All TH’s products are widely distributed through our modern retailchain to bring the natural goodness compliant with international standards to the table ofVietnamese consumers, which st
UNIVERSITY OF FINANCE - MARKETING PRINCIPLES OF MARKETING 2231910004202 FINAL EXAM ASSIGNMENT ANALYSE MARKETING STRATEGY OF TH TRUE NUT FROM TH TRUE MILK IN VIETNAM MARKET Student: Hoang Tran Yen Vy – 2121013341 Huynh Do Tuong Vy – 2121013341 Tran Nguyen Dan Trinh – 2121011581 Le Hoang Minh Y – 2121012278 Class: IP21D02 Table of Contents Section 1: Introduction Section 2: Situational Analysis .4 2.1 Analysis Macro Environment Marketing ( PESTLE): .4 2.2 Analysis Competitors: 2.2.1 Direct Competitors: Vinamilk 2.2.2 Indirect Competitors: Yakult, Nestle 2.3 Micro environment 2.3.1 Consumer 2.3.2 Supplier: 2.3.3 Intermediaries: .7 Section 3: Segmentation, Targeting & Positioning strategy: 3.1 Segmentation Strategy 3.1.1 Geographic segmentation: 3.1.2 Demographic segmentation 3.1.3 Psychographic segmentation 3.1.4 Behavioral segmentation .9 3.2 Targeting Strategy ( Concentrated/niche marketing) .9 3.3 Positioning Strategy .9 Section 4: Planning the Marketing Mix (4Ps) Strategy: .10 4.1 Product : TH TRUE NUT ( CONSUMER PRODUCT ) 10 4.1.1 Product Attributes .10 4.1.2 Product Branding 12 4.1.3 Product packaging .13 4.1.4 Product Logos 15 4.1.5 Product Slogans 17 4.1.6 Product Support Service .19 4.1.7 Product Line 20 4.2 Price Strategy 23 4.2.1 Customer Value - Based Pricing: 25 4.2.2 Market-penetration pricing: .26 4.2.3 Price Adjustment Strategy: 27 4.3 Place .27 4.3.1 Distribution network and Channel behavior 27 4.3.2 Distribution Strategy 28 4.3.3 Distribution channel management .28 4.4 Promotion 29 4.4.1 Advertising: 29 4.4.2 Sales promotion: 30 4.4.3 Personal selling: 30 4.4.4 Public relations: 30 4.4.5 Direct and digital marketing .31 SWOT ANALYSIS 32 Recommendation: 33 Section 5: Conclusion 34 Detailed Group members' work assignment table: Name Content work assignment Hoang Tran Yen Vy Section 1, Section ( 2.1 & 2.3), Section 3, Section (4.2) Huynh Do Tuong Vy Section (4.1), Recommendation Tran Nguyen Dan Trinh Section ( 2.2), Section ( 4.3), Section Le Hoang Minh Y Section (4.4), SWOT Analysis Section 1: Introduction TH True Nuts is a product of TH True Milk brands This is a new drink and I recently noticed drinking the milk product of TH True Milk Although it was born later than Vinamilk, TH True Milk has the right marketing strategy to build its brand in the competitive dairy market in Vietnam TH Group has built a portfolio of sustainable and healthy agricultural products, including fresh milk, nut milk, healthy beverages, fresh and organic vegetables, etc., with a vision and investments focused on applying advanced technologies—integrated technical and management science All TH’s products are widely distributed through our modern retail chain to bring the natural goodness compliant with international standards to the table of Vietnamese consumers, which started with UHT Fresh Milk, TH True Milk In March 2018, TH introduced a line of Macadamia nut milk and walnut milk, which was well-received by consumers and experts for its beneficial effects on health In early July, TH Group continued to launch a line of nut milk with ingredients from almonds and fresh milk Section 2: Situational Analysis 2.1 Analysis Macro Environment Marketing ( PESTLE): POLITICAL The possibility to boost TH milk's competitiveness with imported milk brands The challenge of severe rivalry with the domestic dairy industry Tax policy on imported dairy products is relatively high and tends to rise in the future In conclusion: Create potential for development, increase in production, tombstone upgrades, and expansion As a result, the company is becoming closer to holding the home market for repairs, outperforming rivals, and developing competitive advantages against dairy goods from other countries A competitive rivalry with domestic dairy firms ECONOMICAL Inflation: Our nation's inflation rate has recently been at a low level, consistently hovering around 5% Income Consumers: incomes are increasing day by day In conclusion: The opportunity As the dairy industry grows, TH has more opportunities The Challenges: As the inflation rate declines, so the prices of other foods Additionally, as consumers' income levels rise, a wider variety of goods are available SOCIAL for them to purchase 