(Tiểu luận) marketing report topic marketing strategy of vinamilk

NATIONAL ECONOMICS UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION *** MARKETING REPORT Topic: Marketing Strategy of Vinamilk Instructor: Mrs Tran Viet Ha Class : DSU 6A Group member :6 Student full name : Vu Nguyen Khuong – DSU06038 Thai Ba Quang – DSU06055 Tran Khoi Nguyen – DSU06050 Nguyen Anh Kiet – DSU06037 Ngo Phuong Thao – DSU06062 Doan Diem Quynh – DSU06056 HaNoi - 2022 TABLE OF CONTENT OVERVIEW EXTERNAL FACTORS .3 I: MICRO ENVIROMENT : MARKET ANALYSIS Customer Behaviors .3 Market Trends Market size Market growth 5 Competitors analysis 6 Business environment Industry Environment II MACRO ENVIROMENT: PESTEL ANALYS OF VINAMILK Political Environment Economics Environment .9 Social – Cultural Environment 10 Technological 10 INTERNAL FACTOR: COMPANY 11 1: Human resources 11 2: Economic and financial resources 11 3: Machinery and equipment 11 MARKETING PLAN IN THE NEXT YEARS 12 I: Marketing Vinamilk by STP (Segmentation, Targeting, Positioning) .12 Segmentation 12 Targeting .14 Positioning 15 II: Marketing Mix of Vinamilk 17 Product 17 Price 18 Place 19 Promotion 21 OVERVIEW I: INTRODUCTION ABOUT VINAMILK Vinamilk is Vietnam's largest food processor and deals in a wide variety of dairy products, including milk and yogurt It is said to account for about 50% of Vietnam's dairy market Established in 1976 with the mission set out "Vinamilk is committed to providing the community with top quality and high-quality nutrition with its own respect, love and high responsibility for human life and society" https://www.vinamilk.com.vn/vi/ve-cong-ty II: DEVELOPMENT STRATEGY Maintaining the No.1 position in Vietnam market and aiming to reach the Top 30 of World’s Largest Dairy Companies in terms of revenue, Vinamilk has identified a development strategy with three main pillars for execution, including: BECOME ONE OF THE 30 LARGEST DAIRY COMPANIES IN THE WORLD - LEADING IN HIGHLY APPLICABLE INNOVATIONS: Focus on dairy industry and dairy related products, which is the core business that has established the Vinamilk brands Continue to R&D to develop more new products with innovations; expand and diversify portfolio based on consumers’ preferences and demands; as well as bring various and convenient experiences to them - CONSOLIDATING THE LEADING POSITION IN THE VIETNAM’S DAIRY INDUSTRY: Prioritize to exploit the domestic market which still has great growth potential Promote more high-end and added value products, especially in urban areas Penetrate and cover rural areas with mainstream products that growth potential is large Continue to build a large and strong domestic distribution system, increase market share and maintain Vinamilk’s leading position in the market - BECOMING THE MOST VALUABLE DAIRY COMPANY IN THE SOUTHEAST ASIA: Be ready for M&A activities and expand strong cooperation with partners in all three directions of horizontal, vertical and combined integration; Prioritize to seek M&A opportunities with dairy companies at other countries for the purpose of expanding the market and increase sales Continuing to penetrate new export markets with the strategy of converting the traditional goods export model into types of deep cooperation with the distribution partners in new key markets https://www.vinamilk.com.vn/en/development-strategy/ III:VISION “Becoming the leading symbol of trust in Vietnam about nutrition and health products serving human life” https://www.vinamilk.com.vn/en/about-us/ IV: FINALCIAL GOALS - Vinamilk's revenue is expected to continue to grow at 7.7%/year - Towards the goal of becoming one of the Top 30 largest dairy companies in the world in terms of revenue Vinamilk: Thận trọng với mục tiêu tăng doanh thu 7%/năm (24hmoney.vn) EXTERNAL FACTORS I: MICRO ENVIROMENT : MARKET ANALYSIS Customer Behaviors a Cultural factor - Culture: Vietnam is not a country with a tradition of milk production and consumption, so the majority of people not have the habit of consuming milk every day In addition, compared with other foods and the income of most families in Vietnam, especially in rural areas, the price of dairy products in Vietnam is still quite high - Social class: The existence of social classes and classes is an inevitable problem of society People with high social status and high income will choose the most expensive and quality dairy products for themselves, and those with lower social status will choose suitable products for their income With a long-term reputation of more than 10 years, Vinamilk milk has gained the trust of consumers not only in price but also in product quality with the current human development trend Customers buy Vinamilk milk from all walks of life They choose Vinamilk because it has high quality, reasonable prices, and is the leading dairy company in Vietnam With a wide distribution channel throughout Vietnam, Vinamilk dairy products are present in all supermarkets and grocery stores from the big city to villages b Social factor - Reference groups:  Groups of influence directly and often include family, friends, neighbors, and co-workers When the people around you trust and regularly use Vinamilk's products, you will tend to learn and use those products  Influential reference groups less often include organizations, groups, and associations they have an important role in orienting a new way of life, new Document continues below Discover more Marketing from: Management Đại học Kinh tế Quốc… 109 documents Go to course Premium Truyền thông 47 Bamboo Airway Marketing 100% (53) attitudes, and new perspectives The frequency and amount of milk used daily can Management also be affected by them - Family: CasePremium Study of Muji -  Some people usually use the things buyed by their family members, Grade: B especially, children who use dairy every day If their parents give them a dairy, they 18 will use it directly without choosing the brand as a habit Marketing Management 100% (22) - Personal factor:  With the different stages of age and personality, there will be different types Bài QT Marketing - of dairies for them Grade:  For children, most parents give them milk every12day as a side meal Marketing Management 100% (4)  For some young people, they have a preference for drinking milk because of the benefit, taste and convenience of the milk, they can drink milk as breakfast or side meal PremiumMarketing HOẠCH  For the old, they would like to get some milk powderKẾ or yogurt - Psychological factor: 34 NĂM 2021 CHO SỮA… Marketing  Some needs are instinctual in nature, they arise from physiological stressful89% (9) Management states of the body such as hunger, thirst, fatigue, etc When people are affected by those states, they will be motivated push that they drink one cup of milk to get more energy Premium Muji into Chine market  Some people can be attracted by an interesting advertisement - Grade: Bmovie, and they want to try the products in this movie Marketing 100% (2) Management  Some people will check the ingredients before buying or using a dairy, whether it is suitable or not Market Trends Premium quan tri Trac nghiem - According to market developments, the dairy industry Mar is restructuring, 52 still dominating the market although domestic dairy brands such as Vinamilk are Marketing Management 100% (2) (43.3% in 2021) but competitive pressure from foreign brands is still a problem Existing externalities such as EVFTA will eliminate the tax rate of 5-20% for European dairy products in the next 3-5 years, paving the way for European milk to enter Vietnam Therefore, exports will become an important channel to promote growth, of which China is one of the potential markets Currently, domestic dairy companies have officially exported to China, including Vinamilk - Domestic consumers are more and more concerned about the origin of raw materials as well as the origin and safety of dairy products Therefore, they often choose dairy products produced directly from fresh milk over reconstituted milk products or products with additional nutritious ingredients such as: fresh milk containing bird's nest, milk from other ingredients, seeds, Market size a Domestic market Vinamilk distributes and covers the whole country with main branches in Hanoi, Da Nang and Can Tho and a head office in Ho Chi Minh City b Export market Today Vinamilk’s products have been exported to more than 40 countries worldwide, which include the Southeast Asian, the Middle East, Africa and other countries Quality Certificates: ISO 9001: 2008 ISO 14001 HALAL BRC FSSC 22000 https://www.vinamilk.com.vn/en/distribution/export-market Market growth “Go further thanks to prestige, go faster thanks to acumen” It can be said that, from the starting point that Vietnam is a dairy importer, so far, Vinamilk is not only leading in the domestic market, but also bringing its products to 56 countries and territories, with a total turnover of accumulated exports of more than 2.5 billion USD and increasingly affirmed the brand and reputation of Vietnamese milk in the international market Competitors analysis a For internal market: - Dutch Lady is a dairy brand from the Netherlands, although "joined" late and is playing away, this brand quickly asserted its position not inferior to Vinamilk in the Vietnamese market Over the years, Dutch Lady has continuously launched new competitive strategies to challenge rival Vinamilk - TH True Milk is considered a bold and ambitious competitor Since its inception, this brand has set a target of capturing 50% of Vietnam's dairy market share by 2020 This ambition is completely grounded by a series of extremely drastic investment strategies of TH True Milk - If Dutch Lady 1-on-1 with Vinamilk's products, TH True Milk decides to fight in the fresh milk segment, then Nutifood is Vinamilk's No competitor in the powdered milk segment - Nutifood is famous in the ready-to-drink milk powder segment, especially formula milk for specific target groups such as stunted children and the elderly This brand has for many years ranked in the top market share of powdered milk in the Vietnamese market More importantly, Nutifood has an extremely affordable price, 10-15% lower than Vinamilk This is the pedestal for this brand to become a big risk for Vinamilk in the popular segment b For external market: In other countries, domestic milk sources are also very diverse Moreover, the taste of Vinamilk milk, based on the taste of Vietnamese people, is completely different from the taste of foreigners (although there has been a change in taste to suit foreign users), it still creates a difficult barrier for Vinamilk in penetrating the foreign milk market to compete with their domestic milk companies However, the inflation rate is also high that means the cost of production will increase