BRANDING STRATEGY OF DUTCH LADY IN VIETNAM

i STATEMENT OF AUTHORSHIP FINAL PROJECT NAME BRANDING STRATEGY OF DUTCH LADY IN VIETNAM PHAM NGOC HIEN STUDENT NAME PHAM XUAN VINH Declaration and Statement of Authorship We hold a photocopy of this final project which can be produced if the original is lost or damaged This final project is our origin work and no part of it has been copied from any other student’s work or from any other source except where due acknowledgement is made We have not previously submitted this work for any other course/ unit We give permission for our work to be scanned for electronic checking of plagiarism We give permission for a copy of our marked Department for review by external examiners work to be retained by the ii ACKNOWLEDGEMENT In order to finish our final project, we have received a lot of kindly support and precious contribution from many people First of all, I would like to send our big thank to Prof Serge Bywalski, our tutor, for his dedicated instruction and constructive feedback so that we can go through all phases of this final project smoothly We also would like to say thank to Prof Alain who has give to us the critical comments and improvement in order to make our project better We are also very grateful to Solvay - ULB Vietnam, Education management Admin for giving us the full information and feedback during the course Next, our thankfulness goes to our boss, our colleagues and our friends who support and give us valuable ideas and insights The last but not least, we would like to express our love and our appreciation to our family who are always beside and support us in term of spirit as well as material Thanks to this final project, we not only achieve the applied Marketing knowledge, but also get more overview the dairy market and how to build the brand in dairy field as well Ho Chi Minh, March, 2013 Pham Ngoc Hien & Pham Xuan Vinh iii LIST OF ABBREVIATION BUMO - Brand used most often CAGR - Compound Annual Growth Rate DDP - Dairy Development Program DKY - Drinking yogurt milk DL - Dutch Lady Vietnam FCV - FrieslandCampina Vietnam FMCG - Fast moving consumer goods IFT - Intermittent feeding trajectory P4Ws - Purchase for Weeks RTB - Reason to believe SCM - Sweetened condensed milk TOM - Top of mind TOM ad - Top of mind advertisement TVC - TV commercial UTH - Ultra high temperature milk VNM - Vinamilk WOM - Word of mouth iv LIST OF FIGURES Figure 1: Average income of Vietnamese in main cities Figure 2: Contribution of the Dairy Market Figure 3: Drinking Usage Panel Figure 4: Annual Growth rate of Dutch Lady Figure 5: Dutch Lady UHT sales contribution by region Figure 6: Segmentation mapping 10 Figure 7: Monthly TOM brand awareness liquid milk 12 Figure 8: Monthly TOM Ad awareness liquid milk 13 Figure 9: Brand consumed P4Ws liquid milk 13 Figure 10: Dutch Lady Brand image 14 Figure 11: Brand Character and Image of Vinamilk 16 Figure 12: The growth of categories drinking 22 Figure 13: Factors to affect consumer to purchase a FMCG product 23 Figure 14: The evaluation of environment concerned when purchase a FMCG product 24 Figure 15: The evaluation of charity concerned when purchase a FMCG product 25 Figure 16: Ansoff's Matrix 26 Figure 17: Porter Generic Strategy 1985 28 Figure 18: Happy Cow Milk mapping 31 Figure 19: Pricing Strategy 32 Figure 20: Three level of product 34 Figure 21: The Dairy Market Volume and Value 50 Figure 22: The Market Share of Dairy Market in Value and Volume 51 Figure 23: The evaluation of food safety when decide to buy 52 Figure 24: The react of consumer if product manufacturing negatively affects the environment 52 Figure 25: Maslow Hierarchy 1943 53 Figure 26: Media strategy Model 53 v LIST OF TABLES Table 1: Vietnam Long-term Macroeconomic Forecasts Table 2: Selected Asian Economies: Real GDP and Consumer Prices Table 3: Market share of Dutch Lady and Vinamilk in Value and Volume 15 Table 4: The drinking habit by age 20 Table 5: The drinking habit by region 21 Table 6: The drinking habit by income 21 Table 7: Population by Sex and by Age group in 2011 54 vi LIST OF PICTURES Picture 1: 15 Years of Dutch Lady in Vietnam