Over 40 years of establishment and development, Vinamilk has been leading the dairy industry in Vietnam for many years and predicted to continuously keeping its firm position in the futu
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 aspires to be a popular product in all regions and countries.
At Vinamilk, quality and innovation are our guiding principles, driving every product and decision We put customers at the center of our business, dedicated to understanding and meeting their needs with reliable, high-quality dairy solutions This customer-centric approach defines who we are and fuels our ongoing commitment to excellence.
THE MARKETING ENVIRONMENT
Demographic environment
- The results of the 5th Census in Vietnam show that on April 1, 2019, the total population of Vietnam reached 96,208,984 people According to the portal of the
Ministry of Labor, the population of urban areas in 2019 in Vietnam is 33,059,735 people, accounting for 34.4%; in rural areas is 63,149,249 people, accounting for
This is a key factor in the development of the dairy industry in our country, and evidence shows that this substantial potential drives a significant increase in milk consumption, with annual growth reaching up to 30% The impact is strongly concentrated in particular market segments, highlighting the importance of leveraging this potential to expand production and meet rising demand.
8 in urban areas At the same time, living standards are increasingly improved, this also creates opportunities for dairy businesses in the market with great potential and developing like Vietnam.
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)
Vietnam's large population and high birth rate, along with gradually improving incomes and living standards, are driving greater health awareness and demand for dairy products Campaigns that offer free milk and distribute it through dairy companies help promote brands, expand brand awareness, and create significant market potential for the Vietnamese dairy industry as a whole, especially for Vinamilk.
Economic environment
According to the forecast by the National Center for Socio-economic Information and Forecast (NCIF) of the Ministry of Planning and Investment, which assesses Vietnam's economic background from 2016–2020 and considers domestic and external factors likely to affect the economy in the near term, NCIF projects that Vietnam's economy will be shaped by these forces in the 2021–2025 period.
GDP growth rate will reach about 7%/year economy is basically stable, inflation is at 3.5 - 4.5%/year Labor productivity improved with an increase of about
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.
Overall, rising living standards have increased average income, expanding purchasing power and reshaping consumer demand toward higher quality, greater variety, enhanced convenience, and improved aesthetics As incomes grow, households are willing to spend more to meet evolving preferences, prompting businesses to prioritize value, experience, and design in their products and services At the same time, income distribution remains uneven, creating social divisions that require careful monitoring and inclusive strategies in market segmentation, pricing, and outreach.
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 resist changing brands once they trust a brand, which gives Vinamilk a clear advantage in increasing sales and building a loyal customer base when the company maintains high quality, strong brand image, and a solid reputation Vinamilk's advertising consistently emphasizes a healthy lifestyle and the comprehensive development of both body and mind for Vietnamese people, reinforcing its strength in the market and aligning with consumer values.
Political environment
Vietnam’s stable political environment is a decisive driver of economic development, creating jobs, increasing workers’ incomes, and expanding consumer demand across society This stability also has a positive impact on the creation of opportunities and broader economic vitality, reinforcing growth and investment for a sustainable Vietnamese economy.
10 and implementation of strategies of Vietnamese enterprises in general and Vinamilk in particular
Regardless of where a company operates, it is influenced by the host country's legal framework and policy landscape These systems regulate business conduct, consumer protection, and trade relations, shaping market dynamics and opportunities Key factors include political stability and the government's operating mechanisms, which affect policy design, regulatory enforcement, and the ease of doing business Understanding the local regulatory environment is essential for strategic planning, risk management, and successful market entry.
This is a factor that affects all business industries in a territory, institutional and legal factors can threaten the viability and development of any industry
Vinamilk faces risks from unstable export markets, with more than 90% of its export revenue currently dependent on Iraq The country's political and economic volatility has hurt Vinamilk's export earnings, prompting the company to diversify by expanding its export footprint to Australia, the United States, Canada, Thailand, and other markets Additionally, government policy tools—such as tax policy, financial policy, monetary policy, foreign policy, and sector development policies—directly affect marketing activities, influencing Vinamilk's international marketing strategy and market-entry decisions.
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
Science and technology factors create numerous opportunities while also presenting significant challenges, compelling businesses to learn continuously and develop marketing strategies that leverage the latest innovations As a key input in the production process, science and technology are essential determinants of production efficiency and overall enterprise performance Embracing these factors helps firms optimize resources, improve decision-making, and stay competitive in a fast-changing market.
