The Financial University of Finance – Marketing The Marketing Department FINAL EXAM ASSIGNMENT VINAMILK’S BLACK SUGAR PEARL LOVE YOGHURT MARKETING PLAN Course Name Marketing Management Course’s code 2[.]
The Financial University of Finance – Marketing The Marketing Department FINAL EXAM ASSIGNMENT VINAMILK’S BLACK SUGAR PEARL LOVE YOGHURT MARKETING PLAN Course Name: Marketing Management Course’s code: 2021702006006 Team’s members names and IDs: Trần Trọng Hiếu – 1921005431 Huỳnh Ngọc Anh Thư – 1921005676 Lương Ngọc Mai – 1921005518 Team’s Class: CLC_19DMA16 Hồ Chí Minh City, 2021 h Table of Contents TABLE OF FIGURES TABLE OF PICTURES EXECUTIVE SUMMARY INTRODUCTION 2.1 Mission Statement 2.2 Strategic Objectives S.W.O.T & MACRO-ENVIRONMENT ANALYSIS 3.1 S.W.O.T Analysis 3.1.1 Strengths 3.1.2 Weaknesses 3.1.3 Opportunities 3.1.4 Threats 3.2 Possible Strategies 3.3 Macro-environment Analysis 10 3.3.1 Political environment 10 3.3.1.1 Opportunities: 10 3.3.1.2 Threats: 10 3.3.2 Economic environment 10 3.3.2.1 Opportunities 10 3.3.2.2 Threats: 10 3.3.3 Social environment 10 3.3.3.1 Opportunities 10 3.3.3.2 Threats 11 3.3.4 Technological environment 11 3.3.4.1 Opportunities 11 3.3.4.2 Threats 11 3.3.5 3.3.5.1 Enviromental condition 11 Opportunities 11 h 3.3.5.2 3.4 Threats 11 Competitors 11 S.T.P ANALYSIS 11 4.1 Segmentation 11 4.2 Targeting 12 4.3 Positioning 12 MARKETING MIX STRATEGIES 13 5.1 Product activities 13 5.2 Price activities 14 5.3 Place activities 14 5.4 Promotion activities 15 ACTION PLAN 16 CONCLUSION 17 7.1 Marketing Plan Summary 17 7.2 Control Plan 17 7.3 Further growth of the company 17 LIST OF REFERENCES & ORGINALITY 18 APPENDIX 19 9.1 Financial 19 9.2 Expense budget 20 10 APPENDIX: MEMBER’S GROUP WORK ASSESSMENTS 21 h TABLE OF FIGURES Table 3.1: S.W.O.T Analysis & Strategies Table 9.1: Break-even analysis table 19 Table 9.2: Marketing Plan Milestones 20 TABLE OF PICTURES Picture 2.1: Vinamilk’s Logo Picture 4.1: The perceptual map of yoghurt product line in Viet Nam market 13 Picture 6.1: Marketing plan timeline for the Black sugar pearl Love Yoghurt of Vinamilk 16 h EXECUTIVE SUMMARY In this modern busy life, when people have to work continuously, they have to study to prepare for the incoming event in their life, for their family, friends, etc especially in the recent Covid-19 pandemic, where the economic suffered greatly, living condition are getting worse to every family, etc But in the end, health are the only thing that matters the most in every person’s life If a person is not in a good condition, their immune systems are weak, physical strength is not enough to move themselves, etc then it is very dangerous for them because of the variety of diseases, especially in these days, where Covid-19 could kill people For that reason, we must prepare ourselves a planned diet, we must choose our food carefully and drink water daily to enhance our health With that in mind, one the best food to improve our health is yoghurt A product made from milk, which was fermentated to create bacteria that support the digestive systems, supplementing zinc and calcium for humans This product have been produce and used all over the world since a very long time ago, it has been created under many kinds of styles, flavour, etc from a large variety of dairy companies in this world And in Viet Nam, there is a company specializing in manufacturing and trading milk with other dairy products as well as related equipment and machinery that existed for a long time and was trusted by a large amount of people in Viet Nam It’s the Vinamilk company Vinamilk has produced many types of yoghurt products over the years, and in those yoghurt products we see a potential product that can greatly help Vinamilk grow in the future, which is the Black sugar pearl Love Yoghurt In this report, we will focus on providing: an overview of the company, the mission statement of this marketing plan, specific objectives to implement in the first year, then we will conduct a S.W.O.T with macro-environment analysis, followed by an STP analysis, marketing mix, and a specific action plan with a clear timeline and a financial forecast The final section will be summarizing the whole plan and discuss on the control plan for the first year h INTRODUCTION