I. INTRODUCTION 3 1. The Company 3 2. The Product Line 3 3. Project Purpose 4 4. Project Scope and Objectives 4 5. Target Market Overview 5 II. MAIN CONTENT 6 1. MarketBusiness Environment Research 6 1.1. Macro Environment 6 1.2. Industrial Environment 9 1.3. Market Environment 10 2. Market Entry Strategy 12 2.1. Market Segmentation and Target Customer 12 2.2. Mode of Entry 13 2.3. Marketing and Sales Plan 17 3. Estimated Profits and Growth 20 III. CONCLUSION 21 IV. REFERENCES 22 LIST OF TABLES Table 1. VinaClover UHT 100% Fresh Milk – Product description 4 Table 2. Scope and Objectives of the VinaClover Project 5 Table 3. Market segmentation 12 Table 4. Evaluation of Key different popular market entry modes 14 Table 5. Overview of the VinaClover Joint Venture Project 16 Table 6. Overview of the Marketing and Sales Strategy 17 Table 7. Communication timeline for VinaClover Project in phases 20 Table 8. The estimated Profits, Growth, and ROI of the VinaClover Project 21
https://tailieuluatkinhte.com/ FOREIGN TRADE UNIVERSITY Faculty of International Business -o0o - International Business Project of Vinamilk in South Africa: Vina-Clover Joint Venture GROUP Hanoi, June 2023 https://tailieuluatkinhte.com/ TABLE OF CONTENTS I INTRODUCTION The Company The Product Line 3 Project Purpose 4 Project Scope and Objectives Target Market Overview .5 II MAIN CONTENT Market/Business Environment Research .6 1.1.Macro Environment 1.2.Industrial Environment 1.3.Market Environment .10 Market Entry Strategy 12 2.1.Market Segmentation and Target Customer 12 2.2.Mode of Entry .13 2.3.Marketing and Sales Plan .17 Estimated Profits and Growth 20 III CONCLUSION .21 IV REFERENCES 22 LIST OF TABLES Table Vina-Clover UHT 100% Fresh Milk – Product description Table Scope and Objectives of the Vina-Clover Project Table Market segmentation .12 Table Evaluation of Key different popular market entry modes .14 Table Overview of the Vina-Clover Joint Venture Project .16 Table Overview of the Marketing and Sales Strategy .17 Table Communication timeline for Vina-Clover Project in phases 20 Table The estimated Profits, Growth, and ROI of the Vina-Clover Project 21 LIST OF FIGURES https://tailieuluatkinhte.com/ Figure South Africa position in the African map (Source: WorldAtlas.com) Figure Overall situation and business structure of Clover – our partner 16 Figure Sub product (Pasteurized Milk) 18 Figure Main product (UHT 100% Fresh Milk) .18 I INTRODUCTION The Company Vinamilk is Vietnam's largest dairy company and one of the top 10 valuable brands in the country It offers a wide range of dairy products such as condensed milk, powdered milk, fresh milk, yogurt, cheese, ice cream, and more Founded in 1976, Vinamilk started as a state-owned company and has grown into one of Vietnam's largest corporations Over the years, it expanded its operations, opened new factories across the country, and went public in 2003 Vinamilk has also diversified its production capabilities by investing in facilities in countries like New Zealand and the USA Vinamilk's core competency lies in its expertise in dairy processing and production, strong brand reputation, consumer trust, and extensive distribution channels With a vision to become a worldclass brand in the food and beverage industry, Vinamilk aims to provide trusted and nutritious products to communities The company focuses on quality, innovation, and a consumer-oriented approach The brand has successfully exported its products to nearly 60 countries worldwide, particularly in Southeast Asia, the Middle East, and China Its global expansion has been driven by its commitment to maintaining high product quality standards, adhering to international food safety regulations, and adapting its products to suit consumer preferences It has also engaged in strategic partnerships and collaborations with international distributors The Product Line The product line invested in for this factory project in South Africa is UHT Fresh Milk, a high-quality dairy product line offered by Vinamilk It is made from fresh cow's milk and undergoes a special UHT (Ultra High Temperature) process to ensure its safety, quality, and extended shelf life The main product in the line is Vina-Clover UHT 100% Fresh Milk, known for its superior taste and nutritional value It contains essential nutrients like protein, calcium, vitamins, and minerals, making it a wholesome beverage https://tailieuluatkinhte.com/ choice for individuals of all ages The UHT process helps preserve the natural goodness of the milk, maintaining its freshness and nutritional integrity Table Vina-Clover UHT 100% Fresh Milk – Product description Product name Ingredients Vina-Clover UHT 100% Fresh Milk Fresh milk (95.9%) Sugar (3.8%) Stabilizers (471, 460(i), 407, 466) Vitamins (sodium ascorbate, A, D3) Synthetic flavorings for food use Minerals (sodium selenite) Shelf life months from the manufacturing date Packaging specifications Packaged in actual volume: 110ml box, 180ml box, 1-liter box, and 220ml pack Packaging materials The product is contained in a paper box with an inner layer of specialized PE plastic, tightly sealed to ensure food safety requirements The premium Vinamilk 100% Fresh milk with Vitamin A, D3 & Selenium supports the immune system and strengthens the body’s defenses Drinking glasses of the premium Vinamilk 100% Fresh Milk (about 180ml/ glass) with Calcium, vitamins, and essential minerals everyday helps people be happier, healthier and taller Project Purpose Africa is a continent with immense potential for growth in the 21st century With its large population of over 1,4 billion people and increasing urbanization, there is a growing demand for high-quality and nutritious food products, including UHT fresh milk By investing in Africa, Vinamilk can tap into Africa's growing demand for high-quality UHT fresh milk by investing in the continent With its expertise in dairy production and commitment to quality, innovation, and sustainability, Vinamilk is well-positioned to meet the nutritional needs of African consumers By entering the African market, Vinamilk can expand globally, gain valuable insights, and contribute to the continent's socio-economic development Project Scope and Objectives https://tailieuluatkinhte.com/ Table Scope and Objectives of the Vina-Clover Project WHAT HOW MUCH WHEN Total Investment Budget Required $500,000,000 2023 2030 Business focus Ready to export to neighboring countries From 2025 Revenue Reach $80,209,710 in Net Revenue years Growth Rate Minimum annual sales growth rate of 8% years Profits Reach $13,796,070 in Net Profits years Brand Awareness Brand recognition level of 50% among the target consumer segment year Distribution Network Establish partnerships with at least 100,000 retailing points years in all channels across South Africa to ensure widespread availability of Vinamilk’s products Local Community Engagement Creating at least 100 job opportunities for South African year residents and supporting local dairy farmers through sustainable sourcing partnerships Corporate Social Responsibility 50% recyclable or biodegradable packaging materials Scope Objectives years Target Market Overview South Africa offers a significant and well-established market for dairy products, with a growing middle class and urbanization (GDP/capita: 6,965 USD, GDP growth rate: 1.9%) - https://tailieuluatkinhte.com/ driving increased demand for UHT milk The country's robust infrastructure and efficient distribution networks provide Vinamilk with the means to establish a strong supply chain and effectively reach consumers across the nation In 2019, the South African dairy products market was divided into 62% liquid and 38% concentrated products Pasteurized liquid milk and ultra-high temperature (UHT) processed milk were the major liquid products, with hard cheese the main concentrated product The estimated composition of the markets for processed milk was estimated to be 71% in 2020, with a stable positive growth in retail demand for UHT milk of 5.5%, which is also one of the core products of Vinamilk in both domestic and foreign markets Besides, the amount of milk produced in the country was always much higher than the amount imported in nearly a decade (2011-2020), which indicates that South Africa has a comparative advantage and a trade surplus in milk production Vinamilk can use this leverage to develop a milk production factory here with a broad future prospect of expanding its export scales to neighboring markets Furthermore, South Africa boasts a relatively stable political and economic environment compared to other African countries, offering a favorable business climate and reduced investment risks The country's Figure South Africa position in the African strategic location serves as a gateway to the larger map (Source: WorldAtlas.com) African market, providing access to neighboring countries and facilitating export opportunities Moreover, South Africa's stringent quality and safety standards align with Vinamilk's commitment to delivering high-quality products, enhancing consumer trust II MAIN CONTENT Market/Business Environment Research 1.1 Macro Environment South Africa is located in the continent of Africa, gaining the position of being in the top economically productive regions The country is in a developing phase which creates a blend of opportunities and risks for businesses The PESTLE analysis of South Africa outlines these different factors present in the external environment of the country https://tailieuluatkinhte.com/ a Political The country still experiences political instability and violent outbreaks that disrupt business activities In 2021, South Africa faced violent unrest