Over 40 years of establishment and development, Vinamilk hasbeen leading the dairy industry in Vietnam for many years and predicted tocontinuously keeping its firm position in the future
INTRODUCTION
Message of Vinamilk
“Becoming Vietnam's top symbol of faith in nutrition and health products that benefit human life.”
“Vinamilk is committed to providing the community with top quality and high-quality nutrition with its own respect, love, and responsibility for human life and society.”
Integrity: Integrity, honesty in conduct and in all transactions.
Respectability: Respect yourself, respect colleagues, respect the company, respect partners, respect cooperation.
Equity: Employees, customers, suppliers, and other stakeholders must all be treated fairly.
Morality: Respect established moral norms and act morally.
Retainer: Comply with the law, the Code of conduct and the company's regulations, policies and regulations.
Vinamilk aims to be a globally popular brand across all regions and markets We view quality and innovation as the core values that accompany Vinamilk on its growth journey With customers at the heart of our business, Vinamilk is dedicated to understanding and meeting their every need with reliable, high-quality products.
THE MARKETING ENVIRONMENT
Demographic environment
Vietnam's 5th Census shows that on April 1, 2019 the total population reached 96,208,984 people According to the Ministry of Labor's portal, the urban population in 2019 was 33,059,735 (34.4%), while the rural population stood at 63,149,249 (65.6%).
This is a key driver of Vietnam's dairy industry, with vast potential contributing to as much as a 30% annual increase in milk consumption, concentrated largely in urban areas As living standards rise, the dairy market in Vietnam offers strong opportunities for dairy businesses in a high-potential, developing market.
Picture 1: Chart of population composition by age
(Source: Asian Demographics www.asiandemographics.com)
Population data by age (estimate):
- 23,942,527 adolescents under 15 years old (12,536,210 boys / 11,406,317 girls)
- 65,823,656 people aged 15 to 64 years (32,850,534 men / 32,974,072 women)
- 5,262,699 people over 64 years old (2,016,513 men / 3,245,236 women)
With a large population and high birth rate, alongside gradually rising incomes and improved living standards, health concerns are increasingly prioritized Dairy campaigns that promote drinking and distribute free milk help raise brand awareness and expand the Vietnamese dairy market, creating significant potential for the dairy industry as a whole and for Vinamilk in particular.
Economic environment
According to the forecast by the National Center for Socio-economic Information and Forecast (NCIF) of the Ministry of Planning and Investment, Vietnam's economy after the 2016-2020 period is expected to be shaped by both domestic and external factors in the coming years The NCIF projects that from 2021 to 2025 the country will achieve about 7% annual GDP growth, with the economy remaining basically stable and inflation kept in the 3.5%–4.5% range Labor productivity is expected to improve, supporting sustainable growth during this period.
6.3%/year With this growth result, by 2025, Vietnam's GDP per capita will reach about 4,688 USD, bringing Vietnam into the group of high-middle-income countries.
As living standards continue to rise, the steady growth in average income increases purchasing power and reshapes consumer demand This shift drives people to seek higher quality, greater variety, enhanced convenience, and appealing aesthetics, often willing to spend more to satisfy these preferences At the same time, income distribution across the population creates distinct market segments and highlights disparities that businesses must address To capitalize on these trends, companies should tailor products, pricing, and marketing strategies to diverse consumer groups and monitor shifts in income dynamics.
Cultural environment
The 4.0 era brings easy access to information through newspapers, social networks, the internet contributing to increasing human demand, Vinamilk took advantage of this opportunity to offer advertisements that target customers' psychology, habits of using sweet products as well as canned products or milk- related products This makes marketing and advertising activities and product distribution to customers more convenient
Vietnamese consumers tend to stick with brands they trust, which gives Vinamilk a built-in advantage to increase sales and cultivate loyal customers This loyalty stems from perceived quality, a strong brand image, and a solid reputation Vinamilk's advertising consistently highlights a healthy lifestyle and the holistic development of both body and mind, resonating with local values Consequently, Vinamilk can capitalize on trust and positive brand associations to expand market share in Vietnam.
Political environment
Vietnam’s stable political environment is a decisive driver of economic development, enabling job creation, raising workers’ incomes, and expanding consumption demand across society This stability also strengthens the ability of Vietnamese enterprises to design and implement growth strategies, with Vinamilk serving as a compelling example of how national conditions foster business success.
Regardless of where a business operates, its success is shaped by the host country’s legal system and government policies These frameworks govern business conduct, consumer protection, and trade and exchange relations, creating an environment that can enable or constrain growth Political stability and the government’s operating mechanisms are crucial factors that influence every industry within a territory Institutional and legal factors can threaten the viability and development of any sector, underscoring the need for firms to navigate regulatory landscapes and policy changes to sustain performance.
