(TIỂU LUẬN) imc plan for new brand vinamilk healthy milk tea

- Product: Vinamilk commits to bring customers the nutrition solution with international standards, meeting the needs of consumers with delicious and nutritious products and leading favo

FINAL PROJECT

IMC Plan for New Brand

VINAMILK HEALTHY MILK TEA

Course: Brand Management Lecturer: Dang Truong Thuy Anh

Class: A06E

Group 3

Le Kim Ngan 185040599 –Tran Anh Thu 185120033 –Phan Phuc Hai – 195041706 Nguyen Thi Thao 185050114 –Tran Thi Kim Ngan 195041990–

Pham Nguyen Quynh Nh –u 185120210

Firstly, we would like to thank the University of Economics and Finance for creating good

conditions for our group to complete this project

Secondly, we would like to send our sincere thanks to Ms Dang Truong Thuy Anh (Teacher of Class A06E) The teacher enthusiastically guided us to complete the final project this time We would like to express our deep thanks to all the teachers who have taught and equipped us with valuable knowledge during the past years - University of Economics and Finance

Sincerely thanks!

Ho Chi Minh City, November 2021

TABLE OF CONTENTS

1 Introduction 5

2 Current Situation Analysis 8

2.1 Market Analysis 8

2.2 Background Rearch & Analysis 8

2.2.1 Internal analysis 8

2.2.2 External Analysis 14

2.3 SWOT Analysis 21

2.4 Key Marketing Problem or Opportunity 22

3 Key Strategic Decisions include any support material (assumptions, data analysis) 23

3.1 Marketing Objectives 23

3.2 Communication Objectives 24

3.3 Customer Segmentation 24

3.4 Targeting 25

3.5 Positioning 25

3.6 Brand Personality/ Character 27

4 Integrated Communication (Creative) Brief 27

5 Marketing Mix Strategy 31

5.1 4P Strategy 31

5.2 IMC Master Plan 33

5.3 Detailed IMC Plan Across Media 34

5.3.1 Advertising 34

5.3.2 Sale Promotion 35

5.3.3 PR 36

5.3.4 Digital Marketing 37

6 Timeline 42

7 Campaign Budget 43

8 References 44

TABLE OF FIGURES

Figure 1 Achievements of Vinamilk 5

Figure 2 Values of Vinamilk 6

Figure 3 Vinamilk product 6

Figure 4 Vinamilk product (2) 7

Figure 5 Vinamilk product (3) 7

Figure 6 Vinamilk factory 11

Figure 7 Vinamilk factory (2) 11

Figure 8 Vinamilk factory (3) 12

Figure 9 Vinamilk factory (4) 12

Figure 10 Management system of Vinamilk 13

Figure 11 Nestle Nestea packaged milk tea 17 –

Figure 12 Hillway Bubble Milk Tea 17

Figure 13 Ajinomoto - Birdy 3in1 Instant Milk Tea 18

Figure 14 Royal Myanmar Teamix 18

Figure 15 Aik Cheong Classic Milk Tea The Terik Classic 3in1 19

Figure 16 Positioning Map Vinamilk 26

Figure 17 Creative Brief For Vinamilk 30

Figure 18 Place Vinamilk Healthy Milk Tea 32

Figure 19 IMC Master Plan 33

Figure 20 Packaging Vinamilk Healthy Milk Tea 36

Figure 21 SEO Google Vinamilk Healthy Milk Tea 37

Figure 22 SEO Google Vinamilk Healthy Milk Tea (2) 37

Figure 23 SEO Google Vinamilk Healthy Milk Tea (3) 37

Figure 24 Facebook Ads Vinamilk Healthy Milk Tea 38

Figure 25 Tiktok Ads Vinamilk Healthy Milk Tea 39

Figure 26 Tiktok Ads Vinamilk Healthy Milk Tea (2) 39

Figure 27 Youtube Ads Vinamilk Healthy Milk Tea 40

Figure 28 Youtube Ads Vinamilk Healthy Milk Tea (2) 41

TABLE OF TABLES

Table 1 SWOT Analysis (Khiem, 2020) 22

Table 2 Sales Forecast 23

Table 3 Price For Vinamilk Healthy Milk Tea 31

Table 4 Timeline Table 42

Table 5 Timeline Table (2) 42

Table 6 Budget Vinamilk's Campaign 44

"Becoming the leading symbol of trust in Vietnam about nutrition and health products serving human life."

