marketing management final examination report marketing mix plan for th truemilk coffee bean

Market Summary - Overview of customers’ needs and tastes for liquid milk in Vietnam Despite the fact that many other businesses were hit by the global economic crisis and recession, Viet

MINISTER OF FINANCE UNIVERSITY OF FINANCE —- MARKETING

TÀI CHÍNH - MARKETING

MARKETING MANAGEMENT FINAL EXAMINATION REPORT

MARKETING MIX PLAN FOR TH TRUEMILK COFFEE BEAN

MAJOR : MARKETING SUBJECT: MARKETING MANAGEMENT

Professor : NGO MINH TRANG

Ho Chi Minh City, 2021

MINISTER OF FINANCE UNIVERSITY OF FINANCE —- MARKETING

TÀI CHÍNH - MARKETING

MARKETING MANAGEMENT FINAL EXAMINATION REPORT

MARKETING MIX PLAN FOR TH TRUEMILK COFFEE BEAN

MAJOR : MARKETING SUBJECT: MARKETING MANAGEMENT

Professor : NGO MINH TRANG

Captain : BUI THI BICH NGOC Phonenumber : 0979.557.653 Email : ngocbtb.hem@gmail.com

Ho Chi Minh City, 2021

TABLE OF CONTENTS

1.0 Executive SuTmTNAFV ch TH HH HH HH HH HT TH HH HH nhe 1

2.0 Situation AnaÏys1§ nh nh Hà Hà HH HH HH HH HT HH HH 1

2.1, Market Summary 64AŒỐ|đ 1

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TABLE OF FIGURES

Figures 3.5; Action Plan Table 13

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Figures 4.3: Expense Forecast Milestomes :c:ccsccsssecsssseosesscessessersesereeseesessenserssensecasenes 17

Figures 4.4: Expense Buddgef 1ri 2(2Z - - c H nH HH HH TH Tng g tHng gcHgrưre 18

Figures 5.1: Control plan according to AIDA model wld

1.0 Executive Summary

Briefing on marketing plan the following tasks and tasks must be established by the

company : Establish company objectives from 2021 to 2022 Examine internal and

external environmental factors to determine the company's opportunities, challenges,

strengths, and weaknesses The company's 2022 marketing objectives The business's

marketing strategy Planned and carried out Assess marketing outcomes The

competitive situation

The purpose and structure of the assignment: Making use of farm-grown natural

materials Using cutting-edge processing and packaging technology Using a secure and

rigorous distribution procedure to ensure product quality reaches consumers Launching a

new range of milk produced from fresh milk in a variety of flavors Diversifying its

product ranges, with the most common point being that they are made entirely of fresh

milk and natural additives

- With a spirit of closeness to nature, TH Group strives to nourish Vietnam's body

and soul by providing natural products that are clean, safe, fresh, and nutritious

- Objectives for the first year

- Make impressive TVCs or product related Tiktok trends so that more people know

the TH Truemilk Coffee Bean

- Emphasize milk nut products made entirely from milk and natural ingredient, good

for consumers’ health

- Offer many attractive promotions with accompanying gifts

- Become a manufacturer of clean food dertved from nature with international

standards right here in Vietnam

2.0 Situation Analysis

2.1 Market Summary

- Overview of customers’ needs and tastes for liquid milk in Vietnam

Despite the fact that many other businesses were hit by the global economic crisis

and recession, Vietnam's dairy processing industry continued to grow at a rapid pace

Vietnam's milk export turnover reached 302.7 million USD in 2020, up 10.5 percent from

the previous year, according to the Ministry of Industry and Trade According to the

Vietnam Dairy Association, fresh milk output is expected to reach 1,702,4 million liters

in 2020, up 1% from the previous year Production of milk powder is predicted to be

131.6 thousand tons, up 9.1% over the previous year Although consumption is

increasing, it is still at a low rate, with growth ranging from 2.1 to 3.9 percent over the

previous year Dairy products are a fast-moving consumer good (FMCG) (accounting for

13 percent of total FMCG consumption)

With substantial commercial investment, Vietnam's milk export turnover is

expected to reach $300 million by 2020, primarily in the form of yogurt and liquid milk

to the Middle East, Philippines

- Companies competing in the liquid dairy industry in Vietnam

Aside from fresh milk, the Vietnamese market for dairy products is currently fairly

diverse in terms of brands and types Liquid milk products, powdered milk, condensed

milk, butter, cheese, and whey are just a few examples According to FimGroup,

Vietnam's dairy market would increase rapidly in the future years as a result of population

growth and health-related efforts, as well as consumers becoming more health-conscious

through the consumption of dairy products Minister of Agriculture and Rural

Development Nguyen Xuan Cuong further stated that, despite being a relatively

underdeveloped business, Vietnam's dairy industry has expanded by more than 10% on

average, owing to a high rate of cow growth Vietnam's total dairy herd currently stands

at 290,000 heads, with an annual yield of 1 million tons Minister Cuong claims that,

despite severe competition, Vietnam's dairy business remains attractive due to a number

of positive aspects If you want to speed up the completion of linking chains and the

implementation of new technologies

2.2.SWOT of TH True Milk

2.2.1 Strengths

- Advantage of starting point

The dairy market is one of the most competitive markets in Vietnam with many

famous domestic and imported brands such as Vinamilk, Nestle, Dutch Lady, Despite

participating in such a competitive market, TH True Milk still won certain successes The

