(TIỂU LUẬN) THE DEVELOPMENT AND EVALUATION OF THE NEW MARKETING PLAN

In Vietnam, the trend is growing and awareness of nutrition has become an attractive market for not only the Ovaltine company but also many other companies in the world such as Milo and

TABLE OF CONTENTS

1 INTRODUCTION 3

2 THE USE OF 7Ps TO ACHIEVE BUSINESS OBJECTIVES 3

2.1 7Ps marketing mix 3

2.2 How do companies achieve their overall business objectives 6

3 THE DEVELOPMENT AND EVALUATION OF THE NEW MARKETING PLAN 7

3.1 Company overview 7

3.2 The analysis of current marketing situation 7

3.3 New marketing objectives 8

3.4 STP 8

4 TACTICS AND ACTION 13

5 BUDGET AND PEOPLE ALLOCATION 14

6 EVALUATION 14

7 CONCLUSION 15

8 APPENDIX 15

9 REFERENCE 23

1 INTRODUCTION

In the market mechanism of the integration period, company is no longer focus on their

products’ price if it’s cheap or expensive but more emphasis on the value brought to their

customers such as nutritional value, brands’ value reputation to maintain This poses a huge requirement for businesses to build a brand development plan effectively Therefore, companieswhich provide nutritious foods like Ovaltine was found In Vietnam, the trend is growing and awareness of nutrition has become an attractive market for not only the Ovaltine company but also many other companies in the world such as Milo and their famous malted-chocolate drink which has been in the market since 1994 For that reason, we decided to choose Ovaltineas thesubject of the report

2 THE USE OF 7Ps TO ACHIEVE BUSINESS OBJECTIVES

2.1 7Ps marketing mix

Product Nestle MILO Barley is a perfect

combination of the unique aroma of

cocoa and the rich source of protein

and nutrients from milk, whole wheat

bran and vitamins, and minerals

(Nestle Milo, 2017)

Nestlé MILO contains Protomalt® -

a superior nutritional extract from

whole wheat bran that provides

longer-lasting energy for learning,

playing sports and physical activity

(Nestle Milo, 2017)

❖ Characteristics:

- Provide nutritional products for

children

- Encourage consumption of whole

meal and bran foods

- Promote healthy eating and

lifestyle, including healthy physical

activity

Ovaltine is also a malted-chocolate drink Compared to Milo, Ovaltine seems to have an advantage with 30% extracts of barley germ from Wives and

a 180 ml volume for higher kcal than Milo

Ovaltine chocolate barley is made from nutritious milkshakes and milk,

processed in a specially formulated formula

Barley Ovaltine chocolate taste is delicious with moderate sweetness, helping to supplement energy suitable for children to start a new day full of energy and dynamism Drinks can be compact, convenient especially for children to bring with them when going

to school or picnic

❖ Characteristics:

- Milk is made from Swiss germ of barley

- A drink for breakfast full of nutrients

Price To talk about Milo's products, Milo is

divided into many different

categories:

- Milo cans: 15.000VND/can

- Milo malted-chocolate drink 285g:

The price of Ovaltine is quite similar to Milo Ovaltine is divided into some kinds:

- Ovaltine powered milk 285g:

40.400VND

About the price strategy of the Ovaltine and Milo quite similar Both lines are aimed at parents of children aged 6-14, with low to high income Therefore, the price of milk products is relatively suitable for the average monthly income of Vietnamese families (per capita GDP is $ 2,200 per year according to 2016 statistics)

Place Milo dairy products are widely

distributed throughout the country,

from big cities like Ho Chi Minh City,

Hanoi, Da Nang to the countryside

To talk about the distribution

channel, Milo belongs to an indirect

distribution channel The first

manufactured goods will be

distributed through two

intermediaries: wholesalers and

retailers, and then to the consumers

For example, Vinmart, Fivimart,

Coopmart, Q.Mart and so on

Ovaltine milk products are not sold as widely as Milo Only a handful of supermarkets and grocery stores are selling this product

The distribution channel of Ovaltine is also indirect For the Ovaltine, from the manufacturer, the Ovaltine line of products is taken to the big supermarketand will reach the customer For example, only the big supermarket will have this product such as Vinmart or Fivimart are selling Ovaltine products

