TH TRUE MILKs STP STRATEGY ANALYSIS TH TRUE MILKS MARKETING MIX STRATEGY

• For true happiness • For public health • Completely from nature • Environmentally friendly – Out-of-the-box thinking • Harmonize interests In the context of the domestic dairy industry

THE MINISTRY OF FINANCE

UNIVERSITY OF FINANCE AND MARKETING

*******

CLASS: CLC_20DMA10 Instructor: Master Đặng Huỳnh Phương

1 Nguyễn Trần Như Quỳnh (Leader)

SUMMARY

I INTRODUCTION ABOUT TRUE MILK 4

1.1 Overview of the dairy market 4

1.2 Introduce TH True Milk 6

1.2.1 Formation 6

1.2.2 Vision 6

1.2.3 Mission 7

1.2.4 Core values 7

1.2.5 Development Goals 7

1.2.6 Organizational structure 8

II TH True Milk’s marketing environment 8

2.1 Internal marketing environment 8

2.1.1 Finance 8

2.1.2 Human resources 9

2.1.3 Marketing 9

2.2 External marketing environment 9

2.2.1 Macro environment 9

2.2.2 Microenvironment 11

III TH TRUE MILK's STP STRATEGY ANALYSIS 13

3.1 Market Segment 13

3.1.1 Market segmentation by geographical location 13

3.1.2 Market segmentation based on demographics 13

3.1.3 Market segmentation by consumer behavior 14

3.2 Define target market 14

3.3 Target market positioning 15

IV TH TRUE MILK'S MARKETING MIX STRATEGY 16

4.1 TH TRUE MILK'S PRODUCTS STRATEGY 16

4.1.1 Core benefits 16

4.1.2 Product portfolio 16

4.1.3 Brand 17

4.1.4 Packaging design 17

4.1.5 Product quality 18

4.1.6 Effectiveness of product strategy 20

4.2 TH TRUE MILK'S PRICE STRATEGY 20

4.2.1 Valuation 21

4.2.2 Market penetration strategy 22

4.2.3 Price adjustment strategy 23

4.3 DISTRIBUTION STRATEGY OF TH TRUE MILK 23

4.3.1 Distribution channels 24

4.3.2 Choosing members of the distribution system 26

4.3.3 Managing and motivating members of distribution system 27

4.3.4 Marketing channel membership rating: 27

4.3.5 TH True Milk's supply chain 28

4.4 TH TRUE MILK'S PROMOTION STRATEGY 30

4.4.1 Advertising 31

4.4.2 Direct Marketing 31

4.4.3 Sales promotion 32

4.4.4 Personal selling 33

4.4.5 Public relations 34

V OFFER 35

I INTRODUCTION ABOUT TRUE MILK

1.1 Overview of the dairy market

Vietnam is a fertile market for domestic and foreign dairy companies Increasing population along with changes in nutrition has increased the demand for milk Besides the big names

in the country, many foreign milk brands have also entered, creating quite strong competition

The COVID-19 epidemic has had a great impact on the production and business activities

of enterprises However, dairy businesses seem to be less affected by this "storm" Closing

2020, the dairy industry increased by 19.1% in market capitalization, better than the Index (14.9% in 2020) From the bottom on March 24, 2020, the dairy industry increased sharply by 60% but still lower than the recovery of the whole market of 67.5%, recorded in the report of SSI Research

VN-According to SSI Research, domestic demand for dairy products was less affected by Covid-19, only down -6.1% in value compared to a decrease of -7.5% for consumption of consumer goods (FMCG) in the first 9 months of 2020 and the country's nominal retail sales growth is 4.98% (GSO, 2020)

• Potential

Vietnam is considered as a potential dairy market Because Vietnam is a country which has population growth, young population structure with a high population growth rate of about 1.2%/year, GDP growth rate of 6-8%/year, per capita income increasing by 14.2%/year These factors combined with the trend of improving the health and stature of the Vietnamese people make the demand for dairy products always keep a high growth rate, forecasted to reach 9%/year in the coming years next

