Applying marketing mix to milk and dairy products in vinamilk company

HO cm MINH CITY UNIVERSITY OF FOREIGN LANGUAGES INFORMATION TECHNOLOGY &o.~ SCHOOL OF FOREIGN LANGUAGES TOPIC: APPLYING MARKETING MIX TO MILK AND DAIRY PRODUCTS IN VINAMILK COMPANY A ADVISOR: MS LE TID KIM DUNG - MA STUDENT: NGUYEN NGQC HONG THU o 1:= "/ I~LJf ~"7t "] • L.~ - ~T '.(-, _ HCMC, JULY 2000 ' ,,~-,. ~~~ ~ uiltii teliJlV- INTRODUCTION -1 CHAPTER ONE AN OVERVIEW OF MARKEI1NGMIX 1.1 The origin of marketing 1.2 De,I'Jll1ltlOn OJ,r mar k°et1l1g - J 1.3 Roles of ma rketing -~ 1.4 Functions of ma rketing - 1.4.1 Marketing st rateg ies 1.4.2 Produc t Strate g ies- - - 1.4.3 Pricing Strateg ies I 1.4.4 Placing Strateg ies 12 1.4.5 Promotion Strategies - 13 ° CHAPTER1WO ° ° ~ AN OVERVIEW OF VINAMILK COMPANY -20 2.1 Foundation of developing histo/Y 20 2.2 Organ izational managemen t 21 2.3 Business products - Rail" materials 25 2.4 Plant - Machinery and Plants 29 2.5 Personnel managemen t 31 2.6 De velopm ent of business activities - 32 CHAPTER THREE: APPLYING MARKEI1NG MIX TO MILK AND DAIRY PRODUCTS IN VINAMILK COMPANY 3.1 : 36 The real situation of Vinumilk product consumption in Vietnam ma rket 36 3.1.1 Milk demand of Vietnam market in the period of 1996- 2000-07-17 3.1.2 He Factors AJIecting to Vinamilk product consumption - 38 3.1.3 Vinumilk 's main competitors 3.2 3.2.1 36 - 38 Product Strategies in Vietnam Company Product Diversifying Strategy 42 rlfudualiOJl jiU/Wi 3.2.2 Product quality improl'emen t strategy 3.2.3 Nell' product development strategy 45 3.2.4 Product Life - Cycle Strategy 48 3.3 44 Pricing St rategy - 50 3.3.1 Vinamilk price setting - 50 3.3.2 Other pricing strategies 51 3.4 Placing Strateg ies 53 3.5 Promotion Strateg ies 56 3.4.1 Adl'e rtisin g - - - - 56 3.4.2 Sa Ies Promotion - - - - - - 58 3.4.3 Personal selling and Publicity 63 CHAPTER FOUR: SUGGESTIONS TO DEVELOP THE MARKET FOR VINAMILK MILK AND DAIRY PRODUC1~,) 4.1 171eoverview of Vietnam economy and the demand for milk and dailY products - 64 Some suggestions to improve the marketing activities - 66 4.2.1 Product Strategy 67 4.2.2 Price Stra tegy 69 4.2.3 Placing Strategy - 69 4.2.4 Promotion Strategy 70 4.2.5 Strategy of penetrating into new domestic and oversea markets -71 4.2 - CONCLUSION - 74 APP~'tVDI)( 75 LIST OF REFERENCES I i - 77 /W/Wl !fJuu/(((J/lOJl 3.2.2 Product quality improvemen t strategy 3.2.3 Nell' product development strategy 45 3.2.4 Product Life - Cycle Strategy 48 3.3 44 Pric ing Strategy - 50 3.3.1 Vinami Ik price setting 50 3.3.2 Other pricing strategies 51 3.4 Placing Strateg ies - 53 3.5 Promotion Stra teg ies - 56 3.4.1 Adve rtis ing - - - - - - 56 3.4.2 Sa Ies Promotion - - - - - 58 3.4.3 Personal selling and Publicity 63 CHAPTER FOUR: SUGGESTiONS TO DEVELOP THE MARKET FOR VINAMILK MiLK-AND DAIRY PRODUCTS 4.1 The overview of Vietnam economy and the demand for milk and dailY products - 4.2 64 Some suggestions to improve the marketing activities 66 4.2.1 Product Strate gy- - - 67 4.2.2 Price Stra tegy- - 69 4.2.3 PIac ing Strategy - - - - 69 4.2.4 Promotion Strategy 70 4.2.5 Strategy of penetrating into new domestic and oversea markets -71 CONCLUSION 74 APPENDIX 75 LiST OF REFERENCES I AUCidol: ,jfJ.:J!(! :YIti JI~JJ1fj;,fJI?- _ 77 V ietnam is being on the way to integrate in the international market According to Vietnam Trade Ministry schedule, Vietnam will join in WTO (World Trade Organization) in the period of 2006 - 2010 So it is time for all Vietnamese enterprises to make the preparation for that important event In addition, "Open door" policy of the Government has offered many advantages to Vietnamese enterprises and companies However, this also creates the fact that they meet the difficulty of facing with the more fierce competition environment Vietnamese market - at the beginning of the new millennium is filled with many foreign investors And it is because they all realized that Vietnam is emerging into the South East Asia as the most expected and interesting market How to get the strong power to compete with many other companies in the world, and still get a steady foothold in Vietnam market, it needs much efforts from all kinds of related authorities Among the most successful enterprises in Vietnam nowadays, VINAMILK has been considered as the symbol and the pride of Vietnamese over the years It is completely possible to state that VINAMILK is the effective business model So that this research is conducted to find out the marketing activities of the Company and to propose the suggestions with new ways and solutions to develop their business in both Vietnam market and future oversea markets The weak and strengths of the Company are also pointed out with the hope that many other Vietnamese companies could look at and find their styles to run their own businesses The organization of this research is as follows: Chapter One mentions about the overview of marketing mix filled with many marketing terms and definitions It is followed by the outline of VINAMILK company with its main business features in Chapter Two Chapter Three discusses its marketing activities in details and the final Chapter contains suggestions to improve the Company present business AN OVERVIEW OF MARKETING MIX CHAPTER I 1.1 o THE ORIGIN OF MARKETING: The technical opportunities developments for businesses, of the first decades of this century provided great since the demand for many new products which became available at that time exceeded supply These products included the equipment needed to supply electricity and telephone refrigerators, demand needed " to every home, appliances such as vacuum cleans, washing machines, radio receivers, provided business for companies manufacturing to make these products and improved This resulted in rapid economic and of course, motor vehicles This the tool and equipment employment opportunities growth, although interrupted generally in Europe by World War I (1914-1918) continued unabated in the USA o Production capacity expanded and by the mid -1920s began to exceed demand Customers for the first time found they were being offered a real choice by different manufacturers who responded by increasing their selling efforts The benefits offered to the customer by the products began to be emphasised products era,when when the the main objective was to increase production, objective Unfortunately, Business has moved from the changed to increasing sales relative to the selling era, to the competition in the USA production continued to exceed sales in many markets and this was one of many factors which leg to the economic crash of 1925 and the Great Depression followed it o The subsequent recovery was followed by World War II (1939-1945) which meant that demand again exceeded supply until the mid -1950s Then, as many facturing grew world-wide it began to be realised by the management companies of the most effective, nature in the USA that the selling approach did not, in the long term, make suppliers more prosperous They began to appreciate that to succeed and respond to the need of customers As a result these company began moving towards a marketing approach To this they apply various 'i{i j.; ISil:,:.,I,~.l'.(::.\.( ~\C.I.H (;1,\ 5,273 ! 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