group assignment course mkt101 marketing principles topic vinamilk vnm

It is a world grade brand in the F & B Food &Beverage industry and is trusted by customers in nutrient & health products with 3criteria: quality, innovation & demand of customers.- VNM

GROUP ASSIGNMENT Course: MKT101 Marketing Principles

TOPIC: Vinamilk (VNM)

Group name: Introvert

Ho Chi Minh City, 28/02/2024

I Introduction.

- Vinamilk (VNM) was established in1976 It is a world grade brand in the F & B ( Food & Beverage) industry and is trusted by customers in nutrient & health products with 3 criteria: quality, innovation & demand of customers

- VNM is the NO.1 position in the VN market & aims to reach the top 30 of World’s Largest Dairy Companies in terms of revenue

- VNM has identified a develop strategy with 3 main pillars for execution, including: + Leading in highly applicable innovations : continue to R&D ( research & develop) more new products with innovation, expand & diversity portfolio based on consumer’s preferences & demand

+ Consolidating the leading position in the VN’s dairy industry: continue to build & prioritise large & strong domestic distribution systems, increase market share & maintain VNM leading in the market

+ Becoming the most valuable dairy company in the Southeast area: be ready for M&A (merger & acquisition) activities & prioritise to seek M&A opportunities & expand strong cooperation with partners in all 3 directors of horizontal, vertical & combined integration Continue to penetrate new markets with the strategy of converting the traditional goods export model into types of deep cooperation with distributors partners in new key markets

- Competitors of VNM : TH true milk, Alemilk, Dutch Lady,

II Marketing environment analysis ( macro - micro environment )

1 Micro - environment

- In 2020, VNM accounted for nearly 43,3% of market share milk in Viet Nam Imported milk from firms such as FrieslandCampina accounted for 15.8%, TH True Milk 6,1%, Abbott 5%belonged to smaller scale dairy companies such as Nutifood, Moc Chau Milk, IDP, etc account for the remaining small market share

- VNM, accounting for more than 54,5% of liquid milk, 40,6% of the powdered milk, 33,9

% of the drinking yogurt, 84,5% of the yogurt & 79,7% of the condensed milk market share nationwide

2 Macro - environment

Vinamilk, for the past few years as well as currently, mainly focuses on the market of consumers as children However, as seen by future trends, the children's consumers will be very small and crowded, especially when there are and will be more dairy companies entering this market Therefore, this future change in Vietnam's demographic will definitely have a great impact

on Vinamilk if it continues to just centralize its products around its current

target market of children consumers On the other hand, elder consumers can be a great potential market for Vinamilk and with its strengths, experiences in dairy products

- In 2010, the population below 10 years old was at 15,7 % while the population above 60 was at 8.9% In 2018, the population below 10 years old increased only 1% meanwhile the population above 60 has reached 9.5% The growing of old population foresees a shift in milk industry in the future: focusing more on the potential customers of the elderly

- The market segmentation:

Object Demographic Customer buying behaviour

(purchasing needs)

Geographic

Income : depend

Drinking everyday - potential customer - demand: nutrients

VN

on their parents.

Children Age : 5-14

Income: depend

on their parents

Drinking everyday - potential customers

VN

Young people Age : 15-25

Income : don't

have a stable

income

Drinking everyday - replenish energy

VN but high population density

Adults Age: 26 - 44

Income : stable

income

Usually use - Benefits to look for: Good for health, delicious taste, convenient

VN & have high population density & the majority are in urban areas The elderly Age: over 65

Their income is

based on

pension, most

live off their

children

Benefits to look for:

reasonable price, easy to buy, prevents osteoporosis, keeps the body hydrated, increases resistance, reduces fatigue

VN Area: rural, countryside

Culture: Around 72% of Vietnamese women have joined the workforce, bringing the country to the group of nations with the highest percentages of women in the labor pool And as women become busier, it is expected that liquid milk boxes or fresh milk become more popular due to their convenience.Children also account for

a large market share because, according to Vietnamese people, milk provides a lot of nutrition and energy for children Most children drink milk every day and with every meal