Figure 2 Values of Vinamilk

- Product:

Vinamilk commits to bring customers the nutrition solution with international standards, meeting the needs of consumers with delicious and nutritious products and leading favorite brands in market such as: Vinamilk liquid milk, Vinamilk yoghurt, Longevity sweetened condensed milk, Southern Star Sweetened Condensed Creamer, Dielac powdered milk, Vfresh Fruit Juice, etc

Figure 3 Vinamilk product

Figure 4 Vinamilk product (2)

Figure 5 Vinamilk product (3)

- Outstanding achievements:

Internal Achievements:

+ Top 10 Vietnamese high quality product by Association of Vietnamese high quality products from 1995 to 2020

+ Vietnam’s 50 top valuable brands by Forces Vietnam since 2016

+ Ms Mai Kieu Lien - Vinamilk’s Chairwoman and CEO was honored with the following noble award: Top 50 most influential women in Viet Nam 2019, Prize “Lifetime achievement” in 2018 International Achievements:

+Top 200 ASIA’s best over a billion by Forbes Magazine in 2019

+ Top 300 most dynamic ASIAN companies since 2016 (VINAMILK, ANNUAL REPORTS, 2020)

2 Current Situation Analysis

- Market trend:

According to market research on milk tea, users and awareness of the product are quite high, as

is the frequency of use; 50% of respondents drink milk tea at least once a week Furthermore, because this is a drink that appeals to Vietnamese tastes and is a rapid, compact, and quick drink,

it is easy to transport and handy for those who consume it

- Market share:

With 36% of users, the grindstones are the most popular Cappuccino and Latte were ranked fourth and fifth, respectively, with 4% and 1% of respondents preferring to use them Surprisingly, Milk Tea is the second most preferred beverage, with 23% of the vote This is a strong indicator that this is a high-potential market that attracts a large number of people, causing products with a much longer "older" lifespan to be phased out

2.2 Background Rearch & Analysis

2.2.1 Internal analysis

• 5M - Internal analysis

- Money:

In 1Q2021, consolidated net revenue of Vinamilk reached VND 13,190 billion, completed 21.3%

of the annual guidance, of which: Domestic business recorded net revenue of VND 11,178 billion This result reflects a reduction in the purchasing power of consumers for FMCG products due to the long-term effects of the Covid-19 pandemic Specifically, according to AC Nielsen, the total value of the FMCG sector contracted by 7% in 2M202

However, the Company has actively strengthened distribution channels, expanded farm network and developed new products in order to catch up with domestic consumption which is expected

to gradually recover after the impact of the Covid-19 eases

For Moc Chau Dairy Joint Stock Company (“MCM”), net revenue reached VND 621 billion Solutions to restructure distribution channels are being actively implemented to increase coverage in both traditional and modern channels

Vinamilk continued to have a successful quarter with export activities when export net revenue reached VND 1,166 billion, up 7.9% YoY thanks to Vinamilk’s persistent companion with and additional incentive programs for export partners in difficult circumstances Following the success of 1Q2021, export sales in April 2021 are estimated to grow above 30% YoY

In addition, net revenue of foreign subsidiaries was VND 846 billion, in which Angkor Milk1 continued to record double-digit growth In 1Q2021, according to Plimsoll2 , Vinamilk has been promoted by 6 consecutive ranks on the Top 50 leading dairy companies in the world, reached 36th and is close to the goal of entering the Top 30 dairy companies top of the world Vinamilk

is also the only representative of Southeast Asia on this list

- Material:

Vinamilk Fresh milk 100% with immune system support is produced from farm fresh milk mainly sourced from our dairy farms, strictly selected and controlled to ensure food hygiene and safety

Imported raw materials are sourced from the prestigious suppliers of America, Australia, New Zealand, France, etc

Vinamilk has highly paid attention to product quality control and management The company has therefore applied advanced management systems such as BRC and ISO 17025 to strictly and thoroughly manage all manufacturing stages including pre, mid and post production in order to ensure the quality and safety of Vinamilk's products In addition, a product tracking system has also been applied to the product recall and the disposal process of faulty products in order to minimize the possible negative impacts on consumers and society