Picture 2: Product Portfolio Picture 3: Some communication materials of Vinamilk 15 Picture 4: The TV Commercial of Vinamilk 17 Picture 5: The Print advertisement of Vinamilk 18 Picture 6: Out of Home advertisement of Vinamilk 19 Picture 7: Brand activation of Vinamilk 19 Picture 8: The American Humane Certificate 29 Picture 9: The Design of Happy Cow Milk bottle 35 Picture 10: Illustration of Happy Farm online game 45 vii LIMITATION Dutch Lady is well-known brand in the world which has a wide-range of data and researches in many different analysis, therefore, in our report, deal to the scope of work, we would like to discuss the case of Dutch Lady’s communication in Vietnam only.We also want to analyse the branding strategy of Dutch Lady in our point of view instead the whole marketing activities Besides, the Vietnamese dairy market is quite competitive with many different rivals both of local and global; hence, based on the current market share and performance of Dutch Lady Vietnam, we have just picked out Vinamilk as our key competitor to analysis and skip for the other rivals Furthermore, after analysis on the current performance of Dutch Lady, we have found some findings and given the feasible recommendations There are two strategies that DL can apply for short-term and long-term development Each of strategy would be used for each different branding plan for DL Due to the limitation of this project, we would focus only on building a branding plan for launching the “Happy Cow Milk” concept Moreover, in order to make this report more visual and attractive, the using images, pictures, and photos has been collected from the Internet and usage for illustration purpose only Finally, this report has been written in English which is not the primary language of the team researchers Therefore, sometimes, the readers could be found some parts, and sentences which are difficult to understand and not clear about the point of view, please notice to us for further improvement It would be our pleasure to make it clear and update it for later viii TABLE OF CONTENT EXECUTIVE SUMMARY 1 INTRODUCTION 1.1 Overview about Dutch Lady Vietnam 1.1.1 Background of Dutch Lady Vietnam 1.1.2 Product portfolio 1.2.2 The current Dairy Market 1.3 DUTCH LADY AND 3C ANALYSIS 2.1 Company 10 2.1.1 Segmentation and target consumers 10 2.1.2 Dutch Lady current performance 12 2.2 2.1.2.1 Branding performance 12 2.1.2.2 Findings 14 Competitors analysis 14 2.2.1 Current performance of Vinamilk 14 2.2.2 Brand performance Vinamilk 15 2.3 Findings 2.2.2.1 Brand Characteristics 15 2.2.2.2 Branding Strategy 16 Consumers insight 20 2.3.1 How the customer consume Dairy product 20 2.3.2 Vietnamese Perception trend 22 2.3.2.1 Being Cleaner and Greener 22 2.3.2.2 Being responsible 24 RECOMMENDATIONS 26 3.1 Happy Cow Milk concept 28 3.2 Targeting customers 29 3.3 Positioning 31 3.4 Pricing strategy 32 3.5 Product description 33 3.5.1 Core benefits 33 3.5.2 Actual product 33 ix 3.5.3 Augmented product 34 3.6 Packaging 34 3.7 Communication 35 5.1 5.2 3.7.1 Tone of voice 35 3.7.2 Communication plan for years 37 3.7.2.1 Pre-launch Stage 37 3.7.2.2 Launch Stage 39 3.7.2.3 New product line extension launching 47 REFRENCE LIST 49 APPENDIX 50 Appendix 1: List of figures 50 Appendix 2: List of tables 54 EXECUTIVE SUMMARY Dutch Lady has emerged as one of the first global corporation to invest in Vietnam in the very beginning of the Opened Economic Aiming to set up a strong basement in Vietnam, Dutch Lady Vietnam has put great effort during 16 years to provide not only the good quality of dairy products but also improve the physical body of the Vietnamese The success of Dutch Lady roots from localizing their products and bringing it closely to Vietnam consumer In this report, team researchers want to find out about the current branding strategy of Dutch Lady in Vietnam and how it communicate to the Vietnamese consumers This report will comprise in parts which is assigned to bring the clear point of view about Dutch Lady, its key competitors, and feasible branding strategy in the next years In the first part, it would provide to the reader about the overview of the Vietnamese diary market It also discusses about how potentiality of the liquid milk market and some macroeconomy factor driven this market in the next years The second part would examine the current performance of Dutch Lady on the 3C model: Company, Competition and Customer The Company analysis discusses about the segmentation and target customer of Dutch Lady, differently, the segmentation of liquid milk is based-on the psychology of consumer and their milk consumed behaviour Besides, it also examine on the current branding performance of Dutch Lady Furthermore, in order to understand clearly about key rivals, the competitor will examine on the branding performance of Vinamilk which is a key competitive rival Then, of course, the customer insights is the key which lead to the success of ay branding campaign, therefore, the team researcher also want to find out how consumers purchase Dairy product and their perception trend Based-on the below analysis, part three would like to point-out the feasible branding strategy to Dutch Lady in order to achieve the main objectives for both of short-term and long-term development: to keep and improve the current position of Dutch Lady in Vietnamese Dairy market and to explore a new market Due to the limitation of this project, the team researchers would only propose the communication plan for Dutch Lady to explore a new market through stages: pre-launch, launch, and post-launch 40 Strategy At the beginning of launching stage, DL provides the introduction booths around the big super market, shopping mall centre, schools, and cinema in five big city of Vietnam: Ho Chi Minh, Hanoi, Hai Phong, Da Nang, Can Tho Timing: Jun – July 2013 Each booth will have PGs and PB, Happy Cow mascot to welcome and talk about the Happy Cow concepts and products Steps to conduct: Welcome Mother and Kids by the music and PGs Guide kids to play the games To talk to the mother about the Happy Cow milk To give leaflet, brochure and show the Video on the television The kids finish the game with the prize is a sample of Happy Cow milk Say good bye and take picture to upload on the webpage and Facebook fanpage KPIs:  Reach to 350.000 people to aware about the Happy Cow Milk  Create noise on the Facebook with the like, comment, and share about the picture of visitors  Connect with 50.000 Facebook accounts of visitors Kid farm tour Objective:  To emphasise the commitment of producing the fresh milk from Happy Cow, DL would rebuild and decorate its current farm to make it become a sightseeing place for customer can visit in the weekend  To create a link between visitors emotion and Happy Farm Strategy: The farm located in Binh Duong province, near Ho Chi Minh City, which has been call by DL “The Happy farm” This farm is where the cow has been raised as natural as normal The cow can run on the field, eating fresh grass, and clean water When go to “Happy 41 farm”, the customers can see how DL raises the cow and look at the process of producing the exclusive Happy Cow milk Aiming the make the Happy Farm become a sightseeing place, where the parents can take their children to go picnic on the weekend, and the family spend time together to have a good place to go DL would invest on the “Happy farm” and make it becoming one of a green and beautiful farm has ever been in Vietnam The farm will have a very big green field where the chicken, dogs, and cattle can run around The citizen can enjoy a fresh, relaxed and comfortable meal among the green atmosphere with the cattle The most interesting point is that the children can play role as a little farmer in one day They can dress like a real farmer, and learn how to feed and raise cattle They can see and touch the animal by their raw hands, it would be an unforgettable experience At the end of the day, the tour guide will teach little farmer how to harvest milk from cow After spending day at “Happy Farm”, not only the kids can learn a lot from approach with the animal, but also the parents can spend a relaxation day with fresh air without the population of city life Moreover, there are also some wonderful prizes for visitors