TH True Milk Company whose full name is TH Milk Food Joint Stock Company, belongs to TH Group. The business was established under the financial advice of the Bac A Commercial Joint Stock Bank. Entering the Vietnamese market since 2010, the company always aims to produce the most authentic fresh milk products. Although only 10 years old, but TH True Milk has achieved many proud achievements. In 2013, the company inaugurated a fresh milk factory with a capacity of 500,000 tons year. Dairy cows are raised according to high technology standards, with more than 45,000 cows carefully selected from New Zealand, Australia, Canada,... TH True Milk is honored to receive the title of High Quality Vietnamese Goods for 3 consecutive years. Not only that, the company also became A reliable supplier in Vietnam and reputable brand in 2011. TH True Milk branded products were in the list of Top 100 trusted and used products. i. Consumer Buying Behavior Need Recognition 4 TH True Milk Type of Need 4 Insight 4 Market Research 4 1. Nutrition: 4 2. Dairy Market: 5 3. Market Size: 6 4. Market Share: 6 5. Market Growth: 7 Types of buying decision: 8 1. Buying Process of TH True Milk: 8 2. Information search: Factors affecting amount of information search 8 3. Evaluation of Alternatives: 9 4. Purchase DecisionPurchase: 9 5. PostPurchase Evaluation 10 ii. TH True Milk Market 10 Segmentation 10 Targeting 11 Positioning 12 iii. Competition 12 iv. Type of retailers 13 Chain store 13 Supermarkets 14 Discount retailers 14 Warehouse retailers 14 Online Retailing: Home Delivery Service 15 v. Multichannel 16 Direct distribution channel 18 Indirect distribution channel 19 Characteristics of the channel compared to other brands 20 Omni channel 21
TRƯỜNG ĐẠI HỌC KINH TẾ TÀI CHÍNH – KHOA KINH TẾ – REPORT RETAIL ENVIRONMENT OF TH TRUE MILK Subject: Retail Management Instructor: Nguyễn Đình Cường Class: B01 Members: Hồ Đắc Thiên Ân Nguyễn Hoàng Huy Phùng Gia Bình Dương Ngọc Liên Hương Trần Minh Anh Nguyễn Tường An Trần Minh Anh Thư Vũ Quỳnh Uyên Lê Hà Thùy Nhi 10 Trần Uyển Nhi Ho Chi Minh City December 22, 2020 CONTENT i Consumer Buying Behavior Need Recognition TH True Milk Type of Need .4 Insight Market Research .4 Nutrition: Dairy Market: Market Size: Market Share: Market Growth: Types of buying decision: Buying Process of TH True Milk: Information search: Factors affecting amount of information search .8 Evaluation of Alternatives: .9 Purchase Decision/Purchase: Post-Purchase Evaluation 10 ii TH True Milk Market 10 Segmentation 10 Targeting .11 Positioning 12 iii Competition 12 iv Type of retailers 13 Chain store 13 Supermarkets 14 Discount retailers 14 Warehouse retailers 14 Online Retailing: Home Delivery Service 15 v Multi-channel .16 Direct distribution channel .18 Indirect distribution channel 19 Characteristics of the channel compared to other brands .20 Omni - channel 21 Introduction TH True Milk Company whose full name is TH Milk Food Joint Stock Company, belongs to TH Group The business was established under the financial advice of the Bac A Commercial Joint Stock Bank Entering the Vietnamese market since 2010, the company always aims to produce the most authentic "fresh milk" products Although only 10 years old, but TH True Milk has achieved many proud achievements In 2013, the company inaugurated a fresh milk factory with a capacity of 500,000 tons / year Dairy cows are raised according to high technology standards, with more than 45,000 cows carefully selected from New Zealand, Australia, Canada, TH True Milk is honored to receive the title of High Quality Vietnamese Goods for consecutive years Not only that, the company also became "A reliable supplier in Vietnam and reputable brand" in 2011 TH True Milk branded products were in the list of "Top 100 trusted and used products" i Consumer Buying Behavior Need Recognition Milk has long been widely recognized as a nutritious drink for all ages, rich in protein, calcium, vitamin D, potassium, and other vitamins and minerals People consume dairy products to meet the nutrients for the body as well as to improve health The human need for dairy products has long been due to the desire to be good for health And in terms of order of need, dairy products are located on the last floor of Maslow's tower, often to satisfy basic human needs TH True Milk also understands the needs of consumers with the benefits that dairy products bring However, TH True Milk can satisfy other customer's desires, it is more interesting and emotional TH True Milk Type of Need The consumers of TH True Milk products often seek to satisfy Utilitarian needs more Thus, TH True Milk provide adequate information and an effortless shopping experience for utilitarian shoppers Insight In the context of the current dairy market, the selection of a quality product that provides the necessary nutrients for the body and at the same time must be prestiged, clean and naturally