With the development of Industrial Revolution 4.0, Milo’s and Ovaltine's

products are being sold via e-commerce websites like Tiki, Lazada, Shopee, Adayroi, and so on This type of shopping is more convenient so the customerscan easily to buy their products and they don't have to go outside

Promotion Milo advertises primarily on the

internet through news, video In

March of 2014, they released Milo

Vietnam's Facebook In August

2013, the website of Milo Vietnam

was put into operation Milo Vietnam

also advertises extracurricular

activities such as banners,

billboards, leaflets, posters to attract

customers

❖ Promotion:

Buy Milo change bag: This isone of the brilliant ways to attract customers Milo Vietnam They hit the user's psyche to offer a promotion that customers have to buy their products (Nestle Milo,

Ovaltine is mainly advertised on Facebook to attract customers Thanks

to this popular media, customers can evaluate the quality of their food with thenaked eyes; keep up to date on the latest food news, prices and feedback between companies Barley milk production in Vietnam Until recently, theOvaltine product appeared more on the billboards as well as the Internet to attract the attention of customers

❖ Promotion:

Ovaltine Vietnam always has a small toy when you buy milk and this is one of the factors that attract the babies to increase sales for Ovaltine (Ovaltine Facebook)

❖ PR: Milo also organizes many health-focused activities to promote their brand

In addition, Ovaltine has not been involved in many health protection campaigns such as Milo so that access to Ovaltine customers to the present is still limited

People Every Nestlé manager is asked to

motivate and motivate employees,

always looking for ways to improve

their way of doing things, creating

changeable atmosphere, promoting

innovation

They are experienced in the

international environment,

respecting the cultures of the world,

taking long-term strategic

approaches rather than short-term

ones

With the size of a global corporation,

Nestlé gives employees the

opportunity to grow their talent to the

maximum, thanks to a network of

operations without borders

Nestle offers its employees a

dynamic salary and wages system

that competes with the market in all

aspects, including salaries, short

and/or long-term bonuses, additional

benefits for wages or benefits

society (Nestle Vietnam)

Ovaltine is a subsidiary of FrieslandCampina Vietnam in the top 20workplaces and the top 10 FMCG companies

The office in FrieslandCampina is constantly being expanded and rebuilt with open, modern design, encouraging teamwork The office design is friendly with diversified and flexible workspace, full and modern equipment

Nguyen Dinh My continued to share the strategy set for himself very early "Goodenvironment is the most important catalyst for advancement in the workplace It will give you the opportunity to learn more and add 'fire'

to improve your knowledge and influence, "and that is why we chose to work with FCV

Besides, during the apprenticeship period, applicants will have a paid apprenticeship, some necessary allowances such as gasoline, lunch and basic welfare (accident insurance)

Process Nestlé's distribution center is located

in Bac Ninh province, which is very

convenient for distributing products

from the factory to the northern

provinces Nestlé's products are

manufactured and packaged with

modern technology by strict quality

management procedures of the

Group to ensure quality products

meet Swiss standards

What makes the factory different is

that the production is done below

and the food engineers can monitor

the entire process through the

transparent glass system above

Ovaltine is produced on the modern line,strict inspection of food safety and hygiene is one of the leading products inthe cocoa beverage sector, barley With

a 180ml paper box design, adding Ovaltine DHA + in addition to the daily diet improves nutrition and energy, helpsdevelop both physically and

intellectually, is ready to explore, learn, promote creativity in all learning activities, play (Product self-declaration)

(Nestle Vietnam, 2017)

Physical

evidence Packaging for the product is also emphasized in the design phase so

that it is easy to shop and match the

characteristics of the product

Canned milk products will be packed

in a four-casserole bag wrapped in

transparent plastic wrappers, Milo

paper milk cartons are designed so

as not to damage the mousse during

transport if purchased larger

quantities will be is packed in a

rectangular box containing 12

blisters For powdered milk

products, it will be packed into

rectangular boxes that are easily

digested in the environment and do

not pollute the environment like

another plastic packaging Cans of

Milo milk cans are made of tin and

are retail for every can in

convenience stores

Packaging for Ovaltine products is also carefully prepared and the box is a purse and is packed in transparent plastic bags to ensure that

transportation will limit damage to the box For customers wishing to buy more,they will be placed in sturdy cisterns to ensure that the movement does not occur

2.2 How do companies achieve their overall business objectives

By using the color green with brown letters,

Milo has created a unique image for itself in

the mind of Vietnamese people Everytime

they see the color of green cans, usually

Vietnamese consumers will relate to Milo

brand with the traditional green color

Nestle have brought out many types under the

brand Milo such as powdered milk, iron and

paper can milk, and the most recent product is

Milo Cub created a fever in the consumers’

market

Ovaltine uses red packaging and blue letters for its nutritional products to make it easy for consumers to recognize This helps the user tothink of a reddish-colored drink that will be Ovaltine

Ovaltine launches 2 products that available in

a variety of product capacities This helps customers enjoy more flexibility It also helps Ovaltine compete with other vendors in the market

Nestle puts a reasonable price tag that is not

too different from the other products in the

same field of work

The price of Ovaltine is cheaper than most other nutritional drinks, which affect consumers’ choice for nutritional drinks With promotion, Netsle has brought Ovaltine uses advertising such as TV ads,

consumers with high quality and friendly

nutrition products which resulted in the 90%

market share of Milo in Vietnam market

(Thang Nguyen, 2018)

posters, and gift-giving events when customers purchase a certain amount of Ovaltine This helps increase the interaction between customers and products as well as increase brand reputation throughout Vietnam

3 THE DEVELOPMENT AND EVALUATION OF THE NEW MARKETING PLAN

3.1 Company overview

Ovaltine is a product of FrieslandCampinaVietnam (FV), a joint center company established in Vietnam in 1995 Known as Dutch Lady from 2002 and changed in to FrieslandCampina

Vietnam in 2009

Development process of FrieslandCampina Vietnam

FV’s mission is “To improve the lives of the people in Vietnam “

FV wants their spirit of “responsible living” to be spread and becomes a business’s culture, an annual activity and a strong commitment for the belief of all businesses, partners, communities and society

3.2 The analysis of current marketing situation

SWOT analysis is used for a comprehensive view at the current marketing situation of Ovaltine

Strength

Ovaltine is innovative in their strategy and product They also have good positions for their factories, convenience for distributing products Finally they also have a good range of full-time staff

Threat

Many competitors both in the beer industry and milk industry from both foreign and domestic and the tax for beer rose to 65% in 01/01/2018 (TuQuyen, 2017)

3.3 New marketing objectives

For the new marketing plan, 2 new objectives are developed:

1 Create the image for Ovalbeer

- Upload video to run ads on popular platforms such as Youtube, Facebook, Instagram, etc

- Organize promotion events and make use of special events like Tet Holiday

- Organize trials for people around office areas like VTC building on Tam Trinh street as the building has 20 storages of offices and 1 storage for game center, on Le Van Luong street where there are a lot of offices and families can also open small trials street

vendors

- Provide instinctive for the product

2 Start bringing back revenue after 1 year

- Distribute the products in as many stores as possible in order for it to become a FMCG

- Open stores for Ovalbeer products with lower price to promote the brand

- Create website to order Ovalbeer

 To deal with sleeping difficulty and appetite control: Having a great source of Vitamin B, the product can help adults and kids who have sleeping difficulty due

to stress with its large amount of Vitamin B and for small children, the drink helpsthem to have a better appetite especially for children who have Anorexia

nervosa

With the new product, another benefit is added to the behavior segment:

 To enhance the digestion: Nowadays, in many big cities, not only kids but many young adults are also suffering from Dyspepsia due to the great amount of

pressure each individual has to deal with and with that amount of stress passing from times to times (Xuân, 2017) With Ovalbeer, users will feel better and have amore enjoyable meal than before

Geographic

Ovaltine’ products are available in many big cities like Hanoi, Ho Chi Minh, Da Nang and

in other well-developed area of Vietnam but can only be found in certain supermarket, convenience and grocery store

For the previous line of products (Nutritious Ovaltine-Malted chocolate flavor beverage), buyers are Mom who wants their small children (age 3 and above) to have enough nutrition for their growth and for teenager (age 13 and above) who want to have

everyday power and nutrition

For Ovalbeer, the information is listed at the Tactics and action.

