(Tiểu luận) vindrink and new product business environment, brand positioning and product

TRINH HAI YEN VINDRINK AND NEW PRODUCT Marketing assignment 2021 HANOI, 2021 TRINH HAI YEN h TABLE OF CONTENTS PART I – BUSINESS ENVIRONMENT, BRAND POSITIONING AND PRODUCT ABOUT VINDRINK 2 MARKET OVERVIEW 2.1 Growth & trend 2.2 Competitor Analysis REPLACEMENT PRODUCTS 11 DREAM™ OAT BEVERAGE PRODUCT CONCEPT 12 4.1 Dream™ Oat Beverage Original 13 4.2 Dream™ Oat Beverage Unsweetened 14 4.3 Dream™ Oat Beverage Oat Vanilla 15 4.4 Dream™ Oat Beverage Oat Chocolate 16 SWOT ANALYSIS 17 5.1 SWOT analysis 17 5.2 Overall Assessment 18 PART II - MARKETING MIX PROPOSAL 19 STRATEGIC OBJECTIVES 19 PROPOSALS 19 2.1 Product 19 2.2 Price 20 2.3 Place 21 2.4 Promotions 21 IMPLEMENT METHODS 22 3.1 Product design and implementation 22 3.2 Marketing of sales 22 3.3 Advertising 22 3.4 Market-testing 23 Recommendations 23 REFERENCE 25 h PART I – BUSINESS ENVIRONMENT, BRAND POSITIONING AND PRODUCT ABOUT VINDRINK VINDRINK was established on May 29, 2017 Over the past years, we have built a nationwide sales distribution system with all channels of GT, MT, KA, Pharma and a professional sales team in Vietnam Vindrink products’s is a big brands with good quality, they have received great attention and support from partners and customers nationwide They are constantly striving and developing to become a leading unit in the import industry in Vietnam distributing beverage and confectionery products from Thailand, Europe, Austria, Indonesia distribution system in Vietnam, Vindrink brings to the market high quality imported products, well received by consumers such as Thailand Redbull energy drink, European Redbull energy drink, Carabao Thailand, Play Candy Thailand, Thai milk candy Vindrink started participating in the FMCG market with Redbull energy drinks from Thailand, EU, and Carabao energy drinks Along with that is the constant development and expansion of the distribution system spreading across the provinces in Vietnam and the launch of the Play Candy fruit-flavored mouth candy product line that is receiving great support to consumers h In order to meet the demand and closer to consumers, not only with a specialized logistics system, but Vindrink also builds a widespread and profession distribution system, therefore, the company's sales channel is covered nationwide with all General Trade channels (Modern Trade, Pharma, ) The enterprise affirms its long-term commitment with Vietnamese customers and distributors by creating sustainable core values on the basis of cooperation with a professional, dedicated and thoughtful sales team The more customers that approach, the higher the demand for creativity and innovation The company has been exploiting potential sources from new products Up to now, not only energy drinks or lozenges, the company has introduced two additional items to the domestic market, namely milk candy and Nii tea h To modernize the distribution system, improve employees' working efficiency, Vindrink has implemented a “great revolution” and officially signed a 6-month contract to deploy DMS software for distribution management solution Vindrink is developed by the MobiWork Vietnam Technology Joint Stock Company since 12/2018 With specific features such as:  Automate the sales process: Order, process and manage orders right at the point of sale on mobile devices instead of having to write applications with books like traditional management methods  Support customer visit process with mobile reports such as purchase history, debt management, inventory, out-of-market inventory or product information management, promotions, reports KPIs  Optimizing the sales route, allocating the sales route for each employee, avoiding the case of overlapping routes, and the wrong lines  Tracking location, time, moving route of sales staff on GPS digital map  Manage sales support programs such as promotions, discounts, debts; POSM display, and management program After more than months of trial application of MobiWork DMS, the distribution efficiency of Vindrink Import - Export Trading Joint Stock Company has been significantly improved Productivity is constantly increasing, data and reports in the market are accurate and easy to track, so Vindrink decided to officially deploy the software in February 2019 With the experience of deploying for hundreds of h enterprises, MobiWork hopes to continue to accompany Vindrink on the path of developing a sustainable, efficient and flexible distribution network MARKET OVERVIEW 2.1 Growth & trend Vegetable milk - green consumption trend Nut milk is currently a product group with a very fast growth rate in the world market According to recent data from Innova Market Insights, the global market for plant-based beverages increased to $ 16.3 billion in 2018, double the $ 7.4 billion in 2010 According to Nielsen, it is estimated that the global vegetable milk market will reach 11.9 billion USD in 2017 and will grow to 34 billion USD by 2024 In Vietnam, the trend to use nut milk is also increasing strongly According to the survey results in 2019, up to 66% of Vietnamese consumers want more products made entirely from natural ingredients Dairy alternatives such as soy milk, almond milk, rice milk, oat milk, coconut milk, cashew milk, will become increasingly attractive to consumers, with different needs depending on