profits in one next year In this report, we will make a specific customer segmentation for pasteurized fresh milk products When it comes to Moc Chau Milk, there are two types of customers: consumers (individuals) and businesses (organizations) To segment consumer markets, we should use different segmentation variables as the following table: VARIABLES GEOGRAPHIC Nation Region Population density DEMOGRAPHIC Age Gender Generation Income PSYCH OGRAPHIC TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Social Class Attitude Lifestyle BEHAVIORAL Benefit sought Users status Loyalty status TIEU LUAN MOI download : skknchat123@gmail.com moi nhat In terms of segmenting business markets, the majority of Moc Chau Milk's customers are distributors, wholesalers, retailers, stores, and supermarkets who distribute Moc Chua Milk's products to end consumers Unlike the product consumption group, this group of customers and Moc Chau Milk have commitments and contracts relating to product distribution, such as selling price, discount, sales bonus, commission bonus, on-time delivery, and so on In addition, business customers of the Group are organizations that consume or use its pasteurized fresh milk products in meals, food and drink processing such as schools, canteens, and bakeries Because these customers frequently order a huge quantity of products, the pricing will be lower than for individual customers 6.1.2 Target Market Based on the segmentation table, it can be easily seen that the targeting market for Moc Chau Milk’s pasteurized fresh milk products are mostly suitable for all kinds of ages in any occupation The Company not only concerns the holistic development of children, but also customers’ other uses While adhering to the criterion of putting customers’ health first, Moc Chau Milk's pasteurized milk products fully meet the vital nutritional demands of consumers Furthermore, Moc Chau Milk does not recommend using these products for children under the age of two because their digestive systems are still underdeveloped and incomplete, making them more difficult to digest, and causing problems such as bloating and indigestion 6.1.3 Positioning Moc Chau Milk's pasteurized fresh milk has a better reputation in the F&B industry than one from other dairy companies, and it has a relatively large distribution system Furthermore, the nutritional ingredients in each pack of Moc Chau Milk pasteurized fresh milk are carefully calculated to meet the nutritional needs of customers Although these products not have the same shelf life as UHT fresh milk, they contain much more beneficial nutrients, vitamins, and others In other words, pasteurized fresh milk is greater than UHT milk so that it is increasingly prevalent among consumers Thus, high product and service quality serve as guidelines for defining Moc Chau Milk's pasteurized fresh milk differences and positioning statement 6.2 Marketing Mix (4P) 6.2.1 Product Pasteurized fresh milk products are often produced and packaged in large bottles, so some customers who want to buy it to drink for lunch while outside will be hesitant about this Therefore, the manufacturer can pack it into a bottle with a smaller capacity An anti-counterfeit stamp should be on the product to make it easy for buyers to tell the difference, or customers should be instructed on how to tell the difference Moc Chau milk products are now known as nutritional and energy supplements for children 34 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat The official website contains detailed product information 6.2.2 Price Planning, price tightening, and price unification at all points of sale are all required Moc Chau milk is sold at different prices in different locations, leaving buyers perplexed about the price and compelled to compare prices and prestige with other milk brands 6.2.3 Place Opening more showrooms in the Central and Southern Vietnam, which fully display Moc Chau milk's products, and have private staff still introduce products, making it easier for customers to visit and choose products and become more knowledgeable about the Moc Chau brand Increasing the number of stores in densely populated provinces and cities, which helps to raise product and brand awareness while also bringing products to as many people as possible 6.2.4 Promotion More KOLs and Influencers with appropriate images should be invited to represent; this helps to attract more people's attention Organizing more trial sessions at supermarkets, events, and so on to introduce new or little-known products Increase the effectiveness of environmental protection campaigns, as this is the brand's goal 35 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat CHAPTER 7: ACTION PROGRAMS AND BUDGET Moc Chau Milk bottle (900ml) costs 35000 VND MainTarget actions Company Image Digital and social Marketing TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Provide Travels 37 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat CHAPTER 8: CONTROLS Moc Chau Milk need to create some sub-small plans control suggestions to monitor its whole markeitng plan’s progress to maximize the return on a marketing plan This phase not only plays an important role when a company is encountering challenges with a product, but also is extremely hard to implement However, if Moc Chau Milk understand how this phase of a plan can improve a business, it may help the Company conduct its marketing strategies for pasteurized fresh milk products properly To keep all above plans staying on track and prevent mistakes, Moc Chau Milk should first monitor customer feedback through polls and surveys so that timely adjustments can be made, if necessary For example, supposed that the pasteurized milk product in this marketing campaign is not popular, it should be eliminated from the plan to save the budget; however, if customers respond well, Moc Chau Milk can continue executing previous plans Furthermore, by regularly checking expenditures, Moc Chau Milk can maintain its budget and see exactly wherespending increases come from, allowing the Company to cut costs (expenses for marketing pasteurized dairy products) and maximize profits 38 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat CHAPTER 9: CONCLUSION Moc Chau Milk is an established dairy brand renowned for manufacturing high-quality products In the coming year, we decided to focus our efforts on Moc Chau Milk pasteurized milk line Moc Chau continues to suffer with challenges such as poor marketing, a limited distribution network, and the lack of a structured product strategy, despite its accomplishments and excellent financial figures As a direct result of this, we have done a comprehensive investigation of these problems in an effort to gradually resolve it To dominate the natural and organic food business in Vietnam, Moc Chau sets a premium on consumer satisfaction and seeks to manufacture goods that adhere to stringent cleanliness, safety, and health requirements In order to this, we have detailed Moc Chau Milk current marketing strategies (referred to in Chapter as STP and 4P), in which we have been continued these strategies for pasteurized milk products to adjust to the Company's customer needs and preferences In addition, we hope that the objectives outlined in Chapter for this product line are met precisely Moreover, the future marketing strategies described in Chapter will bring Moc Chau's products closer to their customers, therefore enhancing their overall appeal The above-described marketing plan was established by us after thorough thought and debate about the reality of the market and the advantages and disadvantages of Moc Chau Milk, with the aim and determination to accomplish the stated goals and objectives 39 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat REFERENCES Moc Chau Milk, Annual Report 2021 Moc Chau Milk, Financial Report 2021 https://doanhnhanvn.vn/moc-chau-milk-mcm-lai-rong-319-ty-dong-trong-nam-2021.html https://static2.vietstock.vn/data/UPCOM/2021/BCTC/VN/NAM/ MCM_Baocaotaichinh_2021_Kiemtoan.pdf? fbclid=IwAR1HzrYg1bMxxkSSZ3wf9aJM9493UoBrEJ5ZGjwK yvh0cg31TXl2hF5hY https://danso.org/viet-nam/ https://onfire-bg.com/tong-quan-thi-truong-sua-viet-nam/ https://www.mcmilk.com.vn/category/bao-chi-noi-ve-moc-chau-milk/page/2/ https://www.studocu.com/vn/document/truong-cao-dang-thuc-hanh-fpt/marketing/mar1021ec17330-nhom-3-chuong-1234-doanh-nghiep-moc-chau-milk-chua-bai/21268144 https://www.sggp.org.vn/san-pham-sua-viet-khoi-sac-tai-thi-truong-quoc-te-795839.html 10 https://viettinlaw.com/gtnfoods-giai-quyet-bai-toan-kho-phan-phoi-sua-moc-chau.html 11 https://dautuvietnam.com.vn/kinh-doanh/tu-van-chien-luoc/moc-chau-milk-tang-truongvuot-chi-tieu-a19432.html 40 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat ... 4.4.3 Raw and natural milk sources, and international standard farm system To accommodate production needs, Moc Chau Milk and its dairy farms have agreed on quality standards for milk obtained... skknchat123@gmail.com moi nhat CHAPTER 4: SWOT ANALYSIS OF MOC CHAU MILK 4.1 Strengths 4.4.1 Strong and long-standing dairy brand Moc Chau Milk is a long-standing dairy brand that has been serving consumers... husbandry and production, while constantly researching and applying advanced standards in animal husbandry in order to ensure the highest quality for raw milk materials To operate Moc Chau Milk