III Target and Positioning

1 Target

Consumer behaviors: Consumers are increasingly concerned about health issues,

leading them to learn about the quality of ingredients in products and the benefits that come from that product In addition, promotions and discounts also stimulate customers' consumption behavior

Executing:

Segmentation: Vinamilk will prioritize exploiting the domestic market

because the domestic market still has great growth potential Vinamilk increases advertising and develops quality products, supporting health issues, especially in urban areas Besides, Vinamilk also promotes popular products with growth potential to rural areas In addition, they also focus

on building a large and strong distribution system, increasing market share and maintaining Vinamilk's leading position in the market And finally, they carry out M&A activities and expand strong cooperation with partners to expand markets and increase sales

new and innovative products Expanding and diversifying product portfolio based on consumer preferences and needs, Vinamilk ensures to bring many convenient experiences to customers Vinamilk has enough product diversity to meet the consumption needs of different customer segments from infants to the elderly

Targeting: Vinamilk focuses on high-end and value-added products while

also developing existing products From there, they can maintain and optimize their leading position in the Vietnamese dairy market This will contribute to making Vinamilk the most valuable dairy company in Southeast Asia

2 Positioning

- In terms of price, Meadow Fresh has both the highest price (11.5 VND / 1 box) and the highest calcium level (125 mg) while the Th true milk has the low level of calcium ( 9 VND / 1 box) compared to the other milk brands.On the other hand, Vinamilk has a quite reasonable price (8 VND / 1 box) suitable for the budget of the majority of Vietnamese consumers today Vinamilk is a popular and leading milk brand in Vietnam so consumers can easily find this milk in supermarkets, bachhoaxanh or any other retail stores,

IV Analysis of the marketing mix 4Ps and the societal marketing concept.

In the marketing process VNM has used many strategies, but the most successful & stand out are the market segmentation & the 4Ps marketing mix & societal marketing concept

1 The marketing mix 4Ps model:

- Product:

+ Product has been produced with the goal of bringing clean, natural milk and meeting diverse desires

+ Diverse products such as fresh milk & nutritious milk, product for pregnant & infant, baby food, nutrition product for adults spoon yogurt, yoghurt drink and juicy milk drink, condensed milk, plant-based milk, beverage, ice cream, sugar, cheese, announcement of products

+ Products for children to the elderly people

- Price: Vinamilk’s products all meet international standards, their prices are much lower than imported milk lines In addition, VNM also improved some products to improve quality and price For example: Dielac Dielac Alpha, Dumex Dumex Gold, Friso -Friso Gold

+ For example, Vinamilk’s powdered milk for children is only one-third the price of other milk lines on the market.With a high level of competition in the dairy market, if Vinamilk raises its price to half that of other brands, its market share will be negatively affected ( Excerpted from research article by Le Quang Hieu PhD & Truong Dinh Trang Master)

- Place: distribution system

+ At present, Vinamilk has 3 main branches in Ha Noi, Da Nang, Can Tho and one headquarter in Ho Chi Minh City

+ Vinamilk’s distribution system spreads across the country in all three forms of distribution: wholesale, retail and direct distribution stores.Vinamilk products are also present in large and small supermarkets and convenience stores nationwide and on the e-commerce channel

+ Vinamilk's dairy products have become popular and easy to find throughout Vietnam due to the use of 3 main distribution channels, the first channel is the supermarket system, from large supermarkets such as Coopmart, Big C to small supermarkets such as Vinmart, Family mart, B's Mart

- Promotion: Multimedia marketing in Vinamilk's marketing strategy focuses on the message "100% pure fresh milk", which both conveys the product's competitive advantage and increases reliability for consumers.Vinamilk creates short advertisements but must make a strong impression on consumers through images, sounds, and attractiveness.Vinamilk has conducted multi-channel product advertising such as advertising on fanpage, advertising on television, outdoor advertising, developing videos

on YouTube,…

2 The societal marketing concept:

A marketing strategy of Vinamilk that is effective in attracting customers and increasing brand awareness is sponsoring competitions and scholarship programs such as:

- On July 20th 2014, Stand Tall Vietnam Milk Fund held a ceremony to give milk to the children of dead and wounded soldiers’ families in Quang Tri Province

- Also in the program, pupils had the chance to meet, chat and play funny games with the ambassadors of the program—comedian Xuan Bac and comedian Tu Long Previously, in

2014, Vinamilk also held events to present milk to children at Co To Island District (Quang Ninh) and Ba Tri District (Ben Tre)

- Vietnam Dairy Product JSC ("Vinamilk"), one of Vietnam's first advocates for the School Milk Program (SMP), marked its contribution towards the health and well-being of 3.3 million students on this year's World milk day 14 years on and the company remains committed to the better nutrition of Vietnamese children

- This strategy helped the company increase profit & brand awareness, helping the company continue to maintain the No.1 position in the Vietnam market

V Marketing plan.

1 Executive Summary:

· Brief overview of Vinamilk's current market position

· Summary of key marketing objectives

2 Situation Analysis:

· SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)

· Market trends and competitor analysis

· Assessment of current consumer preferences and behaviors

3 Marketing Objectives:

· Specific, measurable, achievable, relevant, and time-bound (SMART) objectives

· Examples: Increase market share by X%, launch a new product line, or expand into new markets

4 Target Market:

· Clearly define the target audience for Vinamilk products

· Identify demographics, psychographics, and behavior patterns

5 Marketing Mix (4Ps):

· Highlight product features and benefits.

· Introduce any new products or variations

· Price:

· Set pricing strategies based on market dynamics

· Consider value-based pricing

· Place:

· Optimize distribution channels for maximum reach

· Explore online and offline distribution options

· Promotion:

· Develop a strong advertising and branding strategy

· Utilize digital marketing, social media, and influencers

· Implement promotional campaigns to drive engagement

6 Marketing Strategies:

· Content marketing to educate consumers about the nutritional value of products

· Collaborate with health influencers for endorsements

· Sponsorship of events or community initiatives to enhance brand image

· Allocate resources based on priority areas.

· Specify the budget for each marketing initiative

8 Implementation:

· Detailed timeline for the execution of marketing strategies

· Roles and responsibilities for each team member

9 Monitoring and Measurement:

· Key performance indicators (KPIs) for tracking success

· Regular monitoring of social media, sales data, and customer feedback

10 Contingency Plan:

· Identify potential challenges and develop contingency plans

· Ensure flexibility in adapting to changing market conditions

11 Evaluation and Review:

· Regularly assess the effectiveness of marketing strategies

· Collect feedback and make adjustments as needed

Following the analysis process and developing a marketing plan for the next year of activities is critical to ensuring the success and effectiveness of the strategy The following are general conclusions:

- Understand the Market and Environment

- Clearly Identify Objectives and Target Audience

- Integrating Media and Campaigns

- Manage Resources Effectively, Establish Measuring and Tracking Systems

- Learn and Gain Experience, Integrate Flexibility and Adjust

VII References.

● Brade Mar (2023, October 31) Vinamilk Brade Mar https://brademar.com/vinamilk/

● Hiếu, L Q (2022, January) Further Discussion on Marketing Mix Strategy of Vinamilk

in Vietnam - A Lesson for Maintaining its Leadership Position in the Market

ResearchGate

https://www.researchgate.net/publication/361113653_Further_Discussion_on_Marketing _Mix_Strategy_of_Vinamilk_in_Vietnam_-_A_Lesson_for_Maintaining_its_Leadership _Position_in_the_Market/fulltext/63d174136fe15d6a5749fb56/Further-Discussion-on-M arketing-Mix-Strategy-of-Vinamilk-in-Vietnam-A-Lesson-for-Maintaining-its-Leadership -Position-in-the-Market.pdf

● Tuoitre (2014, December 24) Stand tall vietnam milk fund visits children of Quang Tri Province Vinamilk.

https://www.vinamilk.com.vn/en/news-events/767/stand-tall-vietnam-milk-fund-visits-ch ildren-of-quang-tri-province

● Vinamilk celebrates 14 years benefiting Vietnamese children with School Milk Program.

Vinamilk (2020, October 7)

https://www.vinamilk.com.vn/en/news-events/2189/vinamilk-celebrates-14-years-benefiti ng-vietnamese-children-with-school-milk-program