the region According to statistics from the General Statistics Office, liquid milk production in the first quarter of 2020 reached 369 million liters, an increase of 1% over the same period last year Liquid milk revenue in the 1st quarter of 2020 reached VND 15.3 trillion Vietnam's liquid milk market has a compound annual growth rate of 14% in the period of 2014 - 2019 It is forecasted that liquid milk production in Vietnam will continue to increase in the next few years due to capital investment in agriculture More and more dairy farms to reduce dependence on imported milk In 2018, the domestic nut milk market accounted for 12% of the liquid milk market structure, with a CAGR of 18%, the highest among liquid milk lines h Domestic nut milk market revenue period Q1/2014 - Q1/2020 Source: VIRAC, TCTK Source:VIRAC The compounded growth rate of replacement milk has tended to decrease gradually since 2013 but is the only product line with a steady and steady increase in CAGR from 2016 onwards when consumers' demand for these products Vegetable dairy products increased following comparative information on nutritional levels for animal milk lines It is forecast that in 2018-2022, the compound growth rate of replacement milk will reach 15%, the highest among traditional milk lines h Source: VIRAC, Euromonitor Currently, the source of raw materials for the production of seed milk is limited Raw material inputs for plant milk such as Macca nuts, walnuts are not enough to meet domestic quantity, almost 100% of foreign raw materials are imported As for input supply, Macca farms have been planted in the Central Highlands for more than 10 years, the planted area has reached nearly 2,500 hectares and is rated for good quality However, it is still not able to meet the demand for raw materials for domestic production The milk lines currently produced in Vietnam, with ingredients mainly from walnuts, almonds, and red beans, must also be imported mainly from farms in the US Vietnam's raw milk seed industry is still in its infancy and has to step by step standardize it to improve the quality of orchards as well as seed quality h 2.2 Competitor Analysis 2.2.1 Direct Competitors (1) Vinamilk seed milk Vinamilk is a major brand name in Vietnam In recent years, vinamilk expands its products with "made in Vietnam" nut milk, including: walnut soybean milk, almonds and red beans Vinamilk nut milk products are self-contained according to European standard technology with selected 100% non-GMO raw materials, as well as premium walnuts and almonds imported from the US The product is invested in research and development to both "standardize" nuts and meet the quality and nutritional requirements of consumers  Competitive strategy for product quality: "Clean milk - no - raising dreams"  Objective: Build a sustainable brand  Strength & Weakness: - Strengths: successfully built the first European-standard organic dairy farm in Vietnam Here, the cow herd is cared for with Europe's non-strict Organic standard, with organic grass without pesticides, the cows are naturally stocked, without using growth hormones, ensuring fresh milk 100% pure with no antibiotic residues, for the freshest and purest milk In addition, vinamilk aims at mothers and babies, understands their psychology and makes positive contributions to sustainable social development activities in Vietnam Initiation of the program "Vietnamese school milk" - Weaknesses: Depends on imported raw materials, so production costs are affected by exchange rate fluctuations In addition, the cost of advertising, market research, and sales support for agents is huge h (2) TH true milk seed milk TH milk is a new milk brand that has just entered the market with TH true milk at the end of March 2018 Originated from the desire for a strong stature of Vietnam and wants all Vietnamese people, especially is the generation of children who enjoy high-quality dairy products with high nutritional value TH true NUT milk includes types: TH true NUT of the macca seeds and TH true NUT walnuts Considering the name, the first ingredient in the milk box is the macca nuts, walnuts Walnuts are imported from US farms, while macca nuts are imported from Australia, South Africa and partly purchased from farms and growing regions in Vietnam Competitive strategy for product quality All products go from the mentality of "cherish mother nature, who will give everything to yourself", opening a new path for the Vietnamese milk and beverage market  Objective: expand market share, increase market share  Strength & Weakness: - Strengths: TH owns TH owns a clean milk processing factory TH with a design capacity of more than 5000 tons / year (in Nghia Binh commune, Nghia Dan district, Nghe An province) This is Asia's largest and most modern dairy production and processing factory in terms of size and technology In addition, TH True Milk has an extensive product distribution system, which understands the consumer culture of customers, so it offers diversified and high quality products - Weaknesses: Prices are high compared to dairy products in the market h 4.1 Dream™ Oat Beverage Original INGREDIENTS OAT BASE (WATER, OATS), SAFFLOWER OIL, CALCIUM CARBONATE, SEA VITAMIN VITAMIN D2, SALT, A PALMITATE, VITAMIN B12, TRICALCIUM PHOSPHATE h 13 4.2 Dream™ Oat Beverage Unsweetened INGREDIENTS OAT BASE (WATER, OATS), SAFFLOWER