Psychographics

 Parents who are worried about their children health

Ovaltine is quite affordable and can provide healthy nutrition with just a small amount: 110ml pack with a recommend use of 3 packs per day and 180ml pack with 2 packs per day Moreover, Ovaltine Vietnam has 2 packet products: Nutritious Ovaltine-Malted chocolate flavor drink with new ingredient for teenagers and above, the other one is Nutritious Ovaltine-Malted chocolate flavor drink with DHA+ for small children that aimed

at parents (especially mother) who look after their children

 People who have a busy life

Ovalbeer and Ovaltine is the optimal choice for people who have to do a lot of study, people who have to spend most of their time working or for busy mums who have to lookafter their small children and want to refresh themselves after a hard working day

 People who into chocolate flavor drinks

Ovaltine is a combination of rich and smooth Swiss chocolate with malt extract that guarantee a delicious and nutritious drink for chocolate-lovers

For the new product, the chocolate flavor segment is replaced with three new

psychographic segments:

 People who either into drinking beers or want to give it up

Ovalbeer is a fermentation beverage that retains the unique flavor of beer and has a low level of alcohol (0.2 %) will satisfy any picky beer lovers

 People who want to improve their appearance

Having many type B vitamins like: B1, B12 and B6 plus mineral like iron zinc and

calcium, it benefits consumer with a healthy and good looking skin, thus, offering a nice body shape

 People who are concerned with their health

Ovalbeer is a fermentation beverage that has natural enzyme, Amino-acetic acid and other B type vitamins in which could enhance the digestive system of many who have to suffer from anorexia

2 Targeting:

Ovaltine follows the differentiated approach aims at serving a variety of market

segments and is the approach is designed with the purpose to classify offers for each different segment With differentiated marketing, company can achieve better sales and higher position but it will be costly compared to the undifferentiated approach In

particular, Ovaltine has 2 groups of customers: kids and teenager who need nutrition and enjoy malted drink with chocolate flavor However, as mentioned in the Opportunity factor of previous SWOT analysis about Vietnamese people are getting older, therefore, there are 2 new groups for the latest product: adults and middle aged adults who either are alcoholic or are under pressure of working and studying

positioning perceptual map is used

First launched in 2010, TH has been a well-known Vietnamese company specialized in dairy products that are available in many categories from fresh milk to ice cream By implementing high-tech in faring for both infrastructure and management software, TH has been providing its customers with high-standard products with affordable price (TH True MILK - True happiness, 2015) Moreover, living in an urban area, you can find TH’s product in each and every

Brand name

AvailabilityImage

Origin

supermarket and store, plus 250 TH True Mart that allocated across 56 provinces and cities in Vietnam (Huyền, 2018).

In contrast, Ovaltine, a brand came from Switzerland and for most Vietnamese, they have a perception that products from foreign countries are superior to domestic products, especially from Europe are highly recommended (VOV, 2016) Recently, people have been choosing Ovaltine Vietnam because of their latest campaign about a controversial issue in Vietnam that kids are supposed to have fun rather than winning and competing with each other as this

campaign aimed at the target customers of Ovaltine: kids and their parents (Việt, 2018)

4 TACTICS AND ACTION

The implementation of the new product requires some changes in the 7Ps analysis

Price OVALBEER is a product for adults from the age above 20 who have middle

to high income

The price for OVALBEER 500ml can is 30.000 dong and 250ml can is 15.000 dong

Place OVALBEER is considered as a light alcohol drink so this product also

available in the place which for adult like Bar, Pub, alcohol store

Promotion Provide customer a trial product at super market, store

Co-operate with famous influencers like Mr HoaiLinh, Mr.Tuan Hung and others by inviting them to using OVALBEER and become the representative

of OVALBEERProcess Separate production line will be installed for a natural barley fermentation

system with a special formula from the Frieslandcampina company headquarters in Switzerland

Physical

evidence

Packaging for OVALBEER is carefully prepared The product retains its distinctive red color with the name: OVALBEER in black and the slogan lines printed on the cans: good health - good life in red Cans are made of