ESSAY MARKETING PRINCIPLE ANALYZE TH TRUE MILK MARKETING STRATEGY IN VIETNAM MARKET AND PROPOSE

UNIVERSITY OF FINANCIAL – MARKETINGMARKETING MAJOR --- ---ESSAY MARKETING PRINCIPLE ANALYZE TH TRUE MILK MARKETING STRATEGY IN VIETNAM MARKET AND PROPOSE Teacher: Diệp Long PhúMember: Ng

UNIVERSITY OF FINANCIAL – MARKETING

MARKETING MAJOR

-

-ESSAY MARKETING PRINCIPLE

ANALYZE TH TRUE MILK MARKETING STRATEGY

IN VIETNAM MARKET AND PROPOSE

Teacher: Diệp Long PhúMember: Nguyễn Đông Bảo Châu

Trần Xuân ThốngCao Mỹ NhiNguyễn Văn LắmClass: CLC_20DMA03

TABLE OF CONTEN

PART 1: THE THEORETICAL BASIS OF “TH TRUE MILK MARKETING

STRATEGY IN THE VIETNAMESE MARKET” FROM 2010 TO 2020 2

I The marketing environment 2

II The STP strategy 5

III Marketing mix (4P) 5

4 Promotion: 6

IV Recommendation 7

PART 2: STATUS OF THE MARKETING STRATEGY OF TH TRUE MILK BRAND IN VIETNAM MARKET 2010-2020 8

I INTRODUCTION 8

TH True Milk Company 8

Mision and vision statement: 9

Production Process: 10

Business activities: 10

The founder: 11

Products: 12

II MARKETING ENVIRORNMENT: 13

MICRO MARKEITNG ENVIRONMENT: 13

a) Climate: 13

b) Customer: 13

c) Collaborator: 13

d) Competitor: 17

e) Company: 19

MARCO MARKETING ENVIRONMENT: 21

a) Political: 21

b) Economic: 22

c) Sociocultural (social): 22

d) Technological: 22

III STP MARKETING: 23

SEGMENTATION: 23

a) Demographic: 23

b) Psychographic: 23

c) Behavioral: 24

TARGETING: 24

POSITIONING: 25

IV MARKETING MIX (4P): 26

The "real" story hits the consumer's mind 26

PRODUCTS: 27

a) Core benefits: 27

b) Basic product: 27

c) Expected product: 28

d) Potential products: 29

PRICE: 29

a) Pricing: 29

b) Pricing strategy: 30

PLACE: 30

PROMOTION: 32

a) Message: 32

b) Measurement: Preemptive Claim (The Laws of Mind): 32

c) PR: 33

d) Sale promotion: 34

V RECOMMENDATION: 35

VI REFERENCE 36

VII CÔNG VIỆC VÀ ĐÓNG GÓP CỦA TỪNG THÀNH VIÊN TRONG NHÓM 38

PART 1: THE THEORETICAL BASIS OF “TH TRUE MILK

MARKETING STRATEGY IN THE VIETNAMESE

MARKET” FROM 2010 TO 2020

The macro-environment includes the broad features that affect the market andmarketing activities as well as the factors of the microenvironment

Affecting directly or indirectly the business operations of the enterprise as well as the customers purchasing behaviors

Affecting big businesses

a) Environmental:

- Consist of: climate, terrain, natural resources and other factors

- Natural factors affect businesses’ marketing activities

- Prioritized the human habitat problems

d) Economic:

- Economic growth, inflation, unenployment, interest rate, etc

- Economic organizations influence on the market

- Provision problems and demarketing

e) Technological:

- Technology science develops consistently, it affects the marketing mix (4P)

- Businesses should always observe and renew technology so that efficiency andmaximum quality can be achieved to compete with other businesses in the market

f) Political:

- Political stability, political structure, adminstration, laga; regulation

2 Micro Marketing Environment

- The micro marketing environment are the factors that affect directly the companyand its ability to meet customer needs

- These factors are divided into 2 groups: external and internal

Departments have different goals to pursue, that’s why each department's goal is never the same as the others

In order to reach a consensus with a high rate, the marketing department needs to make marketing decisions on condition that thay are subjected to the company’s substraints such as motto, goals, strategies, etc

2 T: Targeting

- The process of selecting the segment to serve

- The firm’s goals and strengths must fit with the needs of the segment

- Core benefits: The fundamental need or want that consumers satisfy by

consuming the product or service

- Basic product: A version of the product containing only those attributes or

characteristics absolutely necessary for it to function

- Expected product: The set of attributes or characteristics that buyers normally

expect and agree to when they purchase a product

- Augmented product: The inclusion of additional features, benefits, attributes or

related services that serve to differentiate the product from its competitors

- Potential product: This includes all the augmentations and transformations a

product might undergo in the future To ensure future customer loyalty, a business must aim tosurprise and delight customers in the future by continuing to augment products