According to Phu Hung Securities Joint Stock Company (PHS), contrary to the negative impact of COVID-19 on the global economy as well as in Vietnam, the consumption value

of milk and dairy products in Vietnam is still high, strong growth, even stronger than before the epidemic in 2020 Specifically, milk consumption in urban areas grew by 10% while in rural areas it grew by 15%

Forecast for 2021, SSI Research estimates single-digit revenue growth in 2021, based on the assumption: The Covid-19 epidemic will be under control by mid-2021: There will be

no more social distancing around the world The country and overall dairy consumption should recover from its 2020 low of 7%

Moc Chau are said to have a makeover after returning to Vinamilk, Moc Chau milk's net profit in the first 9 months of 2020 increased by 68%, while IDP reached VND 151 billion

in net profit in the first half of last year, compared with VND 113 billion in 2019

Nutifood is also targeting the liquid milk segment with bold plans, including the cooperation with Hoang Anh Gia Lai (HAGL) to build a raw milk area with nearly 120,000 dairy cows, capable of supplying 1 ,2 million liters of milk/day However, until now, the above cooperation program has not been as expected, so the amount of fresh milk sold by Nutifood is quite limited, because the company's cow farming area has only reached a few thousand cows, low compared to other companies Currently, Nutifood accounts for 7.2%

of the dairy market

Right from its inception, TH True Milk has set a goal of capturing 50% of the fresh milk market by 2020 The Group withdrew $1.2 billion from its “wallet” as well as many human resources to build a cow farm project Asia's largest dairy factory and the largest dairy factory in Southeast Asia Focusing on new product lines has helped TH True Milk to develop Only 5 years after the launch of the first product, by 2015, TH true Milk is the enterprise that owns the largest dairy herd in Vietnam with a herd size of up to 45,000 heads, on a farm area of 8,100 hectares, concentrated in Nghe An As of 2020, TH True Milk accounts for 6.1% of the milk market share in the country

Competition in the dairy industry tends to become increasingly fierce when large companies expand their scale through M&A and more competitors enter the market Masan has just launched new products, while Vitadairy seems to be growing fast in the powdered milk segment

Dairy Market In 2020 – Source: Euromonitor, SSI

1.2 Introduce TH True Milk

1.2.1 Formation

TH True Milk Company, whose full name is TH Milk Food Joint Stock Company, belongs

to TH Group - was established under the financial advice of Bac A Commercial Joint Stock Bank Entering the Vietnamese market since 2010, the company always aims to produce the most authentic fresh milk products Although it has only been born for 12 years “ ”(according to 2020 data), TH True Milk has achieved many proud achievements In 2013, the company inaugurated a clean fresh milk factory with a capacity of 500,000 tons/year Dairy cows are raised according to high technology standards, with more than 45,000 cows carefully selected from New Zealand, Australia, Canada,etc

1.2.2 Vision

TH Group aspires to become “Vietnam's leading manufacturer” in the clean food industry of natural origin With serious and long-term investment combined with the

world's most modern technology, TH decided focused on becoming a world-class food brand trusted by everyone, loved by everyone and proud of the nation

1.2.3 Mission

With the spirit of being close to nature, TH Group always tries its best to nourish Vietnamese body and soul by providing food products derived from nature - clean, safe, fresh and delicious nutritious The aspiration is called Vietnamese stature, wishing to improve the physical and intellectual capacity of the Vietnamese people and for the future

of the generation of Vietnamese children to have a clean, safe and nutritious source of nutritious milk from nature

1.2.4 Core values

With the slogan “True Happiness” - True Happiness, “Let's make the best milkshake with a mother's heart and heart” and always stick to the 5 core values that have brought

consumers closer to TH

• For true happiness

• For public health

• Completely from nature

• Environmentally friendly – Out-of-the-box thinking

• Harmonize interests

In the context of the domestic dairy industry being confused with the concepts of remixed “powdered milk” and “fresh milk” for profit, the clean fresh milk TH True Milk has opened

a breakthrough path, laying the first bricks, the foundation foundation for the clean fresh

milk production and processing industry in Vietnam “With TH True Milk, the strength

of a brand is the core value that we are striving for For the health of the “

community””