OIL, CALCIUM CARBONATE, SEA SALT, VITAMIN D2, VITAMIN A PLMITATE, VITAMIN B12, TRICALCIUM PHOSPHATE h 14 4.3 Dream™ Oat Beverage Oat Vanilla INGREDIENTS OAT BASE (WATER, OATS), SAFFLOWER OIL, NATURAL FLAVORS, CALCIUM CARBONATE, SEA SALT, VITAMIN D2, VITAMIN A PALMITATE, VITAMIN B12, TRICALCIUM PHOSPHATE h 15 4.4 Dream™ Oat Beverage Oat Chocolate INGREDIENTS OAT BASE EVAPORATED COCOA (WATER, OATS), CANE SUGAR, POWDER PROCESSED WITH ALKALI, SAFFLOWER OIL, NATURAL FLAVORS, CALCIUM CARBONATE, SEA SALT, GELLAN GUM, VITAMIN D2, VITAMIN A PALMITATE, VITAMIN B12, TRICALCIUM PHOSPHATE h 16 SWOT ANALYSIS 5.1 SWOT analysis h 17 5.2 Overall Assessment Opportunity Strength Weakness - Find out new products that meet - Focus on developing products that the needs of customers have a large market share - Communication strategy, building - Focus on young people - To step up the domination of the public relations domestic market and expand foreign markets Threat - Adjusting reasonable prices, - Entrenched in occupied market attracting customers with areas, stopped expanding into new attached services markets - Train and recruit staff with high - Strengthen brand reputation technical and managerial qualifications, improve the company's autonomy  Competitive advantage - The position of the company: Having exclusive distribution of its own products taking advantage of available channels and resources, especially is human deployed deeply and widely in all 63 cities and provinces across the country Besides, Vindrink also meet production requirements with firms - The position of trend: Covid-19 has significantly effected and created a lot of changes in consumer behavior as well as business strategy in Vietnam During this trend, healthy products were the top concern of Vietnamese people, therefore, DREAM™ OAT BEVERAGE OAT is one of the choice for health  Price strategy: As can be seen from the above analysis: The company has dvantages in products (quality, sustainable product orientation according to future trends) These are advantages that help the company develop in the future  Proposed strategy: Taking advantage of strengths and opportunities (SO) h 18 PART II - MARKETING MIX PROPOSAL STRATEGIC OBJECTIVES Increasing the competitiveness of products through product marketing such as ensuring price stability and product quality From there, portray the product image in the mind of the customer Be persistent, take advantage of the available products to offset costs for the first years Expand the product consumption market, increase the company's market share in the direction of dominating key markets where the company's products have been exploited effectively, meeting market demand PROPOSALS 2.1 Product (1) Improving product quality In the fiercely competitive environment, customers are increasingly expecting more and more perfect products Therefore, in order to increase its sales and market share in the current market, Vindrink must regularly focus on developing new products and diversifying products This is of great importance, both urgent and frequent This task requires more investment in human and material resources, first of all, a consistent and synchronous policy from management to departments and departments In order for the development of new products and product diversification to be completed, Vindrink must develop new products with features that are not available on the market h 19 (2) Improving models and packages Current consumer trends are focusing on design and packaging of products Understand that trend, many companies have not hesitated to pour investment costs into packaging Although after this campaign, the school may lose the selling price advantage, but in return, the sales increase more strongly and consumers remember the brand more Current consumer trends are very focused on product appearance, beautifully designed products always receive the attention of customers However, with specific products such as milk due to short-term use and unable to replace the shell because of food hygiene and safety, Vindrink can improve the Vietnamese labels: more eye-catching colors, prominently stuck on the milk box, can be changed when there are events such as Mid-Autumn Festival, Lunar New Year but still within the framework in accordance with the requirements of the Department of Food Hygiene and Safety 2.2 Price Price is considered an important competitive factor in attracting customers of every business Therefore, it is especially important to have an appropriate price policy, helping Vindrink to have an effective business strategy In general, due to the characteristics of imported products, Vindrink's price policy will not be as advantageous as domestic products such as Vinamilk or TH true milk However, when compared to imported nut milk products, DREAM™ OAT BEVERAGE OAT also has certain advantages: cheaper price, long storage time, and many different flavors h 20 2.3 Place To support its distribution network, Vindrink has a distribution system in 63 provinces in Vietnam Especially at chain stores / supermarkets like Circle K, Lan Chi mark, Vinmart, etc Vindrink plans to open more marketing campaigns and develop more retail outlets to increase sales In addition, Vindrink also has incentives for agents to support becoming a close friend, loyal to its products 2.4 Promotions (1) Promotion The purpose of promotion is to