sourced Market Research Nutrition: Thanks to modern ESL pasteurization technology, without preservatives, minimizing the use of sugar, TH true MILK pasteurized milk not only keeps the fresh taste of fresh milk, but also focuses on health care healthy user Nutritional ingredients in 100ml of milk: 60 Kcal of energy, Vitamin B1, B2, A, D, Protein, Calcium, Zinc, support osteoporosis prevention, strengthen digestive system, immune system and replenish energy development In addition, TH True Milk also develops a variety of flavors suitable for different product lines and buying behaviors Dairy Market: The dairy market has main products including fresh milk, condensed milk, powdered milk and nutritious milk In which powdered milk accounted for nearly half of the total consumption value, fresh milk ranked second with about 23% market share, dairy products such as butter, cheese only accounted for a small proportion of about 13% The market share of powdered milk is largely held by foreign companies such as Abbott, Friesland Campina Vietnam and Mead Johnson because Vietnamese consumers are still willing to pay high prices for foreign brands Meanwhile, for liquid milk, besides Vinamilk, which accounts for over 50% of the market share, there are also many other businesses such as TH Milk, Nutifood, IDP, Hanoi Milk With a low number of dairy cows, Vietnam is heavily dependent on dairy imports In 2014, by 2015, import turnover of milk and dairy products started to decline New Zealand is the main market supplying Vietnam, followed by the US However, in October 2019, TH True Milk was the first enterprise to export milk officially to China Demonstrates the ability to supply fresh milk domestically and can meet the export demand Furthermore, animal milk tends to decline in Vietnam as consumers have many alternatives, for example plant milk, or other nutritious beverages TH Milk, a dairy enterprise with tens of thousands of dairy cows, is also diversifying its products with new products In August 2017, the company launched its herbal beverage product, completely free of raw milk ingredients In March 2018, TH Milk started selling walnut and mac ca nut milk products, adding the nut milk ingredient to its familiar fresh milk product Market Size: According to the General Statistics Office, in 2015, the Vietnamese dairy industry recorded a high level of production of milk of all kinds, with 97.3 thousand tons of powdered milk and 1,103.8 million liters of fresh milk The average milk consumption per capita of Vietnam in 2015 was about 23 liters/person/year, while that in 2010 it reached 12 liters/person/year Including the period 2010 - 2015, on average, each Vietnamese consumes about 15 liters of milk/year Market Share: Vietnam's dairy market is quite concentrated with 90% market share in the hands of eight leading companies including Vinamilk, Nestle Vietnam, Nutifood Binh Duong, Frieslandcampina, Quang Ngai Sugar, TH Milk, Moc Chau Milk and IDP, according to the report by StoxPlus Market Growth: The growth rate of the industry next year is higher than that of the previous year, an average increase of 17% / year in the period 2011-2015 A global market research company, in the coming years, Vietnam's dairy industry will continue to grow 9% / year and reach 27-28 liters of milk / person / year by 2020 thanks to a number of factors: Population: Vietnam is a densely populated country with a population of over 91 million in 2015 and the average growth rate of 1.2% / year Average income increased: From 2008 to 2014, the average growth rate of GDP / person in Vietnam was about 14.8% / year and the average income per capita increased by 17.7% / year The average national average income per capita as of 2014 was 2.64 million VND / month Living standards increase: Along with the increase in income, people's living standards are also increasingly improved, reflected in the average spending per person tends to increase over the years Types of buying decision: Dairy Market: Habitual Buying Behavior is depicted when a consumer has low involvement in a purchase decision In this case the consumer is perceiving only a few significant differences between brands Buying Process of TH True Milk: Identify the Problem: Provide milk with the best quality to supplement nutrients to consumers Type of Needs: Utilitarian Information search: Factors affecting amount of information search Nature of the Product Complexity: TH True Milk currently has whole milk products, dairy products: Ice cream, yogurt and milk made from nuts In addition, TH also launched mineral water Cost: The pricing strategy of TH True Milk, this brand has positioned itself as a high-end product line, choosing the highest price strategy to focus on the psychology of the relationship between price and quality. Aspects of the Market Number of alternative brands: Although TH true milk market segment is clearly defined as the sterile