The impact of the new design of vinamilk sterilized fresh milk on customer perception

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES —- INFORMATION TECHNOLOGY FACULTY OF BUSINESS ADMINISTRATION MARKETING RESEARCH REPORT Major: Marketing THE IMPACT OF THE NEW DESIG

HO CHI MINH CITY UNIVERSITY

OF FOREIGN LANGUAGES —- INFORMATION TECHNOLOGY

FACULTY OF BUSINESS ADMINISTRATION

MARKETING RESEARCH REPORT

Major: Marketing

THE IMPACT OF THE NEW DESIGN OF VINAMILK

STERILIZED FRESH MILK ON CUSTOMER PERCEPTION

Student’s name — ID number:

Bui Thi Thanh Huong — 21DH484922 Truong Khanh Linh - 21DH481197

ABSTRACT

Up to now, packaging has been an indispensable part when selling a product Packaging

has many functions such as protecting the product inside from dirt, preventing the product from falling during transportation and containing product information With the increasing

development of the economy, accompanied by the increasingly upgraded needs of customers,

today packaging not only simply carries original functions but is also a factor to attract customer attention In packaging design, it is necessary to have a harmonious combination of elements:

logo, color, symbolic image, presentation of product information,, to be called successful

Packaging also becomes an element to convey the brand's communication goals, contributing to speeding up the marketing process Businesses today attach importance to packaging design as

the optimal way to promote products and make customers feel the improvement in brand image

In the food industry, in addition to efforts to change product quality and flavor, changing

packaging also contributes to affecting the market share of businesses Elements on packaging,

including brand logos, colors, image layout and product information, all have a profound

influence on customer psychology One of the most prominent businesses in this industry,

Vinamilk, recently carried out a campaign to change its logo and packaging, to focus on

attracting the large segment of GenZ (1997-2012), which will become the main workforce in the

future In this research article, we will consider whether Vinamilk’s changes (fresh milk

products) will affect customers' purchasing decisions, thereby increasing the business's market

share or not

Key words: Vinamilk, market share, GenZ , customer psychology

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CHAPTER 2: RESEARCH METHODOLOGY 4

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CHAPTER 3: FINDINGS AND DISCUSSIONS 11

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1.1 Background of the research

Vietnam is progressively innovating these days, and other nations in the area and globally recognize the country's rapid economic growth Vietnam has made numerous significant advancements despite having a tiny economy In addition, people's standard of living is rising Apart

from basic necessities like clothes and amusement, kids also require nutritious beverages like milk,

green tea, bird's nest drink, and so on Additionally, milk is regarded as the top option for customers

As per the findings of a consumer study carried out in Ho Chi Minh City by SGTT a newspaper, the average amount of dairy product purchases ranks third, behind the food and spice business This demonstrates how dairy products are steadily replacing other products in families' diets There are

several milk providers and producers on the market right now, including Vinamilk, BaVi milk,

Dutch Lady, and Dutch Mill According to survey data, the majority of businesses have well-known brands that are often bought by customers Vinamilk, for example, tops the charts for value market share (32.5%) and frequency of purchases (54.4%) The Dutch Lady came next (14.9% and 14.6%) Company Vinamlik is expected to maintain customer trust in the dairy business going forward thanks to its well-established brand recognition, wide range of products, and benefits from a well- established sales channel structure Fresh milk purchasers include a wide range of people, including staff members, domestic goddesses, and students Producing and selling milk and other dairy goods together with associated machinery and equipment, Vietnam Dairy Products Joint Stock firm (English: Vietnam Dairy Products Joint Stock Company) is a firm that operates in Vietnam under

the Vinamilk, Inc brand

As per the data provided by the UNDP, this ranks as the fifteenth largest corporation in Vietnam for the year 2007 With more than 54.5% of the milk market share, Vinamilk is presently the most prominent company in the milk production sector water, 40.6% of the market share for milk in powdered form, 33.9% for drinking yogurt, 84.5% for edible dairy products, and 79.7% for condensed milk across the country Apart from its extensive internal transportation, which spans 63

provinces and cities through a network of over 220,000 sales outlets, Vinamilk products are exported to 43 countries worldwide, which includes the US, France, Canada, Poland, Germany, and