1.2.5 Development Goals

Carrying out the project of raising dairy cows in concentrated barns and processing milk with a scale of 1 billion 200 million USD with 137000 dairy cows on 37000 hectares of

land Meet 50% of the demand for dairy products of the domestic market, become the leading supplier of clean milk and pasteurized fresh milk in Vietnam

Launched TH True Milk pasteurized fresh milk, at the same time expanding the production

of products made from fresh milk

Launched a retail chain of TH true mart specializing in providing fresh and clean products from TH farms such as pasteurized fresh milk, TH True Milk yogurt, beef, seafood, fresh vegetables and fruits,etc TH true mart strives to become a chain of convenience goods providing clean, safe and high-class food to consumers

On September 18,2020, in Kon Tum province, TH Group held the Groundbreaking Ceremony of a concentrated dairy farming project with a high-tech industrial scale in Mo Rai border commune, Sa Thay district The project is the next step in the roadmap to build

a map of TH True Milk milk that is spread across the country with farms in Nghe An, Ha Giang, Phu Yen, Thanh Hoa and soon An Giang and Cao Bang, with the goal of by 2025, the total number of concentrated dairy cows in cooperation with farmers will reach 400,000 heads to expand the TH true mart store chain nationwide to meet people's needs

1.2.6 Organizational structure

TH Food Chain Joint Stock Company (distribution)

TH Dairy Food Joint Stock Company (farm)

TH Milk Joint Stock Company (factory)

II TH True Milk’s marketing environment

2.1 Internal marketing environment

2.1.1 Finance

TH received capital resources from shareholders, loans form BIDV and Vietnam Bank (VDB), Nghe An branch and Maritime Bank TH True Milk also received investment advice from Bac A Bank where Ms Thai Huong is the executive manager This bank used

to be a shareholder, holding 7% of TH True Milk’s shares according to a report 2014 In addition, TH Group is also supported by the Israel Government with an investment package which worth 100 million USD and the charter capital of TH is 3.800 billion VND

2.1.2 Human resources

TH knows that people are a valuable asset and also a decisive factor for the sustainable development of the business Therefore, TH always focuses on investing in people The working environment is always professionalized by an international - class team and the exchange between many foreign experts TH also focuses on training talents to do the work

in the best way Thanks to the intensive courses, always updating knowledge, equipping with modern technology to help employees follow the trend of the times

2.1.3 Marketing

Through many forms such as advertising on TV, newspaper, posters at agents, distribution centers, company website or products launch programs or community charity programs, Th all promote their image and information about the element “clean milk” which is safe for people’s health

2.2 External marketing environment

2.2.1 Macro environment

• Legal and political

Vietnam is under the socialist regime, has a stable political environment and the legal system is increasingly improved to create conditions for businesses including TH True Milk According to Decree 38/2019/2019/ND-CP, the general minimum salary is 1.490.000 VND/month, so a rise in the salary of employees will increase the purchasing power of the whole country However, it also makes TH True Milk have to increase costs because of increased salary fund

• Economic environment

Globalization and international economic integration are deepening, especially when Vietnam’s accession to the WTO brings many opportunities for many businesses to co-operate with foreign partners including the dairy industry The price of dairy products in the world tends to increase which creates competitive conditions on prices for Vietnamese dairy enterprises and moves towards expanding overseas market At the same time,

domestic repair businesses have the opportunity to interact with new, more advanced technologies to perfect themselves in a competitive environment

One of the positive indicators of the dairy industry in the past year was the increased profit margin Overall, the COVID-19 pandemic has impacted milk global demand, keeping the price of dairy raw materials low in 2020, especially the price of Anhdryous (-23% over the same period) In addition, low oil process help reduce packaging and transportation costs These factors support the gross profit margin of dairy companies WB forecasts Vietnam's GDP growth is expected to reach 6.6% in 2021, although the WB is 0.2% lower than the forecast of 6.8% made at the end of 2020 due to the effects of the COVID-19 outbreak, but the WB still confirmed that this is the highest growth rate forecasted for countries in the ASEAN region, the average income of people is stable, leading to an increase in consumption demand for food products, including milk This is an advantage for TH True Milk to develop day by day in the COVID situation Despite the ability to compete on price, Vietnamese dairy enterprises face difficulties in product quality with foreign enterprises Many Vietnamese consumers accept a set price of more than 200% to use imported milk