Vinamilk, in full is Vietnam Dairy Products Joint Stock Company Vinamilk was founded sice 20th August, 1976 and owned 14 active factories all over Viet Nam Vinamilk’s logo: Picture 2.1: Vinamilk’s Logo Vinamilk has business activities in processing, manufacturing and trading dairy products These products are not only sold domestically but also in some other countries in the world market such as Cambodia, Philippines, etc 2.1 Mission Statement Increase sales of the Love Yogurt product line by 1.5% through the Black sugar pearl Love yogurt of Vinamilk from 23rd June, 2021 – 23rd June, 2022 2.2 Strategic Objectives - Maintain positive, strong growth each month - Deliver the best quality to the customer with many offerings - Improve products based on customer feedback - Increase product recognition after improvement - Create a TVC that captures the attention of potential customers h S.W.O.T & MACRO-ENVIRONMENT ANALYSIS 3.1 S.W.O.T Analysis 3.1.1 Strengths - Famous brand: Vinamilk is a company that has existed for 34 years in Vietnam and is well known in Vietnam and many countries around the world - Marketing is highly effective: Advertising, PR, and Marketing programs are highly effective - Great and experienced leadership and management: Vinamilk has a strong, experienced and ambitious leadership team proven by sustainable business profits - Leader in pricing products in the market: In Vietnam, Vinamilk holds a large market share of 37%, of which 85% is in condensed milk and yogurt - A wide diversity of products: There are types of yogurt for people with different interests: in addition to Vinamilk Yogurt, there are Ong Tho condensed milk, Pasteurized drinking yogurt, - Low price but high quality products: Product price is cheaper than imported products of the same type, but still retains high quality - Nationwide distribution network: Vinamilk now has a wide distribution network in 64 provinces, more than 250 distributors and more than 135,000 sales points nationwide This large network helps Vinamilk capture a large number of customers and ensure the introduction of new products and effective marketing strategies across the country - High production capacity: All Vinamilk's milk factories are imported from European countries such as Germany, Switzerland, and Italy to be used in production lines The company has input materials that meet international standards and are safe In addition, the company also invests in building Organic dairy farms to support milk production Vinamilk has a fairly safe capital structure and high financial autonomy In 2020, Vinamilk achieved a total revenue of VND 59,723 billion (the highest revenue in the Vietnamese dairy market) 3.1.2 Weaknesses - The source of raw materials still depends on foreign countries: domestic raw materials only meet about 30% of production needs, while 70% are imported h from New Zealand, the US, the EU and Japan Therefore, input costs increase and product prices also increase 3.1.3 Opportunities - Support from the government: According to the policy of WTO, import tax on dairy materials is reduced, this is an opportunity to reduce production costs while imported milk powder sources account for 75% - High consumer demand: Along with economic development, consumers are more interested in health, and dairy products are consumed more The dairy industry is in a growth phase, so Vinamilk has a lot of potential for development - High potential customer force: The trend of "Vietnamese people use Vietnamese products" to help dairy products be promoted first has increased the competitiveness of domestic dairy companies, including Vinamilk - Impact of the Covid-19 epidemic: With the Covid epidemic, people will buy a lot of food such as noodles and milk for storage This will be an opportunity for Vinamilk to accelerate dairy products 3.1.4 Threats - Many Competitors in the market: The force of domestic competitors is increasing, in addition, Vinamilk also has to compete with big brands in the world such as Nestle, Dutch Lady, - Unstable input materials: The dairy industry in Vietnam is currently mainly households, not earning much profit, but also being pressured by raw material buyers Raw materials are mainly imported from abroad h 3.2 Possible Strategies Table 3.1: S.W.O.T