2 Price:

- Pricing: As the term is used in economics and finance, this is the act ofestablishing a value for a product or service In other words, pricing occurs when a businessdecides how much a customer must pay for a product or service

- Pricing strategy: A pricing strategy takes into account segments, ability to pay,

market conditions, competitor actions, trade margins and input costs, amongst others It is targeted

at the defined customers and against competitors

The process of moving products from the producer to the intended user iscalled place In other words, it is how your product is bought and where it isbought This movement could be through a combination of intermediariessuch as distributors, wholesalers and retailers

Includes all activities that involve communicating with the customer about the

product and its benefits and features This includes raising awareness through

different mediums to increase sales, as well as to create and foster brandloyalty

PART 2: STATUS OF THE MARKETING STRATEGY OF

TH TRUE MILK BRAND IN VIETNAM MARKET

2010-2020

TH True Milk Company

- Although TH True Milk’s dairy products have just been lauched on December 26,

2012, so far they have gained many admirable achievements, received lots of high praises for theirmilk quality by using foreign technological technique and becoming a worthy competitor againstother long-standing dairy brand What helps this dairy company achieve so many rapid successes inthe Vietnamese dairy market?

- TH True Milk Company, all so known as TH Milk Food Joint Stock Company,belongs to TH Group The enterprise was established under the financial advice of Bac ACommercial Joint Stock Bank Entering the Vietnamese market since 2010, the company alwaysaims to produce the most authentic "fresh milk" products

- For only 12 years, TH True Milk has achieved many proud achievements In

2013, the company inaugurated a clean fresh milk factory with a capacity of 500,000 tons/year.Dairy cows are raised according to high technology standards, with more than 45,000 cowscarefully selected from New Zealand, Australia, Canada, etc

- During following years, TH won the love and trust from consumers and local governments at different levels TH Group was rewarded with many prizes:

“Viet Nam’s High-Quality Product” prize for three consecutive years of

2012, 2013 and 2014

“Reliable Supplier in Viet Nam 2011”

“Prestige Brand”

“Agriculture Enterprise applying High-tech”

“National Golden Quality Prize 2013”

“Trusted Brand” by National Quality Assurance Agency

Mision and vision statement:

- With the spirit of being close to nature, TH Group has put all its effort to nutrifyVietnamese people body and soul by providing food products derived from nature which are clean,safe, fresh, delicious and nutritious

sự thiên nhiên), i.e it doesn't use powder milk for process The corporate ispleased with the actual fact that: All product area unit made up of “fresh cleanpure milk” created within the TH industrial farm (Hoàn toàn tư sữa tươinguyên chất của trang trại TH) For this reason, all the product area unitoversubscribed below the complete “TH True Milk”.

Production Process:

- Desire to bring fresh, clean, delicious and nutritious dairy products to vietnameseconsumers TH recognizes the quality of milk as an important factor in production anddevelopment By applying the world's end-to-end technologies into the entire closed productionprocess TH’s products always ensure the criteria of freshness, keep the essence of nature intact andmeet international material standards

Bu sin ess

activities:

- The company has introduced to the market more than 70 products on the basis offresh milk The company is always aiming for the path of clean fresh milk products, clean food,and clean drinks

- According to retail measurement data of the whole market in November 2018,

TH True Milk milk grew by nearly 22% in volume and 30% in revenue Up to now, TH TrueMilk's market share in the fresh milk segment in urban retail channels has reached 40%

- Since 2017, TH True Milk Company has made leaps and bounds in business Netprofit in 2017 was 319 billion VND, in 2018 it was 450 billion dong Within 5 years from 2014 to

2018, TH's net profit increased 15 times

- In 2018, TH Company reached the revenue milestone of more than 7,000 billionVND, faster than the roadmap set by the leadership This achievement was achieved thanks to theoutstanding growth of fresh milk products After only 10 years, the amount of milk in the countryincreased significantly, helping to reduce the number of imported powdered milk to bereconstituted from 92% in 2008 to more than 60% at the present time

- On January 31, 2018, TH True Milk Company inaugurated the first high-yieldingdairy farm in Moscow, Russia This is a project within the framework of the complex of dairyfarming, high-tech milk processing and a number of food projects with a total investment capital of

up to 2.7 billion USD of the company in the Russian Federation

The founder:

- The founder and Chairman of the Board of Directors of TH Dairy Foods JointStock Company is Ms Thai Huong - Top 50 most powerful businesswomen in Asia Ms Huong isthe leader and driver of TH Milk Food Joint Stock Company to achieve the success it is today

- However, she decided to step back behind the scenes to work as a consultant for the enterprise's business activities after more than 10 years of working

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- Milk products: UHT fresh milk, pasteurized milk, formula fresh milk Th Topkid,

TH True yogurt, TH True nut

- TH True Butter, TH True Cheese

- Beverage: TH True Rice, TH True juice, TH True juice milk

- TH True Water

- Food: Japonica FVF rice, NASU sugar

- Ice cream

II MARKETING ENVIRORNMENT: MICRO MARKEITNG

is also a hand-delivery service to consumers at TH True Mart

- TH's customers are families with young children with moderate or higher income

In addition, it is also aimed at young people who like natural products, aged from 15 to 25

- TH is under a lot of pressure from customers:

Price pressure: customers always want to buy cheap but good quality products

Quality pressure: customers want quality products, especially pasteurized products such as milk

Collaboration with HAGL: Why HAGL brand?

-Becoming a leader in agriculture filed as farm sugar cane, rubber

70% cost of cow farm is food for cows, HAGL able to use sub-productions through sugar-cane farm and corn

Page

- Owner more than 100.000 hectare agriculture land in Vietnam, Lao, Cambodia

- HAGL interested in cow farm and intend to use 30.000-hectare land for it

- HAGL already have project for cow farm & factory in Laos

- Agriculture structure of HAGL in Laos already set up in few years ago Now, thissystem run smoothly and upgrade with stable work

- HAGL is well-known brand in Vietnam

- This Group has a chairman who has business theory very aggressive Hisdetermination always keeps direction to target long-term vision It is very important in milk marketand TH true milk

- TH true milk target increase factory power and revenue It need a healthy

financial in long way The cash flower return lower than other major

- In milk market, HAGL have not entered this market And they also have not plan

to sale milk, their goal is 50% sales beef meat and 50% milk sources

- Collaboration with HAGL as Joint venture cow farm This is first step of expandproduction size of TH True Milk We believe that TH True Milk will competitive massively infresh milk after 2 years of collaboration

- TH True Milk will borrow bank 100M$ for first part and use 50M$ from capital

It protects safely financial status

- After 2st Part, totally TH True Milk become 1st number of cows more than 200.000

- This result will match company target in 2017 with gaining 50% number of cows

in VN

- Cost saving compare with set up factory without collaboration It also reduce risk

in operation, financial half

Tetra Pak and Combibloc:

- Famous packaging technologies from Sweden and Schweizerland had beenconsidered as a proof of clean, sterilized milk Their respectability are much suitable forVietnamese routine use of the milk carton bottle

Afimilk (Israel’s leading milk technology producing group):

facility uses technology from global leaders such as Siemens, Danfoss andGrundfos The facility is part of TH true Milk’s $1.2 billion hi-tech dairy cowand fresh milk processing project, making it the most advanced of its kind inSoutheast Asia TH true Milk also has a 200-tonne per day milk facility in thenorthern province of Hung Yen which began operations in 2010.

Weakness: Haven't created a strong brand, products are not

diversified, lack of management experience, limited vision, not enoughraw material resources

- Foreign dairy companies: Nestle, Abbott, etc

Strength: strong brand, strong product quality, large capital,

diversified products, large distribution channels, modern production technology, skilled workers

Weakness: still not understand well the new market, have not

overcome the cultural and political barriers, the price is quite high and have to be imported

Vinamilk: Vinamilk is the top of companies ranking in Vietnam about

manufacturing not merely milk but also many products from milk

Manufacturing technology achieves international standards

Continuously developing advanced products.

System of distribution and selling covers many areas

A familiar brand and trusted by Vietnamese consumers for more than

34 years

Highly effective marketingDiversified product portfolio, largest market share in Vietnam ViệtWide distribution network with many distribution channels according

to different modelsStrong financialsModern equipment and technology

Dutch Lady: So far Dutch Lady Vietnam has a large market in whole

Vietnam In there, Dutch Lady have many market segments following the age including the small child, child, teenager and adult; following the kind of milk products consisting on sterilized milk, condensed milk Because Dutch Lady makes menu segments, they set slogan for the natural milk which is called: “Ready for life!” and for impressing their various products for all age which is called: “cùng bé yêu khôn lớn” to distinguish with other IQ’s messages

Constantly improve products.

Distributing system covers many areas

Locating a power position of brand name

Strong brand, understand people's consumer cultureHigh quality products

Good customer care system, reasonable prices, diverse products

Not having the ability to self-control the source of raw materialsThe quality of raw materials cannot be managed, unstableCreating barriers for dairy farmers

Not having a large market share in the powdered milk segment

- TH True Milk was established in 2008 The meaning behind the name TH is TrueHappy (“Hạnh phúc đích thực” in Vietnamese) Even so, some people think it refer to Thái Hương– the founder of the company

- The TH True Milk project was started in 2009 with the import of Israeli dairytechnology and thousands of cows from New Zealand From that point on, that business began togrow rapidly

- Today, the enterprise has become a leader in the production of "clean" fresh milk,with a herd of up to 45,000 cows imported and cared for under a special regime

- In December 2010, TH True Milk was officially introduced to the market By

2013, this company has achieved accumulated revenue of approximately 6,000 billion VND Therevenue of 2013 alone reached 3,000 billion VND

- And after the success of TH True Milk project, the business has also invested in many other projects such as: