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 9 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
This report analyzes the Vietnamese milk market, focusing on pasteurized fresh milk products It outlines innovative marketing strategies and objectives aimed at enhancing product visibility and driving sales Additionally, the report recommends key action programs and budget allocations to effectively promote these products, ultimately targeting increased revenue and profitability by 2022.
The reason we selected moc chau milk for our research
We chose Moc Chau Milk for our research for two primary reasons: first, we believe in promoting local Vietnamese milk over international brands, and second, Moc Chau Milk's quality is upheld through dedicated efforts by the company and reputable institutions Recently, we found that many Vietnamese consumers favor imported milk, as there is a prevailing perception that domestic options, like Vietnamese milk, lack proper maintenance and quality assurance.
Although, it’s different from Moc Chau Milk’s case It’s already being pasteurized as a beverage.
COMPANY’S OVERVIEW
Introduction
Moc Chau Milk (MCM), officially known as Moc Chau Dairy Cattle Breeding Joint Stock Company, stands out as one of the most renowned and largest dairy brands in Northern and Central Vietnam, boasting a rich history in the industry.
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, originally called Moc Chau Military Farm, was established on January 8, 1958, as a pioneer in Vietnam's dairy and animal husbandry industry The company focuses on raising dairy cows, providing high-quality dairy breeds, and manufacturing nutrient-rich dairy products Currently, Moc Chau Milk operates two advanced pasteurization and sterilization factories equipped with modern Tetra Pak technology, ensuring the production and packaging of high-quality dairy items.
Moc Chau Milk leverages the ideal climate and soil of the Moc Chau plateau in Sweden, utilizing advanced, completely sterile automatic packaging technology from Korea With a robust network of over 600 dairy farming households and three dedicated dairy breed centers, the company proudly manages more than 27,138 dairy cows To guarantee the highest quality of raw milk, all participating dairy farms adhere to 73 stringent criteria.
VietGAP 1 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 transported immediately to factories, where it will be manufactured and packaged before being delivered to consumers across the country.
Vinamilk boasts a diverse product portfolio that includes fresh milk and a variety of dairy products, ranging from core offerings like UHT and pasteurized milk to value-added items such as yogurt, milk cakes, butter, cheese, and milk scum The brand addresses the distinct needs of children and provides options for bartending, baking, and dessert-making All Moc Chau Milk products undergo a stringent quality management process adhering to ISO and HACCP international standards, ensuring compliance with food safety and hygiene requirements This commitment allows Vinamilk to meet the growing nutritional demands of consumers effectively.
The Vietnamese dairy market is highly competitive, attracting significant interest and investment from various enterprises Currently, Moc Chau Milk commands over 2% of the national milk market share and accounts for 23% of the market share in Northern Vietnam.
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
Despite global socio-economic challenges and the adverse effects of the Covid-19 pandemic, the Company maintains a strong foothold in the Vietnamese dairy market, operating over 60,000 retail outlets The ongoing supply chain crisis has severely impacted numerous businesses worldwide, including those in Vietnam.
Domestic demand for dairy products remains robust, as milk is a staple essential, with a growing preference for fresh milk and yogurt during epidemics Consequently, several dairy companies have managed to sustain positive revenue and profit margins Notably, Moc Chau Milk has focused on revenue growth, achieving a 3.6% increase in net revenue compared to 2020.
2,926 billion, and profit after tax increased by 13.7% to VND 319.1 billion in 2021 Mrs Mai
Kieu Lien, Chairwoman of Moc Chau Milk, emphasized the company's commitment to strengthening its sustainable agricultural value chain through high-tech dairy cow breeding and investment in a modern milk processing facility This focus aims to enhance the quality of raw milk and deliver healthy products that improve the quality of life for Vietnamese families Additionally, Moc Chau Milk is enhancing its distribution and sales systems, adapting production plans to ensure a steady supply of goods, and pursuing both short-term and long-term investment strategies for growth.
2 ISO: International Organization for Standardization.
Moc Chau Milk aims to become Vietnam's leading dairy brand through passionate commitment to the homeland, significant investments, and a strategic approach, earning the trust and affection of consumers nationwide.
“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.”
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
Moc Chau Milk understands that true success lies in enhancing consumer lives while maintaining a strong commitment to environmental and social responsibility.
Over its 64 years of establishment and growth, Moc Chau Milk has successfully navigated challenges and limitations, evolving into a thriving brand By aligning its vision, purpose, and core values, the company has solidified its position as a leading Vietnamese dairy brand in the domestic market while enhancing its competitiveness on the global stage Additionally, Moc Chau Milk is committed to delivering value to the community, focusing on sustainable development for a better future.
Moc Chau Milk’s CEO: Mr Pham Hai NamAddress: Moc Chau Farm Town, Moc Chau District, Son La Province
Email: mocchaumilk@mcmilk.com.vn Website: www.mcmilk.com.vn
Business Model Canvas
- Distributors, wholesalers, retailers, stores & supermarkets
- Tradition, creativity, innovation and modernity
- General trade: distributors, wholesalers and retailers
- Modern trade: supermarkets and convenience stores
- Online stores: Shopee, Lazada, Tiki, etc.
- “Cửa hàng sữa tươi Mộc Châu Milk” showroom system
- Customer service staff communicate with customers through
Relationships mobile phones, social media, etc.
- They listen to all its customers' suggestions and complaints patiently
- They support to exchange and return products
- Moc Chau Milk conducts a number of programs/funds to assist underprivileged youngsters all around the country
- Sales of finished and merchandise goods
- Sales that are related to parties/stakeholders
- Raw materials developments (dairy farms, farmers, cows & milk)
- Process, manufacture, distribute and retail dairy products
- Develop new products to innovate and diversify product types
- Build farm systems integrated with advanced technologies and machinery
- Expand market and increase revenue and profit
- Promote R&D activities, develop organic foods and apply advanced biological technologies
- Foreign partners who support the activities of exporting and importing
- European suppliers for advanced machinery & equipment system
- Utilities costs (electricity, water, heating, etc.)
- Cost of cow vaccination for the dairy farm system
- Cost of support, advertising & promotion
- Cost of product invention & development
CURRENT MARKETING SITUATION
Marketing Environment
Moc Chau Milk, led by the experienced Mrs Mai Kieu Lien as Chairman of the Board, has excelled in building strong relationships and coordinating effectively across departments Since joining Vinamilk's governance in early 2020, the company has achieved remarkable growth and enhanced operational efficiency, supported by a seasoned board of directors dedicated to fostering the company's development.
The supply of fresh milk materials: Moc Chau Milk has built a closed system of livestock farms to supply its own milk processing factory Besides always accompanying farmers, Moc
Chau Milk has long partnered with nearly 600 farmer households, providing modern breeding technology and establishing an insurance fund to enhance production security With competitive milk prices, livestock insurance, and a focus on quality output, farmers feel confident in their operations The company has invested hundreds of billions of VND to build Vietnam's first modern production plant, breeding center, and TMR animal feed factory This self-manufacturing of raw materials alleviates concerns about shortages and reduces the costs associated with imports.
Moc Chau Milk utilizes a diverse range of distribution intermediaries, including distributors, wholesalers, retailers, supermarkets, dairy agents, and grocery stores Selecting the right marketing intermediaries is crucial for the company, as these distributors play a key role in delivering products to consumers By effectively showcasing Moc Chau Milk's offerings, these intermediaries enhance product accessibility and promote the brand's image This strategic approach not only facilitates customer convenience when purchasing but also significantly boosts sales for Moc Chau Milk.
Milk Thanks to agents and retailers, the Company has reduced a huge cost compared to opening its own sales showrooms. d General public
Moc Chau Milk's PR activities are mostly associated with social activities, community development and programs associated with young children, typically with programs such as:
Miss Dairy, Moc Chau Milk: Accompanying the family in a new normal life with the slogan:
Moc Chau Milk embodies the essence of nature with its slogan, "The essence of nature is kept intact in every drop of clean fresh milk." This message is central to all communication and advertising efforts, highlighting the brand's commitment to quality Key advertising activities for Moc Chau Milk focus on promoting its lush green grasslands and the refreshing taste of its milk, emphasizing the natural and pure ingredients sourced from the region.
Broadcasting TVC on TV channels VTV3, VTV1, VTV6, HTV7, SCTV2, with images of the production process of clean fresh milk. e Customer
When discussing customers and distributors, pricing emerges as a significant challenge, as buyers can easily compare products within the same industry, exerting pressure on manufacturers The volume of customers directly influences Moc Chau Milk's revenue and brand perception Recognized for its natural, clean milk products, the company appeals to health-conscious consumers, making it highly accessible to this demographic.
As of December 31, 2021, the population of Vietnam is estimated at 98,564,407 people, an increase of 830,246 people compared to the population of 97,757,118 people the previous year.
In 2021, the natural population growth rate is positive because the number of births exceeds the number of deaths by 912,801 people Due to migration the population decreased -82,555 people.
In 2021, Vietnam's sex ratio stands at 0.997, indicating 997 men for every 1,000 women, which is lower than the global average of approximately 1,017 males per 1,000 females This statistic highlights the demographic trends within the Vietnamese population for that year.
Scale of Vietnam's liquid Milk market in the period 2014-2018
Liquid milk market excluding other dairy products such as yogurt, cheese, ice cream, butter, powdered milk, in 2018, revenue reached VND 48.9 trillion, with a stable growth rate of
The compound annual growth rate (CAGR) for the dairy industry is expected to decline to approximately 7%, reaching a value of 66 trillion in 2023 Despite limited income sources and distribution challenges, sales and product variety in dairy are increasingly skewed toward urban populations The rapid growth of urban populations presents significant market opportunities for Moc Chau Milk, enhancing product consumption and boosting sales As urban living standards improve, dairy businesses are positioned to capitalize on the expanding market potential.
Vietnam ranks as one of the highest milk-consuming countries globally, driven by robust economic growth and a consistent annual GDP per capita increase of 6-8% Additionally, the country's population is growing at an average rate of 1%, further fueling the demand for milk However, there is a notable challenge regarding the availability of domestic raw materials for milk production.
Vietnam's dairy industry currently meets only about 20% of market demand, forcing most finished milk producers to rely on imported raw milk Despite high retail milk prices in Vietnam compared to regional and global markets, the prices paid to farmers for raw milk remain low The market is dominated by three major companies that control 75% of the share, giving them leverage in price negotiations with farmers and influencing the retail price of finished milk In contrast, Moc Chau has the capacity to produce its own raw materials, alleviating concerns about supply issues.
Vietnam's stable political environment plays a crucial role in shaping Moc Chau Milk's marketing strategies Following the doi moi reforms, Vietnam established normalized relations with China in 1992 and the United States in 1995, subsequently joining the ASEAN bloc.
1995, Vietnam has established diplomatic relations with 171 countries The most important turning point was January 11, 2007 Vietnam officially became the 150th member of the WTO.
Recent developments have greatly influenced market growth and attracted investors, leading to increased revenue that supports the marketing strategies of Moc Chau Milk Additionally, these events have fostered cultural and community engagement.
In Vietnam, consumers favor sweet and canned products, as well as dairy items, largely influenced by easy access to information via radio, newspapers, and television This accessibility enhances the convenience of marketing, advertising, and distributing products to customers Vietnamese consumers tend to prioritize brands they trust for quality and prestige, leading to a reluctance to switch to new products.
Therefore, when Moc Chau Milk creates a brand of natural milk, it will be easily accepted by consumers. e Science and Technology
Moc Chau Milk serves as a vital technical training center, facilitating the transfer of scientific technology to farmers This initiative enables nearly 600 households to adopt advanced practices in animal husbandry, ultimately contributing to their success and enhancing agricultural productivity.
VietGap standards incorporate advanced breeding technology aligned with European practices, utilizing milking machines and TMR feed to meet nutritional requirements for cows The diet includes high-quality American Alfalfa grass and fresh forage, supported by an automatic waste treatment system designed to prevent environmental pollution.
Moc Chau Milk has consistently established an insurance fund for livestock and milk price insurance over the years, ensuring the protection of farmers' interests and enabling them to produce with confidence.
Moc Chau Milk transfers scientific technology to farmers to apply in animal husbandry, making the milk production process more developed and more efficient than the company's raw material problem.
Competitive Situations
There are 2 types of competitors, which are:
- Direct competitors: The industries that have been operating in the industry have a strong influence on the business situation of Moc Chau Milk enterprises.
Potential competitors in the market include companies that produce substitute products like cereal flour and functional foods, such as IMC, DOMESCO, and BIBICA However, these competitors currently lack the strength to effectively rival the established milk products sector.
Moc Chau Milk company is currently facing relatively high and fierce competition from domestic and foreign milk brands such as Vinamilk, TH True Milk, Dalat Milk, Dutch Lady,
Nestlé, Abbott, Meiji The future dairy market will continue to expand and the level of competition will increase.
The Vietnamese dairy market features a diverse range of brands, with Vinamilk and Moc Chau leading the market by holding a combined share of 45% Dutch Lady follows with a 24% market share, while imported powdered milk products, including Mead Johnson, Abbott, and Nestlé, account for 22% Additionally, domestic brands such as Hanoimilk, TH True Milk, and Nutifood make up the remaining 19% of the market.
Below is the competitor analysis table of Moc Chau Milk We are divided into 3 groups:
Vinamilk (big competitor), domestic dairy companies, and foreign dairy companies.
- The strongest, most long- standing and reputable brand.
- Good customer care system, reasonable prices, diverse products.
- Lack of self-control in the supply of raw materials.
- Unable to manage the quality of raw materials.
Domestic dairy companies (TH True Milk, Dutch Lady, Ba
- Modern production technology, high product quality.
- Lack of management experience, not yet self- sufficient in raw materials.
- The distribution system is still limited.
Foreign dairy companies (Nestlé, Abbott)
- Strong brand, big brand channel.
- Not understanding the new market well.
- The political and cultural barriers have not been overcome.
- All products must be imported.
Moc Chau Milk is encountering significant competition in the dairy market, where numerous established brands are flourishing, creating challenges for Moc Chau Milk's products to effectively reach consumers.
According to Mintel Group, the domestic dairy market is estimated at $4.4 billion and is being driven by three main trends: Brand credibility, Brand credibility, Healthy taste and
Recent trends indicate a growing concern among consumers regarding food health and safety, with 89% of Vietnamese willing to pay a premium for quality food, as reported by Nielsen Additionally, 88% of consumers meticulously examine dairy product packaging before making a purchase, while 80% express concerns about the long-term effects of artificial ingredients in milk.
Moc Chau Milk leverages insights from consumer psychology to consistently introduce innovative products, all crafted from pure fresh milk that boasts a naturally delicious flavor without any preservatives Since 2018, the brand has successfully launched a variety of new offerings, including Pasteurized Banana Flavored Milk and Guava Drink Yogurt, catering to diverse consumer tastes and preferences.
Taro Yogurt and Pasteurized Low-Sugar Milk.
Moc Chau Milk has successfully captured approximately 10% of the overall dairy market share, with an impressive 35% share in the Northern region, thanks to its strategic long-term vision.
Moc Chau Milk Company, one of only three selected exporters of fresh milk to China, plans to expand its reach by entering the southern market in 2019, making fresh milk from the green prairies more accessible to Southern consumers.
Current STP Analysis
Moc Chau Milk targets four distinct age groups: infants aged 0-6 months, children aged 6-12 months, toddlers aged 1-3 years, and individuals over 3 years old Each demographic is catered to with specific milk products designed for unique nutritional needs, including options for pregnant women, individuals with special dietary requirements, and those managing diabetes This market segmentation is strategically based on customer behavior, motivations, and usage needs, ensuring that each group receives tailored nutritional solutions.
Moc Chau Milk is committed to delivering high-quality, nutritious, and delicious products that promote consumer health With a focus on children and teenagers, Moc Chau Milk caters to the significant demand for dairy products in these age groups The brand effectively targets its market by dividing customers into two main groups, ensuring that its offerings meet the diverse needs of all ages.
Age: 0-6 months old, 6-12 months old, 1-3 years old and over 3 years old.
Occupation: All professions can be purchased and used.
Lifestyle: As consumers, who have the need to buy and use pasteurized milk products.
Economy: Anyone can afford to buy Moc Chau pasteurized milk products.
Customers seeking high-quality products with excellent nutritional value and reasonable pricing are a key demographic for Moc Chau Milk If the brand meets their expectations, these consumers are likely to become loyal customers.
Distributors, wholesale and retail agents, shops, and supermarkets are eager to partner in the distribution of Moc Chau pasteurized milk products This group seeks attractive discounts, sales bonuses, and prompt fulfillment of orders to enhance their product distribution efforts.
In the 1980s, Vietnam's dairy industry relied heavily on imported raw materials, prompting Moc Chau Milk to partner with local farmers to establish a substantial herd of thousands of cows With extensive expertise in dairy farming, Moc Chau Milk has become a leader in the "raising cows - making milk" sector in the country.
Chau Milk's products are distinguished by their ingredients entirely from pure fresh milk and high natural nutritional content Each year, Moc Chau Milk supplies to the market more than
100,000 tons of fresh milk “clean from meadow to table”, serving consumers across the country.
To maintain the quality and taste of pasteurized milk products, it is recommended to consume them within 2-3 days after opening Recognizing that many customers may not finish a 900ml carton in that time frame, Moc Chau Milk has introduced a 250ml pasteurized milk option This smaller size offers a significant competitive advantage, appealing to consumers with lower daily milk consumption needs.
Current Marketing Mix (4P)
The quality of each pasteurized fresh milk products (both sugar, less sugar or no sugar) must be required to conform these rules:
- Do not use genetically modified varieties.
- Many nutrients are preserved, especially antioxidants.
- Rigorous process. b Stages of the product
In the initial phase, Moc Chau Milk encountered significant challenges as the first company to offer pasteurized milk, struggling to capture consumer interest due to a lack of awareness about the product However, after multiple efforts to educate the public, the brand successfully gained recognition, establishing itself as a provider of nutritious and health-beneficial pasteurized milk.
Moc Chau Milk continues to thrive in a competitive market by upholding its reputation for clean milk and establishing itself as a leader in pasteurized milk products among consumers.
In the maturity stage, revenue growth persists but at a slower pace as the product reaches its peak refinement The company is now focused on implementing strategies to enhance market share for dairy products, especially pasteurized milk, within the competitive landscape of the nation's dairy industry.
The price of all finished products has to include the cost of using technologies and the production line For example:
- Scientific and technological factors not only ensure product development but also create advantages for enterprise development.
- Application of many advanced technologies.
- Meeting the demand for food quality and safety.
- Selling expenses account for the second largest proportion of milk prices. b On-demand pricing
- Demand for products has grown steadily.
- The tendency of Vietnamese consumers to choose the most expensive products possible also contributes to the increase in product prices.
- Must learn, analyze carefully about customers, product goals and customer acceptability. c Price leader
- Be careful about increasing product costs.
- Cut, optimize costs, restructure brands, control retail points well.
- Quickly capture consumer feedback, respond to market needs quickly and best. d New products pricing
- Policy of keeping the same price but the quality must be higher. e Pursuing basic goals
- Increase market share and lead in quality.
Moc Chau Milk has built a quite large distribution system extending into the North Central of Vietnam.
The Company currently sells its products through two main distribution channels:
- Morden channel: showrooms, supermarkets or convenience stores
- General channel: through intermediaries such as distributors, wholesalers, retailers
This retail system, which also involves other promotional activities, allows customers to easily access Moc Chau dairy goods whenever they have a need.
Moc Chau Milk applies attractive promotions to attract consumers such as buying 12 boxes get 1 box of the same capacity, or buying 2 packs get 1 box.
Promotional strategies implemented by Moc Chau Milk enhance product visibility and appeal, effectively tapping into consumer psychology Shoppers are often drawn to attractive offers, making promotions and discounts a key factor in their purchasing decisions.
SWOT ANALYSIS OF MOC CHAU MILK
Strengths
4.4.1 Strong and long-standing dairy brand
Moc Chau Milk, a reputable dairy brand with over 60 years of experience, has been dedicated to providing consumers nationwide with high-quality, delicious, and nutritious fresh milk products As a testament to its excellence, Moc Chau Milk ranks 4th among the leading dairy companies in the country.
Moc Chau Milk, while not as competitive as its parent company Vinamilk or other major local dairy brands, has emerged as a symbol of purity and freshness This success is attributed to the brand's relentless efforts to deliver high-quality dairy products that resonate with consumers' desire for natural goodness.
For several consecutive years, the company has consistently received high ratings from consumers as a premium Vietnamese product Additionally, in 2018, Kantar Worldpanel recognized it as one of the top five most preferred brands.
Moc Chau Milk has made significant contributions to the country's economy, earning recognition through the prestigious Labor Medal awarded by the Party and Government Additionally, the brand has received numerous accolades, including being named one of the top 10 Sustainable Development Brands and recognized for its high quality.
Products, top 10 Prestigious Food Companies in 2020 in the Dairy and Dairy products industry according to Vietnam Report.
Moc Chau Milk upholds its status as a top player in Vietnam's dairy industry by adhering to the principle of delivering "Clean milk from the meadow to the table." This commitment has earned the trust of millions of Vietnamese families, establishing Moc Chau Milk as a preferred choice for nutritional care.
For over six decades, Chau Milk has successfully captivated customers through its unwavering commitment to exceptional product quality In the food and beverage industry, and specifically within Moc Chau Milk, prioritizing quality is essential due to the close relationship between food safety and consumer health Consequently, all raw fresh milk collected by Moc Chau Milk's expert team for production must meet grade A standards, ensuring maximum natural nutritional content in every product.