• Technological environment

Modern machinery systems, modern farming equipment inside the largest concentration of high-tech dairy farms in Asia in Nghe An The cows in TH farm are completely imported from famous countries with clear pedigree, ensuring the best milk flow, not only that, the cows here are fitted with chips to monitor health and growth, barn system with wind and air conditioning to ensure the best living conditions In order to keep the closed process in cow raising and milk production, TH Group invests in building TH clean fresh milk processing factory This factory has the largest scale in Southeast Asia with the most modern equipment and machinery in the world

• Socio-cultural environment

The level of culture is increasingly improved, the speed of development, consumers gradually become more aware of the importance of health, pay more attention to nutrition, and drinking milk becomes a habit and becomes a habit very popular The demand for milk

of Vietnamese people is increasing day by day Therefore, since its inception, TH True Milk has affirmed in the market with the brand “clean milk” to meet the needs of customers

❖ Competitors

• Current competitors

When TH True Milk decided to enter the market in 2009, there were many dairy brands both at home and abroad that were known by many consumers such as Vinamilk, Dutchlady, Abbott,etc In which, Vinamilk is currently the leading enterprise in the dairy processing industry In 2020, Vinamilk holds the highest market share in the dairy industry

with 43.3%, Dutch Lady with about 15.8% market share, the rest belongs to smaller companies Although TH True Milk was born later, the growth rate is very strong, rising to the 3rd position in the dairy market share

TH owns a dairy farm with an area of 37,000 hectares of fertile basalt red soil in Nghia Dan

- Nghe An, using modern technology and advanced breeding methods Each of these clusters has about 15,000-17,000 dairy cows TH farm's cows are imported from the US, Australia, Canada, New Zealand, etc, with clear pedigree to produce the best milk, ensuring the content of fat, protein,etc in milk Besides, the source of feed for cows is extremely diverse such as corn, American sorghum, Mombasa grass, Mulato grass, soybean pods, purified water, et c

• Packaging

Currently, TH True Milk pasteurized fresh milk products are using packaging of Tetra Pak (Sweden) and SIG Combibloc (Germany), both of which are produced on modern and advanced technological lines top in the world

❖ Marketing intermediary

Customers can easily buy TH True Milk's products The system of warehouses and convenient storage brings products to intermediary agents and sells them in supermarkets such as Big C, Coopmart, etc Especially the TH true mart supermarket chain system spanning the country, TH wants to bring products to consumers in the fastest way, ensuring safety, product quality is the best Along with that, we regularly organize product launch seminars to bring products closer to customers

III TH TRUE MILK's STP STRATEGY ANALYSIS

3.1 Market Segment

3.1.1 Market segmentation by geographical location

Based on population density and consumption habits, it is divided into 2 groups: urban and rural

• Rural

The population in rural areas is 63,149,249 people, accounting for 65.6% of the more than

90 million people Along with the process of urbanization, the consumption gap between rural and urban areas is shrinking, but in general, it is still lower than that of urban areas Milk consumption in rural areas in 2020 will grow by 15% Whereas consumers in urban areas look for high-end products, in rural areas, they are loyal to traditional products that they have trusted and suitable for their income ability However, people in both urban and rural areas tend to be more concerned about health, so nutrition and product quality is a big factor influencing their decision

3.1.2 Market segmentation based on demographics

Based on age, the market can be divided as follows:

• Age 0-4: This is the age that needs to be supplemented with many nutrients, DHA for development, but the digestive system is not yet mature, often use specialized dairy products for ages

• Age 5-14: This is the age when young people enter the development process, need a lot of nutrition for the body, serving the learning and training process Age 15-25: This is the age when consumers are more autonomous in making decision, using product lines that are suitable for dynamism and youthfulness Moreover, the purchase decision at this age depends on the quality of the product and the reasonable price

• Age over 25: Use calcium supplements for the body, provide enough essential nutrients, rich in protein and minerals

3.1.3 Market segmentation by consumer behavior

Ordinary customers: make up a fairly high percentage, they have quite rich consumer preferences and can access to a wide variety of milks

Customers with health conditions: malnutrition, osteoporosis, diabetes, etc

Customers are interested in clean products suitable for diet and health protection, etc