resulting in the death of 340 people, followed by ongoing conflicts within local communities and tensions between military veterans and government officials The turmoil has caused disruptions in business operations, leading to losses for approximately 40,000 organizations Positive development trends in South Africa have been observed politically, with efforts to combat racial discrimination and violence after the apartheid South Africa maintains close political ties with countries within Africa, such as Angola, as well as countries beyond its borders, including the UK Despite criticism from other countries, South Africa maintains friendly relations with Russia, despite Russia's involvement in the Ukraine war b Economic South Africa's GDP growth has been low, increasing by only 1.9% despite government efforts The COVID-19 pandemic further impacted the country's struggling economy, causing a slowdown in GDP growth and a significant increase in unemployment Inflation has been a concern, with a rise from 4.1% in 2010 to over 7% in 2023, indicating economic challenges South Africa faces the ongoing challenge of poverty, which has been exacerbated during the pandemic and lockdown measures Major trade partners for South Africa include countries in the BRICS bloc, particularly India and Brazil The US is also an important trading partner, benefiting from a bilateral tax treaty The mining sector, including gold, platinum, and coal, plays a significant role in South Africa's export industry c Social South Africa's population 59.39 million (2021), with the largest segment being black African and other ethnicities also present Post-apartheid, discrimination against people of color has declined, but complete elimination of deep-rooted bias is still a challenge Consumer spending in South Africa has gradually increased, providing opportunities for business growth The growing population offers expansion prospects as businesses cater to a larger customer base https://tailieuluatkinhte.com/ Economic changes and post-pandemic complications have influenced consumer behavior, with a focus on necessities due to higher inflation, unemployment, and lower income During the lockdown, there was a positive trend of consumer shift towards online purchases Rural construction experienced growth during the pandemic as people moved to rural areas for settlement, driven by the ease of constructing residences d Technological South Africa is adopting technological advancements, incorporating wireless networks and virtual business interactions It is recognized within Africa for having a strong IT foundation Technology availability benefits organizations in South Africa, enabling innovation However, further investment is needed to advance the country's technological capabilities and support businesses Developed countries offer better business innovation opportunities due to access to upgraded technology The South African government should invest more in strengthening the technology sector to maintain a favorable business outlook Some sectors still rely on a combination of manual and semi-automated tools, indicating room for technological improvement e Environmental The South African government, through the Department of Environment, Forestry & Fisheries, is prioritizing sustainable practices High carbon emissions are a major challenge in South Africa, mainly due to coal usage for energy generation and non-sustainable business practices Carbon tax and stricter environmental policies have been implemented to mitigate environmental harm f Legal Organizations in South Africa must comply with business regulations related to domains, employment, and business practices The Competition Amendment Act aims to restrict price-based competition and prevent unfair pricing practices Mergers involving organizations operating in other countries require government approval Post-apartheid, South Africa has implemented measures to promote workplace equality, such as Broad-Based Black Economic practices https://tailieuluatkinhte.com/ However, corruption remains a significant challenge, hindering business growth and contributing to slower economic growth and poverty in the region Overall, it can be seen that South Africa is facing numerous challenges and struggling economically However, there are growth opportunities as well The factors discussed above have to be taken into consideration by organizations in South Africa for their decision making process 1.2 Industrial Environment The South Africa dairy and soy food market size was $9.9 billion in 2021, representing a compound annual growth rate (CAGR) of 5.2% between 2016 and 2021 The performance of the market is forecast to decelerate, with an anticipated CAGR of 2.8% for the five-year period 2021 - 2026, which is expected to drive the market to a value of $11,330.0m by the end of 2026 a