Japan Southeast Asia, the Middle East Vinamilk has constructed 14 production plants, 2 logistics factories, 3 sales office branches, 1 manufacturing (Angkormilk) in Cambodia, and an administrative office in Thailand after over four decades of going direct to customer Vinamilk was included among the Top 200 Asia Pacific firms with sales over $1 billion in 2018

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milk, nutritious powder, yogurt, condensed milk, soy milk, soft drinks, and other items are among

this company's primary commercial endeavors more dairy items Additionally, Vinamilk exports its

goods to other nations, including Australia, the Philippines, Cambodia, and several Middle Eastern

nations Thirteen percent of the company's overall income comes from exports 2011 saw Vinamilk increase output and go into the fruit and vegetable market The newly launched product line had success shortly following the introduction of the newly launched item segment, gaining a 25% market share in the supermarket retail channel The business started producing kid-friendly juice products during February 2012

After 47 years of consistent market attempts, Vinamilk, a dairy firm valued at USD 2.8 billion, formally unveiled its newly designed logo and corporate identity (rebranding) on July

6, 2023, with the motto "bold, determined, and always being yourself." The first action of 2023 is the unveiling of the new brand identity, which, after being a part of every Vietnamese household for almost 50 years, represents a historic transition Vinamilk General Director Ms Mai Kieu Lien said that while the brand value has not changed, the operational approach has been modified to provide customers with superior items, offerings, and experiences that are appropriate for the current environment Declare the first target of the next five to ten-year plan

1.2 Problem statement

Over thirty percent of consumers base their decisions to buy exclusively on the packaging of

a product, according to The Arka Furthermore, 52% of consumers stated that if they get a product that is nicely packed, they are likely to make another purchase from a firm, according to The Paperworker In commodities trading, repositioning is a crucial necessity for all companies The primary goal is to stimulate competition and draw in a diverse spectrum of customer preferences Experts claim that a company's packaging is the first element to "touch" the emotions of a buyer Products packaged beautifully will draw in more clients for a firm Vinamilk redesigned the packaging for every one of their products in an effort to "refresh themselves" and draw in new

customers This study aims to elucidate how customers perceive the new Vinamilk sterilized fresh milk package design

1.3 Goals and objectives

This study aims to investigate consumer behavior regarding Vinamilk's new packaging in light of its altered look This study looks into how customers’ views are impacted by changes to containers It examines the ways in which modifications to product packaging might impact

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consumers' attitudes, preferences, and purchasing habits Throuph a comprehensive analysis of consumer behavior and industry trends, the study aims to provide businesses with valuable insights for enhancing packaging strategies and improving brand image The study's findings will make clear how crucial packaging is in influencing customers’ opinions and offer suggestions for creating strategies that adapt to changing consumer preferences

Research objective: “To determine how customers perceive the Vinamilk UHT fresh milk’'s new packaging and logo in order to introduce changes and modifications to suit

customer needs and increase sales and profit.”

1.4 Scope and limitation

¢ Scope: This study solely looks at the colors, logos, and pictures printed on the packaging of

a certain Vinamilk product range, which includes warmed fresh milk Furthermore, the

perception that customers have of a product's design encompasses the following elements:

- Level of customer satisfaction with product design

- Customer perception of the aesthetics of designed products

- Customers' perceptions of the product design's suitability for their needs

¢ Limitations:

- Collect accurate data Data collected can be influenced by factors such as customer mood,

attitude, and data collection

- Research time This research was only conducted for a short period of time Therefore, the research results may not fully reflect the impact trend of Vinamilk product design on customer perception in the future

In this research article, we use exploratory research to answer the question: How do customers feel about the new packaging of Vinamilk fresh milk, interesting or boring? The answer will help

us determine the percentage of customers who like and dislike Vinamilk's new packaging In addition, this type of research helps us determine the needs and preferences of customers, then gradually conclude which issues in packaging customers do not like, and which advantages of packaging need to be developed (in terms of colors, fonts, images printed on packaging )

2.1.2 Descriptive research

Descriptive research, also called statistical research, aims to identify the characteristics of an

event or phenomenon but not influencing or changing the event or phenomenon, without focusing on explaining why the phenomenon occurred

Descriptive research is used in this research article to measure the popularity when Vinamilk started a campaign to change packaging and change a new logo on social networks After obtaining the data provided by customers, we will determine whether Vinamilk has succeeded in conveying the message through new images or not Furthermore, with information collected from monitoring customer feedback, we will discover whether Vinamilk's market share after changing the packaging decreased, increased or did not fluctuate, thereby providing potential opportunities to improve sales performance

2.1.3 Causal research

Causal research is research that aims to show the connection or cause-and-effect relationship between one event and another To put it simply, causal research is used to determine the functional relationship between the cause and the effect

In the study on the impact of the new packaging of Vinamilk sterilized fresh milk on customer perception, causal research was used to determine how changes in Vinamilk fresh milk packaging have an impact on customers' purchase decision, thereby concluding how Vinamilk's new packaging has an impact on the business's revenue and market share Additionally, Vinamilk can make informed decisions about future design changes that are likely to positively impact customers

2.2 Data collection

Primary data and secondary data are two common types of data in the data collection process

In this research article, we use primary data collection methods to present and address our research objectives

Primary data is data collected by the researcher from the desired subject Our primary data collection methods include face-to-face interviews and online questionnaire surveys

2.2.1 Interview

In-depth interviews with potential buyers will help to explore the customers’ thoughts, feelings, and experiences with new product design Interview process is conducted in 3 stages: Stage 1: Sampling

Target population: The target population for this research comprises individuals who are regular consumers of Vinamilk sterilized fresh milk, particularly those who have purchased and consumed the product since the new design was introduced This group was selected as they possess firsthand experience with the new design and can provide direct feedback on its impact

on their perception of the brand Moreover, these should express a willingness to participate in the interview and provide honest feedback on their experiences with the new design

Sampling method: we use the convenience sampling method, choosing people who have a close relationship with us for easy access and easy to get information without spending a lot of time

Sample frame: students at Ho Chi Minh City University of Foreign Languages and Information Technology

Sample size: 5 students majoring in Marketing, Faculty of International Business Administration

Stage 2: Build a questionnaire

We built the questionnaire in the form of a structured interview, reducing errors, avoiding rambling and making it easy to compare answers with each other

Type of question Question Purpose

Description, Hobbies and

Interests, Social Environment

Introduce a little about

yourself (name, date of birth)

How do you know _ that Vinamilk has changed its packaging and new logo

(social media, local retailers, )

To determine how customers

receive and detect product promotional campaigns

Explorative question

What do you feel about the new logo printed on Vinamilk's packaging?

Do you think that the new design of Vinamilk sterilized fresh milk shows the quality and value of the product, in terms of color and image?

To explore the first impression of customer toward the new packaging

Descriptive question

Does the new design of Vinamilk sterilized fresh milk help you recognize the product more easily? Why and why not?

Share the differences that you notice between the old design and new design of Vinamilk

sterilized fresh milk

To identify characteristics in new packaging to help customers easily detect it compared to old packaging and other products on the

market

Causal question

In your opinion, what impact

do these differences have on

your purchasing decision?

Do you think that, in addition To confirm the close

relationship between elements on packaging and customers’ purchasing

to product quality, colors, decisions images and logos on

packaging play an important role in purchasing decisions?

Stage 3: Conducted interviews

Interview location: Ho Chi Minh City University of Foreign Languages and Information

Technology, Hoc Mon campus

Interview commitments: We clearly state their right to stop participating if any questions are too sensitive or there are signs of unnecessary prying In addition, we also commit not to disclose any personal information of interview participants, only using their answers for information analysis

2.2.2 Online questionaire survey

Online surveys help us obtain a large source of information from different customer files and save maximum time This type of information collection helps automate participant responses into numbers and charts, making it easier to spot things that need attention We conducted the online survey through 2 stages

Stage 1: Create a survey form by using google forms

¢ High school student

Others answer

How do you feel about this logo?

Outstanding, eyecatching The layout is not scientifically arranged The color is not very suitable for the fresh milk industry

Not much special, but creating a hot trend on social networks is a great success

Other answer

According to you, Vinamilk's new packaging

Very creative, outstanding and fresh colors

A bit confusing, but overall beautiful Other answer

How do you evaluate Vinamilk's new

packaging and old packaging? Short answer

Do you often use Vinamilk products after the

company changed its packaging? I use it more because the packaging is

beautiful

Still the same, no change

I didn't use it much before, but the new

packaging makes me want to try it to see

if the taste is different or not Still loyal to other brands (TH True Milk,

Dalat Milk, Nutifood, ) Other answer