The rivalry between brands is a process that lasts longer than the tenure of a typical senior management team. The competition costs businesses a lot of time and money, when in fact, the data shows that brands have spent many different resources in the market. Especially, the competition in the FMCG industry is especially fierce when there are many international and Vietnamese brands. In addition, the competition plays a very important role, as a driving force to promote the vision and future direction of business lines, change the way of product development, and develop technology. information. Therefore, the study was conducted to target supply to assess the desire of consumers for a specific brand in Vietnam, which is Nestlé Vietnam. In addition, this study also considers other issues such as competition with other main competitors, Brand awareness and promotional activities; thereby promoting the competitive strategy and increasing brand recognition of Nestlé Vietnam.
Promote competitive strategy and increase brand recognition of Nestle Vietnam Abstract I Problem context 1.1 Company introduction 1.1.1 About Nestlé Vietnam 1.1.2 Vision, Mission, and Values 1.1.3 Organizational & Department Structure 1.3.1.1 Overall Structure of Nestlé Vietnam 1.1.3.2 Brand Management Structure – Dairy team 1.1.3.3 Marketing Intern – Role Definition 1.1.4 Market overview: A highly competitive market 1.1.5 Brand Portfolio 1.1.6 Competitor analysis 10 1.1.7 Target Customer 11 1.2 Report of observed symptoms 12 1.2.1 The low consumer’s desirability compared to the segment 13 1.2.2 Lacks a strong differentiation with other key competitors 13 1.2.3 The low brand awareness – lack of promotion activities 16 1.3 Possible problems & Initial cause-effect map 17 1.4 Literature review 21 1.4.1 Factors affecting customer decision 21 1.4.2 Strategies of company 22 1.4.3 Factors affecting brand awareness 23 1.4.4 Data collection 23 1.5 Report of data collection 23 1.6 Updated cause-effect map 24 II Problem justification 24 2.1 Problems definition 24 2.2 Problem existence 25 2.3 Problem importance 26 III Cause validation 28 3.1 Possible cause 28 3.2 Cause validation 28 IV Solutions 29 4.1 Alternative solutions 29 4.2 Solution justification 29 V ACTION PLAN 30 VI REFERENCES 32 VII APPENDICES 32 Loyal customers of Nestlé Vietnam 32 New customer of Nestlé Vietnam 33 The first product distribution agent of Nestlé Vietnam 33 Nestlé Vietnam's 2nd product distribution agent 33 Marketing personnel of the company 34 Abstract The rivalry between brands is a process that lasts longer than the tenure of a typical senior management team The competition costs businesses a lot of time and money, when in fact, the data shows that brands have spent many different resources in the market Especially, the competition in the FMCG industry is especially fierce when there are many international and Vietnamese brands In addition, the competition plays a very important role, as a driving force to promote the vision and future direction of business lines, change the way of product development, and develop technology information Therefore, the study was conducted to target supply to assess the desire of consumers for a specific brand in Vietnam, which is Nestlé Vietnam In addition, this study also considers other issues such as competition with other main competitors, Brand awareness and promotional activities; thereby promoting the competitive strategy and increasing brand recognition of Nestlé Vietnam I Problem context 1.1 Company introduction 1.1.1 About Nestlé Vietnam Nestlé is one of the largest Nutrition, Health & Wellness Company with more than 2000 brands ranging from global icons to local favorites, and we present in 191 countries around the world Nestlé has a long history in Vietnam dating back to 1912 and has ever since become a trusted symbol of quality for generations of Vietnamese households The high-quality products have embraced the local authenticity, which has been delivered to customers all over Vietnam Nestlé Vietnam also desires to send those unique products to the world Aiming at providing customers a range of diverse products, the company now is operating factories - Tri An Factory: Pure Soluble Coffee, Decaffeinated Coffee, Nescafé Dolce Gusto, Roasted Whole Bean; Dong Nai Factory: Multiple Products (Culinary & Beverage); Binh An Factory: RTD Beverage; Bong Sen Factory: RTD Beverage and distribution centers - South & North Distribution Center Each factory has its own special figures but all strive for providing high-quality products The locally - produced products of Nestlé Vietnam cover a wide range of consumers’ daily needs and deliver a unique taste at high quality from ingredient source to manufacturing standards Currently, Nestlé Vietnam is developing products of key brands, such as MILO, NESCAFÉ, Maggi, La Vie and NAN The products are quite diverse, including nutrition for kids (NAN, Gerber), dairy products (MILO, Nestlé Milk); cereal products (Koko Krunch, Nesvita); beverages like coffee (NESCAFÉ); mineral water (La Vie), instant tea (NESTEA), ice cream, confectionery products (KITKAT), food products (Maggi), and healthcare nutritional products (Boost Optimum, Boost Gluco Control, Peptamen) Figure The milestones of Nestlé in Vietnam (2) 1.1.2 Vision, Mission, and Values Nestlé aims to be a leading, competitive, Nutrition, Health and Wellness Company delivering improved shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier selling preferred products The company’s mission "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night Sustainable economic development is one of the main goals of the Vietnamese government Besides, with the purpose of unlocking the power of food to enhance the quality of life for everyone today and for generations to come, it drives the company to at levels of impact: for individuals and families, for our communities, and for the planet Guided by the company’s values rooted in respect – Respect for others; Respect for diversity and Respect for the future – which is called Creating Shared Value and it has embedded in everything the company does Figure Company’s three levels of impacts (3) 1.1.3 Organizational & Department Structure 1.3.1.1 Overall Structure of Nestlé Vietnam Nestlé implements a decentralized management organization, local branches are responsible for their own operations, deciding on pricing strategy, distribution, marketing, and human resources At the same time, the company established seven global strategic business units (SBUs) responsible for business development and high-level strategic decisions These SBUs are involved in overall strategy development, including acquisitions and market entry strategies Nestlé Vietnam, like most organizations of its size and global reach, has a Board of Directors The Board is responsible for managing the overall business and is currently led by Chairman & CEO Binu Jacob The day-to-day operations of the Nestlé business are overseen by the company’s Executive Board Members of the Executive Board manage diverse parts of the national Nestlé business and occupy C-level and executive positions such as Sales, Legal, Finance, HR, … The company employs over 2,900 employees with the Head Office located in Ho Chi Minh City and operating six factories Figure Organizational structure of Nestlé Vietnam (Source: On-Boarding Document from Human Resource Department) 1.1.3.2 Brand Management Structure – Dairy team Figure Brand management structure of Dairy team (Source: On-Boarding Document from Human Resource Department) Dairy team currently has three main lines of product: MILO (Core, Power, Less Sugar), MILO Teen and Milk Each line would have a separate marketing team for better managing different product lines Under each, there would be a Brand Management team that takes care of the branding activities, responsible for overseeing any aspect of marketing that has to with a product’s brand, and ensuring that all branding decisions ultimately result in stronger sales According to Figure 4, the Business Executive Officer currently leads a total of product lines, following are three Dairy team leaders in charge of separate teams with assorted products The split of MILO to show focuses on different target customers, but in essence, can be seen as a large team - MILO Team As for the Milk team, it is a separate team called Nestlé Bear Brand that covers Nestle Milk products with different strategies and goals 1.1.3.3 Marketing Intern – Role Definition As a Marketing Intern for the Brand Management team of Nestlé Bear Brand, my task is responsible for creating a promotional campaign that would help the product establish an exclusive brand image for itself Despite the diverse and uncertain tasks assigned to this trainee position, interns are encouraged to learn, experience as well as focus on the learning path rather than the pressures of deadlines and results On this team, I am well-received both formal guidance and regular mentorship from my manager and others Scopes Tasks ● Work with diver agencies/ stakeholders to deliver Samples/Brand Items/Activities across suppliers, Distributor, Factories, cross functions ● Responsible for all POSM to ensure dominant brand visibility at Brand Management point of purchase ● Constantly explore new & optimized consumer promotion gifts to deliver brand objectives and excite consumers ● Consistency brand e-content update & POP system in Ecommerce ● Provide promotion supporting documents to sales and marketing as requested ● Take Responsibility for Promotion Notice Application as per Project Management project ● Other works coming during daily operation or assigned by line manager Table Marketing Intern – Job Description (Source: On-Boarding Document from Human Resource Department) In conclusion, this research is conducted by an intern who works for Dairy team, specifically Nestlé Milk team The problem which was raised in the research is about Nestlé Bear Brand products 1.1.4 Market overview: A highly competitive market Vietnam's dairy industry revenue nearly doubled from USD4.4 billion in 2017 to USD8.4 billion in 2021, with domestic production meeting less than half of demand In 2021, the value of dairy products imported into Vietnam was USD11.8 billion, an increase of 12.4% year on year According to CRI research, there will be over 200 dairy producers in Vietnam by the end of 2021 Major players in the Vietnamese dairy market include Vinamilk, Nestlé Vietnam, Nutifood, Frieslandcampina, and TH Group CRI anticipates that demand for dairy products in Vietnam will increase between 2022 and 2031, providing more market opportunities for investors Organic dairy products, natural fresh milk products, and dairy-containing health food products are expected to grow rapidly in Vietnam in the coming years (source) Liquid milk is an immense potential but highly competitive market with lots of big competitors and similar product offers that focus on the communication of cow and farm, fresh milk, or general growth Consumers, therefore, find it hard to distinguish between available products and have the tendency to make purchase decisions among Top of Mouth (TOM) brands including Vinamilk, TH True Milk & Dutch Lady This creates many challenges for new entries to approach consumers, increase brand awareness and encourage them to switch to new products Besides, many moms nowadays decide to let their kids use fresh milk or recombined milk instead of RTD (Ready to drink) infant formula after powder-milk stages They want to have products that can provide a strong nutrition foundation for their smaller kids like RTD infant formula, but there are not many offers like that in the market Fi gure BES of Q2’21 According to Figure 5, it’s hard to call out the real difference among top brands on the market, consumers will pick what they have reached frequently Launched in 2018, Nestle Bear has continuously put effort to establish the strength positioning and gained a high repeat purchase rate of 35% However, the brand needs more differentiation to be outstanding in this competitive market and to drive more penetration Understanding consumers’ needs for specialized recombined/fresh milk for smaller kids, there is an initiative to relaunch the full range of Nestle Bear with a more differentiated positioning of tailor-made nutrition for early school age and more persuasive reasonsto-believe Therefore, we conducted many tests to verify whether insights and product offers in these concepts deliver needs and wants of consumers 1.1.5 Brand Portfolio In 2017, Nestlé Bear Brand launched successfully, which not only impressed moms & kids with the premium concepts but also received positive feedback in terms of taste & achieved high repeat purchases With a mission to build “One Strong Vietnam Generation”, Nestlé Bear Brand Milk provides high-quality dairy products so moms feel confident that their children have the strength to face everyday tasks and challenges At present, the brand has product lines which are Nestlé Milk & Nestlé Yogu Nestlé Milk includes Flavors & Stock Keeping Unit (SKU): White Milk 180ml & 115ml; White Strawberry 180ml, Blueberry 180ml, Swiss Choco 180ml & Less sugar 180ml With NutriStrong, Nestlé Milk provides 25% daily intake of Calcium in each brick and Vitamin A & D for strong bones & strong body Second product line is Nestlé Yogu with current SKUs: Classic Flavor brick 115ml; Classic Flavor stick 85ml and new SKUs which are Orange & Strawberry Flavor stick 85ml were officially launched on October 2022 Meanwhile, Nestlé Yogu focuses to highlight a unique combination of the bird-nest and strengths building nutrients for kids’ strong immunity The end goal of Nestlé Bear Brand is to establish the brand as the most preferred & trusted nutritional beverage to support Kid’s “IMMUNIY STRENGTH” Fig ure : Nestlé Bear Brand Portfolio With the assessment of the current brand & portfolio, there are strengths and weaknesses that were pointed out To be more specific, Nestlé Bear Brand enables us to explore the biggest and emerging segments of liquid milk While playing and different competitive heatmap, the unique product Nestlé Yogu offers bird nest in Drinking Yogurt (DKY) segment as well as unique Swiss Chocolate & White Strawberry in Flavor Milk show positive advantage (taste & differentiated proposition) which contributes nearly 50% of Bear Brand business Strength Bear is perceived as a unique & engaging brand image, especially standing-out on shelf However, there are also indifferent products offered (claims & taste) in the biggest segment – WHITE milk (Sweetened & Less Sugar) Thus, the target kids from - 12 years old who already had their own BUMO (Brand Used Most Often) & made their own dairy choice Lastly, business scale is still small with negative profit is also a huge disadvantage In the following parts, I will choose Nestlé Yogu brand in the DKY segment as a main product for deeper exploring & discussing 1.1.6 Competitor analysis Over the years the RTD MILK has evolved to be the most actively marketed category in Vietnam with more than 50 brands and there are at least 7-10 new launches every year But the market is dominated by players: Vinamilk, Dutch Lady & TH True Milk Based on TOM brands,