Analysis & Strategies Strength: Weaknesses: S1: Famous brand W1: The source of raw S2: Marketing is highly materials still depends on foreign countries effective S.W.O.T Analysis for Vinamilk S3: Great and experienced leadership and management S4: Leader in pricing products in the market S5: A wide diversity of products S6: Low price but high quality products S7: Nationwide distribution network S8: High capacity Opportunities: O1: Support government from the O2: High consumer demand O3: High customer force potential S8+O1,2,4: expansion S7,8+O2,3,4: product quality production Market W1+O1: transportation, Improve technology Invest in preservation S4,5,6+O2,3,4: Offer a price to support customers during the epidemic O4: Impact of the Covid-19 epidemic S8+T1: Take initiative in W1+T2: Invest from financial resources, limit the Organic farms to be more T1: Many Competitors in impact of interest proactive in sourcing raw the market materials T2: Unstable input materials Threats: h 3.3 Macro-environment Analysis 3.3.1 Political environment 3.3.1.1 Opportunities: The EVFTA Agreement will reduce the import tax on dairy products from Europe to 3.5% - 0% within the next 3-5 years (effective from August 2020) This makes the dairy market more competitive as milk from Europe benefits, but also pushes domestic dairy companies to increase their capacity to provide better quality dairy products to the market 3.3.1.2 Threats: - The management of market prices by state agencies is still lax The process of enforcing competition law against unfair competition acts is not really effective - Milk inspection is still lax, only stopping at food safety inspection, but not controlling the content of substances that cause difficulties for dairy businesses 3.3.2 Economic environment 3.3.2.1 Opportunities Investors are increasingly interested in ESG (environmental, social, governance) when investing in dairy companies Therefore, dairy companies have started to diversify their products 3.3.2.2 Threats: - In 2020, the covid pandemic has stunted the growth of the dairy industry - GDP increased by 2.91% (the lowest increase in the period 2011-2020) Consumer demand was negatively affected by the epidemic and the average income of workers decreased by 2.3% (GSO) Accordingly, the FMCG industry recorded a decrease of 7% in value, and the dairy industry alone decreased by 6% 3.3.3 Social environment 3.3.3.1 Opportunities - With a large population, a fast growth rate of -1.2%, in 2013, the trend of domestic consumption increased => is a potential and developing market According to the Ministry of Industry and Trade, by 2015, the domestic market will consume about 1.3 billion liters of liquid dairy products, equivalent to 15 liters/person/year - People's intellectual level is increasingly improving => towards refreshment and nutrition products, health care, with beauty effects h 3.3.3.2 Threats The psychology of consuming foreign goods and distrusting Vietnamese goods still exists 3.3.4 Technological environment 3.3.4.1 Opportunities It is possible to apply modern machinery systems, new management systems, and import processes and raw materials that have contributed to improving milk quality 3.3.4.2 Threats According to Dairyvietnam.com, more than 95% of dairy cows in Vietnam are currently scattered among smallholder farmers, with low professionalism, limited feed resources, and 80% of dairy cows must be imported food, grass land), causing high cost pressure, unsatisfactory milk quality, only 22-25% of raw material needs can be met, causing difficulties for businesses (according to Mr Sign Vietnam Dairy Association) 3.3.5 Enviromental condition 3.3.5.1 Opportunities Vietnam's climate has hot and humid monsoon conditions, but there are temperate climates such as Tuyen Quang, Lam Dong, Ba Vi, etc., which are especially suitable for growing grass for high quality, raising dairy cows with productivity 3.3.5.2 Threats The climate is unfavorable for storage and processing which affects milk quality 3.4 Competitors - Yakult - TH True Yogurt of TH True Milk - Black pearl yoghurt of NutiMilk S.T.P ANALYSIS 4.1 Segmentation Our team segments the market by the life cycle, buying decisions and mainly by age Ages from to 14: this is the age when children