Moc Chau Milk may not have an extensive product range like other leading domestic dairy brands, but its strong popularity and market position reflect its commitment to exceptional product quality, effectively satisfying the fundamental needs of consumers.
Pasteurized milk products made from 100% pure fresh milk are rich in natural proteins, minerals, carbohydrates, and vitamins, while being free from impurities and preservatives These essential nutrients support digestive health, boost the immune system, and promote strong bones and teeth Choosing Moc Chau Milk products, especially pasteurized fresh milk, contributes to improved health and increased energy levels.
5 “Clean from the meadow to the table”: “Sạch từ đồng cỏ đến bàn ăn”
4.4.3 Raw and natural milk sources, and international standard farm system
Moc Chau Milk and its dairy farms adhere to stringent quality standards for milk production, all certified under VietGAP The livestock feed is guaranteed to be free from chemical fertilizers and pesticides, while dairy cows are raised without growth hormones or antibiotic residues The entire process, from planting grass and corn to caring for the cows, is meticulously monitored to ensure the safety of all operations, including product production, harvesting, and preliminary processing.
Thereby, the Company may be able to assist in enhancing product quality, ensuring the social welfare and health of producers and customers, protecting the environment, and tracing product origins.
To ensure optimal freshness of raw milk, all collection points are located within 1km of the farms Additionally, Moc Chau Milk strategically positions its production and packaging facilities close to these farms, fostering strong supplier relationships and guaranteeing that raw milk is transported directly to the factories immediately after purchase, preserving its high quality and nutrient content.
4.4.4 Building relationships with raw material suppliers
Farmers play a crucial role as strategic partners for the Company, enabling the delivery of premium products to consumers The Company invests in a cohesive approach throughout all stages of animal husbandry and production Moc Chau Milk actively provides technical training and transfers scientific knowledge to farmers, facilitating their access to modern practices in animal husbandry This commitment to research and the implementation of advanced standards ensures the highest quality of raw milk materials.
Moc Chau Milk ensures smooth operations by providing financial assistance to farmers, safeguarding their interests and fostering a secure production environment The company also organizes the Miss Dairy Cow Contest, facilitating experience sharing among farmers while offering support from its team of animal husbandry experts This long-standing sustainable agriculture strategy not only guarantees high-quality input materials for the company but also contributes to a more stable livelihood for the farmers.
4.4.5 Investing in modern and advanced equipment and technologies
Moc Chau Milk operates two state-of-the-art dairy processing and packaging factories, featuring advanced technologies imported from Switzerland and Korea This modern manufacturing line guarantees that all products are fresh, flavorful, safe, and hygienic for direct consumption by consumers.
Pasteurized milk products are made in a self-contained process and packaged on Sweden’s innovative Tetra Pak production lines (ISO 9001:2008 and HACCP 2008) In combination with
ESL (Extended Shelf Life) pasteurization technology effectively eliminates hazardous bacteria in milk while preserving beneficial bacteria for digestive health, adhering to international standards The milk is pasteurized and packaged in high-quality, safe plastic bottles or paper cartons sourced from Korea’s Evergreen Packaging Corporation It is then stored in cold storage and transported to retailers Additionally, the Company enhances the quality of its raw milk by utilizing DeLaval automatic milking equipment that meets international safety and hygiene standards.
Weaknesses
4.4.1 The entire market share in Vietnam's dairy industry is still low
As of the end of 2021, Moc Chau Milk held a modest market share of approximately 2-3% in Vietnam's dairy industry, significantly trailing behind major competitors like Vinamilk, which commands over 55% of the market, and TH True Milk.
The company currently holds a mere 45% of the market share in the industry, which can be attributed to several factors, such as limited product coverage, low brand awareness, subpar customer experience, and ineffective product promotion strategies.
Moc Chau Milk's marketing strategy for its dairy products lacks methodical and professional execution, as evidenced by the infrequent and low-profile advertising campaigns that fail to capture significant media attention This suggests that the company may be utilizing ineffective advertising channels or promotional methods that do not resonate with viewers, ultimately hindering its ability to communicate key messages to consumers effectively.
4.4.3 The distribution network is still limited
Moc Chau Milk boasts a nationwide distribution network with over 60,000 retail points; however, its showroom system and major distribution channels are primarily concentrated in Northern Vietnam This geographical limitation hinders user growth and poses challenges in competing for market share To sustain its market position and continue thriving in the domestic dairy industry, Moc Chau Milk must enhance and broaden its distribution network.
Opportunities
4.4.1 Potential customers are consistently increasing with a great demand
Milk and dairy products are required to consume by the majority of Vietnamese.
According to unofficial statistics, per capita milk consumption is currently 27 liters/person/year.
Annual per capita milk consumption is expected to increase by another 7-8% in the coming years.
Dairy products are also used for beauty and cookery, in addition to nutritional supplements.
Vietnam is currently in a golden demographic phase, characterized by rapid population growth and increasing urbanization In recent years, there has been a notable rise in educational attainment and a steady improvement in middle-class income levels.
Moc Chau Milk has significant opportunities and potential for growth in the dairy industry, enabling the company to enhance its domestic market share while also expanding into international markets.
4.4.2 Consumers are gradually paying more attention to their health
As the economy grows, health becomes the major priority of Vietnamese consumers.
According to the Nielsen “Consumer Confidence Index” report released in 2020, a health factor has risen to No.1 of Vietnamese consumers’ top concerns Accordingly, the percentage of
Vietnamese consumers who choose the right diet to prevent health problems accounts for 83%.
With a global average of 79%, 89% of consumers are inclined to pay a premium for high-quality, healthy products Additionally, they prioritize reading packaging information to comprehend the ingredients and nutritional supplements of the items they purchase.
Moc Chau Milk's pasteurized fresh milk is a highly nutritious product that effectively meets health needs, making it a standout offering in the Moc Chau region.
Moc Chau is a milk brand that has gained the love and trust of millions of Vietnamese consumers over the years The increasing customer confidence in nutritious products, coupled with the consistent growth of the healthy beverage and food market, highlights a rising demand for such offerings These trends are expected to positively influence the ongoing development of Moc Chau.
4.4.3 The dairy market remains to develop strongly and steadily
Since the onset of the Covid-19 pandemic, Vietnam's dairy market has experienced a slowdown in growth; however, domestic demand for dairy products remains stable due to their essential nature As a result, despite challenging economic conditions, dairy companies like Moc Chau Milk have continued to achieve significant growth, generating strong revenue and profit.
Revenue is expected to reach 113,700 billion VND in 2020 and 119,300 billion VND in
2021 In particular, milk export turnover has surged in value to approximately $300 million/year in 2020 and 2021 According to the General Statistics Office, the country's liquid milk output in
2021 is estimated at more than 1,770 million liters, up 4.5% over the same period in 2020.
Despite facing numerous challenges during the country's economic recovery, Vietnam's dairy industry is progressively evolving towards sustainable and modern practices, encompassing all stages from raw material production to finished products This advancement enhances its competitiveness and capacity for regional and global integration to meet the rising demands of society Additionally, the resurgence of trade promotion activities at the beginning of the year indicates positive trends in the international market, promising a bright future for the dairy sector, especially for Vietnam in 2022.
Threats
4.4.1 Many rivals in the dairy industry
The scale of Moc Chau Milk is still relatively small at present, therefore, the Company is facing greater competitive pressure from domestic dairy companies and international brands.
Imported dairy products are set to become more affordable and gain a competitive edge due to new trade agreements This situation places significant pressure on domestic businesses In response, the Company is planning to invest in a domestic fresh milk supply chain, including a new high-tech dairy farm and effective brand development, to enhance its strength and resilience both in the short and long term.
4.4.2 The change of natural disaster and weather
Moc Chau, a picturesque region blessed by nature, boasts a temperate climate ideal for agricultural growth, especially in dairy farming However, the increasing severity of climate change is adversely affecting both livestock and crops in this area.
4.4.3 Risks of the product's quality
Dairy products significantly contribute to consumer health, making product quality a crucial priority for companies To uphold this commitment, firms must consistently maintain high standards and demonstrate accountability to their customers Moc Chau Milk employs advanced global production technologies and modern processes, alongside stringent quality control measures, to ensure the highest quality of its products The company has also achieved ISO 2000 certification, further underscoring its dedication to excellence.
Certificate of Food Safety Management System with the goal of minimizing the risk of poor product quality.
4.4.4 The cost of input materials has risen
Moc Chau Milk relies on fresh milk from its own dairy farms and purchases from local dairy farmers, making it vulnerable to fluctuations in input material costs due to economic factors and inflation, particularly highlighted by the Covid-19 pandemic Additionally, the increasing market demand may outpace the domestic supply of fresh milk, potentially leading to production shortages To mitigate these risks, the company plans to invest in new dairy farms, assist farmers in enhancing cow development, improve milk yields, and implement cost control measures to reduce milk prices.
4.4.5 Vietnamese people have a mentality of utilizing imported milk products
The preference of Vietnamese consumers for imported milk poses a considerable challenge for the domestic dairy industry, especially for Moc Chau Milk Many customers associate foreign products with superior nutritional value and safety, particularly in health-related categories Addressing this perception is crucial for enhancing the competitiveness of local dairy brands.
Moc Chau needs to boost its brand promotion campaigns, emphasizing that the product's nutritional content is not inferior to that of any well-known foreign brand.
4.4.6 Risks of changing consumption trends
The trend of using plant-based milk has been increasingly popular in Vietnam in recent years According to the results of a Viracresearch survey conducted in 2019, up to 66 % of
Vietnamese customers demand more products composed entirely of natural ingredients.
The Covid-19 pandemic has heightened awareness of food safety and health protection, leading to a focus on boosting the immune system As a result, soy milk and barley milk have emerged as popular alternatives to cow's milk, thanks to their high protein content With their numerous health benefits, plant-based milk products have quickly become the preferred choice for many consumers.
After addressing essential needs, Vietnamese consumers have shifted their spending away from fast-moving consumer goods, opting instead for higher-quality experiences like dining out and non-essential items to enhance their quality of life While urban milk demand seems saturated, rural consumption fluctuates significantly due to dependence on agricultural commodity prices, with disposable income levels directly influencing FMCG spending in these areas.
Hence, the Company must prepare mentally to flexibly respond, conduct market research methodically, and plan product diversification strategies in line with future consumer demands.
OBJECTIVES AND ISSUES
Common goals in one next year (from 6/2022 to 6/2023)
- 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
To enhance its distribution system, Moc Chau milk aims to broaden its market reach across all provinces and cities in Vietnam, with a particular focus on the Central and Southern regions in the upcoming year This strategy is designed to ensure that all Vietnamese consumers have access to high-quality, clean dairy products.
