Sec4 vinamilk marketing strategry based on groups of products

TRƯỜNG ĐẠI HỌC KINH TẾ - TÀI CHÍNH KHOA: KINH TẾ BÁO CÁO ĐỀ ÁN CUỐI KỲ MÔN: QUẢN TRỊ MARKETING Giảng viên: Đỗ Thị Hoàng Mai VINAMILK MARKETING STRATEGY BASED ON GROUPS OF PRODUCTS - 2019 Contents I Product II Price: Currently available price Pricing Strategies III Place: Location Marketing channel IV Promotion: Advertising: Sale Promotion: Public Relation: V Implementation plan: Objective Growth: Marketing Objective Growth: Key Success Factors: I Product MARKETING MIX PRODUCT In December 2018, Vinamilk JSC released a new Piedielac product which is infant cereals for kids, that contribute in variety and vibrant improvement of infant cereals market in Viet Nam Level of product Core benefit Actual product Brand name Quality Current Piedielac baked corn snack especially provides essential nutrients for your baby’s body The core value of baked corn snack is to help children digest, absorb vitamins and fiber to prevent constipation In December 2018, Vinamilk JSC released a new Piedielac product which is infant cereals for kids, in order to build up Vietnamese brand, by Vietnamese and for Vietnamese with foreign quality Piedielac infant cereal is made from nature cereals were selected and through procession with high technology in order to keep the flavor and the smell originally from the fruit, easily to melt when in the mouth Style design Logo: Packaging Logo message is to: “committed to bring to the social the best nutrition source, best quality, by the respect, love and high responsibility with human life and the social" by Vinamilk Capacity: 100g Augmented product Service Address, phone number and e-mail printed on product for further information Guarantee If there is anything wrong with the product due to production or storage mistake, consumer can exchange for another new one II Price: Currently available price Product PieDielac Infant Cereal Dried Yogurt Pricing Strategies Wholesaler 52.000VND 59.000VND 38.000VND Retailer 64.000VND 74.000VND 48.000VND Vinamilk product’s price is set based on: - Pricing Objectives: maintain and improve market share leadership - Marketing mix strategies: + Value based pricing: Vinamilk prices its products based on products’ quality and brand + Competition based pricing: Vinamilk price has to depend on its competitor’s price: here it is Gerber (Nestle) + Discount and allowance: ● Bulk discount (For customers) ● Trade discount (For Wholesalers) Type of partner Monthly sales Discount rate 100 - 200 billion/ month 20% 200 - 300 billion/ month 24% Trên 300 billion/ month 25% ● Cash discount (For customer who complete their payment before deadline) + Psychological strategies: Vinamilk should set it as an order number such as 48.000VND or 64.000VND - Cost: Vinamilk has a low average cost as they produce a huge quantity III Place: Location Shops selling Vinamilk’s products are allocated not only in most of cities in Vietnam such as Ha Noi, Da Nang, Ho Chi Minh but also in foreign countries sush as Middle East, South East Asia Marketing channel From customer statistic conducted by Vinamilk, most people who willing to but weaning pie are located in big cities - because their income are higher than those in the countryside Therefore, Vinamilk may distribute PieDielac mainly in Ha Noi, Da Nang, Ho Chi Minh for the best result Traditional channel Interior Modern channel Wholesalers Supermarket Retailer Customer IV Promotion: Advertising: TARGET AUDIENCE Parents from 25 to 35 year old ACTION PLAN Television (estimate to reach 45% customers) Advertising Vinamilk's weaning pie on television during the day, especially on the golden hour (20s advertisement before and after national new at 7pm) Newspaper (estimate to reach 15% customers) Release advertisements on newspaper - times per month, focus on Tuoi Tre, Thanh Nien, Nguoi Lao Dong newspaper Magazine ( estimate to reach 25% customers) Vinamilk may cooperate with well-known magazine like Tiep Thi Va Gia Dinh, Phu Nu, Sai Gon Tiep Thi, Suc Khoe Ba Bau, … to promote its weaning pie with whole page once a month Internet (estimate to reach 8% customers) Build a sale page for weaning pie product on Vinamilk's website, and focus on advertising through other famous websites and social media platforms such as Facebook, Instagram, Cafef, Sale Promotion: Building a clear discount policy for wholesale and retail distributors Giving free samples to magazines, newspapers, retailers and wholesalers to encourage customers trying Vinamilk's weaning pie Building promotion programs for every month and every special event (discount, giving gifts, …) Creating competitions, product introduction event, lucky draw, … to give free sample for customers and give prizes to winners Kick-off with the “Buy get 1” program to promote people buy Vinamilk's weaning pie Public Relation: Vinamilk has done a very great job on public relation, and they should continue doing it to improve Vinamilk's image in customers’ mind Vinamilk may continue donating money, milk and other products to poor people, people in the center of Viet Nam and unfortunate kids Sponsoring game show, event, movie, national football match Continue making conferences, seminars on how to raise kids effectively, both mentally and physically V Implementation plan: Objective Growth: - Target products sold: 100,000,000,000 unit - Target revenue: VND 6,500 billion - Profit before tax: VND 1,300 billion - Profit after tax: VND 1,000 billion 2 Marketing Objective Growth: - Focus on advertising - especially in 2019 - to make PieDielac becomes well-known among Vietnamese parents - Continue contributing to the society (do charity; donate money, products; …) to better position Vinamilk's image in customer's mind - Actively participate in trade fair, press conference, products introduction events, … to attract more attention to PieDielac - Frequently cares about customers to understand their needs and what they think about PieDielac Always looks for ways to improve PieDielac in order to meet the customers' standard Key Success Factors: a Product promotion: - For a new product, promotion strategy plays a paramount important role for success In order to make PieDielac a key player in weaning sector, we have to pay attention to: Promotion: Conduct a large discount event for the first months after the launch Frequently give free sample to the distributors in order to encourage customers to buy Advertisement: Focus on building a trustworthy brand for PieDielac, increase the frequency of advertising on TV, magazines and online platforms b Vinamilk's distribution: - With the wide distribution network which contain more than 212,000 retail stores across the country; international standard warehouse and transport companies in Ha Noi and Ho Chi Minh; as well as the network of many wholesalers (big and small supermarkets like Co.op Mart, Vinmart, …), Vinamilk has what it takes to store and distribute the best quality products to its customers anywhere within Vietnam c Long-term strategy: - Vinamilk commits to make PieDielac becomes the most used local weaning pie brand, constantly looks for ways to improve products, focus on R&D in order to make Vinamilk becomes a key player in weaning sector d Macro environment: - Political factors: Vietnam is among the top 10 countries which not have any serious external or internal conflict (published by IEP) Vinamilk can take advantage on this political stability to launch PieDielac - Economic factors: Vietnam's economy is considered as one of the top 18 economies which has been “effectively growth" for the last 50 years (research conducted by MGI and announced in WEF 2018 held in Ha Noi) Vietnam’s GDP per person has kept the average annual growth exceed 5% for the last 20 years and there are no signs which prove this number is going to diverse, which means Vinamilk can be leveraged by higher income of Vietnamese people - who are now having enough money to buy more Vinamilk products - Social factors: According to UN's research published on December 22, 2018, there are 4,270 children given birth everyday in Viet Nam Which means the demand for weaning products are enormous, and Vinamilk surely can take advantage on this information Appendix: Financial Goal for PieDielac Business Result Quarter 1/2019 Quarter (01/01 - 31/03) 2/2019 (01/04 30/06) Quarter 3/2019 (01/07 30/9) Quarter 4/2019 (01/10 31/12) Net Revenue VND 1625 billion VND 1625 billion VND 1625 billion VND 1625 billion Profit Before Tax VND 325 billion VND 325 billion VND 325 billion VND 325 billion Profit After VND 250 Tax billion VND 250 billion VND 250 billion VND 250 billion Ansoff Matrix: - Vinamilk can focus on product development strategy for PieDielac because Vinamilk's current customers is the right target customers for weaning products, so they not have to apply a high-risk diversification strategy Annual Budget: - Vinamilk spent approximately VND 11,536 billion (22,5% of revenues) on selling expenses in 2017 - Vinamilk should keep the same level of marketing spending with increases to match inflation - Vinamilk need to allocate around 25% of the total marketing budget towards the launch of PieDielac 3-year Marketing Campaign: - Objective: Make PieDielac becomes a most used weaning pie brand in Vietnam and help Vinamilk to dominate the weaning sector - Create a trustworthy brand for PieDielac as a complete weaning solution for baby in the age of to 24 month ... billion VND 1625 billion VND 1625 billion VND 1625 billion Profit Before Tax VND 325 billion VND 325 billion VND 325 billion VND 325 billion Profit After VND 250 Tax billion VND 250 billion VND... internal conflict (published by IEP) Vinamilk can take advantage on this political stability to launch PieDielac - Economic factors: Vietnam's economy is considered as one of the top 18 economies... winners Kick-off with the “Buy get 1” program to promote people buy Vinamilk' s weaning pie Public Relation: Vinamilk has done a very great job on public relation, and they should continue doing