Marketing Plan.pdf

lOMoARcPSD|38119299 FINAL EXAMINATION MARKETING PLAN LECTURER: NGUYEN QUOC SI \ 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 Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 Contents I INTRODUCTION Introduction of Company II MAKETING PLAN Executive summary  Vision  Mission  Core values  Business philosophy  Introduction of Service Situation analysis  Segmentation  Targeting  Positioning 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 Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 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 Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 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 Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 - 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 Segment Demographic Mentality Behavior Geography - Vietnam Children Age: 5-14 - Style: likes outdoors, likes to -Daily use All genders -User status: hang out with friends potential/ daily users - Personality: dynamic, -Usage rate: daily inquisitive, creative Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 youth Age: 15-25 - Income: no income or low -Daily use - Vietnam All genders -User income status:new/ potential/ - Education:university/college daily users -Usage rate: student daily -Good for - Busy: the developmen - Personality: energetic, t of the body recharge enthusiastic, interest in novelty energy adults Age: 26-44 - Marital status: married, -Daily use - Vietnam All genders unmarried -User status: regular - Population: - Family size: single or 3-4 -Benefits to medium to people look for: high Good for Middle- Age: 40-60 - Social class: middle and upper health, - Vietnam aged class delicious women taste, (city to - Life style: busy, creative, convenienc flexible e countryside) - Marital status: married -User status: - Population: - Job: working or retiring first medium to - Achievement: medium to high time/long - Social class: middle class, time user -Benefit upper class sought: - Personality traits: calm, carring, Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 loving life, cheerful calcium in high - Lifestyle: busy or not free, care milk helps maintain - Suburb and about health strong urban bones and - Income: pension, most live off bone - Population: their children structure high Old Age: 65-70 - Gender: mostly female people - Family: single, with children, - Usage rate: married without children - Social classes: middle class, medium- upper class high users - Occupation: mostly retiring - Life style: Organize, health- - Usage conscious, focusing on situation: in improving physical and mental health, seeking peace leisure time, - Personality: family oriented - Benefits to look for: affordable, in gathering easy to buy, fight osteoporosis, keep body hydrated, increase events resistance, reduce fatigue - Buyer’s status: potential users • 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 to 14 years old (Vinamilk 2014), Vinamilk wishes to improve children's Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 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 / 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 Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 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 Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 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 Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 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 Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 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 Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 - 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 billion VND per day on advertising In the first quarters of 2017, for every 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 Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 ● 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 Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 - Vinamilk always builds good relationships and attracts the public, builds a good corporate image SWOT A swot ( strengths, weaknesses, opportunities, and threats) analysis is a planning process that can assist your company in overcoming obstacles and determining which new leads to pursue The primary goal of a SWOT analysis is to assist organizations in developing a complete understanding of all the factors involved in making a business decision SWOT analysis has become one of the most useful tools for business owners to use in starting and growing our businesses since its inception Vinamilk is one of the leading companies producing and trading milk and dairy products in Vietnam Vinamilk is also a well-known brand by many users thanks to investing in good and suitable content for its customers through marketing campaigns as well as methodical and effective marketing strategies • Strengths This brand has some of the highlights below: - Famous Vinamilk brand: The first strong point of Vinamilk is that Vinamilk is a famous brand Since starting operations in 1976, Vinamilk has built up a strong brand name for dairy products in the Vietnamese market Vinamilk dominates the market by focusing on advertising and marketing, constantly innovating products, and improving quality - Marketing strategy of Vinamilk is effective: One of Vinamilk’s marketing strategies is to take advantage of a variety of channels such as TV, radio, billboard, fanpage, television, etc to advertise its product With the multi- Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 channel product advertising strategy, the coverage has helped Vinamilk successfully implement the marketing campaigns of the business In addition, to be able to produce good and attractive content, Vinamilk has effectively applied the Hero–Hub–Help (3H) model in its content strategy to achieve certain successes - Wide range of products: Vinamilk offers a wide range of dairy products with over 200 dairy products, serving a wide range of consumers The product lines target specific target customers such as: children, adults and the elderly, along with products for households and businesses such as coffee shops Vinamilk also diversified product categories to increase serviceability and maximize profits in the market segment that Vinamilk targets - Wide distribution network: Wide distribution and sales network is an essential factor leading to Vinamilk’s success in operations As of December 31, 2009, Vinamilk has sold products through 240 distributors and more than 140,000 points of sale in all 64 provinces and cities of the country - Vinamilk applies high technology: Vinamilk owns European production technology that meets global standards, Vinamilk’s sterilization equipment is imported from Sweden and other equipment is sourced from European countries International standards such as ISO 50001: 2011 and HACCP are all applied to control the production system • Weaknesses - Vinamilk is not yet self-sufficient in raw materials: when domestic raw materials only meet about 30% of production demand, 70% of supply and input ratio depends on the milk supply demand relationship of the world With this dependence, Vinamilk’s production and business situation will be Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 affected by the external environment as well as factors such as inflation, economic crisis, etc - The market share of powdered milk is not high: currently, users tend to use imported powdered milk higher than domestically produced powdered milk In addition, the market appears to have more and more foreign milk brands imported from Europe, so Vinamilk’s powdered milk market share, which holds a monopoly position, tends to decline • Opportunities - The supply of raw materials is being supported by the government, and imported materials have a reduced tax rate - The number of potential customers is high and there is a great demand: Vietnam is still a country with a high number of potential customers and a large demand for milk that Vinamilk can take advantage of Vietnam has a high population density, an increasing proportion of people tend to urbanize in recent years, a high level of education, and a gradual improvement in the income of the middle class Associations that Vinamilk needs to capture Besides, when parents are more and more concerned about their children and pay attention to their children’s nutritions, Vinamilk’s dairy products are also very beneficial to children’s development, thereby attracting customers - The demand for milk of Vietnamese people is increasing: most Vietnamese people have a need to use dairy products Besides nutritional supplements, many people also use dairy products for beauty or cooking • Threats - Many competitors enter the market: some of Vinamilk’s main competitors can be mentioned such as: TH True Milk, Dutch Lady,… and emerging brands such as Meadow Fresh or Table Cove The increase in the number Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 of competing companies causes many potential risks for Vinamilk such as a decrease in the variety of dairy products ( competition in niche markets), difficulty in maintaining loyal customers, loss of market shares milk into the hands of competitors… - The source of raw materials is not stable: Although owning international standard dairy farms Vinamilk’s raw materials still depend on imports - Vietnamese customers tend to prefer foreign milk: they believe that the nutritional content and safety of portable products is higher than that of domestic products With this situation, Vinamilk needs to strengthen more brand promotion campaigns, affirming that the nutritional value of the product is not inferior to any famous foreign brand Marketing budget: • Promotion budget: Social welfare ( charity, scholarship…) 25 billion VND Vietnam milk festival billion VND Giving sample to customers billion VND • Advertising media budget: Television: VTV1, VTV7 • Budget for improvement: Redesign the packaging 30 million VND Improve product line billion VND Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 III CONCLUSION - Vinamilk is one of the famous dairy brands in Vietnam with a long-standing brand name, diverse product portfolio and effective product advertising and marketing strategies However, Vinamilk also needs to overcome certain weaknesses such as not being able to control the source of raw materials and low market for powdered milk Downloaded by van nguyen (nguyenbecoi.0705@gmail.com) lOMoARcPSD|38119299 IV REFERENCES - Top 11 thương hiệu sữa tiếng Việt Nam (2022) Retrieved August 2022 from: https://toplist.vn/top-list/thuong-hieu-sua-noi-tieng-nhat-viet-nam-3245.htm - Vietnam Dairy Industry Report 2022 Retrieved September 07 2022 from: https://www.globenewswire.com/news- release/2022/09/07/2511574/0/en/Vietnam-Dairy-Industry-Report-2022-Value-of- Dairy-Products-Imported-into-Vietnam-in-2021-was-11-8-Billion-an-Increase-of- 12-4-y-o-y-Forecasts-to-2031.html - Triển vọng ngành sữa năm 2022, Retrieved August 30 2022 from: https://gmp.com.vn/trien-vong-nganh-sua-2022:-hop-nhat-nganh-tien-trien- nhanh-n.html Downloaded by van nguyen (nguyenbecoi.0705@gmail.com)