- 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 allVietnamese people through the strategy of researching and developing many product lines with optimal quality.
Ideas for marketing strategies for Moc Chau Milk pasteurized fresh milk products 28
1 Evaluation and product export strategy.
Moc Chau milk has gained attention for its attractive packaging, showcasing innovative designs and improved quality in recent activities In the competitive domestic market, effective packaging design plays a crucial role in marketing strategies With today's consumer trends emphasizing product appearance, beautifully designed products are highly valued by customers.
To cater to the growing consumer demand, it's essential to introduce a variety of flavors in products, enhancing their features and appealing to infants' senses while drinking milk Incorporating flavors like chocolate and fruit into pasteurized milk can make it more enjoyable and appealing for children.
2 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.
Moc Chau milk should adopt a pricing strategy that utilizes higher-positioning prices while maintaining current price points for its lower-positioned products To effectively target diverse consumer segments, it is essential to offer a range of product lines, including flavored dairy options aimed at younger customers, as well as low-sugar or no-sugar milk products designed to support weight loss efforts This approach will better meet the needs of customers and enhance overall market appeal.
3 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.
Moc Chau milk maintains a strong presence in the Northern distribution market, capitalizing on its significant potential The brand has strategically positioned distributors across various provinces and cities nationwide, following a well-defined market map.
As Moc Chau Milk expands its presence in the Northern market, it plans to penetrate the Central and Southern regions in the upcoming years To enhance efficiency, the company should prioritize the quality of its distribution channel members over quantity, establishing robust evaluation criteria for recruitment.
4 Evaluate and propose promotion strategy.
Moc Chau milk effectively utilizes engaging advertising campaigns featuring the recognizable image of 100% dairy cows, reinforcing its message of "100% pure fresh milk." This strategy fosters a sense of safety and trust among consumers, making Moc Chau a reliable choice for quality dairy products.
In today's digital age, the internet has become a go-to platform for consumers to research products, making online advertising a crucial complement to traditional TV ads for Moc Chau milk To effectively reach its target audience, Moc Chau milk can leverage various online advertising 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.
A viral marketing campaign leverages coded messages through engaging clips to facilitate organic spread within the online community By utilizing popular social networks like YouTube and Facebook, these unique and captivating pieces of content effectively reach a broader audience, enhancing their shareability and impact.
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.
Vinamilk should pay more attention to internal PR issues in the enterprise to build a strong and united Vinamilk collective.
Moc Chau currently has quite a few promotions for consumers.
Moc Chau Milk should create more programs with discounts, freebies, trials, and points.
+ Exchange 10 used boxes for 1 new product, which is both a way to stimulate purchases, recycle as well as increase consumer sympathy with similar community education measures .
To enhance product promotion and boost sales, businesses can increase discounts and bonuses for distributors Engaging activities such as offering washing machines, televisions, and travel tickets can effectively stimulate purchases Additionally, upgrading dealer booths and store displays ensures optimal product visibility, ultimately enhancing brand recognition and awareness.
To enhance consumer engagement, implement a diverse range of promotional activities that reward both customers and retail agents Utilize various tools, including discounts, promotions, and coupons, to incentivize purchases and create a compelling shopping experience.
MARKETING STRATEGIES IN NEAR FUTURE FOR PASTEURIZED
STP Analysis
The customer segmentation outlined in the Current STP Analysis of Chapter 3 reveals significant inadequacies that hinder Moc Chau Milk from fully leveraging its potential customer base and implementing effective marketing strategies.
To successfully implement effective marketing strategies and maximize revenues and profits in the coming year, Moc Chau Milk should segment its diverse market into smaller, more manageable groups This approach will allow the company to tailor its products and services to meet the unique needs of each segment and their customers In this report, we will outline a specific customer segmentation strategy 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:
Region All over the country
Population density Urban, suburban and rural
Age Almost suitable for all ages
Generation Kids (from 2 years old and up: 2-4 years old, 5-14 years old),
Teengers (15-25 years old) and Adults (above 25 years old) Income Low to no income, low to high income
Social Class People from all classes of society (lower, middle, and upper)
Attitude Sensitive or insensitive with the price of products
- Kids who need a lot of nutrients to grow and develop
- Kids who are in puberty time, needing products that can provide them nutrients and energy to be more dynamic and stronger
- Teenagers: they concern more about health and appearance
- Adults: They concern about products to improve their physical and mental health, or products for their children based on nutritional values
- People who want to use pasteurized milk to prepare scrumptious food and drinks
- 100% pure fresh milk with full ofnutrients, proteins, vitamins and minerals
- Promoting healthy bones and teeth
- Strengthening the immune system and reducing inflammation
- Recharging people’s batteries after a strenuous workout
Understanding user categories is essential for effective marketing strategies in the pasteurized milk industry Users can be classified as non-users, potential users, first-time users, or regular users, each reflecting different levels of experience and personal preferences Additionally, loyalty status varies among consumers, ranging from weak to strong, influenced by the specific type of pasteurized milk products they choose, such as those with sugar, less sugar, or no sugar.
Moc Chau Milk primarily targets business markets by focusing on distributors, wholesalers, retailers, stores, and supermarkets that deliver its products to end consumers This customer segment plays a crucial role in the distribution chain, differentiating it from the direct product consumption group.
Moc Chau Milk establishes clear commitments and contracts for product distribution, covering aspects such as pricing, discounts, sales bonuses, commissions, and timely delivery Their business customers primarily include organizations like schools, canteens, and bakeries that utilize pasteurized fresh milk products in meal preparation and food processing Due to the large volumes these customers typically order, they benefit from lower pricing compared to individual consumers.
Moc Chau Milk’s pasteurized fresh milk products cater to a diverse target market, appealing to individuals of all ages and professions The company prioritizes the holistic development of children while also addressing the varied needs of its customers Committed to customer health, Moc Chau Milk emphasizes quality and nutrition in its offerings.
Chau Milk's pasteurized milk products fully meet the vital nutritional demands of consumers.
Moc Chau Milk advises against giving their products to children under two years old, as their underdeveloped digestive systems may struggle to process these items, potentially leading to issues like bloating and indigestion.
Moc Chau Milk's pasteurized fresh milk stands out in the F&B industry due to its strong reputation and extensive distribution network Each pack is meticulously formulated to meet customer nutritional needs, offering more beneficial nutrients and vitamins compared to UHT fresh milk, despite a shorter shelf life This superior nutritional profile has led to its growing popularity among consumers Consequently, the high quality of both the product and services reinforces Moc Chau Milk's unique positioning in the market.
Marketing Mix (4P)
Many customers may hesitate to purchase pasteurized fresh milk products packaged in large bottles, especially when looking for a convenient drink to enjoy during lunch outside.
Therefore, the manufacturer can pack it into a bottle with a smaller capacity.
To ensure authenticity, products should feature an anti-counterfeit stamp, or customers must receive guidance on distinguishing genuine items Moc Chau milk products are recognized as nutritious energy supplements for children.
The official website contains detailed product information.
Effective planning, price standardization, and tightening across all sales channels are essential for Moc Chau milk, which currently faces inconsistent pricing in various locations This price disparity confuses consumers, prompting them to compare costs and brand reputation with other milk options.
Moc Chau Milk is expanding its presence in Central and Southern Vietnam by opening additional showrooms that showcase the full range of its products These showrooms will feature dedicated staff to assist customers, enhancing their shopping experience and providing valuable insights about the Moc Chau brand This initiative aims to make it easier for customers to explore and select products, ultimately increasing brand awareness and customer knowledge.
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.
More KOLs and Influencers with appropriate images should be invited to represent; this helps to attract more people's attention.
To enhance brand visibility and promote lesser-known products, it is essential to organize more trial sessions at supermarkets and events Additionally, amplifying the impact of environmental protection campaigns aligns with the brand's mission and goals.
ACTION PROGRAMS AND BUDGET
1 Moc Chau Milk bottle (900ml) costs
Budget (VND) actionsMain Target -Children to
Teenagers Children and their family
International in habitants in Vietnam
Image We can provide as a healthy drink.
After they’ve done their school semester and new semester
We can provide Milk to the schools freely as samples.
We can provide Milk for freely to their family as well.
We can provide Milk for promotions to them
Usually, they have enough budgets more than normal Vietnamese people(30 Million VND
We can use Facebook, Instagram, Youtube, and Zalo mainly for Vietnamese people here.
For international people, Wechat(for Chinese
We can hire influencers or actors to promote Milk to ordinary people.
If people buy an one bottle, we can provide a free gift such as figures and Moc Chau characters which is we can imagine for company’s
(160 Million) inhabitants), Line(for Korean and Japanese inhabitants)
We can do lottery to go to America for vacanse if people buy 3 bottles
We can give a free ticket if people buy more than 100 bottles at once(120 Milion)
We can hold a Milk festival which is drinking Moc Chau Milk and play milk games (80 Milion)
CONTROLS
Moc Chau Milk should develop targeted sub-plans to effectively monitor the progress of its overall marketing strategy, ensuring maximum return on investment This phase is crucial not only when facing product challenges but also presents significant implementation difficulties By recognizing the value of this phase, Moc Chau Milk can enhance its marketing strategies for pasteurized fresh milk products, ultimately leading to improved business outcomes.
To ensure that marketing plans remain effective and to minimize errors, Moc Chau Milk should actively monitor customer feedback through polls and surveys, allowing for timely adjustments when necessary For instance, if the pasteurized milk product does not resonate with consumers, it should be removed from the marketing strategy to conserve budget resources; conversely, positive customer feedback would justify the continuation of existing plans Additionally, by consistently reviewing expenditures, Moc Chau Milk can uphold its budget, identify areas of increased spending, and strategically reduce costs associated with marketing pasteurized dairy products, ultimately maximizing profits.
CONCLUSION
Moc Chau Milk is a well-established dairy brand known for its high-quality products, particularly its pasteurized milk line, which will be our focus in the upcoming year Despite its strong financial performance, the brand faces challenges including ineffective marketing, a limited distribution network, and the absence of a structured product strategy To address these issues, we have conducted a thorough investigation aimed at gradually resolving these challenges and enhancing the brand's market presence.
Moc Chau aims to lead the natural and organic food sector in Vietnam by prioritizing consumer satisfaction and ensuring its products meet high cleanliness, safety, and health standards This article details the current marketing strategies for Moc Chau Milk, specifically focusing on the STP and 4P frameworks, which have been adapted to align with customer needs and preferences for pasteurized milk products Additionally, we outline specific objectives for this product line in Chapter 5 and present future marketing strategies in Chapter 6 to enhance overall effectiveness.
Moc Chau's products closer to their customers, therefore enhancing their overall appeal
After careful consideration and discussion regarding the market landscape and the strengths and weaknesses of Moc Chau Milk, we developed the marketing plan with a clear focus on achieving our defined goals and objectives.