enter the development stage, this age needs a lot of food and drinks to supplement nutrition for the body, serving the process of learning and playing h Age 15-25: at this age, consumers will mostly be autonomous in their purchasing decisions, they will choose the right product lines for themselves, usually vibrant and youthful Age 25 and up: They will tend to use nutritional products, supplement calcium for the body In addition, they also use yogurt to improve the digestive system and take care of beauty 4.2 Targeting According to the segmentation process, my team found that the suitable target market for this product would be the 15 -25 year old segment We chose this segment because at this age, consumers will look for products with new flavors and tastes, because they are aware of their buying behavior, autonomous in their purchases, with a youthful personality If they are active, they will tend to choose fresh, delicious and strange products On the other hand, according to the growing technology trend, customers at this age will often watch food videos on social networking platforms such as YouTube, TikTok, Facebook, Instagram, etc of Key Opinion Leader (KOL) or Influencers to find the food flavor or type of food that suits their own taste and from where customers will not need to go through too many stages of searching to buy the product In addition, some customer groups will prefer to use yogurt products for health care and they are often very active online on social media Therefore, the demand for black sugar pearl yogurt products at this age will be extremely appropriate compared to other ages 4.3 Positioning Now group will present the perceptual map of the yogurt line in the Vietnamese market The position of each brand is positioned through two dimensions: price and quality The size of each logo will be equivalent to the market share captured h Picture 4.1: The perceptual map of yoghurt product line in Viet Nam market With the above positioning map, it can be seen that Vinamilk brand holds the largest market share in the Vietnamese yogurt market Along with that, Vinamilk's yogurt products are in the higher price segment compared to Yakult and TH True Yogurt and lower quality than Acti-V of NultiMilk and Yakult However, with Vinamilk's current position, users will still trust the product thanks to its reputation and quality from past to present MARKETING MIX STRATEGIES 5.1 Product activities Product’s name: Black sugar pearl Love Yoghurt, was first introduced to the Viet Nam market in 9th April, 2021 Product’s ingredients include of milk (71%), black sugar pearls (12%) and other additives to ensure the great taste of the black sugar pearl and consumers’ health Yoghurt gas a shelf life of 45 days since the manufacture date and is packed in pack of boxes with a weight of 400g This product contained in a special HIPS plastic container for food and meets food hygiene and safety requirements according to QCVN 12-1:2011/BYT In addition, the product has been tested for medical safety at the Institute of Public Health in Ho Chi Minh City on March 30, 2021 The Black sugar pearl Love Yogurt will provide customer with these outstanding features: Smooth yogurt blends with delicious black sugar flavor Naturally fermented yogurt, using a healthy strain of Bulgaricus yeast Modern enamel technology from Europe Yogurt brightens the skin, hydrates the skin to help it stay healthy h The soft, flexible pearls make it enjoyable to chew With those amazing feature of the product and the characteristics of our targeted segment ranging the age between 15 and 25, who love to explore new things and love to enjoy the experiences, the Black sugar pearl Love Yoghurt will definitely provide the best experience to the customer Not only that, with the growing trend of teenagers consuming bubble milk tea recently, this product will help diverse the scale of the milk with sugar pearls on the market However, after Vinamilk has introduced on the market for months, it seems like not many consumer come to take interest in this product As this result in the low profit of the product to the company After doing some research discovered that the Black sugar pearl Love yoghurt had some issue with the taste and quality not reaching the standards of