fresh milk segment, due to the characteristics of essential nutritional supplements, the pressure of alternative products is quite large when on the market today There is a wide variety of nutritious foods Therefore, TH True Milk also needs to be careful about products that can replace its product line such as drink yogurt, cheese, soymilk, butter, ice cream and other nutritional foods Source of Information: Internal: Past experiences and Memory Forums, seminars: These nutrition seminars will also show customers the quality of the fresh school milk product (TH true milk) This is also the only dairy product confirmed by the Ministry of Health to be effective in improving the nutritional status and micronutrients of children External: Consumer reports, Advertising and Word of mouth Advertise TH True Milk: TH True Milk advertising images are deployed by the company in the form of multichannel from: Advertisement on television at channels such as: VTV3, HTV7, SCTV2, TVC Advertise in the media with TH True Milk's target audience of women with families and young children Therefore, the company focuses on advertising on prestigious newspapers Outdoor advertising with billboards of light boxes in public places such as bus stops, schools, hospitals Evaluation of Alternatives: Exploit more dairy products Purchase Decision/Purchase: Habitual Decision Making Store Brand, Loyalty: Customer Loyalty Brand Loyalty – Committed to a Specific Brand – Reluctant to Switch to a Different Brand – May Switch Retailers to Buy Brand Milk is an essential fast-moving commodity for consumers, so it is necessary to ensure a presence everywhere in the country for consumers to easily access it So far, TH has had TH true mart chains spread across the country, each with modern, beautifully decorated equipment and food storage systems to help build a good image in the minds of customers Store Loyalty – Committed to a Specific Retailer – Reluctant to Switch Retailers If the customer habitually comes to you, reinforce behavior – Make sure merchandise in stock – Provide good service – Offer rewards to loyal customer Post-Purchase Evaluation Social Factors influencing the buying process Beliefs: About performance of retailers and products Family influences buying decisions: Purchases are for entire family to use Whole family participates in decision making process Retailers work to satisfy needs of all family members Value usually evaluated by reference groups Reference groups affect buying decisions by: Offering information Providing rewards for specific purchasing behaviors Enhancing a consumer’s self-image Attitudes: Evaluations of retailers and products ii TH True Milk Market Segmentation Geographic Demographic Psychology Behavior 10 Urban area: Age: customers Social class: Focus on mainly big cities: from 20-35 years Middle and upper customers with Hanoi, old class demand for "clean" Ho Chi Minh Gender: Male Lifestyle: care for milk Female (focus on your family health women) Occupation: students, staff, business Income: medium to high Targeting In Vietnam, TH true MILK is successful with the differentiation strategy and Market Leading by exploiting the niche market: high segment with high average income and above, mainly focusing on those with demand for milk "Clean" high quality Particularly for yogurt products, TH true MILK defines as: "can be used for children aged months and over, but most suitable for customers aged 20 to 35." (According to Dan Tri) With this target group, TH yogurt will satisfy the basic needs of users when thinking about yogurt: beauty, antioxidant and healthy micronutrient supplementation Also, when you dig deep into insights, TH can handle other insights, which are more interesting and emotional 11 Positioning iii Competition TH TRUE MILK POPs VINAMILK Products are very diverse There are many sales channels, reaching many target customers As the leading milk brand of Viet Nam PODs At the forefront of product Captured its position among diversity many customers The product is very stimulating Pure mik from New Zealand to the taste buds and eye- Powdered milk products catching packaging Additional business in education : TH school A pioneer in the development of organic fresh milk in Viet Nam 12 iv Type of retailers True Happiness (TH) is a brand familiar to consumers TH True Milk has built a closed livestock farm to supply its own dairy factory Chain store This brand has chosen for itself a new customer approach through the construction of a standard chain of product introduction In fact, before TH True Milk was born, no company in the same industry, including big brands, built stores to sell their own products, TH true Milk made a difference in the system distribution TH Group chose its own path according to the principle of preserving the essence of nature and launched a chain of TH true mart stores, build their own chain of stores to introduce products as well as sell their own products There are a total of 282 stores nationwide at the present In the first phase, this system is concentrated in big cities such as Hanoi and Ho Chi Minh City Ho Chi Minh City and Nghe An and are being deployed nationwide The first goal when building TH true mart stores is to promote TH's image to consumers Second, this is a channel to introduce products and sell directly to consumers The third goal of true mart stores is to become a modern chain of stores, specializing directly in providing the cleanest, safest, freshest, and most nutritious food products In the future, when completing the model of online sales and home delivery to customers, TH True Mart will also be a representative base to manage this modern sales channel 13 Supermarkets TH true milk is currently being distributed at the supermarket Discount retailers Currently, there is a program to buy 48 cartons of milk (1 carton) and get free boxes of milk from distributors to retailers 14 Warehouse retailers TH True Milk fresh milk is processed and packaged at Viet My dairy factory In November 2012, TH operated its own modern dairy factory in Nghia Dan, Nghe An Milk can spoil easily at normal temperatures, so it is important to store milk properly to keep it at its best quality TH True Milk is the leading dairy producer in Vietnam that has used cold storage to preserve milk designed and installed by Hung Phat cold storage Online Retailing: Home Delivery Service “Bring the essence of nature to every home” As the leading producer of fresh milk in Vietnam, TH wants every customer to receive the freshest, most delicious and nutritious products Home Delivery is what consumers want, the result of constant concerns and efforts to shorten and eliminate intermediaries in the process of transport and distribution, providing consumers with the product is intact The drug is fast and completely natural, fresh, and pure Customers simply place an order on the internet, the order is sent to the operator center, the staff will then check the customer information entered and call to confirm that the customer's order has been placed successfully Then choose the nearest TH true 15 Mart distribution center or TH true Mart to deliver the order to that place and deliver to the customer within 48 hours with free shipping At present, Home Delivery Service has been applied to customers in Hanoi city and some districts in Ho Chi Minh City including District 1, District 3, District 4, District 7, District 10, District, Phu Nhuan District, and Binh Thanh District and the minimum quantity per order is one carton (http://www.thmilk.vn/dich-vu-giao-hang-tan-nha.html) v Multi-channel TH true Milk entered the Vietnamese market in 2010, is one of the following companies and has to face with many formidable competitors such as Vinamilk, Dutch Lady, Moc Chau, With many such challenges, the success that TH true Milk left is not small Building a methodical distribution channel strategy is also one of the factors that contribute to that success When compared to Vinamilk, TH true Milk is far behind in the distribution system, but this brand has chosen for itself a new way of approaching new customers through the construction of a standard chain of stores to introduce products In fact, before TH true Milk was born, no enterprise in the same industry, including big brands, built stores to sell their own products, TH true Milk made a difference in the system distribution TH True Milk's distribution channel system is designed under channels, namely direct and indirect distribution: With direct distribution TH has two options: TH true Mart chain stores and online ordering - front delivery The purpose of building TH true Mart stores is: Promote images to consumers This is also a channel to introduce products directly and sell directly to consumers 16 Becoming a modern chain of distribution stores, specializing in providing clean, safe, freshest food products Also with the form of online ordering: customers only need to order on the internet, the order is sent to the operator center, the staff will then check the customer information entered and call to confirm your order the customer has successfully booked Then choose the nearest TH true Mart distribution center or TH true Mart to deliver the order to that place and deliver to the customer within 48 hours with free shipping Indirect distribution channel This is a popular method applied because it has the ability to reach customers quickly, and bring big sales for the company With TH True milk, in this indirect distribution channel includes the primary channel, and the secondary channel Level is the process by which goods are moved from the manufacturer to the retail stores such as groceries, supermarkets, convenience stores, and to the end consumer Level is goods going from TH's manufacturer to the agent, then to the above retail points and finally to the consumer TH true Milk is a latecomer but has the determination to attack the competitive dairy market The systematic and differentiated distribution system is the tool that helps TH compete with big names in the industry Although approaching the market not long ago, TH true Milk has been considered as a major competitor of Vinamilk, and contributes to enriching the choice of Vietnamese consumers As a latecomer, TH Milk was determined to attack the competitive dairy market with a fairly large project In order to bring TH True Milk products to consumers, in addition to bringing products into supermarkets, TH Milk has also built a system of separate retail stores 17 Direct distribution channel http://www.thmilk.vn/common/truemart How to receive and process orders when ordering online: Orders are sent to operations center TH true milk Staff receive the order and check customer’s information Calling or sending email for customers to confirm the order Order success And then, select the nearest TH true milk distribution point or store to deliver the order to that place and deliver to the customer within 48 hours and freeship Benefits of order online: Customer: Order conveniently and quickly TH true milk: More efficient order management Accurate order information and reduce errors Manage customer information better Increase the interaction between the company and the customer 18 Indirect distribution channel Distribution channel level 1: Distribution channel level 2: The company has opened 23 TH true mart stores operating in Hanoi and Nghe An province, with modern equipment and product preservation systems that have built up the image and received the love of customers From TH true mart chains, TH true Milk fresh milk products have reached consumers quickly and more conveniently Followed by TH true mart stores were opened in Ho Chi Minh City 28 TH True Mart stores across the country are on a mission to provide consumers with easier access to fresh, clean food These TH Truemart stores act as a large showroom, with a display model "from the meadow to the glass of milk", a model farm, a factory, and an area for customers to use home delivery service, VIP customers, and customers who buy often with large quantities This is the place for direct dialogue and connection between TH True Milk and other TH products with consumers, providing the most complete information about the products 19 to consumers Thanks to this system, from the time of product launch up to now, the brand of TH true Milk has quickly won the trust of consumers and the market Having just been released in a short time and standing behind the huge shadow of Vinamilk, the organized and professional investment has brought Th True Milk the favorable first steps With the large investment of capital to open stores directly under Th True mart, the company has helped the company get closer to customers to poll people in the fastest way to produce suitable products However, since TH Milk has only recently launched its products, it is difficult to get official statistics on its business performance And so, to say whether TH Milk can be a competitor of Vinamilk or not, it is not necessary to consider other factors Characteristics of the channel compared to other brands In fact, when compared to other famous brands, TH true milk is still far behind in the distribution system, but this brand has chosen a new way of approaching new customers through the construction of a chain of pepper stores standard product introduction Before TH true milk was born, no company in the same industry, including large enterprises, built stores to sell their products, due to TH true milk made a difference in the distribution system The methodical system of distribution The systematic and differentiated distribution system is a tool to help TH True Milk successfully enter this competitive dairy market TH True Milk has focused on the most significant goal, the convenience for customers to access and buy the company's products, thereby successfully creating a distribution system and using the benefits that the internet brings In the long term, in order to develop sustainably, the company needs to have flexibility, adjust the changes in accordance with Vietnamese market conditions and other market conditions of Countries around the world 20 ... satisfy other customer''s desires, it is more interesting and emotional TH True Milk Type of Need The consumers of TH True Milk products often seek to satisfy Utilitarian needs more Thus, TH True Milk. .. located on the last floor of Maslow''s tower, often to satisfy basic human needs TH True Milk also understands the needs of consumers with the benefits that dairy products bring However, TH True Milk. .. your order the customer has successfully booked Then choose the nearest TH true Mart distribution center or TH true Mart to deliver the order to that place and deliver to the customer within 48