The report contains the investigation of how the two advertisements: 100% fresh milk and V-fresh affect the customers when they saw them on the VTV3.
Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 Topic research: “Customer and Vinamilk advertisement on TVT3 in 2009” Student: Ta Hoang Linh Student’s ID: CQ501481 1 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 I. Introduction 1.1 Abstract: The report contains the investigation of how the two advertisements: 100% fresh milk and V-fresh affect the customers when they saw them on the VTV3. the research will be divided in to two parts, the first part is to investigate the preference of customers when they watch these commercial, the second part is to research the sales of Vinamilk in 2009. I think this way of research will let you see carefully and it is comparative between the attention of customers on TV advertisement and the change in sales. 1.2 Background: In the fourth quarter of 2008, the news that spread through the nervousness of the consumers was about the dairy products made the consumer suspected the quality of these products. Firstly, the buyers worried when there was a piece of news mentioned the milk powder that produced in china has a chemical called Melamine. Some of companies in China tended to be producing for profit so in order to increase the profit per product, these companies used the chemical called Melamine. Melamine is extracted from coal, the industrial chemical commonly used in the manufacture of plastics, fertilizer, fire resistant fabrics, dyes and household products. Major element in its composition is nitrogen (up 66%). Although no nutritional value, but it is usually given to raw milk to increase protein content, by the method of assessment in milk protein content is often based on the percentage of nitrogen in the product. Experts confirmed the chemical structure of melamine makes it easy to pass the devices analyzed. When in the body, melamine causes kidney stones and urinary calcium tube. Thus, the milk powder products contained melamine as yogurt; ice cream . can also cause disease. In Viet Nam, after the news was spread the Ministry of Health had verified all companies, at the end result that 23 brands of dairy products contained Melamine, the echo of the news prolonged till 2009. Nevertheless, at the same time, in 9 th October 2008, the Environmental Police of Division Police in Tien Giang province give the sample of product of Vinamilk to the lab when heard the feedback of the customer named Nguyen Cong Phuc and result that in the 2 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 sample had 7 bacteria and 4 of them were exceed the standard. This news had affected the Vinamilk image which it was built in the customer thought. These 2 things were the most affected news during the late 2008 and 2009; consumer’s choice in 2009 changed much compare with 2008. For example, the customer’s behavior till 2008 preferred cheap one, buyers tended to buy things without Realize the quality of dairy products. However, when the scandal of San Lu Company in China happened, then the Ministry of Health published the list of dairy brands whose products had Melamine, the habits had changed. Now buyers tend to buy products with certificated standard quality. These scandals happened in the late 2008 there is no doubt that in 2009; dairy companies had to surfer the bad effects. Buyers were so doubtful and suspect the quality of the product. Customers’ purchase power was decreasing. Vinamilk, the largest and powerful company in term of dairy products during 2009 had to experience those effects too. And in 2009, Vinamilk presented 2 new types of dairy products, the first product was “100% fresh milk”, the second one was “vfresh”. Company knew the difficulties in 2009 so that the promotions of the new products were extremely necessary because Vinamilk understood very well the effects of advertising on consumers. The role of a good advertisement is to informing them about product and services and influencing their attitudes, beliefs, and finally their purchase. This research follows the idea how customer response to advertisement of Vinamilk about those two brands name, or how effective these commercials were. The topic of this research is: “Customer and Vinamilk advertisement on TVT3 in 2009”. 1.3 Rationales Today, there are mass of advertisements in every channel on TV. Because that option of advertising is the quickest and easiest way to reach the potential customers. In order to have the advertisement on TV screen, businesses has to pay VTV3 a lot just for a 30-second advertisement. It is important to business to evaluate the effectiveness of the advertisement toward the customers. The main purpose of this research is to define the affections of Vinamilk’s advertising during 2009 toward the buyers. Because of the limitation of knowledge so that this paper will include only two of those advertisements. They are the advertisement of 100% fresh milk and vfresh’s advertisement 3 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 This research was conducted in order to know how effective the Vinamilk’s advertisements on TV are in the year of many dairy scandals. 1.4 Research question: 1, How did customers response toward Vinamilk’s commercials on VTV3 in 2009? (In this research question, I only focus on 2 advertisements which have been recommend in the background part of this report) 2, How did the responses affect Vinamilk sales and market share in 2009? 1.5 Research method: This research based on two types of data: Primary data and second-hand data. Primary data use the survey method. The population of this research is the students from Intake 50 Advance program. The survey questions will be answered by a population of 56 students. The type of survey question is multiple choice questions. Surveys spread out are 56 copies of survey questions. Surveys collected are 56 copies. Survey questions are stored in Appendix part of this report. Second-hand data are information on the Internet. The address on the Internet of Vinamilk is http://www.vinamilk.com.vn . Company has very detailed financial statements since it became Joint Stock Company and listed on the stock market. II Major finding: Research question 1: How did customers response toward Vinamilk’s commercials on VTV3 in 2009? The commercials this report includes are “100% fresh milk” advertisement and “vfresh” commercial. +The advertising is very important and vital part of a successful business. Advertising can be of any kind, some of the popular forms of advertising are: Print Media Advertising: This is the advertising in which we promote the business through Newspapers, Magazines, Journals and books. This advertising covers all of people who are related directly or indirectly with above said media. This is very popular form of advertising as print media is very important. We can further categorize the print media (newspapers) into Entertainment, Careers, Classifieds, technology (Computers, Electronics, 4 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 defense), Real Estate, Lifestyles, Comics and much more. It also includes hoardings and banners. Television: TV is a very popular platform for advertising. It covers nearly all kind of audience and of all genders. Internet: The newest and increasingly getting popular form of media is internet. As it is the widest platform for the advertisers. It covers everything from a needle to a ship. These days more and more companies are focusing on advertising through internet. Internet advertising comprises of websites, portals, gadgets, feeds and search engines. With help of advertising the business firms publicize their businesses to make it more popular and to create brand awareness. Advertising help them in increasing revenues which directly increases the profit of the companies. Many companies are having separate departments for advertising. The function of these departments is to make plan and make budgets for advertising. Advertising helps in forecasting sales of a company. If the company spends more on advertising then definitely the people will be more aware about the brands of the company. Impact of Television: We live in a culture bombarded with promotional messages. Studies differ on the number of ads seen by the average American, but researchers cite from 850 to 3,000 ad messages experienced daily. These messages come from traditional sources like TV and newspapers but also on coffee cups, bill inserts catalogs, T-shirts and the like. The competition for the eyes and ears of the American consumer is fierce. Getting attention fosters the awareness that is the first rung of the advertising action hierarchy. It is so very critical to creating sales of an advertised product. Medium Properties: Television has the properties of sight; sound and motion that traditionally set it apart from other media such as radio (sound only) or print (sight only). With its three-pronged assault on its viewer's senses, TV is able to create broad awareness for a product. Television is considered a mass medium because of the numbers of people it reaches. Pervasiveness of TV: National broadcasters like VTV3, VTV2, VTV1 and VTV4 reach more than 87% of households in Vietnam have TV. Television reaches more than 94% of the country's population, a huge potential audience for a television commercial. But 5 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 even TV's mass audience gets segmented as viewers fragment along age, gender and racial groups to watch particular networks, channels and programs. Effectiveness of TV Ads: The actual impact of an individual television ad depends on the kind of product being advertised. Some product categories are just naturally more interesting than others. More important is the creativity of the message itself. This is where specialists in television advertising truly earn their paychecks as it is their job to create ads that break through the clutter of television advertising, get attention, and communicate its unique selling proposition and so position the product for a sale. Television advertising has established a pantheon of highly regarded brands and brand icons like Coca-Cola, Pepsi-cola… Television Broadcasters: All national broadcasters have affiliated local stations. Local broadcast stations have some autonomy in program lineup, especially during the daytime and late-night periods. Local news is the bread and butter of local TV. Local stations have their own inventories of local ad units for sale and are given a share of some time slots available in prime-time programming for local ad sales. Buying local ads might provide a savings over national ad prices in the same TV program. Cable television advertising brings a new level of audience targeting and cheaper advertising costs. Cable TV practically invented the long-format commercial known as Infomercials, which even national broadcasters use to sell available time inventories, especially late night. VTV3 a TV channel broadcasts sports information, entertainment and economic information of Vietnam Television Station. This is a popular TV channels in Vietnam with the type of program can serve diverse entertainment needs of audiences of all ages. Although VTV3 hasn’t make any research about viewer rating but it’s obviously that the rating is very high due to 2 reasons 6