3.2 Define target market

Based on the above segments as well as considering the product characteristics, it can be seen that the target market for TH True Milk dairy products is the segment:

• People living in urban areas

They have full of media channels as well as the ability to access TH True Milk quickly and effectively With the average income of urban people, the level of awareness of product quality and the healthcare needs of themselves and their families, the fact that they have to spend more money on them a “clean” dairy product with a slightly higher price on the market is perfectly reasonable and easy

to understand

• Customers aged 5-14

This is the customer segment that TH True Milk is particularly interested in Because this is a growing age, it is necessary to have a source of nutrients, vitamins, DHA, calcium to absorb Therefore, the demand for milk at this stage is higher than ever

And in order to attract this group of customers, TH has constantly improved and produced a variety of products to suit different age groups and preferences: strawberry or chocolate flavored milk, TOPKID formula with accessible, friendly animated image However, the special thing is that customers at this age are not aware of the price as well as the financial capacity, so to make a purchasing decision,

TH must conquer the customers in the next segment

• Customers aged 25 and over

In this target group, TH aims to gain the trust and confidence of fathers and mothers

as they are the ones who directly make nutritional decisions for their children If the customer aged 5-14 years old concern about appearance and taste, these customers are more interested in the origin, porcelain, quality, nutrition and preference of their children Understanding the hearts and aspirations of Vietnamese families, with the motto “Make a good glass of milk with the mother’s heart” that's why right from the moment entering the Vietnamese dairy market, TH True Milk has always created an image for itself as a brand of clean, pure, fresh milk that fully meets international standards in terms of raw materials as well as production lines to the finished products, constantly improving product quality to expand more and more market, conquering more classes of customers

3.3 Target market positioning

The competitive advantage of TH True Milk is that the input materials are all supplied from the TH farm, so the quality and production proccess are always assured TH's business philosophy from the beginning is not by all means to optimize profits, but to rationalize benefits, always towards the community, for the benefit of consumers For each cup "true natural" milk Besides the good image of a “green business, TH True Milk products always ”aims for great goals for the future generation of Vietnam In the past time, these values have been effectively exploited through the media such as newspapers, TV, etc The products that are always emphasized are fresh, clean, pure“ ” milk

From the right judgments about the market, TH Milk has declared a common characteristic

of dairy products - that is “clean” And even though Vinamilk or Dutch milk Lady is also

clean, the problem is that none of them are aware of the need to declare announce this in the mass media TH is the FIRST company to claim they are “clean milk” and they were one step ahead of their veteran rivals in doing this The word True “clean” – “Standard”thus establishes the TH's position and makes a clean milk revolution on the Vietnamese market

IV TH TRUE MILK'S MARKETING MIX STRATEGY

4.1 TH TRUE MILK'S PRODUCTS STRATEGY

4.1.1 Core benefits

With the motto: “Clean fresh milk is the only way” TH Group has conveyed the best from nature to consumers The development of people's living standards and incomes as well as the increased understanding of the benefits of milk make the demand for a quality milk source more necessary than ever Understanding those wishes, TH begins their story with the desire to rise up titled: For the health of the community Born in a fiercely competitive market with more than 500 large and small brands in the same industry, TH wishes to bring people the most authentic and happiest experiences when enjoying pure and fresh TH True Milk

4.1.2 Product portfolio

The fresh milk segment has long been interested and accepted by consumers This is also TH's target market with clean, delicious and safe fresh milk In order to truly own the position of “Completely from nature”, for more than 10 years, TH has continuously strived to affirm its position as the leading producer of fresh milk in Vietnam Continuing

to expand the product ecosystem, TH pioneers in the path of healthy drinks, with all-natural products, low in sugar or no added sugar, helping to align consumption habits towards healthier, contributing to improving the mind and body for consumers TH understands that expanding the product portfolio is also a way to help TH get closer to every home and every customer TH's current dairy product lines:

❖ TH True Milk Pasteurized Fresh Milk

• Pasteurized Fresh Milk - Pure

• Pasteurized Fresh Milk - Less Sugar

❖ TH True Milk UHT Fresh Milk

• UHT Fresh Milk - Pure

• UHT Fresh Milk - Less Sugar

• UHT Fresh milk - Sweetened

• UHT Strawberry Fresh Milk

• UHT Chocolate Fresh Milk

• Organic Fresh Milk

• TH True Milk A2 UHT Fresh Milk – Pure

❖ Formula Fresh Milk TH TOPKID

• TOPKID Organic fresh milk with natural vanilla

❖ Other products

• Besides focusing on the dairy market, TH also expands its product portfolio such

as nut milk, yogurt, ice cream, butter, drinks, etc

4.1.3 Brand

TH stands for two words “True Happiness”, True Milk is clean milk Through that, TH True Milk wants to convey its sacred mission of bringing cups of milk from green pastures and modern technology at TH farm It is also giving sincere feelings to consumers through the most “true” product line from nature, preserving the essence of every drop of milk It is also because of those humanistic meanings and the easy- -remember, impressive name, toassociated with the outstanding characteristics of the product, that TH gradually asserts its

“happy milk brand in the hearts of the public ”

4.1.4 Packaging design

TH True Milk is using the packaging of Tetra Pak (Sweden) as the world's No 1 supplier

of UHT packaging along with Combibloc (Germany) packaging to meet the increasing consumption of consumers Both types of packaging are manufactured on the most modern and advanced lines today In general, apart from some differences in form, the contents of both types of packaging are still guaranteed according to certain standards

• Shape: rectangular box

• Sizes: 110ml, 180ml, 450ml, 500ml, 1L

• The top of the box: product shelf life

• Box body: user manual, product information

• Appearance: main tone is blue, simple image (sky)

In order to ensure the source of packaging for the dairy factory to meet the large consumption of consumers, TH simultaneously uses these two suppliers

The products using these two types of packaging are similar in terms of image, information content on the package, price, packaging quality in preserving milk, actual volume, product quality is completely the same, fully comply with the standards that TH has announced to customers and is licensed by the regulatory agency for circulation However, there is a slight difference in appearance because the two suppliers use different production machines

Visually, the Combibloc box looks shorter and larger, but the actual volume inside is unchanged compared to the Tetra Pak box It is also easy to see that the back seam of Tetra Pak packaging is in the middle, while that of Combibloc is at the edge of the milk carton Corresponding to this back weld, the place of the suction cups of the two types is also in different positions In addition, can be seen on the milk box with the logo with the name of the packaging manufacturer, this is the best way to distinguish the two types of packaging Tetra Pak and Combibloc

4.1.5 Product quality

With the desire to bring to Vietnamese consumers clean, delicious and nutritious fresh milk products, TH considers quality assurance for products a prerequisite in production and development TH True Milk is the only brand that owns a closed production process from “green grass to clean milk” in Vietnam today TH Milk Food Joint Stock Company has built

a proactive process from input material production, processing and product delivery to consumers

TH TRUE MILK'S MILK PRODUCTION PROCESS

Cow breed: The cows are imported from New Zealand, USA, Australia, Canada to ensure the best milk

• Raw materials and nutrition: TH is completely autonomous in terms of feed ingredients to ensure the best nutrition for dairy cows: corn, American sorghum, Mombasa grass Formula for each group of cows, blending process by advanced software

• Water source: The cows drink clean water treated with Amiad technology to ensure clean and pure water for the cows

• Farms and herd management: The world's most advanced farm and barn TH uses Israeli management technology Cows are tagged and have electronic chips in their legs to monitor health status, nutrition and milk production and information is easily collected and managed

• Health care: Veterinary center and international standard laboratory are ready to diagnose, research, prevent and treat cows

• Milking: The fully automatic milking system is controlled under strict procedures to ensure the best hygiene and safety

• Production: Clean fresh milk is transported by cold pipe system to the main tank at the farm and then transferred to the cold tank, the cold temperature is always maintained at 2-4 degrees Celsius TH clean fresh milk factory has advanced technology at present world's greatest The factory's products meet ISO 22000 standards of food safety and hygiene