Competitive Rivalry The competitive rivalry within the milk industry in South Africa during 2021 and 2022 was quite intense There are around 32 companies including top key players in the South Africa dairy and soy food market namely Clover SA, Groupe Lactalis SA, Danone Group, Upfield, and Darling Romery Clover SA accounted for the largest value share (24%) in the market Competition is primarily based on factors such as price, product quality, brand reputation, and distribution capabilities b Bargaining power of Suppliers The bargaining power of suppliers in the milk industry in South Africa can vary depending on the specific segment of the supply chain There are currently about 1200 dairy farms and 1.2 million dairy cows in South Africa with 26,000 workers Due to the presence of such multiple suppliers of, the bargaining power of dairy farmers supplying raw milk was moderate c Bargaining power of Buyers Consumers in South Africa have a wide range of choice in terms of products range and purchase location (offline and online) The top cities in the South Africa dairy and soy food market are Johannesburg, Cape Town, Durban, Ekurhuleni, Tshwane, Nelson Mandela Bay, Buffalo City, and Mangaung This availability of choices provides consumers with the ability to compare prices and switch brands easily As a result, dairy companies need to focus on product quality, branding, and competitive pricing to retain and attract customers d Threat of Substitutes https://tailieuluatkinhte.com/ While milk alternatives like soy milk, almond milk, and oat milk have gained popularity in recent years, traditional cow's milk remained the dominant choice for most consumers However, the growing health-consciousness and changing dietary preferences of some consumers may have led to an increased demand for these substitutes Dairy companies may have responded by diversifying their product portfolios to include plant-based alternatives e Threat of New Entrants The threat of new entrants in this market was relatively low The dairy industry requires significant investment in infrastructure, including farms, processing facilities, and distribution networks Additionally, established players often benefit from economies of scale and strong brand recognition, making it challenging for new entrants to compete effectively Therefore, currently there are not so many new players in South Africa 1.3 Market Environment a Strengths Strong brand name: Vinamilk is the largest dairy enterprise in Vietnam with a market share of 37%, of which 45% market share in liquid milk market, 85% market share in condensed milk and yogurt Therefore, Vinamilk has the ability to set the selling price in the domestic market Product diversification: Vinamilk offers a wide range of dairy products with over 200 dairy products and dairy products, serving a wide range of consumers Vinamilk's products are diversified with different packaging sizes, providing customers in the Vietnamese market with convenient dairy products as well as product categories to increase serviceability and maximize profits in the market segment that Vinamilk targets Invest in modern, high-quality equipment and technology: Vinamilk owns European production technology that meets global standards, Vinamilk's sterilization equipment is imported from Sweden and other equipment is sourced from European countries International standards such as ISO 50001:2011 and HACCP are all applied to control the production system Vinamilk always innovates technology, installs complete and modern production line systems, welcomes new technologies with the best technical and food hygiene and safety standards Financial Stability: Vinamilk has a fairly safe capital structure and good financial autonomy Vinamilk announced the consolidated financial statements of the third quarter of 2019 with both revenue and profit targets growing with a net profit of nearly VND 8,380 billion in the first months, fulfilling 80% of the year plan According to data from Kantar Worldpanel, in April, May and June 2019, milk and dairy products continued to be the leading FMCG market with impressive growth 10 https://tailieuluatkinhte.com/ b Weaknesses Heavy dependence on foreign supply for raw materials: Due to the increasing demand for fresh milk of users, domestic raw materials only meet about 30% of production needs, while 70% are imported from New Zealand, the US, the EU and Japan Therefore, input costs increase and product prices also increase With this dependence, Vinamilk's production and business situation will be affected by the external environment as well as factors such as inflation, economic crisis, etc c Opportunities Large young labor force: According to one statistics the 65% of total population of South Africa is aged between 15 to 65 years of age i.e 65 % of people of South Africa can work easily (Department, 2008) A large number of people who can work both physically and mentally is an asset for the country and would help the country to develop at a much faster rate Online Selling: There is a large scope for the South African retailers and other retailers to develop an online store for selling Their products to retail customers The number of people aware of the internet in South Africa has gone up many times The number of internet users in South Africa in 2009 were 4.42 million which is 54 in country comparison to the world (Countries of the World) Transshipment point: The location of South Africa gives it an opportunity to become the largest transshipment point in the world South Africa is between the Asian and American continents as well as between the Indian and Atlantic ocean Transshipment point would help South Africa to fetch large revenue as all the ships would be using the port and the machinery of South Africa Furthermore, people of South Africa would get exposure to new products that have been used by developed countries Renewable source of energy: South Africa is situated in the southern hemisphere subtropical zone so it's clear dry hot weather there most of the time A cheap electricity supply would help the industries to produce goods at lower price and with economies of scale d Threats Supply chain/Procurement: Domestically, South Africa has faced some unique challenges in terms of its supply chain In October 2022, workers at the national freight and logistics company Transnet went on strike – costing the country billions every day while pausing import and export activity Regarding their Renewable Energy Independent Power Producer Programme (REIPPP), delays, corruption, and red tape have led South Africa to fall short on renewable energy procurement 11 https://tailieuluatkinhte.com/ Regulatory risk: Proposed changes to South Africa’s finance regulations in August 2022 to stop money laundering and terrorist financing could cause major consideration for businesses in the country – and lead to higher prices for consumers This change would force both small and large businesses to comply with Financial Intelligence Centre Act (FICA) regulations, adding an administrative burden and costs to business operations Market Entry Strategy Vinamilk has made significant strides in transitioning from an international strategy to a global strategy Initially, the company focused on exporting dairy products and expanding its operations beyond Vietnam and establishing a presence in various countries through investments and partnerships However, as Vinamilk continues to grow and evolve, it has shifted its approach towards a more global strategy The company now strives for greater standardization and integration across its operations worldwide, aiming to create a consistent brand image and product offerings with the specific “Vietnamese flavor” across markets This international business project to build a milk factory in South Africa is a part of this long-term vision 2.1 Market Segmentation and Target Customer a Market Segmentation Vinamilk develops products to meet the needs of all ages Table Market segmentation Segment Demographic Behavioral Children - Age: 5-14 years old - User status: Regular user, - Income: No income potential user - User rate: Daily/heavy user or low income Education: Kindergarten, Primary or Secondary school Teenagers - Age: 15-25 years old - Income: No income or low income - User status: Regular user, potential user - User rate: Regular user - Tendency: Try new products 12 Geographic https://tailieuluatkinhte.com/ - Education: High school, university, college Adults - Age: Above 25 - User status: Regular user years old - User rate: Medium, light user - Income: Middle - Tendency: Brand loyal income Education: Postgraduate Cities and urban areas of South Africa (Cape Town, Durban, Johannesburg…) Food and beverage businesses - Income: Middle to high income Cities and urban areas of South Africa (Cape Town, Durban, Johannesburg…) - User status: Regular user, potential user, first time user - User rate: Medium user - Tendency: Brand loyal b Target customer Vinamilk’s target customer is children aged 5-14 segment and their middle-income parents Vinamilk selected this section for a variety of reasons Individuals at this stage (5 to 14 years old) need more nutrition and milk for their physical growth than others age segments Additionally, in 2020, children make up 34% of the total population of South Africa Furthermore, South Africa is an upper-middle-income economy, with the size of South Africa’s middle-class at 28.5% of the population in 2017 Targeting the children segment can bring a big profit for Vinamilk because parents who have children at around – 14 years old have a large demand for nutritious products for their children’s physical development Vinamilk offers customers of this segment appropriately healthy products with a very affordable price The premium Vinamilk 100% Fresh milk with Vitamin A, D3 & Selenium supports the immune system and strengthens the body’s defenses, which is essential for the physical development of children This segment is substantially potential users for Vinamilk to exploit 2.2 Mode of Entry a Evaluation of Key different popular market entry modes 13 https://tailieuluatkinhte.com/ Table Evaluation of Key different popular market entry modes No Mode Entry of Advantages Direct/Indirect Export Quick reaching Africa customer by expanding market High profits through bulk sale Licensing No incurrence for the costs of producing, promoting, packaging, or selling Vinamilk products Royalty payments can last a very long time Franchising Joint Venture Disadvantages Growth: possible for Vinamilk to scale new market + revenue without much effort Widespread Vinamilk brand name to South Africa market Working connection between the franchisor and the franchisee Necessary kickstart + cost, risk, benefits 14 Difficulties: Retain control and ownership of markets Compliance with the laws and regulations of both countries; No knowledge of final consumer patterns, and market behaviors stands Likely lose control over the product, including promotion, packaging, and selling Only receive a portion of the profits from the sale of product If Africa party does not sell well, Vinamilk will not receive royalty payments Likelihood of regulatory and legal risk Necessitates capital and Vinamilk participation in the development of a franchise system Risk of franchisee’s uncertainty Hard to aligns the strength, weaknesses + Objectives of https://tailieuluatkinhte.com/ Merge and Acquisition sharing with African Partner Leverage with a new customer base Simplicity in compliance with statutory regulations in Africa Gaining available market share, reputation, asset, supplier + distribution base; customer data the parties who involved in Joint Venture Large expenses associated with the deal Doesn’t have local expertise and a product driven path After thorough consideration, we choose the option to go for Joint Venture b Justification for choosing Joint Venture The reasons behind choosing Joint Venture are: Vinamilk's goals are expanding the market but remain: Expertise in cattle’s milk production (Know-how + Patent in technology, ) + Vinamilk identity Can keep control power in their hands when entering South Africa market Can gain local expertises + local preference standard in South Africa Reduce the financial + risks burden when entering a new market Vinamilk Joint Venture Partner: “Clover” According to the company’s profile, Clover and Vinamilk share similarities in Mission, Vision, Related Development strategies and Resources Therefore, there is sufficient evidence for Vinamilk to develop a Joint Venture relationship with them Clover competitive advantage in South Africa: According to Clover’s culture, this is a place where energetic individuals with pride and ambition succeed in a business where speed, passion and commitment are crucial 15 https://tailieuluatkinhte.com/ Figure Overall situation and business structure of Clover – our partner c Overview Timeline and Milestones Table Overview of the Vina-Clover Joint Venture Project Vinamilk - Clover Joint Venture Project: Vina-Clover Total Investment Budget (2023 - 2030) $500,000,000 Vinamilk (51% share) Clover (49% share) $153,000,000 $147,000,000 Responsibility Project Management: Production technology; Equipment installation Project expertise: Experience; Cattle breeding know-how; Quality 16 Project Facility Capital: Investment; Provide land fund; Plant Design and Facilities in Factory; Warehouse networks https://tailieuluatkinhte.com/ Management; Operation Business Project Distribution and Partner Channels: Supplier and Distribution channel management Overview Goals (2023 - 2030) Phase 2023 - 2025 Goals 2025 - 2030 Build a factory + Design Facility meet GlobalGAP standard (3000 - Capital Budget: 72$ million) Develop Supply strategic cooperation of cow's milk source from local farm (6.000 Cows from local farm - Output: 30.000 tons/year) Develop Strategic distribution channels Develop Operational Business organization Expand to 12.000 Factory Revenue Growth (7%/years) and Cost Optimization Product development (Expand Product lines to 3) Market development (Increase market share growth rate) 2.3 Marketing and Sales Plan With the aim to capture annual sales growth rate of 8% in the years, our sales and marketing plan aligns as follows Table Overview of the Marketing and Sales Strategy Objectives Strategies In the first years, raise approximately 8% Africa UHT (Long life) milk market shares 50% target consumer (approximately 400.000 people including 514 children and Gen Y/Millennials parents) are