Principles Of Marketing Group Assignment Th Milk.pdf

PRINCIPLES OF MARKETINGGROUP ASSIGNMENT

-TABLE OF CONTENTSI.Introduction

A About TH true milk Company 3

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

2 Weakness 17

3 Opportunity 17

B Suggestions to improve that strategy 17

I IntroductionA About TH true milk

The product of Group TH Currently includes sterilized fresh milk products True Milk TH Groupis also developing the Th Truemart retail store system.TH TrueMilk Company was founded byMs 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 500,000tons of milk / year, in which phase 1 is 200,000 tons / year, with the leading processing ofadvanced 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 Statureand help Vietnam to takes its place among the world's strongest nations" lt cannot deny thatthis passion encourages TH True Milk to create a new road, with a clear vision andmission.Firstly,vision of TH True Milk: TH Group aspires to become Vietnam's leadingmanufacturer which owns in hand clean natural origin With serious and long-terminvestments combined with the most modern technology TH True Milk Company isdetermined to become a world-class brand of food that is likely everyone's favorite andnational pride.Secondly.Mission of TH True Milk: with the spirit of being close to nature, THGroup has always tried its best to nurture the Vietnamese physical and soul by providing foodsources 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)

- 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 atherosclerosisinto 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 THTrue Milk.

TH True Milk - Fresh and clean milk products are filtered from sweet essences.Thesweetest from the owned raw material is available on the land of Nghe An homeland.Capitalis favored by nature and is produced on the most modern technology transmission linegender With a scale of more than 30,000 children, TH is assessed by experts as acorporation

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

II Business environment analysisA Macroeconomics

1 Economic environment

The economic environment plays an important role in the movement and development ofthe market Economic factors include the rate of economic growth, the rate of economicinflation, the structure of income and income growth, the change in the structure of spendingin the population, the economic infrastructure that directly is the transportation system, postaland other service industries

The General Statistics Office announced that Vietnam's socio-economic situation in thesecond 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 thegrowth rate of 6.73% in the second quarter of 2019 and 2020 Generally in the first 6 monthsof 2021, GDP growth rate of 5.64% is higher than the growth rate of 1.82% in the first 6 monthsof 2020 but lower than the growth rate of 7.05% and 6.77% of the same period in 2018 and2019 epidemic prevention and economic development at the same time” Due to the impactof 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 priceindex (CPI) Compared to the previous month, CPI in August 2021 increased by 0.25%, ofwhich the urban area increased by 0.34% higher than the growth rate of 0.14% of the ruralarea, mainly due to the high increase in the price index of food groups in urban areas InAugust, in 11 main groups of consumer goods and services, 4 groups increased pricescompared to the previous month, 4 groups decreased prices, 3 groups kept prices stable(houses and construction materials; equipment and household appliances) family; othergoods and services) Among the 4 groups of goods with price increases, the group of foodand food services in August 2021 had the highest increase compared to the previous monthwith 0.74% (making the general CPI increase by 0 25 percentage points) because thetransportation and distribution of goods follows stricter procedures to ensure therequirements of Covid-19 epidemic prevention and control Meanwhile, the need to store foodand food has increased in areas where social distancing is implemented Beverage andtobacco group increased by 0.22% over the previous month, mainly due to the high demandfor beverage consumption in hot weather and the increase in cigarette prices due to reducedsupply 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 ofmedicines increased by 0.08% Most of the prices of many dairy products were stable withlow inflation, creating favorable conditions for the growth of the market Consumers shopmore, businesses ramp up production Thus, the dairy industry is an industry in thedeveloping stage, at present, the demand for milk is increasing, and dairy products havebecome daily essential products, with increasingly modern technology, an efficientdistribution channel system With results and reasonable prices, the dairy industry willcontinue to develop more in the future.

The infrastructure of the economy is also a factor affecting the purchasing power of themarket 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 inthe market Once the distribution and promotion services take place slowly in the market dueto the influence of the infrastructure, it will make the products difficult to access or slow toreach the company's products.