14.4% of the population of the nation comprises children aged to 15 years old But many different age groups are also targeted by TH's products Numerous illnesses affecting children nowadays include obesity and conditions brought on by an overabundance of protein and fat from cow's milk Statistics show that Ho Chi Minh City has 50% and Hanoi has more than 41%, showing that nut repair is a good way to balance fat and carbohydrates and make sure there is a sufficient supply of nutrients seems to aid in the holistic development of kids TECHNOLOGI The trend for "CLEAN" food: CAL The scenario where there are "more chemicals than food" is getting worse every day People's awareness is also growing steadily in the meantime Naturally, many of TH True Milk's consumers were instantly satisfied by the company's motto, "clean milk." Melamine levels in milk: are higher than those permitted by other dairy companies, and tainted milk has an impact on consumer health Challenges: Customers may be reluctant to purchase dairy products, which could result in a drop in sales of TH True Milk Opportunity: With its motto "clean milk", TH can quickly convince the most difficult customers, and at the same time put pressure on rival brands To complement the milk production process, technology is regularly updated and enhanced Opportunities: Modern technology will let TH produce a greater range of goods, including yogurt and fermented yogurt, while also helping to boost efficiency and product quality Challenge: Investing in new technology is expensive, and competitors are brazenly increasing their investments in machinery systems LEGAL Rules governing international trading Vietnam's dairy industry's development planning for the years 2020 and 2025 has been approved by Decree 3399/QD-BCT The potential for expanding cow farms, creating a large supply, boosting competition, and integrating action is made possible by the chance to lower raw material costs Confront potential risks from rivals Suppliers of raw materials may face competition ENVIRONMEN The climate at TH Farm, which is in Nghia Dan (Nghe An), is harsh and impacted by TAL the Lao wind; as a result, there is a drought from May to July and temperatures that can reach 40 degrees with little humidity less prone to storms and flooding, but nevertheless experience both conditions frequently TH uses organic fertilizers and river water to irrigate a sizable grass area that serves as the primary feed for dairy cows In Conclusion: The Opportunity: Cut costs by using self-sufficient raw materials Because of the initial commitment, even inclement weather won't cause the flock to abandon its care The Challenges: Cows are constantly at risk for disease, and natural calamities might strike at any time 2.2 Analysis Competitors: 2.2.1 Direct Competitors: Vinamilk The following company, TH, needs to have a strategy to stand out in order to compete in the Vietnamese dairy industry where Vinamilk is the leading brand Since TH True Milk is a premium product line, this company has opted to charge the highest price while also attempting to change consumers' perceptions about the relationship between price and quality The pricing strategy of TH True Milk has been thoroughly considered and is entirely in line with the development of the Vietnamese dairy market at this time as well as the country's recent economic growth Compared to this firm,the price of TH True Milk (according to thmilk website, price is about 26,500 dong per bottles of 180 ml) is often 3500- 4500 VND higher than them The difference lies in the modern and high standardization production chain they own These two brands both compete with each other in creating trust in consumers about a clean and safe milk manufacturer 2.2.2 Indirect Competitors: Yakult, Nestle TH True Nut’'s competitor – Nestlé S.A is a Swiss multinational food and beverage group with its headquarters in Vevey, Vaud, Switzerland It is the largest food company in the world, measured by revenue and other metrics, as of 2014 The group ranked 64th in the 2017 Fortune Global 500 list and 33rd in the 2016 edition of Forbes Global 2000 (list of largest public companies) Nestlé products include baby food, health food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, food pet food and snacks Nestlé's 29 brands have annual sales of over billion Swiss francs (about $1.1 