With a chain-based production approach from clean pastures, clean farms to clean cups of fresh milk, it didn't take long for TH True Milk to be well received and trusted by consumers Mr Yu Hoan Chun, general director of Wuxi Jinqiao said, visiting TH farms

in Nghia Dan, Nghe An and seeing first-hand the closed process, high technology of TH,

he believed that TH's products will conquer Chinese consumers “I have tried the product

We assess that TH products are of the same quality as products of European and American countries, which are present on the Chinese market” he said Not only Wuxi Jinqiao

International Food City, the General Administration of Customs of China also inspected

TH True Milk's farm in Nghe An, allowing TH Dairy Joint Stock Company to become the first Vietnamese exporter of fresh milk to China country

Having won many domestic and foreign awards, TH True Milk is continuously trusted by consumers and is the pride of Vietnamese people Most recently, there are awards such as Bronze "Product of the Year" for TH True Milk Pasteurized Milk at Stevie Awards 2019; Vietnam National Brand Award 2020, National Quality Gold Award at the national quality award ceremony and Asia-Pacific International Quality Award 2020

4.1.6 Effectiveness of product strategy

Over 10 years of launching, TH has achieved certain successes TH True Milk is mentioned with pride by Vietnamese people - is the milk brand with the most modern cow farm in Southeast Asia, with a turnover of more than 1 billion USD, is a clean “ milk” brand in the Vietnamese market With continuous innovation efforts and dedication to improving the quality of life of Vietnamese people, product lines are always improved in quality as an answer to the beliefs and expectations of customers products into a Vietnamese dairy brand Besides, TH is also constantly diversifying product categories to reach more customer segments in the future TH True Milk's clean fresh milk products have been warmly received by consumers and highly appreciated by experts With these good signs,

TH is gradually becoming one of the leading suppliers of fresh milk in the country

4.2 TH TRUE MILK'S PRICE STRATEGY

Modern society makes people's needs higher and higher, health factors are also focused and paid more attention This has promoted the development of nutritional products, especially fresh milk - an indispensable nutritional product for every family Besides, price is always

a notable concern because this is a competitive factor and encourages consumers to decide

to choose products Although coming after the big players in the industry such as Vinamilk, DutchLady,etc TH has used its own unique and different skimming price strategy to penetrate deeply and widely in the market TH True Milk has quickly created a brand of

“clean milk” with “real” actions, creating true value for the TH True Milk fresh milk

product line Above all, TH has contributed to changing the minds of Vietnamese consumers: drinking milk is not a luxury, it is a way to protect their health and happiness

4.2.1 Valuation

Right from the market launch, positioning the brand as a high-end product line, TH chose

to sell products at a high price as a ticket to ensure product quality, hitting the consumer's mind with the success sentence The saying "You get what you pay for"

TH's milk price at TH true mart chain stores is the consumer-oriented price and the selling price set by the company TH True Milk's fresh milk products are diverse with different prices

• UTH fresh milk TH True Milk: 33.000 VND/ pack of 4 boxes of 180ml

• TH True Milk UTH fresh milk with flavours: 33.000 VND/ pack of 4 boxes of 180ml

• Natural UTH fresh milk TH True Milk HILO: 35.000 VND/ pack of 4 boxes of 180ml

• Pure UTH fresh milk TH True Milk A2: 21.000 VND/ box of 500ml

• Organic fresh milk TH True Milk Organic: 31.000 VND/ box 500ml

• Pure pasteurized fresh milk TH True Milk: 36.000 VND/ box of 950ml

• UTH fresh milk TH True Milk TH True Milk TOPKID organic: 50.000 VND/ pack

of 4 boxes of 180ml

It can be easily seen that the selling price at the chain of TH true mart stores and the commerce channel of TH True Milk is often higher than the price at supermarkets and retail stores For example, a batch of TH True Milk 4 boxes of 180ml/box of fresh milk at TH True Mart store costs 33,000 VND/lot, while at a store like Bach Hoa Xanh, the price of a similar batch of milk is only 32,500 VND/lot at TH True Milk supermarkets cost 31,900 VND/pack

e-To ensure the interests of TH true mart chain stores and e-commerce channels, TH allows these channels to sell products at higher prices than other agents and supermarkets Due to the characteristics of each sales channel, at consumer stores or supermarkets, retail points will have promotions and gifts in a short time The purpose of this job is to attract buyers,