the customer Specifically, in some reviews, customers have complaints about the unscented scent, sharp sweetness and some products appear water separation, negatively affecting the quality promised by the product bring to consumers With that in mind, our team decided to propose about the the decision of improve product quality by using advanced machine technologies to overcome the abovementioned product conditions 5.2 Price activities Black sugar pearl Love yoghurt products are currently sold at prices ranging from VND 33.000 - VND 35.000, but now the product is not bought much compared to similar products, showing that this price is not suitable, need to be adjusted For that reason, the group will propose to adjust the product price of VND 34.000 and organize a short-term price discount of VND 30,000 per pack for about half a month, specifically on the last weeks of September 2021 and the first weeks of May 2022 5.3 Place activities Currently, Vinamilk only distributes at Vinamilk's own agents and large supermarket Aeon centers With this makes it difficult for consumers to reach to buy the product The group recommends the following ideas: - Further distribution to retail stores such as: convenience stores, green department stores, local retail stores, wholesalers, etc - Cooperate with a number of distributors so that they can sell their products to customers faster, saving time for the company and for customers -Sign contracts with familiar distributors to sell products and pay commissions when they reach sales in the month and year h 5.4 Promotion activities Currently, Vinamilk does not focus too much on communication for products, which leads to a lack of information and product identification to consumers For that reason, the team would like to propose measures based on the pull strategy as follows: Hire influencers, KOLs, product reviews on Facebook, Instagram, Bloggers to make it easier for followers to aware about the product faster Send products and discounts to Influencers, KOLs, when customers buy products on the links of kols, they will get a discount Combined with new youtube , MV to promote products to their youtube viewers We will organize an event of “Buying packs, get free box of the Black sugar pearl Love yoghurt” in November of 2021 and January of 2022 h ACTION PLAN The time to initiate this marketing plan is from 24th June, 2021 to 24th June, 2022 We decided to initiate monthy 24th – 29th Jun 2021, the marketing department will discuss and complete the plan June 1st – 10th Jul 2021, the team will conduct surveys to customers who have used the product on the fanpage and directly at the company's 1st – 5th Aug 2021,Provide new information about the improved product on social media 18th – 31st Jul 2021, Vinamilk will develop the improved product July August 11th – 17th Jul 2021, the team will collect surveys and discuss on how to improve the product 6th - 8th Aug 2021, conduct distribution activities to retailers and sign contracts with major distributors 19th – 30th Sep, launch promotional discount September - October 15th – 31st Aug 2021, brainstorming ideas and implementing TVCs, can release trending MVs on social networks, ads on media platforms, and hire influencers and KOLs to review products and give them disocounts 1st – 14th Dec 2021, brainstorm ideas and release trending mvs on social media using images of black sugar pearl yogurt products Begin at 1st Sep 2021, introduce new improved products to the market November st th December – Nov 2021, Launch an event of “Buying packs, get free box of the Black sugar pearl Love yoghurt” 1st - 14th May 2022, Launch the promotional discount again January February - April 16th – 23rd Jan 2022, launch the event again Picture 6.1: Marketing plan timeline for the Black sugar pearl Love Yoghurt of Vinamilk h May June CONCLUSION 7.1 Marketing Plan Summary With the mission of increasing sales of the Love Yogurt product line by 1.5% through the black sugar pearl yogurt, the team has analyzed the company's strengths, weaknesses, the opportunities and threats that the company might face from the market After analyzing S.W.O.T, the team came up with a number of strategies that can be applied to Vinamilk Next, the team conducted STP analysis and selected the