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 SERVICEIN VIETNAM.

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 haveselected TH true milk as one of the clean milk brands trusted and used by almosteveryone in Vietnam in the dairy market Although being a latecomer, TH true milkhas its own paths, making many differences to strive to be at the top of the dairymarket We have compiled a list of information and data about the market for researchpurposes to apply consideration before making a certain decision regarding the market.We will describe the company in the first section titled: Company Analysis In thissection, we define over the next year redefining the company's mission, reorienting itscurrent and near-future goals to grow in tandem with its mission Secondly, it isnecessary 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 veryclean and pollution-free environment Next, we evaluate the strengths and weaknessesof current and future competitors, and compare them with other competitors such asVinamilk Then, we move on to brand analysis, looking at current results, analyzingcurrent marketing strategies to provide new perspectives in the future, makingappropriate recommendations with the situation to rise to the top of the dairy market.Finally, we summarize the strengths, minimize the weaknesses and risks, seize theopportunities for further growth, as well as the potential to address each area of theSWOT All of the above are specifically summarized in this report.

PART I: CURRENT MARKETING SITUATION OF TH TRUE MILK

I Company profile

(Source: dm5.htm)

https://numbala.com/th-true-milk-mall4/he-thong-cua-hang-1 TH true milk company:

The TH group was established in 2008 The corporation said that the word THstands for True Happiness They have so far achieved a number of commendableaccomplishments, won several awards for the quality of their milk produced utilizingforeign technical methods, and established themselves as a legitimate rival to otherlong-established dairy brands.

Thai Huong, one of the top 50 most powerful businesswomen in Asia, is thefounder and CEO of TH Company Ms Huong is the organization's director and theforce behind TH Dairy Products Joint Stock Company's current accomplishments TheTH Group is a commercial organization that supports the country.

Figure 1: TH True Milk founder

 Vision:

TH Group aspires to become a leading manufacturer in Vietnam in the field ofclean food derived from nature With serious and long-term investment combined withthe world's most modern technology, we are determined to become a world-class foodbrand 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 businessenterprises, including TH true MILK According to Decree 31/2012/ND-CP, thegeneral minimum salary from May 1, 2012, is 1,050,000 VND/month This Decreetakes effect from June 1, 2012 Thus, an increase in the wages of workers will makethe purchasing power of the whole country somewhat increased, but it also makes THtrue 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 ofinflation is expected to stay modest The market will continue to grow, providingopportunities for TH True Milk to thrive.

3. Socio-cultural:

The level of culture is increasingly improved, along with the rapid and wideurbanization speed and grasping the tastes of customers who are moving towards cleanfood, which TH true MILK since its inception has affirmed itself as a brand name Thebrand name on the market is "clean milk" And people are paying more and moreattention 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 theFood and Agriculture Organization of the United Nations, the consumption of dairyproducts by Vietnamese people is 14.81 liters per person in a year, still low comparedto 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 apotential market in Vietnam

4 Technological:

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

 The farm is fully invested in technology as well as human resources, dairy cows importedfrom famous countries, Israeli breeding technology, and applying advanced milkprocessing technologies in the world Laying the foundation for a brand of clean freshdairy food standard in Vietnam The 100% computerized management system helps todetect mastitis early, monitor milk composition, and ensure milk hygiene In addition,health checks for cows are carried out periodically by experienced veterinarians Withserious investment principles and long-term planning at TH Dairy Farm, TH True MILKensures the essence of every drop of milk, bringing a healthy and joyful life toVietnamese people That is the outstanding advantage of TH true MILK.

 With the criterion of keeping the essence of every drop of milk intact, producing dairyproducts, and being environmentally friendly Along with the application of hightechnology in the production of healthy products that are suitable for the environment isthe 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 ispositive because the number of births exceeds the number of deaths 945,967 people Dueto migration, the population decreased by -115,713 people With relatively fast populationgrowth, this helps the dairy industry to expand to a wider market, creating consumptionopportunities and increasing revenue Living standards are increasingly improving,creating opportunities for businesses in the dairy industry to develop - In 2019, the laborforce who graduated from high school or higher accounted for 39.1%, an increase of 13.5percentage points compared to the previous year 2009; trained with degrees andcertificates (from elementary level up) accounted for 23.1% The national literacy rate of15-60-year-olds is 97.85%.

PART II: MARKETING ANALYSIS:

I Current marketing situational analysis & Competitive analysis:

Commercial Joint Stock Bank especially focuses on investing in the dairy and foodprocessing industry From that starting point, TH Group is gradually developing to becomethe leading manufacturer in Vietnam providing clean food products of natural origin,including fresh milk, meat, clean vegetables, fruits, and seafood of high-qualityInternational.

2 Collaborators:

 Marketing research firms, advertising agencies, media companies, and marketing consultingfirms 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 therelationship between marketing intermediaries and businesses is, the more TH True MILK'sbrand is expanding.

 Besides, TH True MILK also organizes charity activities to help people as well as affirmtheir 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.

Vietnamese health has proven effective in improving the nutritional andmicronutrient status of children This is a line of milk supplemented withmicronutrients suitable for the age as well as the condition of kindergarten and primaryschool students in Vietnam The difference between TH School MILK is that it usesfresh milk as a processing ingredient, instead of importing powdered milk and thenremixing it Thus, the customers for fast fresh milk are still very large, which means anexpanded market for TH True MILK Currently, TH True MILK has a loyal customerbase, but many customers want TH to have promotions, after-sales policies, etc In themidst of the pandemic, essential foods that help strengthen resistance such as milk THtrue 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 beproduced and supplied to the market by TH Group abundant school In particular, THpromotes online sales channels to make it more convenient for consumers in thecontext of social distancing

4 Competitors:

Figure 2: TH True Milk Competitors

(Source: cua-th-true-milk-

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, andskilled 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, indigenouscompanies 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 THholding 7.7% But as of 2015, TH true Milk owned more than 45,000 cows on a farmcovering more than 8000 hectares in Nghe An, making it the largest cow herd owner inVietnam.

 In terms of competitive analysis, one major competitive disadvantage of TH true Milk isthat it was founded later than other veteran prestige milk companies like Vinamilk andFrieslandCampina Despite the fierce competition, TH true Milk is able to carve out adistinct image and achieve recognition within the targeted groups A significant element ofdifferentiation 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, continuallyevolving 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 thematerial imported from abroad, which accounts for more than 70% of the input materialsfor 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 materialsfor Vietnam's dairy industry For domestic raw materials, it is mainly supplied fromdairy farming raised by small and unprofessional household size However, the currenttrend of dairy farming is gradually moving to the farm model as dairy businesses beginto integrate back vertically.

e Threat of subtitute products:

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

a. Advantage of starting point

Competitive edge in the market TH True Milk has achieved remarkable successin the highly competitive dairy market of Vietnam, where it faces many domestic andforeign rivals such as Vinamilk, Nestle, Dutch Lady, NutiFood, etc The company hassecured a 30% market share, which reflects its efforts and dedication Moreover, thecompany has built a solid foundation that enables it to stand out among its competitors,such as:

 Reliable capital from Bac A Commercial Joint Stock Bank The biggest and most advanced farm and factory in Southeast Asia

 Integrated production process from large-scale farming to extensivedistribution

 Brand recognition

By focusing on fresh milk products, TH True Milk has become one of the topthree dairy producers in Vietnam with increasing revenue and market share Accordingto the 2013 statistics, TH True Milk held 32% of Vietnam’s liquid milk market share,but this number rose to over 40% in 2015 The company also has more than 140,000retail outlets and traditional sales channels.

b. Friendly company culture

TH True Milk has a corporate culture that is committed to environmental andsocial sustainability This strength helps in boosting the company’s growth and itsbrand reputation among the public.

TH True Milk has a set of values and visions in its business, such as:・Protecting public health with pure milk

・All-natural ingredients・Supporting the domestic economy・Sharing public interest…

These values have been stated by TH True Milk since its inception and are still

Milk, helping the company find and motivate qualified candidates who share the samevision and passion Through these values, TH True Milk has also established a humaneand trustworthy brand with its customers.