2 Demographic environment

In 2021, the population of Vietnam is expected to increase by 830,246 people and reach98,564,407 people by early 2022 Natural population growth is projected to be positive asbirths will outnumber deaths to 912,801 people If migration remains at the same rate as lastyear, the population will decrease by -82,555 people That means the number of peoplemoving to Vietnam to settle down will be less than the number of people leaving this countryto settle in another country It is estimated that the daily change rate of Vietnam's populationin 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 therelatively 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 thedairy industry to develop

3 Cultural environment

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

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

With the rapid development of society, people also need high-quality nutritional products interms of time Milk is a quick solution but still ensures the quality of nutritional supplements forworking age and students, especially most children today are fed with powdered milk This isan opportunity for the dairy industry to develop more diversified products, expand productionand distribution in the market.

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

4 Technological environment

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

In the future, milk production technology will be continuously updated with thedevelopment speed of science and technology, which businesses are now mostly competingin 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 thesociety This also has a positive impact on the creation and implementation of strategies ofVietnamese 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 haspromulgated and continues to perfect laws A stable political institution and clear laws will bethe basis to ensure favorable and equal opportunities for businesses to compete effectivelyand 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 supplyinput materials for companies in the industry Encourage people to use milk to improvephysique, intelligence and bones for everyone The campaigns to drink and distribute milk forfree 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 DomesticInvestment Promotion in terms of land lease, corporate income tax, and import tax onmachinery and equipment This is as a moral encouragement for the company to try harder

B Microenvironment

1 The company

The TH Milk Joint - Stock Company as part of TH Group which was founded with thefinancial advisor of North Asia Commercial Joint Stock Bank ( Bac A Bank ) is a well - knownbrand in the dairy industry of Vietnam Established in October 2009 , processing milk is theirmajor 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 Scalewas 1.2 billion Herd scale by the end of 2015 including 45,000 dairy cows and target of137,000 dairy cows by 2020 TH's land widely spread 37,000 ha.Dairy processing is 200million liters / year ( 2017 ) In Vietnam , TH Group has been developing dairy farms in the nnorthern border provinces like Ha Giang , Tuyen Quang , Lang Son as well as other locationsin Thanh Hoa , Phu Yen and Soc Trang.The Founder and Investment consultant of TH Group isMs 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 andregional 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 thanthe route that Ms Thai Huong was created

2 Suppliers

Currently, TH true MILK has been applying a closed cycle of international standard freshmilk production, so from the breeding stage, only the best cow breeds are selected fromcountries such as New Zealand, the US, and Uruguay , Canada, Australia From 2010 up tonow, Tu has imported all 13 batches of dairy cows from New Zealand and Australia THchooses to import mainly fertilized and pregnant cows to return to Vietnam, After a fewmonths 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 withcalves 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 ofTH true MILK But in 2011, the Israeli government invested 100 million USD in TH Group's THtrue 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 businessesfollowing the market and has to compete with quite a number of formidable competitors suchas Vinamilk; Dutch Lady; Moc Chau….However, the distribution system of Th true milk hasbeen successfully rebuilt Building a methodical product distribution channel strategy is alsoone of the factors contributing to this company's outstanding success The distributionchannel 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 - localdelivery.

With online ordering, customers only need to place orders through means such assmartphones or computers The order is then sent to the control center The staff there willcheck customer information and call to confirm the order has been placed successfully Thenchoose the nearest distribution center or TH true Mart store to deliver the order to the placerequested by the customer and deliver the goods to the customer within 48 hours, freeshipping.

● TH True Milk indirect distribution channel

This is a popular distribution method because of its ability to quickly reach customers; bringgreat 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 toretail 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 therewere many milk brands both domestic and foreign with many market segments known tomany consumers such as Vinamilk, Moc Chau, Dutch lady… Among them, Vinamilk currentlyholds the largest market share and is still holding steady and constantly increasing its marketshare.

These businesses have been attached to the Vietnamese dairy market for a long time andhave made a certain impression on the subconscious of consumers Moreover, these brandsalso constantly invest in technology to make the product quality higher and higher This is oneof the biggest pressures when new businesses enter the industry.

● Indirect competitors

Alternative products:Although TH True Milk clearly identifies the participating marketsegment as pasteurized fresh milk products But now there are many similar products on themarket Even other companies will launch newer, superior products to compete and replaceTH True Milk's products Because the old dairy companies are fully capable and capable whenthey 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