Therefore, it also affects Vinamilk's marketing activities: What technological factors will Vinamilk use to promote product consumption in the market?
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) The lines are synchronous, new generation, modern, automatic control, or semi-automatic to meet the requirements of food safety and quality Using advanced technology for herd rearing such as: Ethernet network, Bluetooth wireless connection technology, Wi-Fi and remote radio wave identification technology with automatic identification chip RFID tags, the system Biosensors, surveillance cameras help increase the production of dairy cows.
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 substantially influence marketing activities, shaping procurement, pricing, and product strategy Scarcity of certain raw materials and rising energy costs disrupt supply chains and push firms to optimize sourcing and production Increasing environmental pollution and stronger state intervention aimed at the rational use and reproduction of resources push businesses toward sustainability, resource efficiency, and responsible marketing practices By anticipating these environmental dynamics, companies can align their marketing strategies with regulatory expectations and growing consumer demand for eco-conscious solutions.
- Perishability, easy metamorphosis of milk if not preserved and handled in time.
This adversely affects the quality of the milk From here, there is a requirement to have a specific strategy to preserve milk and produce high quality products.
The micro environment
Vinamilk's organizational chart is presented in a professional manner and allocates departments in a scientific and reasonable manner, specifically decentralizing the responsibilities of each member and department in the company.
The organizational chart helps Vinamilk operate in the most effective way, helping departments work closely together to create a strong Vinamilk
Dairy farms are vital strategic partners of Vinamilk, helping deliver leading premium products to consumers Milk purchased from these farms must always meet the quality standards set in agreements between Vinamilk and domestic dairy farmers To meet production needs in both quantity and quality, Vinamilk also imports powdered milk from Australia and New Zealand Vinamilk's principal milk powder suppliers are Fonterra and Hoogwegt International.
Table 1: List of some major suppliers cooperating with Vinamilk
Vinamilk's distribution network spans distributors, wholesalers, retailers, and organizational partners such as supermarkets, dairy agents, grocery stores, and marketing companies These distribution intermediaries are responsible for delivering Vinamilk products to consumers, ensuring availability across diverse retail channels.
- 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 milk powder from Fonterra (SEA) Pte Ltd and Hoogwegt International BV, along with packaging solutions from Perstima Binh Duong and Tetra Pak Indochina (cartons and packing machines) The business operates with more than 141,000 sales agents across 64 provinces and cities nationwide, supported by a comprehensive domestic distribution network, and Vinamilk is also expanding its international presence.
Vinamilk invests its own capital to build a wide distribution network of agents and retailers, a strategy that involves a large capital outlay and higher risk but can yield expansive market reach Leveraging marketing intermediaries such as supermarkets and local agents enables fast product delivery and strong sales performance, reinforcing brand visibility This efficient channel ecosystem enhances the prestige and reputation of Vinamilk’s products, ultimately boosting consumer trust and demand As a result, the company’s investment in a robust distribution network increases Vinamilk’s product consumption capacity and strengthens its market position.
- 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
- Funded by the State, specifically the Ministry of Finance Equity accounting for
About 77% of the capital is free capital—funds mobilized from bond issuances and equity offerings, as well as foreign direct investment (FDI) and official development assistance (ODA)—to invest in dairy processing projects and other investment initiatives 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 driving brand promotion, and Vinamilk has leveraged a timeless visual strategy: the image of a happy dairy cow grazing on a green meadow, often featured with smiling children This wholesome motif has become deeply embedded in the collective memory of Vietnamese consumers, especially among children, reinforcing Vinamilk’s appeal in the market.
Vinamilk competes in the liquid milk market with several rivals, including Dutch Lady, F&N, Dutch Mill, Hanoimilk, ELOVI, Nutifood, Tan Viet Xuan, and Lothamilk Dutch Lady remains a direct and formidable competitor, with consumption levels in liquid milk that are closely balanced with Vinamilk Data from the chart show that as of May 2007, Vinamilk held a 38.7% market share by volume, taking the No 1 position from Dutch Lady, which stood at 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 shape how a company operates, and earning trust and driving purchases depends on delivering high-quality products at prices that match consumer preferences Vinamilk has clearly succeeded in satisfying its customers, as shown in the chart.
