Communications strategies Bright eyes, strong build ADM Milk A sub brand of VinaMilk

TRƯỜNG ĐẠI HỌC MỞ TP. HCM UNIVERSITE LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL ECONOMICS & MANAGEMENT MMA7 Ha Truong Phuong My Nguyen Thi Truc Vy COMMUNICATIONS STRATEGIES “BRIGHT EYES, STRONG BUILD” ADM+ MILK – A SUB-BRAND OF VINAMILK MASTER PROJECT MASTER IN MARKETING & ADVERTISING Tutor’s Name: Ho Cong Hoai Phuong Ho Chi Minh City (2014) 1 DECLARATION We, Nguyen Thi Truc Vy and Ha Truong Phuong My, hereby, declare that this project is written by ourselves in its entirety based on the information collected from public sources and internal Vinamilk. This project is dedicated to our completion of the Master of Marketing and Advertising course. This has also not been submitted for any degree in any university previously. TUTOR’S COMMENT Phuong My and Truc Vy did a good job on this final project. This is a complicated topic and need a huge amount of data and information to deal. These students understood well the theory and give some valid points of strategic recommendations. I highly appreciate their efforts. 2 ACKNOWLEDGEMENT Foremost, we would like to express our sincere gratitude to all of our Professors in Solvay Brussels School of Economics and Management in the Vietnam-Belgium Master Program for the invaluable knowledge, motivation and enthusiasm we have received from them. Our most profound thanks also go to Professor Jean P. Baeyens for his special inspiration at the very beginning of the course and Professor Marianne Claes for her sympathy for our unexpected difficulties we encountered during the time of our final project completion. We would like to thank Mr. Ho Cong Hoai Phuong, our tutor for this project, for his valuable guidelines and supportive instruction. We thank our fellows and friends in MMA7 for their support in different ways. We also take this occasion to extend our thanks to all of our friends and acquaintances, who have given tremendous assistance to help us finish the project. Last but not least, we would like to thank our families especially our parents and our partners who have provided us with continuous support, great encouragement, quiet patience and unwavering love while witnessing all ups and downs of our project. 3 TABLE OF CONTENT DECLARATION 1 ACKNOWLEDGEMENT 2 TABLE OF CONTENT 3 ABBREVIATIONS 8 LIST OF FIGURES 9 LIST OF TABLES 10 EXCUTIVE SUMMARY 11 PART 1: VIETNAM DAIRY MARKET OVERVIEW AND CURRENT MARKETING COMMUNICATION ACTIVITIES OF VINAMILK ADM+ 12 I. OVERVIEW OF MARKET FOR MILK PRODUCTS 12 1. Market overview of dairy products in Vietnam 12 1.1 Food and Beverage Market 12 1.2 Dairy products Market 13 2. Micronutrient fortified milk market 17 II. COMPANY OVERVIEW 18 1. Company Mission 18 2. Company Vision 18 3. Brief growing history 18 III. SUB-BRAND OVERVIEW –VINAMILK ADM+ 19 1. What is VINAMILK ADM+? 19 2. Product Form 20 2.1 Portfolio 20 2.2 Package 20 3. Value proposition: 20 IV. ANALYSIS OF VINAMILK ADM+ MARKETING ACTIVITIES 20 1. PESTEL Analysis 20 1.1 Political 20 1.2 Economic 21 1.3 Social 22 1.4 Technology 23 1.5 Environment 23 1.6 Legal 24 2. PORTER 5’s Forces Analysis 24 2.1 Threat of New Entrants 24 2.2 Power of Suppliers 25 2.3 Power of Buyers 26 2.4 Availability of Substitutes 26 2.5 Competitive Rivalry 27 3. SWOT Analyses 28 3.1 Strength 28 3.2 Weaknesses 29 3.3 Opportunities 30 3.4 Threats 30 4. Competitor analysis 31 4.1 Direct competitors 31 4 4.2 Indirect competitors 32 4.3 Market players’ analysis 34 5. Marketing objectives 35 6. Segmentation 35 6.1 Product segments - Liquid milk 35 6.2 Demography segmentation 37 6.3 Micro-nutrient fortified milk for children from 2 to 12 38 7. Targeting 38 8. Positioning 40 9. Pricing strategies 41 9.1 Milk pricing stabilization policy 41 9.2 Micro nutrient fortified milk pricing 41 10. Distribution channels 42 11. Communications 45 11.1 Design a message 45 11.2 Summary of marketing activities from 2010-2013 45 PART 2: CRITICAL REVIEW OF VINAMILK ADM+ MARKETING COMMUNICATION PLAN IN 2010-2013 46 I. METHODOLOGIES 46 1. Integrated marketing communications 46 2. Sub-branding strategy 46 II. REVIEW OF VINAMILK ADM+ MARKETING COMMUNICATIONS PLAN IN 2010-2013 46 1. The brand story 46 1.1 The parent brand image 46 1.2 The initial sub-brand image 47 1.2.1 Launching 47 1.2.2 Three glasses of milk per day campaign 48 1.3 Unexpected Story 48 1.3.1 The happy animated cow officially becomes the sub-brand image 48 1.3.2 Happy animated cow – the sub-brand image of ADM+ milk 49 1.4 Evaluation on brand image building 50 1.4.1 Amiable endorsement 50 1.4.2 The sub-brand image of ADM+ milk versus the brand image of Vinamilk 50 1.4.3 Brand name education 51 2. Integrated Marketing Communications 52 2.1 Objectives 52 2.2 Target groups 52 2.3 Strategy analysis 52 2.3.1 Advertising 52 A. Advertising activities 52 a. Outdoor 52 b. Magazines / newspapers 53 c. TVC 53 B. Review 53 a. Lovely advertising soundtracks 53 b. Promoting the new aspect of physical development: Eyesight improvement 54 5 2.3.2 Sales Promotion 55 A. Sales Promotion Activities 55 a. Free samples 55 b. Gifts 55 c. Discounts 55 d. Loyalty Program 56 B. Sales Promotion Review 56 a. Non-separate promotion from mother brand promotion 56 b. Frequency of free gifts 56 c. Limited use of loyalty program 57 2.3.3 Public Relations 57 A. PR campaigns 57 a. Education meeting 57 b. PR events/ sponsor 57 c. Press releases 57 B. Campaign review 58 a. Ineffective PR 58 b. Reliance on the mother brand 58 c. No strong reaction on scandal regarding milk quality 58 2.3.4 Direct Marketing 58 A. Direct consumer contact 58 B. Digital marketing strategy 58 C. Necessary improvements 59 a. Reliance on Vinamilk website 59 b. Uncontrolled information 59 c. Ineffective online TVC 59 2.3.5 Social corporate responsibility 59 A. Social campaigns 59 B. Social evaluation 60 PART 3: RECOMENTDATION FOR FURTHER IMPROVEMENT 61 I. FURTHER IMPROVEMENT 61 1. Develop ADM+ milk into an independent brand name 61 1.1 Current state of affairs 61 1.2 Suggested remedies 61 2. Leverage the positive responses to the happy cow as the brand image 62 2.1 Current context 62 2.2 Practical suggestions 62 3. Influence mothers 63 3.1 Current situation 63 3.2 Suggested remedies 64 II. STRATEGY FOR 2014-2016 64 1. Objectives: 64 2. Marketing activities purposes 65 3. Target audience 65 4. Key message 65 5. Context 65 6. Integrated Marketing Communication programme for 2014-2015 66 6 6.1 Advertising 66 6.2 Sales Promotion 67 6.3 Events & Experience 67 6.4 PR 68 6.5 Digital- Social media 69 7. Budget Allocation 70 7.1 Advertising 70 7.2 Sales Promotion 70 7.3 Events & Experience 70 7.4 PR 71 7.5 Digital- Social media 71 8. Timeline 71 8.1 Advertising 71 8.2 Sales Promotion 71 8.3 Events & Experience 72 8.4 PR 72 8.5 Digital- Social media 72 PART 4: CONCLUSION 74 APPENDICES 75 APPENDIX 1: ILLUSTRATION OF VINAMILK ADM+ ADVERTISING ACTIVITIES 75 - 2010-2011: Out of home, Prints and Package design- “Nang tam voi, sang tam nhin” campaign 75 - 2011- 2012: Out of home, Prints and Package design – “3 cay chum lai nen tam voc cao” campaign 75 - 2012- 2013: Out of home, Prints and Package design – “3 Ly chum lai nen tam voc cao" 76 APPENDIX 2: ILLUSTRATION OF VINAMILK ADM+ TVC 77 - 2010-2011: a kid and a laughing cow 77 - 2011-2012: 77 TVC 1: Jumping cows 77 TVC 2: Playing with a kite 77 TVC 3: Collection of funny cow stickers 77 - 2012-2013: 78 TVC 1: High heel shoes and glasses shop 78 TVC 2: Journey around the world 78 - 2013-2014: ADM shop 78 APPENDIX 3: ILLUSTRATION OF VINAMILK ADM+ ADVERTISING PLACES 79 APPENDIX 4: ILLUSTRATION OF VINAMILK ADM+ SALE PROMOTIONS 80 - Free gift: 80 2010-2012: 80 2013: 80 - Loyalty program 81 APPENDIX 5: FORMAT THE PROMOTION OF COLLECTING ADM+ CARDS TO EXCHANGE TICKET FOR ADM+ FESTIVAL TO MEET THE HAPPY COW 81 APPENDIX 6: MONTHLY MAGAZINE “BRIGHT EYES, STRONG BUILD” 81 APPENDIX 7: ILLUSTRATION OF TOUCH POINTS FOR VINAMILK ADM+ ADVERTISINGS 82 1. Movable objects: 82 7 1.1 On buses 82 1.2 On Food carts 82 2. Fixtures 83 2.1 On the public electric box 83 2.2 On the street surface 83 2.3 At the bus stop 83 2.4 At the elevator and stair 84 2.5 In the childcare centers 84 APPENDIX 8: SURVEY ON BRAND RECOGNITION AND IDENTITY 85 REFERENCES 88 8 ABBREVIATIONS ASEAN: The Association of Southeast Asian Nations DHA: Docosahexaenoic acid EMI: Euromonitor International FAPRI: The Food and Agricultural Policy Research Institute FY: Fiscal Year GDP: Gross Domestic Product GSO: General Statistics Office IMC: Integrated Marketing Communications JSC: Joint Stock Company OOH: Out-of-home POSM: Point of Sales Materials PR: Public Relations R&D: Research and Development SEA: South East Asia TVC: Television Commercial UHT: Ultra-high-temperature USD: United States Dollar VND: Vietnam Dong VNM: Vinamilk WTO: World Trade Organization [...]... government that currently holds 45% shares in Vinamilk It has a healthy working capital around 3.53 bil USD and cash flow around 534 bil VND (annual report 9/2013) Vinamilk only invests using its own capital and it has no debt in banks - Good reputation: Vinamilk has a strong reputation due to its long established history with a strong brand image of high quality Besides, Vinamilk is also managing 8 subbrands... 2011: Started running the dairy in Da Nang with an investment of 30 million USD - In 8/2011, the milk powder factory Miraka - New Zealand came into operation as planned This was the first project Vinamilk contributed capital overseas Earlier, on 11/9/2010, Vinamilk had received permission to invest in Miraka Company Limited in New Zealand III Sub- brand Overview VINAMILK ADM+ 1 What is VINAMILK ADM+ ?... rural areas - Fluctuations in exchange rates: As discussed above, although Vietnam has had a stable exchange rates, it is uncertain that the situation would remain the same in the future Vinamilk currently has around 50% of raw material imported; it leads to the uncertain dealing via US dollar for company The operation of the Company in terms of financial health would be strongly affected - Existing and... than 20 product lines and has acquired considerable market share in most of its product lines - Strong brand equity: Since starting the brand Vinamilk, the company introduced and built up the image of the happy cow It is one of the Vinamilk s successes in branding as people nowadays can refer quickly to Vinamilk products when looking at this This character is used for the whole milk brand of Vinamilk. .. contributes around 35% of micronutrient fortified milk market share in Vietnam Vinamilk ADM+ focuses on building Bright Eyes, Strong Build for 2-12 year old Vietnamese children that makes it different from other milk brands in the micronutrient fortified milk market While launching Vinamilk ADM+ in the market, the sub- brand has inherited the goodwill, brand awareness and existing operation system of the parent... which also positively reflects on Vinamilk ADM+ It is the strength in branding that not many brands can do like Vinamilk - Good labor force: Working in a fast changing industry, Vinamilk needs a good quality workforce who have knowledge and experience Vinamilk has taken advantage of the young and good-quality Vietnamese labor force by bringing the skillful workers into its production Most of Vinamilk. .. only a few key players Vinamilk and Friesland, having dominant roles in the market, account for 60% of total market share The remainder is shared by a number of small players Both Vinamilk and Friesland have a wide range of products in all of product lines from UHT milk to powder milk Others try to penetrate liquid milk segment, but still their market share is less than 5% each Vinamilk dominates most... parent brand – Vinamilk Moreover, based on the parent brand – Vinamilk - marketing strategy, Vinamilk ADM+ has asserted certain success in its marketing communication strategies Some successful aspects can be counted are the cheerful animated cow image in children mind, the kids’ favourite TVCs, the high brand coverage rate in the public etc However, PR and digital marketing are relying a bit heavily... especially the micro-nutrient fortified milk ADM+ - Efficiency of organizational structure: The highly professional and experienced management panel in dairy business and production of Vinamilk creates a transparent internal management system In particular, they publish strict and detailed management procedures to the whole organization They help in managing the operation and production of Vinamilk. .. well as developing proper marketing communications strategies, Vinamilk can keep its position and have the strong, independent, attractive and competitive sub- brand AMD+ in micronutrient fortified milk market 12 PART 1: VIETNAM DAIRY MARKET OVERVIEW AND CURRENT MARKETING COMMUNICATION ACTIVITIES OF VINAMILK ADM+ I Overview of market for milk products 1 Market overview of dairy products in Vietnam 1.1 . 1.4 Evaluation on brand image building 50 1.4.1 Amiable endorsement 50 1.4.2 The sub- brand image of ADM+ milk versus the brand image of Vinamilk 50 1.4.3 Brand name education 51 2. Integrated. III. SUB- BRAND OVERVIEW VINAMILK ADM+ 19 1. What is VINAMILK ADM+ ? 19 2. Product Form 20 2.1 Portfolio 20 2.2 Package 20 3. Value proposition: 20 IV. ANALYSIS OF VINAMILK ADM+ MARKETING ACTIVITIES. awareness and existing operation system of the parent brand – Vinamilk. Moreover, based on the parent brand – Vinamilk - marketing strategy, Vinamilk ADM+ has asserted certain success in its marketing