segment of the age group from 15-25 years old to be the target segment and located Vinamilk's black sugar pearl yogurt product on the positioning map to identify the target segment the direction to go for this plan and the company in the long-term Completing the company analysis and positioning the company, the team proceeded to develop the marketing mix including product activities, price activities, place activities and promotion activities After analyzing the marketing mix strategy, the team proceeded to plan the implementation from June 24, 2021 to June 24, 2022 7.2 Control Plan The purpose of Vinamilk’s marketing plan is to serve as a guide for the organization The following areas will be monitored to gauge performance: Revenue: Monthly, which will be monitored by Ngọc Mai Expense: Monthly, which will be monitored by Anh Thư New-product development Customer satisfaction 7.3 Further growth of the company With this marketing plan, we hope to able to use as the reference for the later plan of the company h LIST OF REFERENCES & ORGINALITY Admin, G (2021) Top Review | Facebook https://www.facebook.com/groups/151787973464464 Supermarket, B hoa xanh (2021) Siêu thị Bách hoá XANH - Mua bán thực phẩm, sản phẩm gia đình https://www.bachhoaxanh.com/ Trang, B., Anh, D., Hao, N., Nguyen, N., Ngoc, P., & Hoang, V (2008) Marketing Plan Concise Encyclopedia of Professional Services Marketing, 82–83 https://doi.org/10.4324/9780203884713.ch47 Vinamilk (2020) Báo cáo tài hợp niên độ cho giai đoạn ba tháng kết thúc ngày 31 tháng năm 2020 https://www.vinamilk.com.vn/static/uploads/article/1588158638cd1de8c833fdbb9a8672fce4ab532270612e2256dce449ef583d53c939d5e58a.pdf Vinamilk (2021a) Home - Vinamilk https://www.vinamilk.com.vn/en Vinamilk (2021b) Sữa chua VINAMILK LOVE YOGURT TRÂN CHÂU ĐƯỜNG ĐEN MỚI! Ngon mê - YouTube https://www.youtube.com/watch?v=f5NvkFhuG9o Vinamilk Marketing Plan (2019) Journal of Language Relationship, v–vi https://doi.org/10.31826/9781463235543-toc h APPENDIX This section will offer the financial overview of Vinamilk related to marketing activities Vinamilk will address financial stats, the expense budget, and indicate how these activities link to the marketing strategy 9.1 Financial Total first-year sales revenue for the black sugar pearl Love yoghurt of Vinamilk is projected at 203.000.000.000VND, with an average per-unit revenue is 30.000VND and average per-unit variable cost is 4.000VND for unit sales volume of 5.970.588 We anticipated a first-year loss of up to 40.600.000.000VND Break-even analysis calculations indicate that the black sugar pearl yoghurt - Love Yogurt Vinamilk will be profitable after the sales volume exceeds 4.846.322 during the product’s second year Our break-even analysis assumes average per-unit revenue of 30.000VND, variable cost of 4.000VND per unit, and estimated first-year fixed cost of 19.385.288.000VND With these assumptions, the break-calculation is: Table 9.1: Break-even analysis table Table 9.1 Break-Even Analysis Break-Even Analysis: Monthly Units Break-Even 403.860 Monthly Sales Break-Even 13.731.240.000 VND Assumptions: Average Per-Unit Revenue 30.000 VND Average Per-Unit Variable Cost 4.000 VND Estimated Monthly Fixed Cost 1.615.440.667 VND h 9.2 Expense budget Table 9.2: Marketing Plan Milestones (Currency: VND) Table 9.2 Milestones Plan Milestones Marketing plan completion Survey Collect surveys and come up with ideas for product improvement Develop the improved product Update new product on social media Carry out distribution activities Advertising activity #1 Promotional activity #1 Promotional activity #2 Advertising activity #2 Promotional activity #3 Promotional activity #4 Start Date 24/06/2021 01/07/2021 End Date 29/06/2021 10/07/2021 Budget 25 mil Manager Hiếu Thư Department Marketing Marketing 11/07/2021 17/07/2021 million Thư Marketing 18/07/2021 31/07/2021 billion Hiếu Marketing 01/08/2021 05/08/2021 Hiếu Marketing 06/08/2021 20/08/2021 10 billion Hiếu Marketing 15/08/2021 19/09/2021 01/11/2021 01/12/2021 16/01/2022 01/05/2022 18/09/2021 30/09/2021 07/11/2021 14/12/2021 23/01/2022 14/05/2022 100 million 10 million million million million million Mai Mai Mai Mai Mai Mai Marketing Marketing Marketing Marketing Marketing Marketing Totals 11.152 million h