Principles Of Marketing Group Assignment Th Milk.pdf

About TH true milk The product of Group TH Currently includes sterilized fresh milk products True Milk.. and fully automated ● Vision and Mission At TH True Milk, people always cherishes

PRINCIPLES OF MARKETING

GROUP ASSIGNMENT

Class: MKT1612 Lecturer: Mrs Nguyen Hoang Phuong Linh

Group member: Group 5

● Phan Thu Hiên- HS160871

● Nguyên Duy Dung -HE163279

● Hoang Thi Duyên- HS163444

● Nguyên Hương Ly- HS163344

● Nguyên Xuân Manh- HS163358

DEADLINE: 7/11/2021

-TABLE OF CONTENTS

I Introduction

A About TH true milk Company 3

B The product’s STP ( Segmenting – Targeting – Positioning ) 4

1 Segmentation 4

2 Targeting 4

3 Positioning 5

II Business environment analysis A Macro-environment 1 Economic environment 6

2 Demographic environment 7

3 Cultural environment 7

4 Technological environment 8

5 Political and legal environment 8

6 Natural environment 8

B Microenvironment 1 The company 9

2 Supplier 9

3 Markets intermediaries 10

4 Competitors 10

5 Customers 11

III Analyze the results of the market research 1 Secondary data 11

2 Primary data 11

IV Analysis of current 4Ps marketing strategy 1 Product 12

2 Prices 13

3 Place 14

4 Promotion 15

V Recommendations and Conclusion A Conclusion 1 Strength 16

2 Weakness 17

3 Opportunity 17

B Suggestions to improve that strategy 17

I Introduction

A About TH true milk

The product of Group TH Currently includes sterilized fresh milk products True Milk TH Group

is also developing the Th Truemart retail store system.TH TrueMilk Company was founded by

Ms Thai Huong, launched milk products 26/12/2010 Clean milk machine in Nghia Dan district, Nghe An province This is the largest factory in Southeast Asia With a capacity of 500,000 tons of milk / year, in which phase 1 is 200,000 tons / year, with the leading processing of advanced countries in the world like Germany, Sweden, and fully automated

● Vision and Mission

At TH True Milk, people always cherishes a question "How can we improve Vietnam's Stature and help Vietnam to takes its place among the world's strongest nations" lt cannot deny that this passion encourages TH True Milk to create a new road, with a clear vision and mission.Firstly,vision of TH True Milk: TH Group aspires to become Vietnam's leading manufacturer which owns in hand clean natural origin With serious and long-term investments combined with the most modern technology TH True Milk Company is determined to become a world-class brand of food that is likely everyone's favorite and national pride.Secondly.Mission of TH True Milk: with the spirit of being close to nature, TH Group has always tried its best to nurture the Vietnamese physical and soul by providing food sources from nature, safe and nutritious with 5 core values: True happiness, For public health, Completely from nature, Friendly with environment, Outstanding thinking, Benefit harmony (TH Group Global, 2009)

1 Segmentation

- From 5-15 years old: fresh milk (pure, strawberry, chocolate); yogurt yeast:

● Reach the optimal development

● Help the bone grow well

● Provide energy to operate

● Nervous system development

● Healthy digestive system

- From 6-25 years old: fresh milk, yogurt:

● Enhance height development

● Finishing shape

● Beautiful skin

● Provide energy for motor and work

- From 26 years or older:

● Fresh milk supplement collagen: skin beauty, slow the aging process

● Fresh milk supplement Phytosterol: Reducing cholesterol - causing atherosclerosis into blood vessels, good for cardiovascular systems

● Calcium supplementary milk: Helps strong bones, reduce the risk of osteoporosis

2 Targeting

Vietnam, which started is a dairy technology and producing clean fresh milk products TH True Milk

TH True Milk - Fresh and clean milk products are filtered from sweet essences.The sweetest from the owned raw material is available on the land of Nghe An homeland.Capital

is favored by nature and is produced on the most modern technology transmission line gender With a scale of more than 30,000 children, TH is assessed by experts as a corporation

