Vindrink and new product business environment, brand positioning and product

VINDRINK AND NEW PRODUCT TRINH HAI YEN VINDRINK AND NEW PRODUCT Marketing assignment 2021 HANOI, 2021 TRINH HAI YEN 1 TABLE OF CONTENTS PART I – BUSINESS ENVIRONMENT, BRAND POSITIONING AND PRODUCT 2 1[.]

TRINH HAI YEN

VINDRINK AND NEW

PRODUCT Marketing assignment 2021

TABLE OF CONTENTS PART I – BUSINESS ENVIRONMENT, BRAND POSITIONING AND PRODUCT 2

1 ABOUT VINDRINK 2

2 MARKET OVERVIEW 5

2.1 Growth & trend 5

2.2 Competitor Analysis 8

3 REPLACEMENT PRODUCTS 11

4 DREAM™ OAT BEVERAGE PRODUCT CONCEPT 12

4.1 Dream™ Oat Beverage Original 13

4.2 Dream™ Oat Beverage Unsweetened 14

4.3 Dream™ Oat Beverage Oat Vanilla 15

4.4 Dream™ Oat Beverage Oat Chocolate 16

5 SWOT ANALYSIS 17

5.1 SWOT analysis 17

5.2 Overall Assessment 18

PART II - MARKETING MIX PROPOSAL 19

1 STRATEGIC OBJECTIVES 19

2 PROPOSALS 19

2.1 Product 19

2.2 Price 20

2.3 Place 21

2.4 Promotions 21

3 IMPLEMENT METHODS 22

3.1 Product design and implementation 22

3.2 Marketing of sales 22

3.3 Advertising 22

3.4 Market-testing 23

4 Recommendations 23

PART I – BUSINESS ENVIRONMENT,

BRAND POSITIONING AND PRODUCT

1 ABOUT VINDRINK

VINDRINK was established on May 29, 2017 Over the past 2 years, we have built a nationwide sales distribution system with all channels of GT, MT, KA, Pharma and a professional sales team in Vietnam Vindrink products’s is a big brands with good quality, they have received great attention and support from partners and customers nationwide

They are constantly striving and developing to become a leading unit in the import industry in Vietnam distributing beverage and confectionery products from Thailand, Europe, Austria, Indonesia distribution system in Vietnam, Vindrink brings to the market high quality imported products, well received by consumers such as Thailand Redbull energy drink, European Redbull energy drink, Carabao Thailand, Play Candy Thailand, Thai milk candy

Vindrink started participating in the FMCG market with Redbull energy drinks from Thailand, EU, and Carabao energy drinks Along with that is the constant development and expansion of the distribution system spreading across the provinces

in Vietnam and the launch of the Play Candy 5 fruit-flavored mouth candy product line that is receiving great support to consumers

In order to meet the demand and closer to consumers, not only with a

specialized logistics system, but Vindrink also builds a widespread and profession distribution system, therefore, the company's sales channel is covered nationwide with all General Trade channels (Modern Trade, Pharma, )

The enterprise affirms its long-term commitment with Vietnamese customers and distributors by creating sustainable core values on the basis of cooperation with a professional, dedicated and thoughtful sales team

The more customers that approach, the higher the demand for creativity and innovation The company has been exploiting potential sources from new products

Up to now, not only energy drinks or lozenges, the company has introduced two

To modernize the distribution system, improve employees' working efficiency, Vindrink has implemented a “great revolution” and officially signed a 6-month contract to deploy DMS software for distribution management solution Vindrink is developed by the MobiWork Vietnam Technology Joint Stock Company since 12/2018 With specific features such as:

 Automate the sales process: Order, process and manage orders right at the point of sale on mobile devices instead of having to write applications with books like traditional management methods

 Support customer visit process with mobile reports such as purchase history, debt management, inventory, out-of-market inventory or product information management, promotions, reports KPIs

 Optimizing the sales route, allocating the sales route for each employee, avoiding the case of overlapping routes, and the wrong lines