At the end of March 2021, Vinamilk imported 2,100 HF dairy cows from the US to Vinamilk’s new farm in Quang Ngai, raising the average total herd to nearly 33,000 cows This new farm has the capacity of 4,000 cows on the size of over 100 hectares with the total initial investment

of VND 700 billion, being a part of the eco-friendly farm network “Green Farm” that Vinamilk

has been investing in and developing since the beginning of 2021 As planned, the company will import more than 5,000 highyielding dairy cows to increase the total herd for domestic farm projects this year In addition, Laos-Jagro dairy farm is expected to start producing milk in 1H2022

- Method:

The company's overall goal:

+ Positioning the brand as a pride of Vietnamese people

+ Build new emotional value of Vinamilk brand_ embodiment of life

+ Maintain the No 1 position in Vietnamese market and become one of the 30 largest dairy companies in the world in terms of revenue

Company strategy

+ Leading in innovation with high applicability

Focusing on the dairy industry and milk-related products, which is the core business that creates the Vinamilk brand Continuing to research and develop many new products with the aim of innovating, expanding and diversifying the product portfolio on the basis of suiting the tastes and needs of consumers; at the same time bring consumers a rich and convenient experience

+ Consolidate the leading position in the dairy industry

Expand penetration and coverage in rural areas with popular product lines, where growth potential is still great Promote focus on high-end product segments with many added values, especially in urban areas Continue to build a large and strong domestic distribution system, increase market share and maintain the leading position

+ The dairy company that creates the most value in Southeast Asia

Ready for merged and acquisitions (M&A) activities and expand strong cooperative relationships with partners in all three directions of horizontal integration, vertical integration and hybridization Prioritize looking for M&A opportunities with dairy companies in other countries with the aim of expanding markets and increasing sales Continue to penetrate new export markets with the strategy of transforming the traditional commodity export model into forms of deep cooperation with distribution partners in new key markets

- Machine:

Vinamilk’s research and product development staff always keeps up to date the latest knowledge

on technology, as well as surveys the domestic and international market to find opportunities and ideas for product development

Figure 6 Vinamilk factory

The Vietnam Dairy Factory is equipped with modern fresh milk production lines applied of-the-art production technology, operated with a completely closed process from raw material input to finished product output

state-Figure 7 Vinamilk factory (2)

Figure 8 Vinamilk factory (3)

After tested for quality, raw milk will be weighed, filtered and entered into a cold storage silo tank system (150 m3/ tank)

The warehouse is the leading smart warehouse in Vietnam which has an area of 6000 m2 with

20 entrances and exits, width of 105 m, height of 35 m It is designed with 17 stores, containing

up to 27168 lots Automatic import and export with 15 Rail guided vehicles (RGV) transport pallets of finished product to the warehouse and then 8 stacker cranes align them to the shelf system The management of import and export goods is controlled by Wamas software

Figure 9 Vinamilk factory (4)

The operating system is based on the Tetra Plant Master Automation solution, which is the integration, enables it to connect the entire plant from raw materials to finished products According to that, people can control every activity in the factory, monitor and control the quality continuously The Tetra Plant Master system also provides all the necessary data that helps to continuously improve its production and maintain operations

In addition, Wamas Warehouse Management System integrated ERP management system and Tetra Plant Master Automation solution provides integrated operation of the plant from production planning, material input to the finished product output

+ China imposing tariffs on US dairy product boosting Vietnamese dairy industry

+ Free Trade agreement has allowed export of dairy products to EAEU

+ Vietnam is a peaceful country without war and terrorism

+ Vietnam is agricultural So, to produce, there are policies that the government encourages milk companies to develop Therefore vinamilk can be easily produced and sold According to the Law, milk and almost all kinds of produce from agriculture or health for society have just paid 8% tax

+ Politics is stable for the business of the company However, Vietnam is a mixed economy so the government still plays a big role in the market

+ The Vietnamese government decreases the foreign trade barrier to attract more investment from foreign investors

+ Government promulgated preferential policies (Approved 2000 billion for projects to develop dairy industry to 2020)

+ Worldwide economical and political instability

+ Vietnam's GDP trend increases every day, it is a great opportunity for business It means that the income and life will go up and the demand to spend money is high

+ When a series of milk tea shops were opened in dense numbers in just a few tens of meters of the street That means that the milk tea saturation stage is approaching and needs a similar product but with more advantages to replace it

- Social-cultural:

+ Parents are especially concerned about the current obesity and overweight problems of their children, and do not want their children to eat junk food of unknown origin, which easily causes unwanted diseases But in fact, children have a preference for sweets and fast food For young people who are especially interested in body and health issues but still want to enjoy delicious food, especially trending foods such as milk tea, etc

+ For the elderly and middle-aged people: Pay special attention to the foods that are loaded into the body every day, do not have the habit of snacking and have not been affected by trends too much

+ Office workers have a habit of using packaged beverages such as packaged coffee and tea because of the convenience they bring Students will have the habit of drinking milk tea: 53% of Vietnamese students have the habit of drinking an average of 1 cup of milk tea a day (according

to Lozi - 2016 data) No matter what industry they are in, they also want a drink that can be prepared quickly and good for health

+ Consumers also especially favor products with clear origins, good for health Products that have been contaminated such as: drinking milk tea with poisoning or acute kidney failure milk tea have unclear origin materials, all of which cause buyers to have a boycott attitude or be afraid

to use the product

+ Nowadays drinking milk tea has become a trend of the majority of young students - students and most of the age before 30 When milk tea is now becoming a trend, it develops at a dizzying speed It is normal, but it will grow to saturation rate in the market and this market is close to reaching this point This is an advantage when a healthy product is launched with a large number

of potential customers from milk tea

+ Processing technology inherits modern and standard processing technologies from abroad

+ For the ready- -drink milk tea, instant coffee and packaged coffee industry, proposed by the toMinistry of Finance to be subject to special tax (SCT) Tax rates from 10% to 20% from 2019 + Tax increases force selling prices to also increase, negatively affecting customer behavior + Thanks to the ASEAN-China goods trade agreement ACFTA: Beverages, alcohol, carbonated water (except beer, wine, fermented wine with tax of 5%), will be taxed from 5% until 2018 to 0% (from countries participating in the agreement) => Opportunity to bring products to the international market There are competitive pressures with foreign businesses and products

+ Vietnam has a large amount of tea, creating stability for the cost of input materials of the product

+ State policies, especially decision 167 of the government, contribute to encouraging people to develop the dairy industry in our country Hybrid cows such as HF hybrids are being replicated

to improve productivity and quality

+ The scale of dairy farming in our country is still small, the method is simple, the raw materials are mostly concentrates and vitamins, premixes, etc Most of them are imported, so the cost is high Since then, the selling price of the product is also high

• Competitive analysis: 5 FORCES

- Direct competitors:

+ Nestle Nestea packaged milk tea–

Affordable price – 32,000 dong with wide distribution system in convenience stores, supermarkets, grocery Origin of milk tea from Taiwan, Nestea packaged milk tea has already been tested for quality and safety The brand mainly focuses on highschool students, college students, etc

Figure 11 Nestle Nestea packaged milk tea –

+ Hillway Bubble Milk Tea

Hillway Bubble Milk Tea is a product of the Hillway brand, produced, packaged and responsible

by FES Vietnam Company, one of the first companies to bring instant coffee culture into the market Vietnam With more than 20 years of establishment and development, FES has brought

to consumers many delicious and convenient packaged products such as instant coffee, nutritious cereals, instant chocolate and instant pearl milk tea Hillway

Figure 12 Hillway Bubble Milk Tea

+ Ajinomoto - Birdy 3in1 Instant Milk Tea

Birdy Instant Milk Tea by Ajinomoto made from Thai Nguyen tea leaves has a slight bitterness The brand targets officers and has the benefit to relieve stress, fatigue and affordable price

Figure 13 Ajinomoto - Birdy 3in1 Instant Milk Tea

+ Royal Myanmar Teamix

Is the number 1 instant milk tea in Myanmar It is a popular drink in the 2017 seagame period Low-fat milk tea with strong tea flavor, suitable for both children, the elderly and vegetarians High price: 119,000 VND

Figure 14 Royal Myanmar Teamix

+ Aik Cheong Classic Milk Tea The Terik Classic 3in1

It is a combination of black tea powder, premium milk cream and sugar When drinking, there will be light cream foam on top, strong tea flavor Reasonable price: 99,000 VND

Figure 15 Aik Cheong Classic Milk Tea The Terik Classic 3in1

- Consumers:

+ High bargaining position: Packaged milk tea products belong to the FMCG industry, which is

a non-essential item => Buyers are price-sensitive and will tend to switch to substitute products

if there is a promotion

+ For retailers, wholesalers have the ability to navigate customers If the policy of commissions and discounts is not satisfactory, they can direct customers to other products to increase their income

- Substitution:

Homemade milk tea

It is a product from small and medium milk tea factories and home processing facilities In the past, it was often chosen by many people because they trusted the manufacturer However, the assurance of food quality, safety and hygiene has not been assessed by competent authorities

On the other hand, this product has difficulties in food preservation and is easily penetrated by insects and bacteria

Imported milk tea

Mainly powder packaging The milk tea powder product lines imported from developed countries such as Myanmar, Malaysia, Taiwan, Indonesia, Thailand are all manufactured according to modern processes, ensuring food safety and hygiene standards and nutritional quality The nutrients still retain the natural flavor of the tea leaves Convenient storage The

amount of imported milk tea consumed in the Vietnamese market is always high and constantly increasing Only in the past 2 years, due to the epidemic, consumers tend to switch to using instant packaged milk tea to solve their cravings for milk tea during the epidemic season Besides, there are other substitutes including lemon tea, coffee or Pearl yogurt

- Suppliers:

Vinamilk's milk source mainly comes from farms that the company develops itself and also includes small farmers They do not have good caring techniques, mainly spontaneous and amateur, so the quality of milk often changes erratically, putting them at many disadvantages Therefore, the initiative usually belongs to the side of the enterprise

As for the raw materials and sources of tea, milk powder , Vinamilk is mainly imported from abroad by the leading big brands in the world For these suppliers, Vinamilk does not have much advantage in bargaining power and is under a lot of pressure, but is assured of the quality of input materials (Hanh, 2020)

- Potential rivals:

This is a potential market that numerous business wants to join because:

The group of customers who are young people has a higher frequency of drinking milk tea than other subjects, 60% have a frequency of drinking at least once a week Milk tea market research also shows that the percentage of people aged 15-21 who drink milk tea 2-3 times a week is the highest, accounting for 24% Middle-aged people aged 30-38 have a rate of using milk tea 2-3 times a week, accounting for 19%, which is also an impressive number for this group of customers who are difficult to access

Barriers to entry into the industry:

+ Cost of entering the industry: It is high Not every company can make bubble milk tea products Specifically, the company has to spend money on finding ingredients, recipes for advertising, marketing, and designing product packaging so that it's safe safety and ensure the health of consumers Besides, there are also costs related to distribution channels, both traditional retail channels or e-commerce channels In addition to fierce competition in the industry, there are now more than 100 different milk tea brands covering Vietnam in various forms

+ Distribution channel:

In 2022, the trend of the FMCG industry will be extremely developed and grown on e-commerce channels Therefore, managers need to balance and shift costs from traditional distribution channels to e-commerce channels

+ Create a difference for the brand:

As mentioned, the bubble tea industry now has many brands competing with each other both at home and abroad When it comes to milk tea, consumers often think of Thai and Taiwanese milk tea… rather than Vietnam So to be able to survive in the market, your product and brand must

be outstanding compared to other product brands This is not easy

• Just mix milk tea powder with boiling water to

have a delicious cup of milk tea right away

• Efforts for a green industry: Using paper

packaging outside, and environmentally

friendly aluminum foil milk tea bags inside

• Compact packaging, easy to carry from home

to office, school

• Quality, food safety: ISO 9001, ISO 22000

- Product quality:

- The product is a combination of healthy nuts and

dietary sugar, combined with mass production in line,

so the ability to retain the maximum original nutrients

- Controversy about product origin

- Product variety: Limited in taste compared to market alternatives