to win when telling to their friends about their unforgettable moment at Happy Farm Throughout this contest the user can share their story and photos via the Happy Cow Milk website and forum then the story will be automatically share to Facebook account for their friends to comment and like For each month, DL will select people who have the highest like rate and comment to be the winners The winners will receive a-10.000.000-VND- prize and years using DL product for free This contest will create reliable WOM to the relatives of the visitors, and, then it also creates noise, dialogue, conversation, comments, entry, fan-page of users to talk about the DL This would be the factor to motivate the other to visit Happy Farm one day and consume the Happy Cow Milk KPIs:  To attract 100.000 visit per years  To create the good emotional awareness of visitor to Happy Farm 42 Run for Happiness As commitment, DL aiming to develop the brand Happy Cow Milk is not only delivered the happiness for the users but also bring the happiness for the Vietnamese community Objective:  To build Happy Cow Milk as an image of a responsible, social and friendly corporation  To increase the brand awareness about the Happy Cow Milk Strategy: DL sponsors for an annual charity program which has been call “Run for Happiness” This is the annual marathon contest for everyone in Vietnam The running contest can motivate people to spend time to practise exercise and strengthen their body to add hands to support the community A small thing can make differences when go together All of the money has been collected from the registration has been donated to Vietnamese Cross for helping the children in Vietnam Timing: September 2013 The contest will organise in Ho Chi Minh and Ha Noi  In Ho Chi Minh the running will be organised in the Phu My Hung area, where has a lot of rich people living Therefore, through out of this running, DL can also catch the attention directly to its target customers The contest has been estimated to attract more than 1000 people to join and the concerned of publication and press  In Hanoi, the running will be organised in the Ba Dinh district which is also a luxury are with Happy Cow Potential customers It is also estimate the attraction of 1000 people to sign in  For these activities, besides sponsoring finance for this event, DL would sponsor the outfit including T-shirt and cap with Happy Cow Milk logo and image for the attendees Moreover, the winner can also receive a voucher for using free Happy Cow milk in month  This event would be support by the media communication of the DL and also DL expected because of the charity purpose, DL could receive a huge free media from the press 43 KPIs:  To reach 2500 attendants for this running  To increase 80% awareness of people living in Phu My Hung Area and Ba Dinh district  To reach 20 free media on the press Promotional DL uses the trade promotion at the time of year-end and before the Tet holiday, which is the peak sell of FMCG products Objective:  To create the repeat sales of customers  To achieve the sale target at this peak time Timing: from Nov – Jan 2013 Strategy:  Using the key message “Give Happy Cow Milk for Wishing strength, happiness and wealthy to your relatives”  Discount 10% per each 1L bottle During the promotional period, DL will deliver the special packaging for Tet holiday The package will include Happy Cow Milk bottle The bottle has been painted in the golden colour with the red dot In Vietnam, Tet holiday is the time for everyone to give all of the best wishes for their relatives There is comparison that the healthy is as worthy as gold The red colour is also stand for luck and wealthy Therefore, giving Happy Cow Milk special packaging can stand for the best wished of longevity, happiness and wealthy The promotional period will be support by the media  Online banner will introduce about the limited special edition of Happy Cow Milk 44 Application on Webpage and Mobile Objective:  To educate the audience about the Happy Cow concept via the entertainment Strategy: DL will create the game Happy Farm for users to play via the webpage, forum, mobile and tablet This is an online game, which imitate the daily work of the farmer The player can access the game anywhere and anytime when they have an Internet connection via the mobility gadget Happy farm will let the players have chance to rise up their own farm with a lot of cute cattle For each type of cattle, the player can harvest some agricultural product, then they can sell it through the market to find money to invest for their own farm in order to make it bigger and wealthier The key cattle at Happy Farm are the cow The cow milk has the highest transaction value when sell through the market However, in order to harvest the milk, it require a very carefully take care of the cow The player have to feed the cow with the very fresh grass, give them clean water to drink, let them to run along the field and funny, to play music for them sleeping Finally, when player did these processes carefully they can produce the exclusive Happy Cow Milk and sell to market to collect a lot of money This is also the aiming of DL when development this online game, throughout of the game, the players can understand how difficult to make the finest Happy Cow milk Moreover, the Happy Farm also link with the Facebook for the players can share their achievement when playing game Besides the game value money, when playing Happy Farm the player can also have chances to win valuable the real prize from DL KPIs  Reach 500.000 download  Reach 1.000.000 likes and 1.000.000 shares via Facebook 45 This is an example for the “Happy Farm” game on Happy Cow Milk webpages DL expect the concepet Happy Cow can penetrate to customer consious, when they played the online game The users could easily to access the game via laptop, mobile, and tablet Picture 10: Illustration of Happy Farm online game Media plan The media communication of DL has been conduct at main parts:  Part 1: the media plan will focus on mass media to educate the customer about the Happy Cow Milk concept, its benefits, and the production process  Part 2: the media will support for Happy Cow Milk campaigns Part 1: the mass media Advertisement: using the Blitz model for months Jun and July 2013  The television advertisement has been run on the Vietnam popular channel: VTV1, VTV3, HTV7 and Vinh Long Channel  Vietnamese youth, in average, spend over hours per day launching to the internet, stated in 3C website (2010) Therefore, online banner will be an effective tool to get attention from our target segment The banner will be linked directly to Happy Cow Milk webpage These banners will not only help consumers easily search for company information but also is used to update and broadcast the promotion events of company to the customers DL would use “full banner” size and put it on the top of the main page of selected websites so that it will “approach” consumers whenever they log in to those websites Moreover, banners should be designed in a simply way to be understood easily but still create and emphasize the Happy Cow Milk concept  In Vietnam, DL choose Facebook as the key social networking which has more than million Vietnamese members and most of them are the younger (BBC news 2010) Hence, DL decides to link all of the branding campaign and activation to the Facebook page 46  DL chooses to advertise on Hoa Hoc Tro (H2T) magazine, Tiep Thi & Gia Dinh Magazine and Woman Health Magazine These magazines focused on teenager, young women and men, young family who are the main target market Each magazine reach direct to one main target  Total: 20.920.000 GRPs Vehicle W1 W2 W3 W4 TV W5 W6 W7 W8 3.000.000 GRPs DL Webpage Digital 3.000.000 GRPs Facebook 12.000.000 GRPs Zing Prints 24h.com.vn 200.000 200.000 150.000 150.000 100.000 80.000 70.000 50.000 Kenh14.vn 150.000 150.000 150.000 150.000 100.000 50.000 30.000 20.000 Ngoisao.net 200.000 150.000 150.000 90.000 80.000 50.000 50.000 30.000 Tiep Thi & Gia 100.000 50.000 50.000 50.000 50.000 50.000 30.000 20.000 20.000 20.000 20.000 20.000 10.000 10.000 10.000 10.000 Dinh, Woman Health Hoa Hoc Tro PR  Publishing editorials per months to discuss about the Happy Cow Concept and its benefits on popular print newspaper: Thanhnien & Tuoi tre, and its digital version Then DL will quote it on Happy Cow Milk webpages and forum with sources Part 2: Support for the brand activation Before each of event, DL will run the media to support for the event Total GRPs: 36.650.000 GRPs Event Count Down Introduction Booth May Jun July Aug Sep Oct Nov Dec TV 3.000.000 GRPs Digital 5.000.000 GRPs Prints 550.000 GRPs Digital 5.000.000 GRPs Jan Feb Mar Apr 47 Print Run for 200.000 GRPs Digital 6.000.000 GRPs Prints 200.000 GRPs Digital 5.000.000 GRPs Prints 200.000 GRPs Happiness Promotion Happy Farm TV 1.000.000 GRPs Digital 10.000.000 GRPs Prints 500.000 GRPs 3.7.2.3 New product line extension launching Objectives  In 2013, DL had a big innovation for the new concept of Happy Cow Milk with HAPPY COW, HAPPY MILK with benefits providing real and natural nutrition by premium milk line  After this innovation, a follow-up strategy is a must in order to keep good momentum to make the customer get more choice  That means we have a line extension with new favor – chocolate/ strawberry in happy cow milk for the customers Strategy  Help the customer get more choice by new favors  Build and keep the customer loyalty by current line and increase the brand awareness by new line  Diversify the target customer and persuade the customer to switch happy cow milk using  The main of activites in launching new lines: Online sampling by register to get only first 1,000 premium samples  Schedule: In May – June of 2014 GRPs  Using the pulsing approach  Total GRPs = 10.445.000 GRPs Media plan 48 Events Best Activities buy Webpage community W1 W2 W3 W4 W5 30.000 W6 W7 W8 3.000.000 GRPs Facebook Zing 7.000.000 GRPs 24h.com.vn 30.000 30.000 30.000 30.000 Kenh14.vn 20.000 20.000 20.000 20.000 Ngoisao.net 20.000 20.000 20.000 20.000 20.000 Thanhnien 10.000 10.000 10.000 10.000 10.000 LCD ads 5.000 5.000 5.000 2.000 5.000 30.000 20.000 20.000 20.000 10.000 5.000 KPIs  Evaluate the like or dislike the new favour How they interest in new favour  Collect data base of the loyalty customer to use in next phase 49 REFRENCE LIST  Ansoff, H I 1969, Business Strategy, Penguin Books, New York    Dutch Lady Vietnam website, viewed Dec 2012 Internal data ( sales figures, brand health, retail audit) which be issued by FrieslandCampina Vietnam Kotler P 2005, Principle of Marketing, Pearson Prentice-Hall  Ohmae K 2005, The Next Global Stage, Pearson Education  Porter, M E 2004, Competitive Strategy, Free Press  Weinberger et al 1992, “The impact of humour in advertising: A review”, Journal of Advertising; Dec 1992; 21, 4; ABI/INFORM Global, p 35   Vinamilk website, view Dec 2012 , VGP News 2012, “Gio Trai Dat 2012 Tiet Kiem Nhieu Nhat”, viewed 20 Jan 2012, 50 APPENDIX 5.1 Appendix 1: List of figures Figure 21: The Dairy Market Volume and Value (Source: Internal Data) 51 Figure 22: The Market Share of Dairy Market in Value and Volume (Source: Internal Data) 52 Figure 23: The evaluation of food safety when decide to buy Figure 24: The react of consumer if product manufacturing negatively affects the environment 53 Figure 25: Maslow Hierarchy 1943 Figure 26: Media Strategy Model 54 5.2 Appendix 2: List of tables Table 7: Population byPopulation Sex and by Age 2011by bygroup Sexinand Age Both Sexes 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95-99 100+ 7,773,616 7,529,891 7,799,639 8,955,080 8,974,859 8,306,266 7,189,158 6,574,965 5,949,512 5,485,102 4,319,695 2,925,342 1,862,050 1,517,406 1,322,572 1,070,149 634,189 289,368 80,312 16,038 1,549 Total 88,576,758 Age group in 2009 Contribution 8.78% 8.50% 8.81% 10.11% 10.13% 9.38% 8.12% 7.42% 6.72% 6.19% 4.88% 3.30% 2.10% 1.71% 1.49% 1.21% 0.72% 0.33% 0.09% 0.02% 0.00% Male Female 4,085,414 3,933,668 4,050,326 4,626,908 4,608,420 4,224,054 3,657,726 3,278,735 2,944,107 2,645,696 2,014,747 1,324,178 825,415 633,899 529,412 413,392 216,242 79,797 17,136 2,461 166 3,688,202 3,596,223 3,749,313 4,328,172 4,366,439 4,082,212 3,531,432 3,296,230 3,005,405 2,839,406 2,304,948 1,601,164 1,036,635 883,507 793,160 656,757 417,947 209,571 63,176 13,577 1,383 44,111,899 44,464,859 (Source: Ac Nielsen Data Base 2010)