 Tracking location, time, moving route of sales staff on GPS digital map

 Manage sales support programs such as promotions, discounts, debts; POSM display, and management program

After more than 3 months of trial application of MobiWork DMS, the distribution

enterprises, MobiWork hopes to continue to accompany Vindrink on the path of developing a sustainable, efficient and flexible distribution network

2 MARKET OVERVIEW

2.1 Growth & trend

Vegetable milk - green consumption trend

Nut milk is currently a product group with a very fast growth rate in the world market According to recent data from Innova Market Insights, the global market for plant-based beverages increased to $ 16.3 billion in 2018, double the $ 7.4 billion in 2010 According to Nielsen, it is estimated that the global vegetable milk market will reach 11.9 billion USD in 2017 and will grow to 34 billion USD by 2024

In Vietnam, the trend to use nut milk is also increasing strongly According to the survey results in 2019, up to 66% of Vietnamese consumers want more products made entirely from natural ingredients Dairy alternatives such as soy milk, almond milk, rice milk, oat milk, coconut milk, cashew milk, will become increasingly attractive to consumers, with different needs depending on the region

According to statistics from the General Statistics Office, liquid milk production in the first quarter of 2020 reached 369 million liters, an increase

of 1% over the same period last year Liquid milk revenue in the 1st quarter

of 2020 reached VND 15.3 trillion Vietnam's liquid milk market has a compound annual growth rate of 14% in the period of 2014 - 2019 It is forecasted that liquid milk production in Vietnam will continue to increase

in the next few years due to capital investment in agriculture More and more dairy farms to reduce dependence on imported milk

In 2018, the domestic nut milk market accounted for 12% of the liquid

Domestic nut milk market revenue period Q1/2014 - Q1/2020

Source: VIRAC, TCTK

Source:VIRAC

The compounded growth rate of replacement milk has tended to decrease gradually since 2013 but is the only product line with a steady and steady increase in CAGR from 2016 onwards when consumers' demand for these products Vegetable dairy products increased following comparative information on nutritional levels for animal milk lines It is forecast that in 2018-2022, the compound growth rate of replacement milk will reach 15%, the highest among traditional milk lines

Source: VIRAC, Euromonitor

Currently, the source of raw materials for the production of seed milk is limited Raw material inputs for plant milk such as Macca nuts, walnuts are not enough to meet domestic quantity, almost 100% of foreign raw materials are imported

As for input supply, Macca farms have been planted in the Central Highlands for more than 10 years, the planted area has reached nearly 2,500 hectares and is rated for good quality However, it is still not able to meet the demand for raw materials for domestic production The milk lines currently produced in Vietnam, with ingredients mainly from walnuts, almonds, and red beans, must also be imported mainly from farms in the US Vietnam's raw milk seed industry is still in its infancy and has to step by step standardize it to improve the quality of orchards as well as seed quality

2.2 Competitor Analysis

2.2.1 Direct Competitors

(1) Vinamilk seed milk

Vinamilk is a major brand name in Vietnam In recent years, vinamilk expands its products with "made in Vietnam" nut milk, including: walnut soybean milk, almonds and red beans Vinamilk nut milk products are self-contained according to European standard technology with selected 100% non-GMO raw materials, as well

as premium walnuts and almonds imported from the US The product is invested in research and development to both "standardize" nuts and meet the quality and nutritional requirements of consumers

 Competitive strategy for product quality: "Clean milk - 3 no - raising dreams"

 Objective: Build a sustainable brand

 Strength & Weakness:

- Strengths: successfully built the first European-standard organic dairy

farm in Vietnam Here, the cow herd is cared for with Europe's non-strict Organic 3 standard, with organic grass without pesticides, the cows are naturally stocked, without using growth hormones, ensuring fresh milk 100% pure with no antibiotic residues, for the freshest and purest milk In addition, vinamilk aims at mothers and babies, understands their psychology and makes positive contributions to sustainable social development activities in Vietnam Initiation of the program "Vietnamese school milk"