billion), including Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, Stouffer's, Vittel and Maggi Nestlé has 447 factories, operates in 189 countries and employs approximately 339,000 people This is one of the main shareholders of L'Oreal, the largest cosmetics company in the world Yakult Vietnam was established on June 26, 2006, with a total investment capital of over VND 400 billion thanks to the capital contribution of Japan's Yakult Honsha company (80%) and France's Danone group (20%) Yakult Vietnam started its business in August 2007.Currently, Yakult products are available in most supermarkets and retail stores throughout Vietnam In addition, Yakult is also distributed directly to customers' homes in Ho Chi Minh City, Hanoi, Hai Phong, Dong Nai, Binh Duong, Da Nang, Nha Trang, Vinh through the Yakult delivery system Yakult Vietnam factory always maintains the production Document continues below Discover more fMroamrk:eting CLC18DMA02 Trường Đại học Tài… 277 documents Go to course The Cocoon Original Vietnam Marketing… 38 99% (171) TIỂU LUẬN CHIẾN LƯỢC SẢN PHẨM M… 51 97% (211) Nguyên Lý Marketing - CHIẾN LƯỢC… 33 Marketing 93% (40) CASE-6- Uniqlo - Marketing quốc tế-… Marketing None Quốc Tế INTERNATIONAL MARKETING PLAN… 35 Marketing 100% (10) THE 7Ps MARKETING MIX OF VIETJET AIR 70 Marketing 100% (4) process with the highest quality standards, just like at the Yakult factory in Japan The production process of Yakult applies strict manufacturing standards, which guarantees a product close to 99% (that means 99% of the raw materials are fully utilized to the final product, with very little waste) discharged) 2.3 Micro environment 2.3.1 Consumer Customers of TH True Milk consistently deliver consumers high-quality, natural products that are acceptable for all demographics In a recent study conducted in 2021 by ADM Outside Voice, 77% of consumers said they frequently look for methods to improve Due to the rise in money and increased attention to health during the present COVID-19 crisis, almond, walnut, and nut product sales have surged significantly in an effort to strengthen the immune system This works to TH True Milk's advantage because the company's goods are promised to be clean milk that satisfies international standards, is free of preservatives, and still retains the greatest amount of nutrients 2.3.2 Supplier: Supplier The majority of the raw materials used to create fresh milk are provided by TH True Milk Corporation In Nghia Dan - Nghe An, TH TH Farm operates a dairy farm on 37,000 hectares of fertile Basalt red soil They use cutting-edge breeding techniques and modern technologies There are roughly 15,000–17,000 dairy cows in each of these clusters The cows at TH farm are brought from the US, Australia, Canada, New Zealand, and other countries with a clear pedigree to provide the best milk, guaranteeing the level of fat, protein, and other nutrients in milk Additionally, there are a wide variety of food sources for cows, including: corn, American sorghum, Mombasa grass, Mulato grass, soybean pods, filtered water, etc 2.3.3 Intermediaries: Customers can simply purchase TH True Milk goods Products are sent to intermediary agents by the system of warehouses and practical storage, where they are displayed in supermarkets like Big C, Coopmart, etc especially the national chain of supermarkets known as TH True Mart The company intends to deliver goods to customers in the nation's fastest manner while ensuring consumer safety and the highest possible product quality Additionally, to bring items closer to clients, periodic product launch seminars are also organized Section 3: Segmentation, Targeting & Positioning strategy: 3.1 Segmentation Strategy 3.1.1 Geographic segmentation: It is separated into two categories: urban and rural, based on population density and consumption patterns Urban area: 33,059,735 people live in this area as of 2019, which represents 34.4% of the nation's total population and is growing It is advantageous for the distribution and consumption of products to have a high population density Urban residents have higher incomes and are much more concerned with their health, frequently consuming milk for the entire family They frequently remain faithful to the goods they have previously selected and trusted According to experts, the dairy business will be driven mostly by people's knowledge of their own health in 2020, particularly urban customers Numerous consumers decide to buy TH True Milk goods due to their extensive consumer network, particularly in urban regions They focus on people in a big city such as Ha Noi, Ho Chi Minh, Da Nang, Rural area: 63,149,249 people live in rural areas, making up 65.6% of the total population of more than 90 million The consumption gap between rural and urban areas has shrunk over time as a result of urbanization, although it still stands at a lower level overall In rural areas, milk consumption will increase by 15% by 2020 Rural consumers are loyal to the traditional products they have trusted and are appropriate for their income, but urban consumers look for high-end products However, people in both urban and rural areas tend to be more concerned with their health, therefore food quality and nutrition play a significant role in how they make decisions 3.1.2 Demographic segmentation Age and life-cycle stage segmentation: all of the age children, adults, and old people The ages from to 14: make up the customer segment in which TH True Milk is most interested It is crucial to have a supply of minerals, vitamins, DHA, and calcium to absorb because this is a growth age As a result, there is a greater than-ever need for milk at this point The age from 15 to 35: They frequently use the money to purchase items to take care of themselves and their families, especially health products This group of people is almost financially independent Fresh and clean items are therefore very important to them The age from middle-aged and older: Health is frequently thought to be the element that customers are most concerned about, as the chance of ailments like heart disease and high blood pressure grows with age TH True Nut is a product to address the demands of heart care for people who frequently consume a lot of fat, have high blood cholesterol, and so on lessen the risk of cardiovascular disease, regulate blood pressure, and lower blood cholesterol Gender: Men and women can drink TH True nut, but most of woman prefer to drink nut milk Because more and more people like green lifestyle, especially woman who care about their health and their appearance Income: People have a high of standard and love healthy life, they also like to buy healthy products such as nut milk 3.1.3 Psychographic segmentation Lifestyle: people who like casual, fitness, healthy and their purpose to live a healthy lifestyle Interest: People who like somthings such as sweets, experiences, natural products Personality: people who are sociable, cheerful, peaceful They are also like to drink clean milk for their health 3.1.4 Behavioral segmentation Reason for purchase: people want to buy for themself or their family, buy for friends Benefits sought:people like healthy desserts, variety of flavors, good service system Loyalty level: strong Because TH True Nuts also a high line products and people used to drink milk Usage status: little use 3.2 Targeting Strategy ( Concentrated/niche marketing) TH True Nuts is a product of niche marketing In Vietnam, TH genuine MILK competes with Vinamilk by utilizing specialty markets, including high segment, decent medium income and above, and primarily focuses on target demographic High quality "clean" milk is in demand Fresh and clean milk is a niche market with enormous growth potential.Focusing on the market of fresh and clean food products in urban areas This is the reason why the brand focuses mainly in the center of big cities, or locations that are easy to observe, convenient for shopping, parking, etc 3.3 Positioning Strategy Because all of the raw materials used in the manufacture of TH True Milk come from TH farms, the product's quality and efficiency are always confirmed The core principle leading TH's business strategy has always been to rationalize benefits while always keeping the community and customers in mind to serve milk that is "really natural." Along with maintaining a positive reputation as a "green" company, TH True Nut products constantly strive to achieve great things to make the product better These ideals have previously been successfully used by the media, including radio, TV, etc It is consistently stated that the goods are "fresh, clean, pure" milk Looking at the diagram, it is evident that TH TRUE milk is more expensive than VINAMILK (the product's cost has been set at par with the leader), and that TH milk is also of greater