Vinamilk faces risks from unstable export markets, with more than 90% of its export revenue currently sourced from Iraq, where political and economic instability has adversely affected earnings To mitigate this concentration risk, Vinamilk is expanding its export markets to Australia, the United States, Canada, Thailand, and other countries The company’s marketing activities are also shaped by the state’s policy tools, including tax policy, financial policy, monetary policy, foreign policy, and sector development policies, which influence pricing, investment, and market-entry decisions Understanding these external factors helps Vinamilk adjust its strategies for sustainable growth in a diversified global market.
Evidence: For businesses, advertising is an effective marketing activity.
According to regulations, advertising costs are allowed at 10%, but companies with higher costs are Dutch Lady Company (19.2%), Vinamilk Company (12.9%), etc.
Technological environment develop of technology
Technology factors create both opportunities and challenges, pushing businesses to refine marketing strategies for competitive advantage As a critical input in the production process, technology significantly affects production efficiency and overall business performance Therefore, technological factors also influence Vinamilk’s marketing activities, shaping how the company leverages digital platforms, data analytics, product innovation, and automation to boost consumer demand in the market Vinamilk must identify and prioritize the key technological factors that will drive product consumption and market growth.
Currently, the production technology equipment used by Vinamilk are of international standards, using modern packaging technology, and importing technology from famous equipment suppliers such as: trota Pak (Sweden), APV
Denmark's modern dairy farming uses synchronous, next-generation production lines and fully automatic or semi-automatic control systems to meet stringent food safety and quality standards It integrates advanced herd-management technology—Ethernet and Wi-Fi networks, Bluetooth connectivity, and remote radio identification with RFID tags—for seamless data collection and real-time tracking Biosensors and surveillance cameras monitor cow health, welfare, and productivity, while automated controls optimize feeding, milking, and care, collectively boosting dairy cow production and overall efficiency.
Natural environment
Vietnam's climate is tropical and monsoonal, which will create great opportunities and challenges for the dairy industry
- In spite of tropical weather, in general, the natural conditions are quite suitable for the development of the dairy industry, especially in the provinces of Tuyen Quang,
Lam Dong, Ba Vi, Nghe An, Son La, etc.
→ Easily obtain raw materials for production needs such as fresh yogurt, sugar, etc, at a much lower cost than the production that has to import input materials from abroad
Trends in the natural environment significantly influence corporate marketing strategies, especially through the scarcity of certain raw materials, rising energy costs, and increasing environmental pollution State intervention to promote the rational use and sustainable reproduction of resources further shapes market conditions and policy As a result, businesses must adapt by securing resilient supply chains, investing in energy efficiency, reducing pollution, and aligning product development and branding with sustainable resource management and regulatory compliance.
Milk is highly perishable and can quickly deteriorate if not preserved and handled promptly, which directly harms its quality This reality creates the imperative for a defined preservation strategy that protects freshness from milking through processing and storage By implementing targeted temperature control, hygienic handling, and efficient processing practices, producers can preserve milk quality and consistently manufacture high-quality dairy products.
The micro environment
Vinamilk's organizational chart is presented professionally, allocating departments in a scientifically planned and reasonable way and decentralizing responsibilities across each team member and department This structure enables Vinamilk to operate efficiently by clarifying roles and empowering teams to act autonomously while maintaining alignment with overall goals As a result, departments collaborate more closely, improving coordination and decision-making to strengthen Vinamilk as a cohesive and competitive organization.
Dairy farms are key strategic partners of Vinamilk, enabling the delivery of leading premium products to consumers Milk purchased from these farms must consistently meet the quality standards signed between Vinamilk and domestic dairy farms To ensure production capacity and quality, Vinamilk also imports powdered milk from Australia and New Zealand Vinamilk’s two major milk powder suppliers are Fonterra and Hoogwegt International.
Table 1: List of some major suppliers cooperating with Vinamilk
Vinamilk's distribution network relies on a range of intermediaries, including distributors, wholesalers, and retailers, along with organizations and businesses such as supermarkets, dairy agents, grocery stores, and marketing companies These product distributors are responsible for delivering Vinamilk products to consumers, ensuring availability across channels and markets.
- Thanks to agents, retailers, etc., Vinamilk can reduce a huge cost compared to opening its own sales showrooms According to the collected statistics, Vinamilk
Supplier products offered include Fonterra (SEA) Pte Ltd milk powder, Hoogwegt International BV milk powder, Perstima Binh Duong Box, and Tetra Pak Indochina cartons and packing machines The cartons and packing machines sector maintains a distribution network of over 141,000 sales agents across 64 provinces and cities nationwide, complemented by domestic distribution, while Vinamilk also pursues overseas expansion Investing to open own agents would require very large capital and carry high risk Marketing intermediaries such as supermarkets and agents deliver strong marketing and sales performance, provide quick product delivery to customers, and help raise the prestige and reputation of Vinamilk’s products, thereby increasing consumer demand.
- Warehouse system with two warehouses: Ho Chi Minh City Logistics Enterprise Minh and Hanoi logistics enterprise
- Invest in more than 300 small trucks for distributors
- Having a refrigerated vehicle system to ensure the amount of milk is an advantage compete against the opponent
State funding, led by the Ministry of Finance, supports this initiative Equity financing accounts for 77% of the capital as free capital, with additional funds mobilized from bond issuers, equity shares, foreign direct investment (FDI), and official development assistance (ODA) to back dairy processing projects and other investments aimed at developing key material sectors.
- Bear foreign currency risk arising when there is a difference between accounts receivable and payable in foreign currencies, which materially affects business results and risk of high liquidity.
Advertising agencies play a crucial role in brand promotion, and Vinamilk has effectively leveraged this by cultivating a memorable brand image The company commonly features a happy dairy cow on a green meadow alongside children, a motif that resonates strongly with Vietnamese consumers This cheerful, family-oriented imagery has become deeply imprinted in the minds of Vietnamese people, especially children, helping Vinamilk achieve lasting recognition and appeal in the market.
Vinamilk competes in the liquid milk market with several players, including Dutch Lady, F&N, Dutch Mill, Hanoimilk, ELOVI, Nutifood, Tan Viet Xuan, and Lothamilk Dutch Lady remains a direct and significant rival, with consumption shares that are closely balanced A chart from May 2007 shows Vinamilk leading the liquid milk market with a 38.7% share by volume, overtaking Dutch Lady, which held 35.7%.
Picture 2: Chart of market share of liquid milk
For liquid milk, the alternative products that are likely to reduce the company's market share are nut milk, milk-based beverages, almond milk, non- dairy milk, goat milk, etc.
Customer needs significantly influence how a company operates, and gaining customer trust and driving sales requires products that are both high quality and priced to match consumer preferences Vinamilk has succeeded in meeting these expectations, as shown in this chart, which demonstrates strong customer satisfaction and continued demand for its products.
Picture 3: Chart of experience of using Vinamilk’s product
In addition to domestic customers, Vinamilk has also managed to restore a relatively good number of potential customers abroad.
A group of people who are and are likely to be interested in the impact of a business Public groups include: Finance, media, community-society, government, local government, employees
Driven by the aim of becoming the most loved product across all regions, Vinamilk actively engages in media advertising on radio, television, and newspapers to strengthen its brand reach The Vinamilk brand is recognized as a famous brand and was ranked among the 100 strongest brands by the Ministry of Industry and Trade in 2006 It was also voted into the top 10 high-quality Vietnamese goods from 1995 to 2007.
Vinamilk has long been committed to sponsorships, funding scholarships for children, caring for 20 Vietnamese heroic mothers, and supporting social projects such as 72 gratitude houses and 120 charity houses In addition, Vinamilk sponsors a range of television programs, including the National Youth–Children's football event called the Vinamilk Cup, as well as shows like "Three Stars Lost Edition" and "Vietnamese Movie Weekend." With regular television advertising, active participation in sponsorship programs, and steady media coverage, Vinamilk continually boosts its brand visibility and promotes its dairy products to a wide consumer audience.
STP STRATEGY
Market segmentation and targeting
Every business operates in two main markets: the domestic market and the international market From the outset, Vinamilk has prioritized the domestic market as its core focus In Vietnam, the dairy market is divided into two segments, highlighting the divergent opportunities within the sector.
Rural areas accounted for 65.6% of the population in 2019, a share that has declined over time but remains substantial The old assumption that rural residents have low incomes and living standards and therefore rarely consume dairy is no longer accurate Rural nutrition and dairy consumption are rising, with households increasingly embracing popular dairy products such as fresh milk, yogurt, and condensed milk.
Urban areas accounted for 34.4% of the population in 2019, and this share is rising Cities have long been a dominant market for milk consumption, accounting for more than 80% of total milk demand due to high population density, living standards, and income levels Urban consumers are generally more health-conscious than rural residents, which drives demand for higher-end, premium dairy products.
Vinamilk targets urban markets as the main hub of milk consumption, but since 2013 the company has expanded penetration into rural areas with popular product lines to unlock new growth potential The rural market remains highly promising, evidenced by a year-over-year increase in Vinamilk’s consumer reach in rural communities.
Table 2: Vinamilk's consumer reach points in urban and rural areas over the years.
(CRP: consumer reach point) (Source:Vinamilk.com)
Table 3: The dairy market segment table is based on age
0-4 years These are the ages need to be added with plenty of nutrition, DHA for development process.
These are the age which children enter the development process, needs plenty of nutrition for their body, serving the study and training process.
These are the youths-the last of development process, need to be added nutrition from milk but less.
At this life stage, most people have a stable income and, while they may not directly use milk, they are the primary purchase decision-makers who care about product quality and brand reputation.
65+ years Using calcium-fortified products for the body, often using powdered milk instead of liquid milk.
Table 4: Dairy market segment table based on income
Low incomes, only enough to pay the basic needs, rarely care about nutrition needs for health.
Middle incomes should be able to pay for higher nutritional needs, but not often and continuously, with the product price considerations.
The income level is relatively good, able to pay for the need to use milk more often, less interested in price but focus on quality of product.