30% market share figure is proof of TH True Milk's efforts In addition, this brand

successfully rose to the representative position thanks to the company's well-invested

platform, including:

LO) Stable capital from Bac A Commercial Jomt Stock Bank

[] The largest and most advanced factory and farm in Southeast Asia

- Friendly company culture

TH True Milk has a very environmentally and socially friendly organizational culture

This strength contributes to improving the development within the company as well as the

brand image in front of the public

- TH True Milk has set of principles and visions in business such as:

O) Protecting public health through clean milk

O) All-natural ingredients

2.2.2 Weakness

- Price

Since entering the dairy market, TH True Milk has been a brand with a higher price tag

compared to other dairy brands This puts TH at a huge disadvantage in the competitive

domestic dairy market, especially compared to Vinamilk, the largest dairy producer in

Vietnam Especially, the high cost is also an obstacle for TH True Milk when it comes to

accessing the middle and low income class, the class that makes up the majority of the

total population in Vietnam

2.2.3.Opportunities

- Paying attention to consumers’ health

One of TH True Milk's biggest opportunities lies in its focus on consumer health in

recent years Following that trend, one of True Milk's extremely popular products is the

brand's line of organic dairy products

Organic milk is expected to grow 200% in global sales by 2025 And in Vietnam,

the majority of organic dairy products are still imported from overseas branch organic

farms So, there is a potential demand for organic milk market in Vietnam and TH True

Mulk is pushing strategically into this emerging market and has made many important

strides

2.2.4 Threats

- Non-stop competition

As mentioned above, the competition in Vietnam's dairy market is one of the

challenging factors in the future of TH True Milk In particular, any brand's product or

idea can be imitated and sold at a cheaper price For example, TH True Milk has long

been known as the leading organic milk producer in Vietnam since its inception

However, the company faced competition from Vinamilk, a huge dairy brand in the

Vietnamese market, when it also launched organic dairy products

2.3 Competition

+ DUTCH LADY

Dutch lady was brought to Vietnam in 1924 Vietnam has a wide market throughout

the country, and Dutch Lady split it by age, including all ages: children, teenagers, and

adults Pasteurized milk, condensed milk, and other dairy products are included in market

segmentation by dairy product

Because Dutch Lady caters to a wide range of demographics, they position "ready

for a vitality" for their liquid milk line and "with babies grow up" for their baby food line,

asserting their product diversity for all ages and separating themselves from the IQ

message Many milk brands have chosen it

Li Strengths and Weaknesses of the Dutch Lady

- Strengths:

LO High technical level

() Accounting for around 35% of the Vietnamese dairy sector « Constantly

improving products, competitive prices « Wide distribution network, strong brand position

- Weaknesses: Because Frieslandcampina Group sells both liquid and powdered

milk, it will divide its energies between the two segments

[Ì Customers to target: Female: 15-35 years old, with a concentration between 25

and 35 years old; they live in cities, have a lot of businesses or retailers, and are

compassionate women Family care is important

+ VINAMILK

"Top 10 Vietnamese high-quality commodities," Vinamilk has reasserted its quality

and position in the Vietnamese and international dairy markets after more than 40 years

of construction and development

With a market share of 37 percent, it is Vietnam's largest dairy company, with 45 percent

of the liquid milk market, 85 percent of the condensed milk market, and 85 percent of the

yogurt industry As a result, Vinamilk has the ability to decide the domestic selling price

From 1995 to 2009, consumers voted Vinamilk as one of the "Top 10 High Quality

Vietnamese Goods."

O) Vinamilk's strength and Weaknesses

Strength:

(1) Product quality: A wide range of products, including many of Vietnam's most

popular dairy products: Ong Tho condensed milk, Sao, Dielac, Yogurt Vinamilk

High-quality items at cheaper prices than imported products of the same sort, and

it has the biggest market share in Vietnam among suppliers of similar products

With prices that are appropriate for each area of the market The condensed milk

product line "Ong Tho and the Star," in particular, is a low-cost option that meets

the needs and preferences of the majority of Vietnamese people today

Vast distribution network: Vinamilk now has a statewide distribution network that

spans 64 provinces and includes more than 250 distributors and 135,000 points of

sale This extensive network enables Vinamilk to reach a huge number of

customers while also ensuring the introduction of new products and efficient

marketing techniques throughout the country

Invest in modern, high-quality equipment and technology: All of Vinamilk's dairy

plants have been outfitted with cutting-edge technology imported from Germany,

Italy, and Switzerland Swiss to be used on the assembly line Vinamilk is the only

company in Vietnam with a spray drying technique created by Niro of Denmark,

ensuring the highest quality dairy products

LO With a large corporation like Vinamilk, advertising, public relations, and

marketing programs are very methodical and professional, as well as highly

humane, touching the hearts of users, such as the School milk program, the

Vietnam Tall Milk Fund, and the campaign "One million green trees in Vietnam."

- Weakness:

With increased customer expectations and competition from international milk

brands imported from the United Kingdom, the United States, and the Netherlands,

Vinamilk milk no longer has a monopolistic position in the dairy market According to a

survey, imported milk accounted for 65 percent of the Vietnamese market, Vinamilk for

16 percent, and Dutch Lady for 20 percent

3.0 STP strategy

3.1 Market segmentation

- Geographic segmentation:

Up to now, TH Group has 297 stores in Vietnam market Mainly focus on

distribution in 2 big cities, Ho Chi Minh City with 77 stores and Hanoi with 73 stores

In other provinces, the number of distributions is quite different, only ranging from

2 to 3 stores Due to the increasingly serious Covid situation, 2021 is also a difficult and

challenging year for this brand But after the Covid-19 pandemic, TH will focus on

developing branches in provinces and cities more to meet the needs of customers

- Demographic segmentation:

L) Ages: includes all ages (children, youth, middle-aged, seniors)

Li Income: low income and middle income

L) Occupation: children, students, office workers, etc

- Psychographic segmentation:

L) Lifestyle: casual, fitness, healthy, etc

L) Interest: sweets, experiences, natural products, etc

() Personality: sociable, cheerful, peaceful, etc

- Behavioral segmentation :

Li Reason for purchase: buy for themself or their family, buy for friends

O) Benefits sought: like healthy desserts, variety of flavors, good service system

[LI Loyalty level: strong

LÌ Usage status: little use

3.2 Market targeting ( Concentrated marketing )

The domestic market is the distributors, wholesalers, retail stores, supermarkets

(Vinmart, COOP mart, Tmart, ) who want and are willing to distribute the company's

products This is a group that has requirements for sales bonus discounts, orders on

schedule

TH True milk not only expands the Vietnamese market but also expands its

production scale and aims to reach customers around the world

3.3 Market positioning

- Identify competitors:

TH True Milk's competitors include: Vinamilk, BV Milk, Love Farm- Vietnamese

farm fresh milk, Nestle

- Determining the advantages of TH true Milk:

(1 Products are processed cleanly and pure from TH farm

1 Delicious milk flavor, sweet and natural

Li Simple, easy-to-see packaging design, bringing a feeling of freshness to

consumers LO) Diversity of products

O Using modern machinery and technology

3.4 Strategies

3.4.1 Product

O Product attributes:

Milk nut is one of the most popular snacks for all ages, so right from the beginning

of the research and development of TH Truemilk Been, our leading nutrition and food

experts TH has set the most important standard “Milk must be delicious” The

deliciousness of the product is made up of ingredients Most of the products on the

market are used as main ingredients from fresh milk powder and other ingredients

Produced on a modern European technology line, TH Truemilk Been retains the

delicious taste and nutrients found in fresh milk Ingredients from fresh cow's milk help to

have a characteristic aroma and very smooth taste, bringing full taste and pleasant

experience.In addition, TH Truemilk Been also says "No" completely with synthetic

additives or preservatives - chemicals that are harmful to health but very common

Each TH Truemilk Coffee Been product delivered to customers is a whole

production process on a closed modern line imported from Europe, strictly from the

selection of raw materials, to the process of pasteurization and assimilation, creaming,

cooling, extracting, freezing and packing, always stored at the standard temperature, to

ensure the most complete consistency in shape, taste, and quality

L) Value proposed:

The core value is still to ensure the health and safety of customers when using the

product One of the customers that TH targets are children, because the immune system is

still weak, TH is always committed to fresh, pure, natural products that are good for

health

(1) Branding:

The birth and spectacular development of fresh milk brand TH True Milk from the

end of 2010 until now has created a phenomenon in the dairy industry in Vietnam The

secret of this brand is "TH's True Story" It is a source of completely fresh and clean dairy

materials from TH Dairy Farm in Nghia Dan, Nghe An, applying the world's most

modern technology in breeding and production; create real, high-quality products with a

methodical investment strategy Thanks to these factors, the identity of TH True Milk has

gone deep into the minds of Vietnamese consumers Not stopping there, TH also

continues to produce other products made from pure fresh milk, including the TH

Truemilk Coffee Been product line, which is loved by many customers and has good

reviews for product quality TH wants to prove to consumers that not only fresh milk

made from pure, but other product lines TH still ensures the conditions "completely from

nature" Since then, the brand has formed in the minds of customers as a brand with the

cleanest fresh milk source in Vietnam and a brand with many product lines made from

pure fresh milk

LO) Packing: