(TIỂU LUẬN) MARKETING CHANNEL EF s vinamilk is a leading FMCG

How Vinamilk sells its offeringsVinamilk often offers its products and communicates with its customers through the needs and concerns about improving and boosting their physical conditio

TABLE OF CONTENT

I INTRODUCTION 3

II OFFLINE COMMUNICATION 3

1 POTENTIAL CUSTOMERS AND MARKET OFFERINGS 3

a Potential Customers: 3

b Market Offerings 4

c How Vinamilk sells its offerings 5

2 OFFLINE COMMUNICATION CHANNELS 5

III DIGITAL COMMUNICATION CHANNEL 11

1 UX DESIGN 11

2 DIGITAL COMMUNICATION CHANNEL 15

2.1 Search engine marketing 15

2.2 Online PR 17

2.3 Online partnership 18

2.4 Social media marketing 19

2.5 Email marketing 20

2.6 Display advertising 20

IV CONCLUSION 21

V REFERENCE 21

I INTRODUCTION

Vinamilk was established in 1976 and listed on the Ho Chi Minh Stock Exchange in

2006 The company is 45% government owned and the company is also recognized byforeign and foreign investors 49% shares of the company The capital value of Vietnam'ssecond largest company is estimated at $5.5 billion (NikkeiAsia 2021) Vinamilk isconsidered the largest dairy company in Vietnam today and the company's head office is alsolocated in Vietnam, operating in the field of food processing, specifically milk The company

is engaged in the production and marketing of milk in various product forms such as liquidmilk, powdered milk, and sweetened condensed milk along with yogurt as well as frozenyogurt in various flavours Vietnam achieved total revenue of about 59.72 trillion VND andwas ranked in the top 10 brand value brands in Vietnam (Minh 2021)

Vinamilk is a leading FMCG (fast-moving consumer goods) company in Vietnam andhas developed a new online shopping channel to serve the presentation of products to stores,retailers, and distributors (Vnexpress 2016) Vinamilk has 251,000 points of sale on qualityincluding 430 chain stores (Vinamilk 2019) Vinamilk also launched eShop to boost theirbusiness activities and investing heavily in online services to make it easier for people to buygoods (Vnexpress 2016) This report will analyse and evaluate the effectiveness ofVinamilk's communication strategy

1 Potential Customers and Market Offerings

a Potential Customers:

Demographics

The goal of Vinamilk is to reach and satisfy the needs of customers at all ages andbackgrounds as the company diversifies their range of products and continuously expandstheir product lines However, the main target market that Vinamilk have always been aiming

at are children who are under 14 years old (UKEssays 2017) Moreover, Vinamilk not onlythe children but also the family at middle to high income class that have kids who are in theirgrowing age, especially the women of the households as they hold vital purchasing powerand they are mainly responsible for all purchases of the households (Nelson 2019)

Geographic

Vinamilk aims to provide possible accessibility to high quality milk for people living in allprovinces and cities in Vietnam, however, the majority of their products target families andindividuals who locate in big cities as their price is less affordable compared to othercompetitors That is also the reason for Vinamilk being weak in rural areas and the companywould want to improve on this segment in the near future (UK Essays 2017).

Psychographic

The target customers of Vinamilk are households and individuals who have middle to upperincome as the company’s pride of the high quality milk comes with a higher price forconsumers Moreover, people who purchase the products of Vinamilk are the ones who payhigh attention to the health and physical growth of themselves and their family In addition,young adults and elders who lead a physically active and healthy lifestyle are oftenVinamilk’s target customers

Behavioural

Vinamilk’s target audiences often have a very high usage rate of milk, often dailyconsumption Also, milk and dairy products are often associated with health, thereforeconsumers are often skeptical and pay high attention to the quality and safety aspect of themilk-producing process (UK Essays 2017) In terms of media behaviour, social media isprimarily responsible for the way consumers gather information but word-of-mouth plays ahugely influential role in affecting the final decision (Demshki 2021)

b Market Offerings

Vinamilk has been through huge transformations since it was founded more than 40 years ago

in 1976 Since its founding, Vinamilk’s primary products have been fresh milk and otherdairy products such as yogurt, ice cream and cheese However, in order to reach moreconsumers and satisfy their needs, Vinamilk has transformed itself to become the most trustedmilk brand in Vietnam (Bao Chinh Phu 2021) Their range of products varies to meetnumerous needs from affordable milk to organic and nut milk as well as milk for the elderly.They also differentiate products in the same product lines by multiple categories such asflavors, functions and ingredients In addition, Vinamilk owns many subsidiary companiessuch as Asia Coconut Pressing Company

c How Vinamilk sells its offerings

Vinamilk often offers its products and communicates with its customers through the needs

and concerns about improving and boosting their physical condition as well as the added

health benefit of Vinamilk’s products Using the fear of many parents, they promote their

products as the solution for improving children’s physicality and height

2 Offline Communication Channels

Vinamilk fully intends on becoming the leading dairy corporation in Vietnam Theorganization has continually addressed the needs and psychology of clients, particularly

through compelling marketing techniques

Channels Stimuli Vinamilk’s Actions

1

Advertising

Billboard Customers can easily see print advertisements of Vinamilk on the streets

of Vietnam Vinamilk consistently focuses on creativity which helpsachieve a lot of success from advertising to increase its sales

Figure 1: Vinamilk’s billboards

OOH advertising Commercials utilizing brand images by trucks spread across the country

improves its brand recognition

Figure 2: Outdoor advertising of Vinamilk

2 Personal

Selling

Direct Selling Staff members are always enthusiastic to offer the best customer service

With their professional style to share valuable information about theproducts and give dedicated advice

Figure 3: Direct communication between salesperson and a potential

customer (Vinamilk 2020)

Door to doormarketing

With the objective to develop on the domestic market, Vinamilk'sdistribution system has carried Vinamilk's products to customersadvantageously and quickly Thus, to be available in 63 provinces andcities, Vinamilk provides door-to-door marketing for retail stores As ofnow, Vinamilk has almost 251,000 retail points and supermarkets as well

as convenience stores

Figure 4: Marketing at point of sale

3 Sales

Promotion

Events Vinamilk has applied for several promotions with different forms such as

discounts, incentives for purchasers who are members of Vinamilk andgift exchange when collecting many gift stamps

Responsibility(CSR)

Vinamilk has launched meaningful campaigns for the community whichcontribute to building brand-awareness The flow of events including

“Quỹ sữa Việt Nam tặng sữa cho 40.000 trẻ em”, “ Lễ Kỷ niệm 40 năm

Relations

Vinamilk” and “Giấc mơ sữa Việt” has received a great attention fromnational customers (Brands Vietnam 2021)

Figure 6:Vinamilk’s CSR activities in Quang Nam

Press media With innovative marketing campaigns, Vinamilk attracted the mass

media There has been an excess of 200 news articles on 50 newspapersand TV channels about Vinamilk's occasions

Figure 7: All activities of the brand are being noticed

5

Sponsorship

Sponsorship Vinamilk has become the official sponsor of the national male and female

football teams and also the Olympic national team for 3 continuous yearsfrom 2019 to 2022 (Vinamilk 2019)

Figure 8: Sponsorship signing ceremony in Ha Noi (VietnamNews 2019)

CommunitySupports

Vinamilk has supported the government to buy medical biologicalequipment that helps detect COVID-19 viruses with a sum of 10 billionVND Also, the company has sponsored the COVID-19 frontline across

Vietnam with thousands of Vinamilk products.

Figure 9: Vinamilk supports the “COVID-19 fights” program (VietnamNews 2021).

Understanding the importance of advertising in its strategy, Vinamilk’s offline

communication channels had been effectively used as methodical and professional with

numerous activities The long-term investment in the marketing campaign of the organization

helps improve the company's image to consumers, thereby creating stability and growth in

revenue According to Brands Vietnam, the race of promotion programs promoted the

expense of 502 billion VND for communication channels in 2013

1 UX Design

UX design is designed to refer to the user's experience when interacting with the

product (Dumont, 2021) It focuses on the user process and how effective and easy the

product is to use According to Smith (2021), making users trust a website is the great success

of that website There are some user experience designs that cover useful, usable, desirable,

findable, accessible, and ultimately trustworthy and valuable

Figure 9: Vinamilk homepage

The Vinamilk website is very useful because it is designed for both online shoppingpurposes of customers In addition, the website is also designed with the main backgroundcolor being blue and white, true to the milk brand, and all necessary information is conveyedfully and effectively

Furthermore, on the homepage Vinamilk clearly categorizes its brand story andcontent so that it can be easily attributed to the findable element of the website's UX design

In addition, customers entering the website can quickly search for information or productsusing the search bar on the right corner of the website so that customers can easily buyonline

Figure 10: Search bar of Vinamilk

Vinamilk's website is usable and the necessary information can be used such as theproduct's size, price, and description, which is provided and detailed on each product Suchdetailed product descriptions help in increasing online shopping traffic and reduce customerfrustration when clicking on the products because it influences the decision customerpurchases The website also displays the prices of the products being sold or the commonproducts are displayed in detail and are easy to use

Figure 11: detail of the Vinamilk’s Product

Figure 12: Design about background and font of website

A notable feature of the Vinamilk website that contributes to the desirable factor isthe way in which the website is designed The website is quite simple because they want to

impress and attract young customers, especially cartoon images of the product to attractchildren Moreover, simple design and color will help people easily recognize the brand

Figure 13: Product contain the cartoon images of Vinamilk

Vinamilk's online shopping website is accurate, public, and suitable for customers'purposes, in which customers strongly assess credibility in each product Vinamilk is notafraid to hide bad feedback from customers Moreover, on the homepage of Vinamilk is ready

to share its development and production process over the years

Figure 14: Comment of customer about product quality

Besides, Vinamilk's website also shows efforts to support users when they shop online

to provide the most accessibility from users In addition to the website's design, aninnovative "customer support" feature allows calls for shopping difficulties or product advice.Finally, Vinamilk's website has been recognized as valuable because it was createdwith a purpose and drives more traffic because of its ease of use and from the brand'sproducts and campaigns and fundraising program to promote its brand image

2 Digital Communication Channel

2.1 Search engine marketing

According to SimilarWeb 2021, In the first 6 months of 2021, the VINAMILK website hasattracted engagement with about 650,60 thousand unique visitors Indicating thatVINAMILK's company has developed in the right direction in terms of SEO

Figure 15: Traffic overview of the VINAMILK website (SimilarWeb 2021)

● SEO

The number of users who accessed the VINAMILK website through search leading with thepercentage of 56.47% According to SimilarWeb 2021 Most of these organic keywords arevisible in navigational characteristics, which help draw the organic traffic to the Vinamilksite "Vinamilk", "Vinamilk organic" is the top organic keywords search, bringing forVinamilk’s site high volume search and percentage in traffic (SemBrush 2021)

Figure 16: Analyzing organic and paid keywords in the Vinamilk website (SimilarWeb

2021)

Figure 17: Top Organic Keywords for VINAMILK’s website (Sembrush 2021)

According to Seobility (2021), the VINAMILK site has a great title tag that contains the topkeyword "Vinamilk" to navigate searching consumers to visit the site VINAMILK's sitecreates a robust meta description with convincing information related to the company,matching consumers' expectation seeking However, there is some issue that VINAMILK'ssite gets into trouble with: the title tag is quite short, and the meta description is longer thanthe requirement, duplications happened in the heading H1, H2

Figure 18 : The meta description of the Vinamilk website

Figure 19: The title tag of the Vinamilk website

2.2 Online PR

● Community Participation

Understand the obstacles facing communities during the pandemic Vinamilk strives tosupport the price subsidy program, pricing products up to 170 trillion VND to sharedifficulties with consumers during this pandemic (Vinamilk 2021) Besides, in the campaign

"A healthy you for a healthy Vietnam," Vinamilk has spent 20 billion VND to providemedical support for 50 treatment hospitals and one hundred thousand health gifts for medicalstaff in Hanoi (Vietnam News 2021) Vinamilk has created positive impressive brand imagesfor most Vietnamese consumers with meaningful activities for society

● Online Reputation Management

There was a rumor that Vinamilk imported procured poor-quality raw materials in 2019 (ThoiDai 2019) Instantly, Vinamilk has taken action by conveying positive content avoidingcustomer's misunderstandings and causing a bad reputation for the brand by transparentlyconveying the product quality information on the website Moreover, once finding thenegative content, Vinamilk has given announcements with robust evidence postingnewspapers and e-papers to confirm the brand reputation