Vinamilk's product lines have historically targeted children and teenagers, who need extra nutrients during crucial growth periods Recently, the company has expanded its scope by launching nutritional products for older adults, broadening its portfolio to support healthy aging across all life stages.
Based on health status, there are two primary disease-based groups that milk distributors should monitor, as each group demonstrates distinct consumer behaviors and milk consumption needs; understanding these differences enables tailored product offerings, inventory management, and safety considerations to meet the unique requirements of both groups.
Group 1: People with diabetes, obesity
Vietnam is confronting rising health issues, with more than five million people living with diabetes and around 300,000 children under five who are obese For those managing diabetes and obesity, dairy choices matter, with a preference for sugar-free milk, skimmed milk, and calcium-rich options to support blood glucose control, weight management, and bone health.
Group 2: People with malnutrition, rickets
Vietnam faces a significant child malnutrition challenge, with about 1.8 million children under five who are malnourished Children from poorer households are roughly three times more likely to be malnourished than those from wealthier families The highest malnutrition rates are observed in the Central Highlands and Northern Mountains, where many ethnic minority communities live, and among these groups the Mong people have the highest rate at 65% These findings are reported by UNICEF Vietnam.
Children with malnutrition and rickets must increase their nutrient intake, and milk plays an indispensable role in meeting those nutritional needs However, most malnourished children in rural and mountainous areas lack regular access to milk due to economic and logistical barriers Addressing this gap requires expanding affordable dairy options and fortified alternatives to ensure vulnerable communities receive essential nutrients for growth and bone health.
TARGETING: Because milk or dairy products are indispensable in the menu of malnourished people, most Vinamilk’s products are for malnourished people and rickets
Vinamilk uses differentiated marketing to target multiple customer segments with a diversified product portfolio The company expands its milk and dairy range to meet the needs of a wide consumer base while also expanding into other categories such as soft drinks and ice cream This strategy allows Vinamilk to reach a large number of customers and strengthen its presence across both dairy and broader beverages and snacks markets By developing products tailored to various segments, Vinamilk sustains growth and broadens its appeal in the competitive food and beverage industry.
Positioning
Vinamilk differentiates itself from other dairy brands by focusing on product quality, offering reasonably priced dairy products, and placing the customer at the center of every decision For Vinamilk, only high-quality products help retain customers, and this belief drives a strategy that prioritizes loyalty and value To achieve the goal of low-priced, high-quality products, Vinamilk has developed competitive advantages that support this balance, enabling affordable, reliable dairy options for consumers while maintaining strong value.
First of all, Vinamilk has a very strong financial potential.
Product differentiation is driven by Vinamilk’s ability to deliver consistently high-quality dairy products The company operates a network of processing factories with large capacity, enabling scalable production while maintaining stringent quality control By establishing clean raw material areas and adhering to rigorous technical standards, Vinamilk has mastered product quality to compete effectively with other manufacturers in the market.
Differentiation distribution: Vinamilk's distribution system covers the entire
Vietnamese Dream Milk operates 505 stores and a nationwide distribution network that reaches nearly 251,000 retail points, including supermarkets and convenience stores The broad retail footprint enables direct-to-store shipping, dramatically reducing transport time and logistics costs Consequently, the product reaches consumers at the lowest possible price while maintaining the highest quality.
Image differentiation among dairy products hinges on visuals that are deeply familiar to Vietnamese people: cows raised with modern technology in clean, well-maintained environments The iconic scene of a happy dairy cow grazing on a green meadow with children has been deeply imprinted in the minds of Vietnamese consumers, especially children.
Vinamilk differentiates itself by meeting the legitimate needs of consumers who seek nutritionist advice to tailor the most suitable healthy diet, thereby bringing health and happiness to families and contributing to an improved quality of life.
To stay competitive, Vinamilk identifies its target market segments and crafts a tailored value proposition for each By leveraging its competitive advantages, the company delivers compelling value to these segments and strengthens its market position Vinamilk also diversifies its product portfolio to meet the evolving needs of its target customers, enabling expansion into additional segments and greater market reach.
MARKETING MIX STRATEGY
Product mix
Vinamilk maintains a broad product portfolio with a diverse range of product lines, reflecting its position as a leading dairy company The focus of Vinamilk’s offerings is dairy products, with core lines centered on liquid milk, yoghurt, powdered milk, and condensed milk, which form the backbone of its dairy portfolio and drive its market leadership.
Liquid milk Yogurt Powdered milk
Bevera-ges Adult’s nutrition products Product length
Fruit juice Sure prevent Vinamilk100% organic
Probi Yoko Gold Optimum gold
Fresh milk with bird's nest
VNM 100% fresh Fresh Dielac Aloe vera milk sour milk Mama gold drink
Product dept: Vinamilk has a variety versions in each product, these are versions of some out standing products.
