developing a comprehensive one year marketing plan for an existing product or service in vietnam

EXECUTIVE SUMMARY.As the target group of research and analysis of marketing strategies, we haveselected TH true milk as one of the clean milk brands trusted and used by almosteveryone in

INTERNATIONAL SCHOOL VNU

FINAL EXAM PRINCIPLES OF MARKETING

DEVELOPING A COMPREHENSIVE ONE YEAR MARKETING

PLAN FOR AN EXISTING PRODUCT OR SERVICE

IN VIETNAM.

Lecturer

2022-2023

EXECUTIVE SUMMARY 2

PART I: CURRENT MARKETING SITUATION OF TH TRUE MILK 3

I Company profile 3

1 TH true milk company: 3

2 Mission, vision, and core value statement: 4

II Environment analysis in Vietnam: 4

1 Political: 4

3 Socio-cultural: 5

PART II: MARKETING ANALYSIS: 6

I Current marketing situational analysis & Competitive analysis: 6

1 Company: 6

2 Collaborators: 6

3 Customers: 7

4 Competitors: 7

II SWOT analysis 10

III Segmentation & Positioning: 13

IV Marketing mix: 14

V Marketing Objectives: 16

Conclusion: 17

References: 18

EXECUTIVE SUMMARY.

As the target group of research and analysis of marketing strategies, we have selected TH true milk as one of the clean milk brands trusted and used by almost everyone in Vietnam in the dairy market Although being a latecomer, TH true milk has its own paths, making many differences to strive to be at the top of the dairy market We have compiled a list of information and data about the market for research purposes to apply consideration before making a certain decision regarding the market

We will describe the company in the first section titled: Company Analysis In this section, we define over the next year redefining the company's mission, reorienting its current and near-future goals to grow in tandem with its mission Secondly, it is necessary to redefine, external factors are being affected, especially the environment, because in order to create natural clean milk glasses, it is necessary to have a very clean and pollution-free environment Next, we evaluate the strengths and weaknesses

of current and future competitors, and compare them with other competitors such as Vinamilk Then, we move on to brand analysis, looking at current results, analyzing current marketing strategies to provide new perspectives in the future, making appropriate recommendations with the situation to rise to the top of the dairy market Finally, we summarize the strengths, minimize the weaknesses and risks, seize the opportunities for further growth, as well as the potential to address each area of the SWOT All of the above are specifically summarized in this report

PART I: CURRENT MARKETING SITUATION OF TH TRUE MILK

I Company profile

(Source:

https://numbala.com/th-true-milk-mall4/he-thong-cua-hang-dm5.htm)

1 TH true milk company:

The TH group was established in 2008 The corporation said that the word TH stands for True Happiness They have so far achieved a number of commendable accomplishments, won several awards for the quality of their milk produced utilizing foreign technical methods, and established themselves as a legitimate rival to other long-established dairy brands

Thai Huong, one of the top 50 most powerful businesswomen in Asia, is the founder and CEO of TH Company Ms Huong is the organization's director and the force behind TH Dairy Products Joint Stock Company's current accomplishments The

TH Group is a commercial organization that supports the country

Figure 1: TH True Milk founder

(Source: https://news.timviec.com.vn/ba-thai-huong-66770.html)

2 Mission, vision, and core value statement:

 Mission:

With the spirit of being close to nature, TH Group always tries its best to nourish the body and soul of Vietnam by providing food products derived from nature

- clean, safe, and fresh

 Vision:

TH Group aspires to become a leading manufacturer in Vietnam in the field of clean food derived from nature With serious and long-term investment combined with the world's most modern technology, we are determined to become a world-class food brand trusted by everyone, loved by everyone, and proud of the nation

 Core values:

TH is built on 5 core values: "For True Happiness", "For Community Health",

"Completely from nature", "Environmentally friendly - thinking out of the box" and " Harmonizing interests”

II Environment analysis in Vietnam:

Vietnam currently follows a socialist regime, has a stable political environment, and the legal system is increasingly improved to create conditions for business enterprises, including TH true MILK According to Decree 31/2012/ND-CP, the general minimum salary from May 1, 2012, is 1,050,000 VND/month This Decree takes effect from June 1, 2012 Thus, an increase in the wages of workers will make the purchasing power of the whole country somewhat increased, but it also makes TH true MILK have to increase costs due to increased salary funds

2. Economy:

The majority of dairy product prices were constant in 2021, and the rate of inflation is expected to stay modest The market will continue to grow, providing opportunities for TH True Milk to thrive

3. Socio-cultural:

The level of culture is increasingly improved, along with the rapid and wide urbanization speed and grasping the tastes of customers who are moving towards clean food, which TH true MILK since its inception has affirmed itself as a brand name The brand name on the market is "clean milk" And people are paying more and more attention to nutrition, drinking milk is becoming a habit and becoming very popular The demand for milk in Vietnam is still very large According to statistics from the Food and Agriculture Organization of the United Nations, the consumption of dairy products by Vietnamese people is 14.81 liters per person in a year, still low compared

to Thailand (23 liters per person in a year) and China (25 liters per person per year) Children in big cities consume 78% of dairy products (Sommers 2009), promising a potential market in Vietnam

4 Technological:

 Grasping the importance of applying modern technology in production, TH Group's investment projects focus on applying high technology in agriculture and rural areas, bringing the most modern terminal technology from around the world to Vietnam to contribute to the sustainable development of the country and nation Plan with creative thinking and act methodically and seriously

 The farm is fully invested in technology as well as human resources, dairy cows imported from famous countries, Israeli breeding technology, and applying advanced milk processing technologies in the world Laying the foundation for a brand of clean fresh dairy food standard in Vietnam The 100% computerized management system helps to detect mastitis early, monitor milk composition, and ensure milk hygiene In addition, health checks for cows are carried out periodically by experienced veterinarians With serious investment principles 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

 With the criterion of keeping the essence of every drop of milk intact, producing dairy products, and being environmentally friendly Along with the application of high technology in the production of healthy products that are suitable for the environment is the orientation of TH True MILK

 As of November 21, 2020, the population of Vietnam is estimated at 97,646,974 people,

an increase of 1,184,868 compared to 2019-2020 the natural population growth rate is positive because the number of births exceeds the number of deaths 945,967 people Due

to migration, the population decreased by -115,713 people With relatively fast population growth, this helps the dairy industry to expand to a wider market, creating consumption opportunities and increasing revenue Living standards are increasingly improving, creating opportunities for businesses in the dairy industry to develop - In 2019, the labor force who graduated from high school or higher accounted for 39.1%, an increase of 13.5 percentage points compared to the previous year 2009; trained with degrees and certificates (from elementary level up) accounted for 23.1% The national literacy rate of 15-60-year-olds is 97.85%

PART II: MARKETING ANALYSIS:

I Current marketing situational analysis & Competitive analysis:

1 Company:

 TH Dairy Foods Joint Stock Company was established on 24/2/2009, headquartered at 166 Nguyen Thai Hoc, Quang Trung Ward, Vinh City, Nghe An

 Being the first company of TH Group with an investment project in an industrial dairy farm, modern milk processing technology, and a methodical distribution system TH Group was established with the financial advice of Bac A Commercial Joint Stock Bank

 In addition to the financial services business and social security activities, Bac A Commercial Joint Stock Bank especially focuses on investing in the dairy and food processing industry From that starting point, TH Group is gradually developing to become the leading manufacturer in Vietnam providing clean food products of natural origin, including fresh milk, meat, clean vegetables, fruits, and seafood of high-quality International

2 Collaborators:

 Marketing research firms, advertising agencies, media companies, and marketing consulting firms help TH True MILK company to target and promote products in the right markets Advertising agencies play a huge role in promoting the company's image The closer the relationship between marketing intermediaries and businesses is, the more TH True MILK's brand is expanding

 Besides, TH True MILK also organizes charity activities to help people as well as affirm their trust in people:

 Awarding scholarships to students in the club "Vinh School Shelter".

 Organize the program "Giving calves to alleviate poverty" for farmers in Nghe An

 On April 26, 2012, awarded 400 million VND to 80 farmer households to buy calves

3 Customers:

Vietnamese health has proven effective in improving the nutritional and micronutrient status of children This is a line of milk supplemented with micronutrients suitable for the age as well as the condition of kindergarten and primary school students in Vietnam The difference between TH School MILK is that it uses fresh milk as a processing ingredient, instead of importing powdered milk and then remixing it Thus, the customers for fast fresh milk are still very large, which means an expanded market for TH True MILK Currently, TH True MILK has a loyal customer base, but many customers want TH to have promotions, after-sales policies, etc In the midst of the pandemic, essential foods that help strengthen resistance such as milk TH true YOGURT sour cream, TH true MILK fresh milk, or nut milk products, ice cream, butter, cheese, purified water, juice, roasted rice water… are still guaranteed to be produced and supplied to the market by TH Group abundant school In particular, TH promotes online sales channels to make it more convenient for consumers in the context of social distancing

4 Competitors:

Figure 2: TH True Milk Competitors

(Source:

https://doanhnhanduongthoi.com/5-ap-luc-canh-tranh-

cua-th-true-milk-91-3736.html)

a Domestic dairy companies: Nutifood, Vinasoy, etc.

living, utilize highly advanced production technologies, and produce high-quality goods

 Weakness: Some strengths have not been established to attract attention: not yet established a

famous brand, not diversified products, lack of raw materials, etc…

b Foreign dairy companies: Nestle, Abbott, etc.

 Strength: Strong brand, high-quality products, substantial financial resources, a wide

variety of goods, a broad distribution network, contemporary production equipment, and skilled labor

 Weakness: Have not explored carefully about the new consumer market, political and

cultural hurdles, the price is rather high and it must be imported

 According to Market Research Firm Nielsen Viet Nam, as of May 7th, 2013, indigenous companies controlled the majority of the fresh milk market, with Vinamilk holding 48.7%

of the market share, FrieslandCampina Vietnam coming in second with 25.7%, and TH holding 7.7% But as of 2015, TH true Milk owned more than 45,000 cows on a farm covering more than 8000 hectares in Nghe An, making it the largest cow herd owner in Vietnam

 In terms of competitive analysis, one major competitive disadvantage of TH true Milk is that it was founded later than other veteran prestige milk companies like Vinamilk and FrieslandCampina Despite the fierce competition, TH true Milk is able to carve out a distinct image and achieve recognition within the targeted groups A significant element of differentiation for competitive advantage is 100% purity

c Big competitors:

 Vinamilk: Vinamilk is the best company in Vietnam at producing not just milk but a

wide range of milk-derived goods

 Strength: With a market share of 39% on the national market, company have been

investing in production technology that matches worldwide standards, continually evolving products, and a broad sales and distribution network

 Weakness: Vinamilk will distribute its strength among a variety of parts as a result of

product diversification

 FrieslandCampina: So far Dutch Lady Vietnam has a large market in whole Vietnam

 Strength: high technology level, 35% market share of milk in Vietnam, ongoing product

improvement, affordable milk pricing, vast distribution network, and strong brand position

 Weakness: In addition to liquid milk, the group also trades in powdered milk, so it will

allocate efforts to these two segments

 Ability to negotiate with milk suppliers:

 For the dairy market in Vietnam, the main source of input materials still depends on the material imported from abroad, which accounts for more than 70% of the input materials for the dairy industry (according to the report of Habubank 2010)

 Market statistics of milk and products on June 13, 2020:

Figure 3: Market statistic

(Source: The statistics of the General Department of Customs)

Through the above mentioned table can see New Zealand, the United States, and the Southeast Asia are countries that provide the leading source of raw materials for Vietnam's dairy industry For domestic raw materials, it is mainly supplied from dairy farming raised by small and unprofessional household size However, the current trend of dairy farming is gradually moving to the farm model as dairy businesses begin

to integrate back vertically

e Threat of subtitute products:

Although TH True Milk clearly defines the participating market segment as a sterilized milk product But now on the market there are also many similar types of products Even other companies will produce newer, better products to compete and replace TH True Milk products Because old dairy companies are completely capable and capacity when they have been involved in the dairy industry for a long time