aware of this product, thus making a conversion rate from awareness to consumer is approximately 2% Develop a strong distribution network of 100,000 distributors and retailers across South Africa Increase penetration in young consumers Enhance offerings 17 product Adapt the business model fit to the consumers’, https://tailieuluatkinhte.com/ Main job to be done (children with competitiveness malnourished problem) comparing to current milk brands in Africa customers' and region’s characteristics Brand positioning and Product innovation with target source of growth competitive in effective advantage communication with both government and social partners Leverage Clover's operating system in terms of supply chain, distribution and management Vina-Clover’s mixed marketing and sales strategy is a combination of many factors including product attributes, distribution strategy, communication strategy, pricing strategy a Product attributes Vinamilk UHT Milk with the same packaging sold in Vietnam Main product: 250 ml in packs of units Supporting product: 1L Figure Main product (UHT 100% Fresh Milk) Figure Sub product (Pasteurized Milk) b Pricing strategy Market price of long life (UHT) Milk in Africa on average is 1,62 USD per liter, or 30,33 R per liter And Clover's product line is currently 25 R Thus, to easily penetrate into this market, we set an affordable price of 24 R per liter Main product: 24,2R Sub product: 24R 18 https://tailieuluatkinhte.com/ c Place (Distribution strategy) As Clover remains from top to top in dairy companies ranking, Vina-Clover can utilize Clover's current extensive network to save time to go-to-market Figure Overview of Clover’s retailing channels Channel distribution plan: After researching about Africa consumer behaviors, these channels are our main focus Distributors: wholesalers Retailers o Supermarket/Hypermarkets (40%): Utilize Clover's sales team to arrange exciting and effective trade marketing strategies (nearby or close to Clover’s product) with Clover extensive and loyal supermarket/hypermarket o Convenience/Grocery Stores (20%): sold in packs with other complementary products (bread, sandwich, ) o On premise channels (30%): School cafeterias as the main on-premise channel o E-commerce platforms (7%): Collaborate with main partners - takealot, Amazon to distribute on their channels by launching official store o Specialist Stores (1%): Clover’s dairy specialist stores d Communication strategy As target consumers are primarily stunned and undernourished, approximately 20% in Africa, the communication strategy focuses on this group with two main objectives (1) raise brand awareness and (2) raise brand association for Vina-Clover products Hence, dairy marketing strategies in the context of globalization should aligns with: Focused approach: marketing based on product (product-centric) 19 https://tailieuluatkinhte.com/ Original marketing plan: Re-invent a product with a powerful marketing campaign with slogan ‘’Grow higher, go further with Vinamilk’’ - as our main catchy slogan with an emotionally powerful commercial of a story Use viral marketing and social media to get your product to the masses without spending an enormous amount on advertising Focus on Nutritional Value: Use scientific-based guides and studies such as this to convince consumers to consume your dairy product Associate your product with the study itself Appeal to the Organic Market: Utilize the organic trend and follow the government guidelines to get the organic seal to include in your product advertising and packaging Table Communication timeline for Vina-Clover Project in phases Timeline Objective Key activities Phase (first months) Consumers deep understanding Conduct thorough market research by utilising Clover's team current document to shape a target consumers portrait Phase Pre-launching Partnership with Africa government (particularly schools officers) to sign up mutual agreement documents and gain allowance to distribute VinaClover product free to schools Phase Launching a viral advertisement clip Work with an agency to launch a campaign ‘’Grow higher, go further with Vinamilk'’ and distribute on socials, paid media Thus, customers will associate Vinamilk as a healthy and high nutrition level proportion and affordable price Phase Boost awareness and brand association events Phase Performance management Distribute free milk to 60% primary and secondary schools Distribute samples in 30% retailers, ranging from large to small retailers Constantly checking up with sales department to align tactics and current performance, to open up more marketing channels or conduct new marketing ideas Estimated Profits and Growth * Note: This estimation is based on the Ratio rationale method from Vinamilk financial Report 2022 All are assumptions and we have removed some cost elements 20