ADM IQ Gold Vinamilk Probi Organic gold powdered milk Sweetened /Less sugar
850g per tin can 100ml/180ml Flavour: Chocolate
Cabassa melon Strawberry Blueberry Pineapple
Steps for each age group: step 1-2-3- 4.
Product quality
Vinamilk applies the world’s most advanced technology and equipment to produce products that meet international quality standards The company develops and applies the HACCP framework to ensure hygiene and food safety across all production lines Its facilities have been evaluated and certified by leading international organizations, including SGS and BVQI, confirming HACCP compliance to the RVA standard of the Netherlands.
Branding
Choosing a strong brand name and a clear brand image is pivotal to Vinamilk’s long-term success With more than 30 years of development, Vinamilk has built a lineup of flagship products—Ong Tho condensed milk, Dielac, and Vinamilk yogurt—that have become widely recognized brands This focused branding has driven consumer trust, market presence, and loyalty, reinforcing Vinamilk’s leadership in the dairy industry.
Vina in Vinamilk signifies Vietnam, the country of origin, giving the brand a friendly and memorable identity This origin makes Vinamilk feel approachable and easy to recall for consumers Moreover, Vinamilk’s imagery is linked to green grasslands, sunny fields, and cheerful cows, reinforcing its Vietnamese heritage and the natural, wholesome qualities of its dairy products.
Packaging
Packaging influences buying decisions, so Vinamilk focuses on eye-catching packaging and clear labels that include ingredients, usage instructions, and expiration dates To meet diverse consumer needs, the company offers a range of packaging capacities across its product lines From an environmental perspective, Vinamilk has developed eco-friendly packaging by using paper boxes supplied by Tetra Pak for all liquid dairy products and beverages These strategies attract customers, support sustainability, and ensure product information and freshness are easily accessible.
The systems for packaging pasteurized dairy products ensure the three main objectives of the packaging process as: guaranteeing product quality, eliminating wastage, and lowering distribution costs.
Product support services
Vinamilk provides an official website to interact with customers Customers have handy access to get the information such as the amount of nutrients in each product Recently, its distribution network entitled “Vietnamese Dairy Dream” reached the threshold of 500 stores in all 63 provinces and cities The retail website www.giacmosuaviet.com.vn is also proving to be effective, especially during the social distancing period.
Product life-cycle
Founded in 1976, Vinamilk has marked numerous milestones that propelled its growth and maturation into the mature, established dairy company it is today In recent years, these milestones underscore that Vinamilk is firmly in the maturity stage of its development, reflecting sustained success and industry leadership.
Vinamilk reports stable growth in the first quarter of 2021 according to its financial report, with Q4 2020 revenue exceeding 2.6 trillion VND and Q1 2021 revenue around 3.15 trillion VND, underscoring continued momentum through the end of 2020 into 2021.
Price
Because of the difficulties of economy in recent years, Vinamilk has to face many challenges to adjust its pricing strategies properly.
Today’s crowded market segments intensify price competition, prompting Vinamilk to adopt a competitive-based pricing strategy The company remains committed to delivering high-quality dairy products while setting prices that stay attractive in the market By balancing profitability goals with consumer affordability, Vinamilk ensures sustainable margins without compromising the purchasing power of its customers.
With large-capacity dairy factories and advanced technology, our fully automated canning lines dramatically reduce costs while ensuring superior product quality Our long-standing industry experience helps secure low material costs, enabling us to offer competitive prices across a broad range of dairy products.
Table 7: Prices of some products
Sure Prevent Gold (powdered milk for elder)
Optimum Gold (powerdered milk for baby) milk)
VND 244.000 for 400gram/tin can
VND 28.000 for a loc of 4 boxes
VND 213.000 for 400gram/tin can
Besides product lines of yoghurt and condensed milk, which overwhelm the market, the others face the drastic competition with other domestic dairy producers.
Pricing is one of Vinamilk's key competitive strengths in the liquid milk segment There is little price disparity between Vinamilk and its rivals, keeping value for consumers For example, a 1-liter box of fresh milk costs about 30,500 VND from Vinamilk, while similar products from TH True Milk, Lothamilk, and Dutch Lady range from 27,600 to 34,000 VND.
Vinamilk employs a market-penetration pricing strategy when launching new products, setting a low introductory price to help customers adopt quickly and deeply The latest liquid milk offering, VNM Green Farm, is priced at 32,340 VND for a four-box pack This affordable price has enabled Green Farm to rapidly gain traction and become a family favorite.
Vinamilk employs product line pricing to develop its product families and establish price steps between items within a line, guiding customers to choose options that fit their needs In the powdered milk range, the company offers Dielac Grow Plus and the enhanced Grow Plus with Bird’s Nest, with a visible price ladder that differentiates the two offerings and helps consumers compare value at a glance.
Vinamilk uses product bundle pricing by combining multiple products into a single offer and selling it at a reduced price to stimulate consumer purchases A concrete example is a Ridielac cereal bundle that pairs Ridielac cereal with four different flavor options, giving customers choice and added value This bundling strategy helps increase average order value, attract price-sensitive shoppers, and drive sales by offering convenient, cost-saving options.