There is the size and number of largest cows in Southeast Asia The cows are selected from the source breed, bathed, listened to music and strict control with tracking devices and analyzing automatic data every day, getting nutritious food resources grown on its home grassland to produce fresh, clean, essential nutrition for the human body The logo of the product is the letter th with soil flower icon - to filter what essence the most, the purest crystallization creates the product from Vietnam the most Land flower icon, and slogan "truly nature" went into his heart impressively and moved Label True Milk brand is warmly received because it is a very valuable gift from natural.However, TH Group sent customers, also the love of homeland,love the group for the Group for the nation And it is proud to be a leading star in the sky in Vietnam Proud to be the first brick layer unit to create a foundation for the clean fresh milk industry in Vietnam In order to locate TH True Milk brand in customer mind compared to other competitors the author selected the topic: "positioning fresh milk brand True Milk in Vinh city, Nghe An "as his master's thesis

II Business environment analysis

A Macroeconomics

1 Economic environment

The economic environment plays an important role in the movement and development of the market Economic factors include the rate of economic growth, the rate of economic inflation, the structure of income and income growth, the change in the structure of spending

in the population, the economic infrastructure that directly is the transportation system, postal and other service industries

The General Statistics Office announced that Vietnam's socio-economic situation in the second quarter of 2021 was estimated to increase by 6.61% over the same period last year, higher than the 0.39% growth rate of the second quarter of 2021 2020 but lower than the growth rate of 6.73% in the second quarter of 2019 and 2020 Generally in the first 6 months

of 2021, GDP growth rate of 5.64% is higher than the growth rate of 1.82% in the first 6 months

of 2020 but lower than the growth rate of 7.05% and 6.77% of the same period in 2018 and

2019 epidemic prevention and economic development at the same time” Due to the impact

of the pandemic and social distancing and isolation measures, the demand for available

strategies in production scale, quality and product changes to suit the market economy.

According to data published by the General Statistics Office, the country's consumer price index (CPI) Compared to the previous month, CPI in August 2021 increased by 0.25%, of which the urban area increased by 0.34% higher than the growth rate of 0.14% of the rural area, mainly due to the high increase in the price index of food groups in urban areas In August, in 11 main groups of consumer goods and services, 4 groups increased prices compared to the previous month, 4 groups decreased prices, 3 groups kept prices stable (houses and construction materials; equipment and household appliances) family; other goods and services) Among the 4 groups of goods with price increases, the group of food and food services in August 2021 had the highest increase compared to the previous month with 0.74% (making the general CPI increase by 0 25 percentage points) because the transportation and distribution of goods follows stricter procedures to ensure the requirements of Covid-19 epidemic prevention and control Meanwhile, the need to store food and food has increased in areas where social distancing is implemented Beverage and tobacco group increased by 0.22% over the previous month, mainly due to the high demand for beverage consumption in hot weather and the increase in cigarette prices due to reduced supply Education group increased by 0.04% as the price of stationery increased by 0.34% The group of drugs and medical services increased by 0.02%, of which the price of all kinds of medicines increased by 0.08% Most of the prices of many dairy products were stable with low inflation, creating favorable conditions for the growth of the market Consumers shop more, businesses ramp up production Thus, the dairy industry is an industry in the developing stage, at present, the demand for milk is increasing, and dairy products have become daily essential products, with increasingly modern technology, an efficient distribution channel system With results and reasonable prices, the dairy industry will continue to develop more in the future

The infrastructure of the economy is also a factor affecting the purchasing power of the market If the weak infrastructure increases the cost of production and product consumption,

it increases the price of the product, thereby reducing the competitiveness of the product in the market Once the distribution and promotion services take place slowly in the market due

to the influence of the infrastructure, it will make the products difficult to access or slow to reach the company's products

2 Demographic environment

In 2021, the population of Vietnam is expected to increase by 830,246 people and reach 98,564,407 people by early 2022 Natural population growth is projected to be positive as births will outnumber deaths to 912,801 people If migration remains at the same rate as last year, the population will decrease by -82,555 people That means the number of people moving to Vietnam to settle down will be less than the number of people leaving this country

to settle in another country It is estimated that the daily change rate of Vietnam's population

in 2021 will be as follows: 4,234 children born per day on average 1,733 people die on

by an average of 2,275 people per day in 2021 (Source: https://danso.org/viet-nam/)With the relatively rapid population growth, this will help the dairy industry expand to a wide market larger, creating sales opportunities and increasing revenue

Living standards are increasingly improving, creating opportunities for businesses in the dairy industry to develop

3 Cultural environment

In Vietnam, consumers have a habit of using sweets as well as canned products or milk-related products The easy access of information through the Internet, newspapers, television, makes people feel an increasing need for care and satisfaction of physical needs Therefore, marketing, advertising and distribution activities to customers become more convenient

One of the characteristics in the concept of Vietnamese people is that they often use what they feel secure about prestige and quality Besides, the physical characteristics of Vietnamese people are relatively low weight and height compared to the world

With the rapid development of society, people also need high-quality nutritional products in terms of time Milk is a quick solution but still ensures the quality of nutritional supplements for working age and students, especially most children today are fed with powdered milk This is

an opportunity for the dairy industry to develop more diversified products, expand production and distribution in the market

In the future, Vietnam's population will age rapidly because currently the number of people in working age accounts for 2/3 of the population

4 Technological environment

One of the very dynamic elements contains many opportunities and challenges for TH True milk Grasping the importance of applying modern technology in production, TH Group's investment projects focus on applying high technology to rural agriculture, bringing modern terminal technology to Vietnam to contribute to the sustainable development of the country and the nation The farm is synchronously invested in technology as well as human resources, dairy cows imported from famous countries, Israeli breeding technology and applying advanced processing technologies in the world Laying the foundation for a brand of clean fresh milk food standard in Vietnam The 100% computerized management system helps to detect mastitis early, monitor jellyfish composition, and ensure milk hygiene In addition , health checks for cows are carried out periodically by experienced veterinarians With the principle of serious investment and long-term planning at TH Dairy Farm, TH True Milk ensures the essence of every drop of milk, bringing a healthy and joyful life to Vietnamese people That is the outstanding advantage of TH true milk

In the future, milk production technology will be continuously updated with the development speed of science and technology, which businesses are now mostly competing

in technology

The stable legal and political situation of Vietnam is decisive in economic development, creating jobs, increasing incomes for workers, and increasing consumption demand of the society This also has a positive impact on the creation and implementation of strategies of Vietnamese enterprises in general and enterprises in the dairy industry in particular

In the trend of integration into the regional and world economy, the National Assembly has promulgated and continues to perfect laws A stable political institution and clear laws will be the basis to ensure favorable and equal opportunities for businesses to compete effectively and healthily In addition, the State's incentive policies are also very positive for the company The State encourages farmers to raise and process dairy cows, creating conditions to supply input materials for companies in the industry Encourage people to use milk to improve physique, intelligence and bones for everyone The campaigns to drink and distribute milk for free by dairy companies contribute to creating a potential market for Vietnam's dairy industry Especially tax incentives The dairy industry enjoys incentives in the Law on Domestic Investment Promotion in terms of land lease, corporate income tax, and import tax on machinery and equipment This is as a moral encouragement for the company to try harder

6 Natural environment

Climatic conditions: in general, the weather characteristics of our country's climate:

- Source of forage for dairy cows is abundant and maintained thanks to the hot and humid tropical climate This is a condition for stable development but also potential problems in processing and ensuring products put into use

- The humid tropical monsoon climate creates favorable conditions for disease outbreaks to develop, making it difficult for livestock production Severe cold often occurs, leading to disease-prone livestock

B Microenvironment

1 The company

The TH Milk Joint - Stock Company as part of TH Group which was founded with the financial advisor of North Asia Commercial Joint Stock Bank ( Bac A Bank ) is a well - known brand in the dairy industry of Vietnam Established in October 2009 , processing milk is their major business TH True Milk was born with the success Element : Serious- Proud - Honest ,

is the unit that laid the first brick for clean fresh milk industry in Vietnam , Investment Scale was 1.2 billion Herd scale by the end of 2015 including 45,000 dairy cows and target of 137,000 dairy cows by 2020 TH's land widely spread 37,000 ha.Dairy processing is 200 million liters / year ( 2017 ) In Vietnam , TH Group has been developing dairy farms in the n northern border provinces like Ha Giang , Tuyen Quang , Lang Son as well as other locations

in Thanh Hoa , Phu Yen and Soc Trang.The Founder and Investment consultant of TH Group is

Ms Thai Huong - Top 50 most powerful businesswomen in Asia 2016 " voted by Forbes ( Forbes , 2016 ) TH aims to produce fresh , tasty and nutritious products to domestic and regional markets TH's farms in the North will be export oriented , targeting the Chinese

2018 , TH Group reached the revenue milestone of more than VND 7,000 billion , faster than the route that Ms Thai Huong was created

2 Suppliers

Currently, TH true MILK has been applying a closed cycle of international standard fresh milk production, so from the breeding stage, only the best cow breeds are selected from countries such as New Zealand, the US, and Uruguay , Canada, Australia From 2010 up to now, Tu has imported all 13 batches of dairy cows from New Zealand and Australia TH chooses to import mainly fertilized and pregnant cows to return to Vietnam, After a few months of acclimatization, the cows can lactate and give birth to the first generation of calves From now to the end of the year, TH plans to continue to import 3 more cows combined with calves born on the farm, which will increase the total number of herds to 45,000 in 2013 Thus, housing problems The supply of dairy cows to the farm greatly affects the operation of

TH true MILK But in 2011, the Israeli government invested 100 million USD in TH Group's TH true MILK dairy project, which is a source of TH

3 Marketing Intermediaries

Entering the Vietnamese market since 2010, TH true Milk is one of the businesses following the market and has to compete with quite a number of formidable competitors such

as Vinamilk; Dutch Lady; Moc Chau….However, the distribution system of Th true milk has been successfully rebuilt Building a methodical product distribution channel strategy is also one of the factors contributing to this company's outstanding success The distribution channel system of TH true Milk consists of 2 channels: direct distribution and distribution Indirect

● With direct TH True Milk distribution channel

TH provides customers with 2 types: TH true Mart store chain and online ordering - local delivery

With online ordering, customers only need to place orders through means such as smartphones or computers The order is then sent to the control center The staff there will check customer information and call to confirm the order has been placed successfully Then choose the nearest distribution center or TH true Mart store to deliver the order to the place requested by the customer and deliver the goods to the customer within 48 hours, free shipping

● TH True Milk indirect distribution channel

This is a popular distribution method because of its ability to quickly reach customers; bring great revenue to the company

This indirect distribution channel includes tier 1 and tier 2 channels

Level 1 channel is the process by which goods are transported from the place of production to retail stores such as grocery stores, supermarkets, convenience stores, etc

Level 2 is the goods that go from the above retail points to the consumer

● Direct competitor

At the time of 2009 when TH True Milk decided to enter the dairy market, in Vietnam there were many milk brands both domestic and foreign with many market segments known to many consumers such as Vinamilk, Moc Chau, Dutch lady… Among them, Vinamilk currently holds the largest market share and is still holding steady and constantly increasing its market share

These businesses have been attached to the Vietnamese dairy market for a long time and have made a certain impression on the subconscious of consumers Moreover, these brands also constantly invest in technology to make the product quality higher and higher This is one

of the biggest pressures when new businesses enter the industry

● Indirect competitors

Alternative products:Although TH True Milk clearly identifies the participating market segment as pasteurized fresh milk products But now there are many similar products on the market Even other companies will launch newer, superior products to compete and replace

TH True Milk's products Because the old dairy companies are fully capable and capable when they have been involved in the dairy industry for a long time

TH True milk competes with competitors with substitute products such as cereal powder, nutritional drink, chlorophyll water to stimulate eating… These are good substitutes for milk + Fruit juice market: Tan Hiep Phat, Twister, Cocacola, Pepsi…

+ Cereal flour market: vinacafe, callbe…

+ Nutritional drink market: Vietnamese cereals

5 Customer

TH True Milk started with longing named stature Vietnam , the desire for higher physical , intellectual Vietnamese people and for future generation of children in Viet Nam

In the world , milk is already a daily necessity , but in Vietnam , the number of children drinking milk every day is very small Consumption of fresh milk in Vietnam is still very low , about 5,8 liters/person , ( Thailand 30 liters/person , Singapo 45 liters).while domestic fresh milk production only meets about 22-25% of consumption demand Therefore, the number of customers for the fresh milk industry is still very large, which also means that the market is expanding for TH true MILK Currently, TH true MILK has a loyal customer base, but there are still many customers who want TH true MILK to have promotion and after-sales policies TH true MILK understands that desire has been and is being implemented opportunity to get closer to consumers In the near future , TH true MILK will launch the manga " Conquer the Universe " written and designed by a professional Japanese manga partner The book is not

a promotional item, but a meaningful gift for children The content of the story is dramatic, attractive, suitable for the tastes of young children, but contains a profound humanity and high educational value to help children develop their imagination, thinking ability and, above all, nurture new ideas beautiful dreams and ambitions for happiness , peace and "for Vietnamese stature"