stimulate consumer demand, motivate consumers to buy and buy more goods and services that the business provides or distributes With customers, mainly adults who care about their personal and family health Vindrink can target promotions for household appliances, bonus products that attract children such as play candy, energy drinks, and already have links With the purpose of bringing its products to the majority of consumers, Vindrink should use the form of advertising such as radio, television, newspapers and multimedia communications (2) Advertising Investing in building consumer trust is a long process, requiring enormous and long-term investment in marketing Increasing the brand value for Vindrink as well as increasing sales, market share and profit in the short and long term is a difficult decision for the company management because of the costs attached However, in order for dream seed milk to be popular with consumers as well as beat traditional dairy brands, Vindrink needs to spend on TVCs that attract attention TVCs, which can be 10-15 seconds long, will be shown on television, carrying health messages which the trend that the food market is pursuing h 21 IMPLEMENT METHODS 3.1 Product design and implementation - DREAM™ OAT BEVERAGE OAT ORIGINAL - DREAM™ OAT BEVERAGE OAT CHOCOLATE - DREAM™ OAT BEVERAGE OAT VANILLA - DREAM™ OAT BEVERAGE OAT UNSWEETENED 3.2 Marketing of sales Selling costs include many component costs such as advertising costs, promotions, commissions, freight, sales staff costs According to the current regulations, expenses for advertising, marketing, promotion, reception, publicity, transaction costs, external relations, brokerage commissions, conference fees and other fees legal invoices and vouchers associated with business results shall be included in reasonable expenses, but must not exceed 10% of the total reasonable expenses The salesperson is trained to promote the DREAM™ OAT BEVERAGE OAT and to let consumers know about the importing company: Vindrink 3.3 Advertising The Board of Directors should consider investing to advertise TVC on the media: youtube, popular entertainment channels on social networks: Zing tv, Kite, or link with e-commerce sites such as Tiki, Lazada , Shoppee, With the strong development of multimedia communication, Vindrink should aim for online communication - something that traditional businesses have not yet approached Let’s take Vinamilk or TH true milk as a typical example The products of the two above companies only focus on direct communication: shops, trial stalls, not pay special attention to online communication channels h 22 3.4 Market-testing Vindrink can open test stalls at school gates, associations or supermarkets, shops that have been partners of Vindrink so that consumers can access products After a trial, they can be purchased at discounted prices at test stalls before the DREAM™ OAT BEVERAE OAT is available for sale at Vindrink's retail Recommendations The company needs to expand advertising and marketing in big cities and small cities Nowadays, people in these regions focus on health, so dairy products, especially imported milk, are of great concern to consumers Vindrink needs to continuously measure the fluctuation of sales, purchasing power, payment level and customer satisfaction after each price adjustment to have a suitable price strategy At the same time, closely monitor the sales situation, and forecast the brand's output, to propose timely assistance in managing common resources, raw materials for the general business situation of brand  For each retail channel: Vindrink has a separate price system suitable to the business characteristics of each channel to satisfy the most satisfied consumer purchases  For Distributors: Distributors are assigned to distribute the Company's products according to a certain price policy to the market and earn profits from commissions Products, discounts to create better conditions as well as price support for distributors, such as: - Orders can reduce production and shipping costs and trade discounts - Payment discount Commissions: is a discount to reimburse the promotional services performed by the agent This is one of the important factors contributing to the success of domestic dairy enterprises as well as limiting the participation of other competitors Enterprises need to have more practical support for the existing distribution system as well as expand more new distributors This solution requires businesses to have enough financial potential and management capacity Milk processing enterprises need to have h 23 preferential policies, high discounts or increase promotions for the supermarket channel because this is a popular modern shopping channel for urban residents By doing so, different distribution channels will be able to bring consumers the highest convenience as well as benefits In addition, before DREAM™ OAT BEVERAGE OAT is widely distributed in the market, Vindrink needs an independent agency to check the quality of milk and announce its quality to consumers This is a new point in the marketing of DREAM™ OAT BEVERAGE OAT in the context that consumers are increasingly interested in product quality, product elements and nutrients h 24 REFERENCE https://vindrink.com/ http://www.dreamplantbased.com/ https://viracresearch.com/ https://www.gso.gov.vn/ https://www.euromonitor.com h 25 h h