Vinamilk employs psychological pricing with a “the more you spend, the more you get” strategy, upgrading existing products to offer more nutrition tailored to specific target consumers When a product carries high perceived value, its upgraded version is likely to succeed in the market For example, Dielac Grow Plus with Bird’s Nest adds nutrients from bird’s nests beyond the standard Dielac Grow Plus, giving customers a clear incentive to pay more for a premium product This approach strengthens Vinamilk’s value proposition and helps the brand attract discerning buyers seeking enhanced nutrition.
Vinamilk participated in a price-stabilization commitment starting in April 2012, pledging to keep prices for key products—liquid milk and powdered milk for children, the elderly, and patients—stable However, rising global material costs forced many dairy companies to lift prices by 7-15% After a year of trial stability, Vinamilk was compelled to raise the selling prices of several product groups.
Promotional pricing: With the aim of increasing short-run sales, Vinamilk temporarily set their price lower than before to promote customer’s purchases.
On e-commerce website, many products are usually discounted from 5%.
Place
During the past few years, the distribution network of Vinamilk has proceeded to be consolidated and emphatically grown in both domestic and worldwide markets.
3.1 Supply chains and the value delivery network
Picture 4: Vinamilk’s structure diagram in distribution
Vinamilk operates a mass distribution network across 63 Vietnamese provinces, adopting an intensive distribution strategy through a comprehensive multichannel system to extend reach into Southeast Asia The model relies on more than 250 exclusive distributors and over 220,000 points of sale nationwide, ensuring Vinamilk products are widely accessible.
Direct channel: VNM’s direct channel is divided into 2 smaller channels: online and offline.
Vinamilk officially launched its online selling platform Giacmosuaviet.vn in October 2016, marking a milestone as the first FMCG company to develop an ecommerce channel This strategic move demonstrated Vinamilk’s commitment to expanding its digital sales footprint and providing consumers with a direct online shopping experience.
Within Vinamilk's offline distribution channel, the company directly distributes products to its business partners who use Vinamilk ingredients to manufacture their own products Condensed milk and liquid milk are typically distributed through this channel Notable Vinamilk partners include Viva Star Coffee, Gem Center, and Callary, among others.
Indirect channel: VNM’s indirect channel also includes online and offline channels.
- For online channel, the company cooperated with companies that manage selling websites to bring Vinamilk’s goods available on Shopee, Lazada, Sendo,
- For offline channel, it is divided into two types: modern distribution channel and traditional distribution channel.
Vinamilk's traditional distribution channel accounts for the majority of the company's total revenue In this approach, distributors purchase products directly from factories and then distribute them to a broad network of resellers The key advantages of the traditional channel are its large network of channel members and the lower prices it offers compared with the modern distribution channel, making it a cost-effective and scalable route for reaching customers.
Vinamilk operates roughly 7,800 modern distribution channels, including supermarkets, hypermarkets, and minimarts, which place direct orders with Vinamilk branch representatives This network makes it easier to reach urban and suburban consumers, but its main challenge is limited access to rural customers.
System management uses an ERP (Enterprise Resource Planning) system to connect agencies to Vinamilk’s distribution network, enabling centralized collection and management of agencies’ business information The implementation of Oracle Business Suite integrates finance, distribution network operations, and production management, helping Vinamilk streamline processes and strengthen transparency across the organization.
Policy for agents: Vinamilk always gives preferential treatment and applies discount rates for agencies based on the quantity of imported goods and agents’ monthly revenue.
Promotion
Vinamilk employs a push-pull marketing strategy to maximize reach and engagement In the push phase, Vinamilk aims to bring the brand and products to customers by offering discounts to resellers and distributors to stimulate sales, and by deploying qualified, easily reachable sales staff who effectively sell to consumers In the pull phase, Vinamilk builds brand recognition through customer engagement and high visibility, encouraging customers to seek out and purchase Vinamilk products on their own.
Advertising: Although Vinamilk has appeared in the market since 1976 and is known by the majority of people, the company does not hesitate to spend nearly
5 billion VND a day for advertising In the first three quarters of 2017,for every
5 billion VND spent on advertising and research every day,Vinamilk earns 128 billion VND in revenue.
Picture 5: Chart of advertising cost and company's revenue
Vinamilk utilizes multichannel marketing to engage a large audience simultaneously, expanding its reach across multiple platforms Its brand imagery is pervasive in mass media—from television and web pages to posters—boosting visibility and recognition In particular, Vinamilk continually renews and refines its advertisements, delivering fresh messages that captivate the audience and enhance satisfaction.
Vinamilk decided to develop attractive, family-oriented video content using 3H strategy – “Hero, Hub, Help” – a new approach.
Vinamilk directs consumer attention by capturing trending, shareable content through powerful hero videos The brand prioritizes investment in video production that aligns with music trends and features popular actors such as Huynh Lap, Thu Trang, and Lam Vy Da This strategy boosts brand visibility and engagement by connecting with current entertainment trends and appealing to a broad audience.
Hub : Branding based on basic content to increase consumer interest
Vinamilk has broadened its content strategy by creating kid-focused video series, including a children's songs video series and the “Clean Farm” series The brand develops humorous advertisements that attract children, with these ads gradually introduced during Vietnamese children's meal and entertainment times to maximize engagement.
Help : Educational content, help with related knowledge.
Vinamilk is expanding its content marketing by sharing tips for adults, and for example, VNM released an instructional video on how to make avocado ice cream; through this video, the company simultaneously promotes Ong Tho condensed milk, a key ingredient in the recipe.
Vinamilk offers a range of sale promotions to attract customers, including discounts, member incentives, and gift-exchange rewards for collecting multiple gift stamps It also provides 15% more product at the same price and runs a weekly online flash sale on its e-commerce site to boost online purchases.
Personal selling: In order to increase sales and build customer relationships,
Vinamilk has chosen staff who have good communication skills and understand customer’s psychology.
Public relation: Vinamilk always builds good relations and obtains favorable publicity, building up a good corporate image.
RECOMMENTDATION
Product
Vinamilk is actively expanding its brand portfolio to serve a broad customer base—from newborns and children to youths and adults, including people with special needs Beyond its core Vinamilk-branded products, the company operates Dielac as its powdered milk line and Vfresh as its beverages range, reinforcing its commitment to accessible nutrition for every stage of life.
Vinamilk maintains an extensive dairy product portfolio, with its core lines centered on liquid milk, yoghurt, powdered milk, and condensed milk This focused assortment underscores Vinamilk's leadership in key dairy segments and enables broad market coverage across households and institutions By prioritizing these core products, Vinamilk strengthens its brand presence and delivers quality dairy options to meet diverse consumer needs.
Liquid milk Yogurt Powdered milk
Bevera-ges Adult’s nutrition products Product length
Fruit juice Sure prevent Vinamilk100% organic
Probi Yoko Gold Optimum gold
Fresh milk with bird's nest
VNM 100% fresh Fresh Dielac Aloe vera milk sour milk Mama gold drink
Product dept: Vinamilk has a variety versions in each product, these are versions of some out standing products.
ADM IQ Gold Vinamilk Probi Organic gold powdered milk Sweetened /Less sugar
850g per tin can 100ml/180ml Flavour: Chocolate
Cabassa melon Strawberry Blueberry Pineapple
Steps for each age group: step 1-2-3- 4.
Vinamilk uses the world’s most modern technology and equipment to produce products that meet international quality standards All production lines are developed under the HACCP framework to ensure food safety and cleanliness, with processes aligned to global standards These lines have been evaluated and certified by leading international bodies such as SGS and BVQI, confirming compliance with HACCP standards, including the RVA framework from the Netherlands.
Choosing a strong brand name and compelling brand image is essential for Vinamilk’s long-term success, shaping how the company is perceived by consumers and how it competes in the market With more than 30 years of development, Vinamilk has established prevalent brands such as Ong Tho condensed milk, Dielac, and Vinamilk yogurt that reinforce its leadership in the dairy industry.
The 'Vina' in Vinamilk signifies Vietnam, signaling the brand’s country of origin and helping to build trust with consumers This origin makes Vinamilk feel friendly and easy to remember, strengthening its brand identity among dairy buyers Vinamilk’s imagery emphasizes green grasslands, sunny fields, and cheerful cows to evoke freshness, natural quality, and farm-to-table authenticity that resonates with those seeking wholesome Vietnamese dairy products.
Packaging influences buyers' decisions, so the company designs eye-catching packaging with essential label information, including ingredients, usage instructions, and expiration dates To meet different use cases, each product type is offered in a variety of capacities From an environmental standpoint, Vinamilk has developed eco-friendly packaging by using paper boxes supplied by Tetra Pak for its entire range of liquid dairy products and beverages.
The systems for packaging pasteurized dairy products ensure the three main objectives of the packaging process as: guaranteeing product quality, eliminating wastage, and lowering distribution costs
Vinamilk maintains an official website to interact with customers, providing easy access to product information including nutrient content Its distribution network, the Vietnamese Dairy Dream, has reached 500 stores across all 63 provinces and cities The retail website www.giacmosuaviet.com.vn is also proving to be effective, particularly during the social distancing period.
Founded in 1976, Vinamilk has passed a series of important milestones that mark its journey from inception to sustained growth and maturation Through continuous development and strategic expansion, the company has built a strong foundation and today stands in the maturity stage of its lifecycle, reflecting enduring performance, brand strength, and a solid market position in the dairy sector.
Vinamilk’s financial report shows that growth remained stable in the first quarter of 2021 In the fourth quarter of 2020 and in the first quarter of 2021, Vinamilk’s revenue was over 2.6 trillion VND and about 3.15 trillion VND, respectively.
Because of the difficulties of economy in recent years, Vinamilk has to face many challenges to adjust its pricing strategies properly.