It will effect on the price of Vinamilk product in market Vietnam is a member of WTO is a big pressure for local business to compete another foreign competitor In addition, it also helps the company to expand its business scales and attract more foreign investment Healthy market, higher income, and stronger consumption confidence lead to significant changes in consumption trend According to Nielsen, customers nowadays are deeply concerned about health and inclined to purchase health products Statistically, when it comes to health products, 32% tend to purchase milk Indeed, liquid milk is the second fastest growing section in nutritional products With increasing demand for high-quality milk, Vinamilk, certified by British Retail Consortium standard for food safety, has great opportunities to grow sales and expand its market Social – Cultural Environment Vietnam is a young population country; it will lead the consumption of milk product in market According to WTO, Vietnam's average income 1300 USD each person and the buyer in middle class is high Therefore, they are the important customers that the company should focus on They will buy products not only for them but also for their children The demand for improving health and beauty has increased so they need a product that can meet their satisfaction such as fresh milk Not only committed to its own sustainability, Vinamilk is also dedicated to the sustainable development of society The company has organized strategic citizen-action programs with socialization purposes such as ‘Stand Tall Vietnam’ Milk Fund and ‘One Million Green Trees for Vietnam’ Fund 2014 was the 7th year of ‘Stand Tall Vietnam’ Milk Fund In this program, Vinamilk partners with the National Fund for Vietnamese Children to give away nearly 23,5 million glasses of milk to 310,000 stunted children in the country This program has been implemented this program in southern provinces including Lam Dong, Ben Tre, and several other provinces in the central Technological Milk Joint Stock Company Vinamilk is still the leading enterprises of the milk processing industry of Vietnam Vinamilk leaders always factor in science and 10 technology; depending on funding, market demand and product structure to convert technology investment timely Therefore, customers will have a lot of information about the company, and it can build the trust of customers Marketing mix https://eastasiabr.wordpress.com/2016/05/06/34/ INTERNAL FACTOR: COMPANY 1: Human resources Behind Vinamilk's success are human resource management methods that always achieve good results The root of these management methods is to take the skill training as well as the capacity of personnel right from the start as a condition, the main factor to promote and focus first to support the development of the company The company's operational activities are then carried out in the most efficient manner in the most optimal way In this issue are clearly planned human resource management processes that are set out right from the time when young potentials are discovered to the employees who already hold positions in the company 2: Economic and financial resources Vinamilk is considered a company with good financial and economic potential, it helps to create more convenient conditions in terms of accessing, changing advanced technology, contributing capital to network investment equipment system and improve infrastructure This will create advantages for Vinamilk to consolidate its position in the market 3: Machinery and equipment Vinamilk is recognized as a leading brand in the process of innovation and creativity The production factories of "Vietnam's milk king" are invested with modern technology, imported from Europe Vinamilk owns a production line that applies Niro spray-drying technology from Denmark to help bring resources superior product in terms of quality and safety 11 12 MARKETING PLAN IN THE NEXT YEARS I: Marketing Vinamilk by STP (Segmentation, Targeting, Positioning) Segmentation In order to categorize the market to gain customers' perception of fresh pasteurized milk products made from bird's nests, Vinamilk decided to survey based on demographic groups based on measurable statistics, such as: Segmen t Demographic Mentality Behavior Geograph y This age is completely dependent on parents, often has little choice This is the age when it Childre n Age: to years old All genders is necessary to supplement with many nutrients such as Daily use User status: Vietnam Rarely used DHA, but because the immune system is not yet complete, it is often used specialized products for this age Childre n -> Teens Youth Likes outdoors, likes to 14 years old All genders to hang out with friends, active, inquisitive, creative Daily use User status: potential users / Busy into the audience Daily use All genders Personality: energetic, User status: new Income: None or enthusiastic, interested user, one of the income is not too in novelty, passionate product's key outstanding about work, full of customer types Education: desire 15 to 25 years old Student/student/Ne 13 Vietnam can dig deeper Vietnam wly employed 26 to 44 years old All genders Income: Already have Adult a stable income Marital status: Married, unmarried Family size: single or 3-4 people Social class: middle and upper class Lifestyle: Busy, creative, Daily use User status: flexible, need to add more nutrients, regular, top customers will use supplement physical strength for work the product Vietnam Social class: middle Middle Ages 45 to 60 years old Marital status: class, upper class Personality traits: Calm, Married Job: Working or retired caring, loving life, cheerful Lifestyle: have more free User Status: Longtime User Vietnam time, care about health 65 to 70 years old Income: pension, Elderly Usage rate: high most live off of their children Lifestyle: organized, health conscious, focus users, hit hard to mine Gender: mostly female Family: single, with on improving physical and mental, seeking peace Usage situation: Daily use, In leisure time, in Personality: Family oriented gatherings Buyer's status: children, married without children Social classes: middle class, upper class Vietnam potential user In addition, in the next years Vinamilk will continue to launch surveys based on factors such as psychology, geography, preferences and buying habits and behaviors to further understand customers better, for example like:  What motivates customers to buy?  What are the common preferences of customers?  Who makes the buying decision?  How often they buy a product? Product usage rate  Do they shop online or want to see their products before buying? 14  What is the reason for purchase? How long does it take them to make a buying decision? => After going through the analysis, we can conclude that the ages from 15 to 25, 26 to 44 and 65 to 70 are the markets that need special attention, while those from to years old, to 14 and 45 to 60 still need more attention and development in the next years Targeting  First talking about the product, pasteurized fresh milk containing bird's nest is one of the first pasteurized fresh milk in Vietnam, pioneering in putting expensive foods into popular products  After classifying the target market, we have selected the target market for only pasteurized milk products containing bird's nest, which are customers aged 15 to 25, 26 to 44 and 65 years old to 70, besides also paying close attention to the age from 45 to 60  It can be seen on the market that there are very few products that provide enough nutrients made from oats that can be used for many ages The ages from 15 to 25, 26 to 44 are said to be the most fertile age of a person's life, so that's why many people still underestimate and are subjective about their health  Evidence shows that many patients scold diseases such as cancer very early because of overwork, eating and sleeping disorderly There are still too few healthy dairy products on the market for this audience, seeing that Vinamilk in the next to years will decide to expand the target market more to the target market from 15 to 25, 26 to 44 years old, by taking advantage of the company's strengths such as marketing communication, promoting the movement of drinking milk to protect health, having products such as low sugar or no sugar for people with diseases  It should be remembered that this is a large-scale market, but the competition is not high, there are few businesses to compete, and Vinamilk has the strengths of being a big man in the Vietnamese dairy industry as well as being a pioneer in the dairy industry this field With the motto, which target market, that product, 15 Vinamlik will not invest too many types of products, but only focus on pasteurized fresh milk products without bird's nest (with sugar, low sugar and no sugar) to both save production costs and focus on product quality  For the market of customers from 45 to 60 and 65 to 70 This is a very competitive and fierce market because there are many products that are brought to consumers to help add calcium, contain nutrients good quality, support the maintenance of strong bones  To stimulate demand from the elderly, Vinamilk has had discount programs for people over 65 years old when buying products, there are many incentive programs to buy products with gifts  A large market but also a lot of competitors, the challenge factor with the voice of one of the leading companies in milk Vinamlik will continue to push harder on product quality and product cost To help products reach customers more easily, it is expected that in to years Vinamilk's pasteurized fresh milk products containing bird's nests will be welcomed by a large number of customers in the market group, use the product and buy products Positioning As mentioned in the market, there are still not many domestic producers of dairy products like Vinamilk following, so it can be assessed that Vinamilk is leading the trend Direct competitors such as Dutch Lady, TH True Milk, Nutifood have not yet made a move to launch new products, but instead have improved the products that have made their brand Vinamilk's biggest competitors in this segment probably come from foreign dairy companies Abbout USA, International Dairy Joint Stock Company (IDP), Frieslandcampina, Mead Johnson, dairy brands that have created consumers' confidence in finished dairy products health guarantee In the next to years, the above companies will certainly produce new products to compete with Vinamilk, not to mention the old products with improved quality also affect the market of the products pasteurized fresh milk products containing bird's nest If our competitors offer better quality, better prices, and better service, even if our products are leading the market, we will surely face many difficulties 16