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
- With the desire to become the most favorite product in all regions and territories,
Vinamilk has consistently invested in media advertising across radio, television, and newspapers to boost brand visibility The Vinamilk brand is recognized as a leader, having been voted a 'famous brand' and named among the 100 strongest brands by the Ministry of Industry and Trade in 2006 It has also been ranked among the top 10 high-quality Vietnamese goods from 1995 to 2007.
Vinamilk has long prioritized sponsorships that support education and social welfare, including scholarship funds for children, care for 20 Vietnamese heroic mothers, the construction of 72 gratitude houses, and 120 charity houses Additionally, Vinamilk backs and partners with several television programs, such as the Vinamilk Cup for National Youth and Children's football, the Three Stars Lost edition, and Vietnamese Movie Weekend Through regular television advertising, ongoing sponsorship activities, and constant media coverage, Vinamilk gains broad visibility and a powerful platform to promote 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 primary target In Vietnam, the dairy market is organized into two segments, shaping how players like Vinamilk strategize for growth.
Rural areas accounted for 65.6% of the population in 2019, a share that has declined over the years but remains substantial The stereotype that rural residents have low incomes and living standards leading to infrequent dairy consumption is no longer true Today, dairy consumption in rural communities is higher than previously assumed.
16 nutrition of rural people is increasing But the products they welcome are popular dairy products such as fresh milk, yogurt, condensed milk.
Urban areas accounted for 34.4% of the population in 2019, and this share is on a rising trend To date, cities have consistently been a large market for milk consumption, accounting for more than 80% due to high population density, living standards, and income Urban residents are more health-conscious than rural populations, which drives demand for higher-end dairy products.
Vinamilk targets urban areas as its main market based on milk consumption levels, but since 2013 it has expanded penetration into rural areas with popular product lines, where growth potential remains substantial, evidenced by a steady year-over-year increase in rural consumer reach.
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.
People in this life stage typically have a stable income, and while they may not directly use milk themselves, they are the key purchase decision-makers who care about product quality and brand reputation when choosing dairy products.
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 has historically focused its product lines on children and teenagers because these age groups require more nutrients during growth and development Recently, Vinamilk expanded its nutrition portfolio to include products for older people, broadening its range to support health across all life stages This shift demonstrates Vinamilk's commitment to lifelong wellness by delivering age-appropriate nutrition from youth to the senior years.
Based on health status, there are two main disease groups that milk distributors should monitor, each with distinct consumer behaviors and milk consumption needs; the first group may require products tailored to specific dietary restrictions—such as lactose-free, low-fat, or fortified options—while the second group can display different appetite and intake patterns, necessitating flexible packaging and a wider range of formats; understanding these differences helps optimize product selection, labeling, inventory management, and marketing messaging to meet the needs of health-conscious customers.
Group 1: People with diabetes, obesity
More than five million people in Vietnam live with diabetes, and about 300,000 children under the age of five are obese Given this health landscape, milk choices can play a role in management and prevention For people affected by diabetes and childhood obesity, the preferred options are sugar-free milk, skimmed (low-fat) milk, and calcium-rich milks.
Group 2: People with malnutrition, rickets
Vietnam faces a serious child malnutrition problem, with 1.8 million malnourished children under five Children from poor households are three times more likely to be malnourished than those from better-off households The Central Highlands and the Northern Mountains, regions with large ethnic minority populations, have the highest rates of malnutrition Among these groups, the Mong community has the highest rate at 65% (UNICEF VIETNAM)
Children suffering from malnutrition and rickets require a nutrient-rich diet, and milk is an indispensable source of essential nutrients However, in rural and mountainous areas, many malnourished children lack the means to drink milk due to limited resources and infrastructure Improving access to milk and fortifying diets with key nutrients is crucial to combat malnutrition and prevent rickets in these communities.
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 implements differentiated marketing to serve multiple market segments, expanding its product portfolio to meet the specific needs of diverse consumers By tailoring milk and dairy offerings to distinct customer groups, Vinamilk broadens its reach and grows its customer base, while also expanding into related product categories beyond core dairy This strategy positions Vinamilk for sustained growth by continuously developing dairy products and venturing into new products that appeal to a wide audience.
Positioning
Vinamilk sets itself apart in the dairy market by focusing on product quality, reasonable prices, and a customer-centered approach The belief that only high-quality products can retain customers drives the company’s strategy to deliver low-priced, high-quality dairy options To achieve this goal, Vinamilk has built competitive advantages that enable it to offer superior dairy products at affordable prices while keeping the customer at the center of every decision This combination strengthens brand loyalty and reinforces Vinamilk’s position as a trusted leader in dairy products.
First of all, Vinamilk has a very strong financial potential.
Product differentiation hinges on delivering high-quality dairy products Vinamilk operates numerous processing plants with large capacity, enabling efficient and scalable production By maintaining clean, well-controlled raw-material areas and adhering to rigorous technical standards, the company consistently masters product quality, giving it a competitive edge over other manufacturers in the market.
Differentiation distribution: Vinamilk's distribution system covers the entire
Vietnamese market with 505 "Vietnamese Dream Milk" stores to nearly
Across 251,000 retail points nationwide—covering supermarkets and convenience stores—our expansive retail network enables direct-to-store shipping, dramatically shortening delivery times and reducing transportation costs, so products reach consumers at the lowest possible price while maintaining the highest quality.
Image differentiation is crucial for connecting with Vietnamese audiences, as the most familiar visuals depict dairy cows raised with modern farming technology in clean, hygienic environments The iconic scene shows a happy dairy cow grazing on a green meadow beside children, an image that has been deeply imprinted in the minds of Vietnamese people and helps shape perceptions of dairy quality, safety, and trust in dairy products.
Vinamilk stands out by meeting the real needs of consumers who seek guidance from nutritionists to craft the most suitable diet By providing trusted nutrition advice and healthy dairy options, Vinamilk promotes family health and happiness and contributes to a higher quality of life for all.
To stay competitive, Vinamilk identifies its target market segments and builds its strategy around them By leveraging its competitive advantages, the company delivers clear value to each selected segment It also focuses on diversifying its product portfolio to meet the evolving needs of target customers and to expand into new segments, strengthening its market position.
MARKETING MIX STRATEGY
Product mix
Vinamilk maintains a diverse product portfolio with a wide range of dairy product lines Its core offerings include liquid milk, yoghurt, powdered milk, and condensed milk.
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 Vinamilk ADM
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 has applied the world’s most modern technology and equipment with the aim of producing the products that meet the international quality standards.
Vinamilk has developed and implemented the HACCP framework across all production lines to ensure food safety, hygiene, and security The production lines have been evaluated by leading international organizations such as SGS and BVQI, and their certifications confirm compliance with HACCP standards, including the RVA certification from the Netherlands.
Branding
Choosing a brand name and image for the company has an important meaning for the success of Vinamilk.More than 30 years of developing, some goods such as
Ong Tho condensed milk, Dielac, Vinamilk yogurt are prevalent brand.
Vinamilk’s name derives from “Vina,” meaning Vietnam, the country of origin, which reinforces the brand’s authentic Vietnamese identity and makes the name easy to remember This origin helps create a friendly image and strong locality-based branding that resonates with consumers seeking genuine Vietnamese dairy Visually, Vinamilk is closely associated with green grasslands, sunny fields, and cheerful cows, reinforcing perceptions of natural freshness and quality.
Packaging
Packaging plays a key role in shaping buyers' decisions, which is why Vinamilk focuses on designing catchy packages with clear label information such as ingredients, usage instructions, and expiration dates The product lines also feature diversified capacities to meet different usage occasions and consumer needs From an environmental perspective, Vinamilk emphasizes eco-friendly packaging by using paper boxes supplied by Tetra Pak for all 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.
Product support services
Vinamilk maintains an official website that enables customers to interact with the brand and easily access key product information, including nutrition facts for each item Its distribution network, named the Vietnamese Dairy Dream, has reached 500 stores across all 63 provinces and cities, underscoring its nationwide reach The retail site www.giacmosuaviet.com.vn has also proven effective, especially during social distancing, by providing convenient online access to products and information.
Product life-cycle
Founded in 1976, Vinamilk has marked numerous milestones on its journey from inception to maturation and development Today, Vinamilk is in the maturity stage, reflecting sustained growth, a strong market presence, and a solid position in the dairy industry.
Vinamilk’s financial report confirms stable growth in the first quarter of 2021, with revenue rising from over 2.6 trillion VND in Q4 2020 to about 3.15 trillion VND in Q1 2021.
Price
Because of the difficulties of economy in recent years, Vinamilk has to face many challenges to adjust its pricing strategies properly.
Facing intense competition in the same market segments, Vinamilk adopts a competitive-based pricing strategy to drive sales in the dairy market The company focuses on delivering high-quality products while setting prices that remain attractive in comparison with rivals Vinamilk's pricing approach aims to secure profitability without sacrificing consumer affordability, ensuring ongoing value for money and sustained purchasing power for customers.
Our company operates large-capacity dairy factories with advanced technology and fully automated production lines, dramatically reducing costs while maintaining top product quality With decades of industry experience, we secure low material costs, enabling consistently competitive dairy product prices Explore our range of dairy products to experience efficiency, reliability, and exceptional value across every item.
Table 7: Prices of some products
Sure Prevent Gold (powdered milk for elder)
Optimum Gold (powerdered milk for baby)24 milk)
VND 30.000 for a loc of 4 boxes
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.
In these conditions, pricing is a key strength for Vinamilk in its competitive landscape Relative to rivals, there isn’t a large price gap, especially in the liquid milk category For example, Vinamilk’s 1-liter fresh milk carton is priced at about 30,500 VND, with rival brands like TH True Milk offering comparable prices for the same product.
Lothamilk, or Dutch Lady) range from 27 600 - 34 000 VND.
Vinamilk adopts market-penetration pricing when launching new products to ensure rapid and deep market adoption By setting a low initial price, Vinamilk helps new offerings connect with customers quickly The latest liquid milk product, VNM Green Farm, is priced at 32,340 VND for a pack of four boxes This affordable price has boosted consumption and made Green Farm a family favorite.
Vinamilk applies product line pricing by developing its product lines and setting price steps between related products, helping customers choose options that fit their needs within the powdered milk range In this line, Vinamilk offers Dielac Grow Plus alongside an upgraded version called Grow, creating clear value tiers that guide shoppers to compare features and prices and select the option that best matches their demands.
Plus with Bird’s nest and we can see a price step between them.
Product bundle pricing: Vinamilk combines some products with other products and offers this bundle at a reduced price to encourage purchases of consumers.
Vinamilk sells combo of for Ridielac cereal with 4 different flavors.
Vinamilk employs psychological pricing with the adage "The more you spend, the more you get," using premium upgrades that offer more nutritious formulations targeted at specific consumer groups The company frequently rolls out upgraded versions of existing products, strengthening their value proposition as these enhancements resonate with higher perceived value in customers’ minds When a base product already carries strong value, introducing a more advanced version can lead to clear market success A notable example is Dielac Grow Plus with Bird’s Nest, an upgraded variant of Dielac that illustrates this strategy in action.
Grow Plus With more nutrients from bird nests, customers would not hesitate to spend a little bit more to get the better product
Vinamilk committed to stabilizing prices for select products, including liquid milk and powdered milk for children, the elderly, and patients, starting in April 2012 With global material costs rising, many dairy firms increased prices by 7-15% After a year of maintaining price stability during trials, Vinamilk was obliged to raise the selling prices of some 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 provinces in Vietnam, anchored by an intensive distribution strategy within its multichannel distribution system that aims to expand into Southeast Asia The distribution model relies on a broad network of more than 250 exclusive distributors and over 220,000 points of sale nationwide.
Direct channel: VNM’s direct channel is divided into 2 smaller channels: online and offline.
In October 2016, Vinamilk officially launched its online selling platform, Giacmosuaviet.vn, marking a milestone in ecommerce for the company This move established Vinamilk as the first FMCG business to develop its own dedicated online sales channel.
Vinamilk relies on an offline distribution channel, delivering products directly to business partners who use Vinamilk ingredients to create their own offerings Condensed milk and liquid milk are typically distributed through this channel, supporting partner businesses across various sectors Notable 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 generates the majority of its revenue through the traditional distribution channel In this model, distributors buy products from factories and pass them on to resellers, creating a broad and efficient supply network The key advantages are the extensive network of channel members and lower pricing compared with the modern distribution channel.
Vinamilk's modern distribution network comprises 7,800 channels, including supermarkets, hypermarkets, and minimarts, which directly order from Vinamilk branch representatives This channel structure makes it easier to reach consumers, but it struggles to access rural customers.
System management at Vinamilk utilizes an ERP (Enterprise Resource Planning) system to support agencies and connect them to Vinamilk’s distribution network, enabling the company to collect and manage agencies' business information The implementation of Oracle Business Suite includes applications for finance, the distribution network, and production management, reinforcing the company's transparency across operations.
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 brand visibility In the push phase, Vinamilk brings its brand and products to customers by offering discounts to resellers in various ways and by deploying qualified, easily reachable sales staff who effectively engage and sell to consumers In the pull phase, Vinamilk builds brand recognition through customer engagement and visibility, encouraging customers to seek out and purchase its products themselves.
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 leverages multichannel marketing to communicate with a large audience simultaneously Its presence is pervasive across mass media—television, web pages, posters, and more—ensuring high brand visibility By renewing and developing its advertisements on a regular basis, Vinamilk delivers fresh messages that satisfy the audience and keep engagement strong.
Vinamilk decided to develop attractive, family-oriented video content using 3H strategy – “Hero, Hub, Help” – a new approach.
Vinamilk's hero content strategy is built to direct consumer attention by capturing trending content, investing in high-impact videos that ride music trends and resonate with audiences The brand showcases popular actors such as Huynh Lap, Thu Trang, and Lam Vy Da to authentically connect with fans and maximize engagement and reach.
Hub : Branding based on basic content to increase consumer interest
Vinamilk has expanded its media strategy by developing children's video series, including a popular collection of kids' songs and the Clean Farm series The brand also creates funny, kid-friendly ads that captivate Vietnamese children and are designed to accompany meal times and entertainment moments, gradually integrating brand messaging into their daily routines.
Help : Educational content, help with related knowledge.
Vinamilk is expanding its content strategy to provide practical tips for adults, including an instructional video on how to make avocado ice cream that simultaneously promotes Ong Tho condensed milk, a key ingredient in the recipe.
Vinamilk offers a broad range of sale promotions to boost shopper value, including regular discounts and exclusive member incentives for loyal customers The promotions also feature a gift-stamp rewards program where customers can exchange stamps for gifts, and volume-based offers that provide 15% more product at the same price Additionally, Vinamilk runs weekly online flash sales on its e-commerce website, delivering limited-time deals for 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 expanding its brand portfolio to meet the needs of customers across all life stages—from newborns and children to youths and adults—including individuals with special needs In addition to its flagship Vinamilk line, the company markets Dielac for its powdered milk products and Vfresh for its beverage range, creating a comprehensive portfolio that supports nutrition for every age group.
Vinamilk maintains a broad product portfolio with numerous product lines that are centered on dairy products Its core lines include liquid milk, yoghurt, powdered milk, and condensed milk, forming the foundation of Vinamilk's dairy offerings.
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 Vinamilk ADM
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 has applied the world’s most modern technology and equipment with the aim of producing the products that meet the international quality standards.
All Vinamilk production lines are designed and operated under the HACCP framework to ensure food safety and hygienic cleanliness These lines have been evaluated by leading global organizations such as SGS and BVQI, with certifications that meet HACCP standards and are recognized by the Netherlands’ accreditation body, the RvA.
Choosing a brand name and image for the company has an important meaning for the success of Vinamilk.More than 30 years of developing, some goods such as
Ong Tho condensed milk, Dielac, Vinamilk yogurt are prevalent brand.
Vina in Vinamilk represents Vietnam, the country of origin, giving the brand a friendly and easy-to-remember identity Vinamilk’s visuals also evoke green grasslands, sunny fields, and cheerful cows, reinforcing its Vietnamese heritage and wholesome dairy image.
Packaging plays a crucial role in influencing consumer purchase decisions, so the company designs eye-catching packaging with clear labels that list ingredients, usage instructions, and expiration dates To meet varied consumer needs, product capacities are diversified across different types From an environmental perspective, Vinamilk pursues eco-friendly packaging by using paper boxes supplied by Tetra Pak for all 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 operates an official website to interact with customers, providing easy access to product details such as nutrient content for each item Its distribution network, the Vietnamese Dairy Dream, has expanded to 500 stores across all 63 provinces and cities, underscoring the company's nationwide reach The retail site www.giacmosuaviet.com.vn complements these efforts and has proven particularly effective during periods of social distancing by enabling convenient online purchasing and information access.
Founded in 1976, Vinamilk has traversed a path marked by countless milestones that reflect its steady maturation and development Over the decades, the company has evolved from its early beginnings into a growth-driven dairy pioneer, characterized by innovation and expansion across markets Today, Vinamilk is in a maturity stage, leveraging its established brand, diversified product portfolio, and extensive distribution network to sustain reliable growth and meet consumer needs worldwide.
Vinamilk’s financial report shows that growth remained stable in the first quarter of 2021 Revenue in the last quarter of 2020 exceeded VND 2.6 trillion, while revenue in the first quarter of 2021 was about VND 3.15 trillion.
Because of the difficulties of economy in recent years, Vinamilk has to face many challenges to adjust its pricing strategies properly.
Facing many competitors in the same market segment, Vinamilk adopts competitive-based pricing methods to support sales growth The company focuses on delivering high-quality products while maintaining competitive prices to offer value to customers This pricing strategy aims not only to ensure profitability but also to preserve the purchasing power of consumers in a competitive marketplace.
Our dairy company operates large-capacity factories with advanced technology and fully automatic canning lines, enabling significant cost reductions while ensuring high product quality In addition, our extensive industry experience helps secure economical raw materials, delivering competitive prices across our product range Prices for a selection of our dairy products reflect these efficiencies and reliability.
Table 7: Prices of some products
Sure Prevent Gold (powdered milk for elder)
Optimum Gold (powerdered milk for baby)24 milk)
VND 30.000 for a loc of 4 boxes
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.
In that context, pricing is a key competitive strength for Vinamilk as it competes with rivals There is no large price gap among competitors, especially in the liquid milk sector For example, Vinamilk’s 1-liter fresh milk carton is priced at around 30,500 VND, a level that closely matches the price of the same product from other brands such as TH True Milk.
Lothamilk, or Dutch Lady) range from 27 600 - 34 000 VND.
Vinamilk employs market-penetration pricing for new product launches, setting a low initial 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, making it an affordable option for families This competitive pricing has driven rapid uptake, and Green Farm has become a favored product among households.
Vinamilk implements product line pricing by developing its product lines and establishing price steps between related items, helping customers choose options that best fit their needs In the powdered milk category, Vinamilk offers Dielac Grow Plus and its upgraded version, Grow, creating a clear price ladder that guides consumer decisions and enhances perceived value.
Plus with Bird’s nest and we can see a price step between them.
Product bundle pricing: Vinamilk combines some products with other products and offers this bundle at a reduced price to encourage purchases of consumers.
Vinamilk sells combo of for Ridielac cereal with 4 different flavors.
Psychological pricing: Vinamilk is using the “The more you spend, the more you get” strategy The company usually upgrades their goods which contain more nutritious than the original one and specialized for some specific target consumers When existing products have a high value to be positioned in the minds of consumers, the new version of them will completely succeed For example: Dielac Grow Plus with Bird’s nest is an upgraded version of Dielac
Grow Plus With more nutrients from bird nests, customers would not hesitate to spend a little bit more to get the better product
Maintaining stable price: Vinamilk had participated in the commitment of stabilizing prices for some products (liquid milk, powdered milk for children, elders, and patients) from April 2012 Due to the increase of world’s materials, many dairy firms set their prices 7-15% higher Nevertheless, after one year maintaining stable prices in trials, Vinamilk was forced to increase the sales prices of some 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%
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
Promotion
To maximize impact, Vinamilk should develop fresh, creative campaigns that push online milk purchases and leave a lasting impression on customers With COVID-19 reshaping consumer behavior, online shopping has become the norm, so the campaign should emphasize health protection, reduced risk of disease transmission, and time savings through contactless ordering and social distancing The online strategy should highlight the benefits of buying milk online and offer appealing incentives such as bulk-purchase discounts, gift-with-purchase offers, and promotion codes By combining health-focused messaging with convenient, safe online ordering, Vinamilk can boost online sales, strengthen brand trust, and drive a sustainable shift toward online milk shopping during the pandemic.
Place
Urban residents prioritize convenience and time-saving shopping while demanding a high level of safety, so distribution should rely on credible supermarkets and trusted channels, especially genuine online platforms Given the current COVID-19 situation, demand has surged, making reliable online and offline distribution essential to ensure safe, efficient access to products.
Rural markets remain heavily influenced by traditional buying habits, with surveys showing that most residents still prefer conventional purchasing methods To effectively reach these communities, implement a strong distribution system anchored in wholesale marketplaces and local agents located in strategic residential hubs This approach enhances accessibility, builds trust, and improves market penetration in rural areas.
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/