In today’s competitive market, Vinamilk relies on competitive-based pricing to stay ahead of rivals and drive sales The company prioritizes producing high-quality goods while setting prices that remain attractive in the market Vinamilk’s pricing strategy is designed to secure profitability without eroding consumer affordability, preserving purchasing power for customers This approach balances strong earnings with accessible prices, helping Vinamilk maintain market share and sustainable growth By aligning price with market competition and product quality, Vinamilk supports both business success and consumer value.
With large-capacity dairy factories and advanced technology, our production uses fully automated canning to dramatically reduce costs while ensuring consistently high product quality Our long-standing experience in the dairy industry helps secure lower material costs, driving competitive prices across our product range Explore pricing for our wide selection of dairy products.
Table 7: Prices of some products
Sure Prevent Gold (powdered milk for elder)
Optimum Gold (powerdered milk for baby) milk)
VND 244.000 for 400gram/tin can
VND 28.000 for a loc of 4 boxes
VND 213.000 for 400gram/tin can
Besides product lines of yoghurt and condensed milk, which overwhelm the market, the others face the drastic competition with other domestic dairy producers.
Pricing has become a key competitive strength for Vinamilk, especially in the liquid milk segment Compared with rivals, price differences are not significant, suggesting a relatively level playing field in this category For example, a 1-liter carton of Vinamilk fresh milk costs around 30,500 VND, while similar 1-liter products from TH True Milk, Lothamilk, and Dutch Lady range from 27,600 to 34,000 VND.
To drive rapid adoption of new products, Vinamilk applies market-penetration pricing, setting a low initial price so customers can try and embrace the product quickly The newest liquid milk offering, VNM Green Farm, is priced at 32,340 VND for a four-box pack, an affordable option that has quickly seen strong consumption and become a family favorite.
Vinamilk applies a product line pricing strategy by expanding its range and setting clear price steps across related products, guiding consumers to choose options that best fit their needs In the powdered milk lineup, Vinamilk offers Dielac Grow Plus alongside the upgraded Grow Plus with Bird’s Nest, creating a visible price gap between the two variants This tiered pricing not only helps shoppers compare features and value but also strengthens Vinamilk’s ability to maximize appeal and profitability across its product portfolio.
Vinamilk uses product bundle pricing by combining multiple products and offering them at a reduced price to encourage consumer purchases For example, Vinamilk offers a Ridielac cereal bundle that includes four different flavors, a value-driven combo designed to boost sales and broaden product appeal.
Promotion
To elevate marketing campaigns and spark fresh, memorable ideas that drive sales, Vinamilk should capitalize on the growing trend of online shopping accelerated by COVID-19 Emphasize health concerns, the dangers of disease transmission, and the time-saving benefits of buying milk online, especially under social distancing Promote online purchasing with incentives such as bulk purchases, gifts with purchase, and discount promotion codes to reward customers who shop for milk online and encourage repeat orders By combining health-conscious messaging with convenient, value-rich online experiences, Vinamilk can sustain momentum in a changing consumer landscape.
Place
Urban consumers value convenience and time-saving habits, and they demand high safety standards Therefore, distribution should prioritize credible supermarkets and trusted channels, with a strong emphasis on legitimate online platforms In the context of the COVID-19 pandemic, demand for products from reputable online stores has surged, making safety, authenticity, and reliability across all distribution avenues essential.
Survey data indicate that rural consumers predominantly prefer traditional shopping methods To effectively reach rural markets, businesses should implement a robust distribution system that leverages wholesale marketplaces or capable agents located in key residential areas This strategy aligns with local buying habits and ensures reliable product access where customers most commonly shop.
1 Vietnam population portal https://danso.org/
2 Website of Vinamilk https://www.vinamilk.com.vn/vi
3 Analyze the impact of the micro and macro environment on the business activities of the company https://123docz.net/document/2561845-phan-tich-su-tac-dong-cua-moi-truong-vi- mo-vi-mo-den-hoat-dong-kinh-doanh-cua-cong-ty-co-phan-sua-viet-nam- vinamilk.htm
4 Some solutions to promote Vinamilk’s liquid milk market
Vinamilk truong hoangthuyminh qtkd_2008 (slideshare.net)
5 Analysis of vietnam’s dairy market in recent years https://www.slideshare.net/trongthuy2/luan-van-phan-tich-thi-truong-san-pham-sua- tai-viet-nam-hay
6 Vinamilk’s competitive strategy http://www.ceo360.vn/hoc-tap-chien-luoc-canh-tranh-cua-vinamilk-de-vuon-tam- the-gioi/
7 Microsoft Word - Thesis (Final).docx (theseus.fi)
8 Analyze the marketing strategy of Vinamilk dairy company
(15) (DOC) b PHÂN TÍCH CHIÊN LƯỢC CHIÊU THỊ CỦA CÔNG TY SỮA VINAMILK | Ngọc Dung - Academia.edu
9 Vietnam economic and financial information channel https://cafef.vn/