Marketing Plan.pdf

10 Tan Trao, Tan Phu ward, district 7, Ho Chi Minh city,Vietnam - Key staff: Mai Nguyen Phong Chau - Chairman of the Board of Directors,Mai Kieu Lien - General Manager 2021 - Slogan: Ris

FINAL EXAMINATION

MARKETING PLAN

LECTURER: NGUYEN QUOC SI

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AUTHORS:

NGUYEN TIEN DAT- 215112074

VU HOANG KIM- 215290159

LY NGUYEN NGUYEN THAO- 205200129 NGUYEN THI ANH TUYET- 205111585

BUI MAI CHI- 185170747 NGUYEN NGOC BAO CHAU- 195110067

GIAP PHI LONG- 215111302 NGUYEN TRINH THAO NGUYEN- 215111829

HO CHI MINH CITY, 2022

I INTRODUCTION 3

Introduction of Company 3

II MAKETING PLAN 5

Executive summary 5

 Vision 5

 Mission 5

 Core values 5

 Business philosophy 5

 Introduction of Service 6

Situation analysis 6

 Segmentation 6

 Targeting 8

 Positioning 9

MARKETING MIX (4Ps) 10

 Products: 10

 Price 11

 Place 12

 Promotion 13

SWOT 16

 Strengths 16

 Weaknesses 17

 Opportunities 18

 Threats 18

Marketing budget: 19

 Promotion budget: 19

 Advertising media budget: 19

 Budget for improvement: 19

III CONCLUSION 20

IV REFERENCES 21

I INTRODUCTION

Introduction of Company

- Vietnamese name: Vietnam Dairy Products Joint Stock Company (Vinamilk)

- English name: Vietnam Dairy Products Joint Stock Company

- Type of company: Joint Stock Company

- Business lines: Trading in milk and dairy products and products

- Established date: August 20, 1976

- Head office: No 10 Tan Trao, Tan Phu ward, district 7, Ho Chi Minh city, Vietnam

- Key staff: Mai Nguyen Phong Chau - Chairman of the Board of Directors, Mai Kieu Lien - General Manager (2021)

- Slogan: Rise high in Vietnam

- Website: https:/lwww.vinamilk.com.vn/

- Vietnam Dairy Products Joint Stock Company – Vinamilk is a manufacturing and trading company in the dairy and dairy products processing industry in Vietnam

- After the country's reunification, the government nationalized three dairy factories in the South, namely Thong Nhat Dairy Factory (precursor was Foremost Dairies Vietnam S.A.R.L factory operating since 1965), Truong Tho Dairy Factory (predecessor) Cosuvina factory established by overseas Chinese in 1972) and Dielac Milk Powder Factory (under construction under Nestle) And decided to establish Vinamilk on August

20, 1976 with the original name of Southern Coffee and Milk Company, under the General Department of Southern Food Industry

II MAKETING PLAN

Executive summary

Message of Vinamilk

• Vision

- "Becoming the leading symbol of Vietnam's belief in nutritional and health products beneficial to human life"

• Mission

- "Vinamilk is committed to providing the community with high-quality and top-quality nutrition with its own respect, love and responsibility for human life and society."

• Core values

- Integrity: Integrity, honesty in conduct and in all transactions

- Respect: Respect for yourself, respect for colleagues, respect for the company, respect for partners, respect for cooperation

- Fairness: Employees, customers, suppliers and other stakeholders must all be treated fairly

- Ethics: Respect established ethical standards and act ethically

- Compliance: Comply with the law, the Code of Conduct and the company's regulations, policies and regulations

• Business philosophy

- Vinamilk wishes to become a popular product in all regions and countries.

Therefore, we keep in mind that Vinamilk's companion is quality and creativity Customers are at the heart of Vinamilk's business and the company is dedicated to serving all requirements

• Introduction of Service

The main products are liquid milk and powdered milk, besides there are value-added products such as condensed milk, yogurt (eating yogurt and drinking yogurt), cream cheese, fruit juice These are all nutritional and international quality products

In addition, Vinamilk constantly focuses on improving, researching and adding new product lines that evenly cover the medium to high-end segments, typically popular products in recent times such as: "100% fresh milk, organic fresh milk, fresh milk with bird’s nest and recently Vinamilk Green Farm fresh milk

Situation analysis

• Segmentation

Children Age: 5-14

All genders

- Style: likes outdoors, likes to hang out with friends

- Personality: dynamic, inquisitive, creative

-Daily use

-User status:

potential/

daily users

-Usage rate:

daily

- Vietnam

youth Age: 15-25

All genders

- Income: no income or low income

- Education:university/college student

- Busy:

- Personality: energetic, enthusiastic, interest in novelty

-Daily use

-User status:new/

potential/

daily users

-Usage rate:

daily

-Good for the

developmen

t of the body recharge energy

- Vietnam

adults Age: 26-44

All genders

- Marital status: married, unmarried

- Family size: single or 3-4 people

- Social class: middle and upper class

- Life style: busy, creative, flexible

-Daily use

-User status:

regular

-Benefits to look for:

Good for health, delicious taste, convenienc e

- Vietnam

- Population: medium to high

Middle-aged

women

Age: 40-60 - Marital status: married

- Job: working or retiring

- Achievement: medium to high

- Social class: middle class, upper class

- Personality traits: calm, carring,

-User status:

first time/long time user

-Benefit sought:

- Vietnam (city to countryside)

- Population: medium to

loving life, cheerful.

- Lifestyle: busy or not free, care about health

calcium in milk helps maintain strong bones and bone

structure

high

Old

people

Age: 65-70 - Income: pension, most live off

their children

- Gender: mostly female

- Family: single, with children, married without children

- Social classes: middle class, upper class

- Occupation: mostly retiring

- Life style: Organize, health-conscious, focusing on improving physical and mental health, seeking peace

- Personality: family oriented

- Benefits to look for: affordable, easy to buy, fight osteoporosis, keep body hydrated, increase resistance, reduce fatigue

- Usage rate:

medium-high users

- Usage situation: in leisure time,

in gathering events

- Buyer’s status:

potential users

- Suburb and urban

- Population: high

• Targeting

- Marketing strategy of Vinamilk has successfully applied the concentrated

marketing strategy to effectively occupy the high-income segment The main segment that Vinamilk's marketing strategy targets is children from 5

to 14 years old (Vinamilk 2014), Vinamilk wishes to improve children's

physical health and aims to nurture young talents as preschools are considered as pillars of the national tomorrow (Vinamilk 2016)

- The first reason why Vinamilk 100% organic chose this segment is because children account for about 23.2% of the population (Statistic 2020) Second, the middle class population is increasing and they are starting to focus more on the value of the product rather than the price This will result in 100% organic Vinamilk being able to have more customers (Euromonitor 2020)

• Positioning

Positioning Map: Calcium and Price of milk

- Vinamilk has a quite reasonable price (31.5 VND / 4 boxes) suitable for the pocket of the majority of Vietnamese consumers today Because Vinamilk

is a popular and leading dairy brand in Vietnam, consumers can easily find this milk in supermarkets, markets, grocery stores or any other retail stores

Positioning Map: Brand Awareness and Market Share

- Overall, Vinamilk leads on both factors including high company stock and brand recognition with 40% (Euromonitor, 2020)

➔ According to two positioning maps, Vinamilk's value proposition in the dairy industry is "Same quality, less price" Although Vinamilk has a low calcium content in fresh milk, its affordable price is the dominant factor compared to other brands Above all, Vinamilk has established itself as the largest company in the dairy industry in Vietnam

MARKETING MIX (4Ps)

• Products:

- Vinamilk's products are all aimed at distributing without shortage of

vitamins and minerals essential for the health and growth of all consumers from adults to children Vinamilk is used as the main raw material of fresh milk of cow farms and is selected and controlled extremely strictly to ensure food safety and hygiene Vinamilk's imported raw materials are

provided by reputable suppliers of the US, Australia, New Zealand, France,

- In its 4P Marketing plan, Vinamilk spreads to invest in production, business, and trade, encroaching on the beverage market that is beneficial for physical health with the core brand name being V Fresh This strategy aims to provide a rapidly increasing consumption trend compared to beverage products from all natural things that are beneficial

to consumers' physical health

- Besides, Vinamilk also develops its own source of raw materials to protect the source of fresh milk distribution unchanged, reliable quality with competitive prices: Farm construction, importing new cow breeds, application of technology in production

• Price

2.1 Pricing Method

- Vinamilk has implemented competitive - based pricing methods because there are many businesses doing business in the same market

- Vinamilk focuses on producing high-quality goods that meet international standards but still sets its products at competitive prices

+ The company owns milk factories with large capacity, advanced technology, and fully automatic machines

+ Taking the initiative in abundant raw materials, the company's long-term experience in the industry contributes to low cost of raw materials and quality assurance instead of having to import raw materials from abroad

➔ Vinamilk's pricing strategy not only ensures profits but also maintains the purchasing power of consumers

Ex: the price of a 1-liter box of Vinamilk's fresh milk is about VND 30,500 VND while similar products of other companies (TH True Milk, Lothamilk, Dutch Lady) range from 27,600 to 34,000 VND

2.2 Price Strategy

- New product pricing strategy

+ When announcing new products to the market, Vinamilk chooses market penetration pricing

+ Vinamilk has offered a low initial price so that the product can be adapted to customers quickly

- Product mix pricing strategy

+ Product line pricing: Vinamilk focuses on developing their product lines and sets price steps between several different products in a line

+ Package pricing: Vinamilk combines some products with other products and offers this bundle at a discount to encourage consumers to purchase

2.3 Price-adjustment strategy

- Psychology: Vinamilk is using the strategy "The more you spend, the strategy you get" Ex: Dielac Grow Plus with Bird's nest is an upgraded version of Dielac Grow Plus With more nutrients from the bird's nest, customers will not hesitate to spend a little more to get better products

- Maintaining stable prices: Vinamilk has participated in the commitment to stabilize the prices of some products (liquid milk, powdered milk for children, the elderly and the sick) since April 2012

- Promotional pricing: With the aim of increasing short-term sales, Vinamilk temporarily offers lower prices than before to promote customers' purchases On an e-commerce site, many products are often discounted from 5%

• Place

3.1 Supply chain and distribution network

- Vinamilk has a wide distribution network across 63 provinces and cities in VietNam

- Vinamilk’s distribution system follows this model with more than 250 exclusive distributors and more than 220000 sales points nationwide

- Direct channel:

+ For the Online channel: in October 2016, Vinamilk officially announced the online sales website Giacmosuaviet.vn, marking the first time an enterprise in the FMCG industry has developed an e-commerce business channel

+ For the Offline channel: Vinamilk distributes directly to business partners who use Vinamilk's products for production

- Indirect channels:

+ For the Online channel: the company has cooperated with sales website management companies to bring Vinamilk's goods to be available on Shopee, Lazada, Sendo,

+ For Offline channel:

● Traditional distribution channels: Most of Vinamilk's total revenue comes from sales through traditional channels In this way, distributors get products from factories and share with dealers

● Modern distribution channels: Vinamilk has 7,800 modern channels They are supermarkets, hypermarkets, and small supermarkets directly ordered by representatives of Vinamilk's branches

• Promotion

4.1 Promotion strategy

- To implement the Promotion Strategy, Vinamilk used the push - pull strategy

- For push marketing, VNM's goal is to bring brands and products to customers

● First, they give resellers discounts in a variety of ways to encourage sales

● Secondly, VNM has a team of qualified and trained sales staff who are not afraid of difficulties to approach and sell products to consumers

- For the pull strategy, VNM drives brand awareness with customer engagement and visibility, and customers find and buy products themselves

4.2 Promotion mix

Advertisement

- Although Vinamilk has appeared on the market since 1976 and is well known by many people, the company does not hesitate to spend nearly 5 billion VND per day on advertising In the first 3 quarters of 2017, for every

5 billion VND spent on advertising and research every day, Vinamilk earned 128 billion VND in revenue

- By multi-channel marketing, Vinamilk can communicate with a large number of people simultaneously Vinamilk's image has a strong influence

on mass media such as television, website, posters, etc In particular, Vinamilk's advertising models are regularly renewed and developed to bring new messages and please the audience

- Vinamilk decided to develop engaging, family-oriented video content using the 3H strategy - "Hero, Hub, Hygiene" - a new approach

● Hero: directs consumers' attention by capturing trending content Vinamilk prioritizes investing and creating videos that capture music trends with the appearance of actors Huynh Lap, Thu Trang, Lam Vy Da, etc

● Hub: Building a brand based on basic content to increase consumer interest, Vinamilk has developed video series such

as videos of children's songs and the "Clean Farm" video series It created fun ads that appeal to children, and those ads gradually appeared in Vietnamese children's meals and entertainment hours

● Hygiene: Educational content, related knowledge support Vinamilk also develops content that introduces adult advice For example, VNM made a video on how to make avocado ice cream and through that video, the company also promoted Ong Tho condensed milk - one of the ingredients for making avocado ice cream

Sale Promotions

- Vinamilk has also applied many promotions in different forms such as discounts, incentives for customers who are members of Vinamilk, gift exchange when getting many gift stamps, giving 15% of volume but the price remains the same In addition, Vinamilk offers weekly quick promotions for online purchases on their e-commerce website

Personal sales

- In order to increase sales and build relationships with customers, Vinamilk has selected employees with good communication skills and understanding customer psychology

Public Relations