- Weaknesses: Depends on imported raw materials, so production costs are

affected by exchange rate fluctuations In addition, the cost of advertising, market research, and sales support for agents is huge

(2) TH true milk seed milk

TH milk is a new milk brand that has just entered the market with TH true milk at the end of March 2018 Originated from the desire for a strong stature of Vietnam and wants all Vietnamese people, especially is the generation of children who enjoy high-quality dairy products with high nutritional value TH true NUT milk includes 2 types: TH true NUT of the macca seeds and TH true NUT walnuts Considering the name, the first ingredient in the milk box is the macca nuts, walnuts Walnuts are imported from US farms, while macca nuts are imported from Australia, South Africa and partly purchased from farms and growing regions in Vietnam

Competitive strategy for product quality All products go from the mentality

of "cherish mother nature, who will give everything to yourself", opening a new path for the Vietnamese milk and beverage market

 Objective: expand market share, increase market share

 Strength & Weakness:

- Strengths: TH owns TH owns a clean milk processing factory TH with a

design capacity of more than 5000 tons / year (in Nghia Binh commune, Nghia Dan district, Nghe An province) This is Asia's largest and most modern dairy production and processing factory in terms of size and technology In addition, TH True Milk has an extensive product distribution system, which understands the consumer culture of customers,

so it offers diversified and high quality products

- Weaknesses: Prices are high compared to dairy products in the market

(3) Sahmyook Foods

As the leading nutritional food brand in Korea, established in 1974, it is famous for its nut milk made with black beans, walnuts, almonds, and it is also the best-selling product in the Vietnamese market

Competitive strategy for product quality: “A better life trough a better nutrition”, always strives to bring the best product to improve public health

 Strength & Weakness:

- Strengths: high nutritional content, products suitable for many ages:

children, pregnant mothers, the elderly or those who often have to work hard

- Weakness: high product cost, no small distribution channels, only at large

supermarkets and Vinmart

(4) Australia's own organic

A brand from Australia famous for its product lines from organic foods With nut milk, the types of songs chosen for making milk are organically grown in Australia - ensuring quality and safety for users

 Strength & Weakness:

- Strengths: The line contains many nutrients with no added cane sugar, no

gluten and no lactosse, which is very healthy

- Weaknesses: the product line has a high price of 170,000 VND / box.liter,

not popular in distribution channels in Vietnam Only available in certain stores within Hanoi and HCMC After opening the lid, customers can drink directly and store in a cool compartment, maximum storage for only 5 days

(5) 137 degrees

Is a Thai brand famous for its 137 degree C "magic" milk processing technology in 2 seconds This state-of-the-art technology helps to preserve the precious nutrient content in seeds, protect most nutrients including caffeinated and protein, which are far from the methods of making "homemade" seed milk

 Strength & Weakness:

- Strength: a variety of different types of milk suitable for customers' tastes:

almond milk, walnut milk, cashew milk, pistachio milk, nice design, convenient packaging The price is cheap compared to imported seed milk: 90,000 VND / box / liter or a pack of 3 boxes of 180ml: 70,000 VND

- Weakness: no small distribution channels, only at big supermarkets Not

widely available to Vietnamese consumers

2.2.2 Potential Competitors

Some major beverage companies like Coca Cola are intending to enter the healthy dairy market and they are also eyeing the Vietnamese market If competitor Coca Cola participates in, it will be a big competitor to Vindrink because of its extensive distribution system, large headquarters, and confidence in Vietnamese consumers

3 REPLACEMENT PRODUCTS

In fact, dairy products have always had a fairly stable position on the market with very few other substitutes due to the characteristics of milk as an essential nutritional supplement For dairy products in general and seed milk in particular, the substitutes that have the potential to reduce the company's market share are grain milk, soya milk, cereal drinks or milk-containing beverages It is possible that the dairy industry is less exposed to risks from alternative products

4 DREAM™ OAT BEVERAGE PRODUCT CONCEPT

Oat: A Superior Grain

“Dream Oat Beverage transforms one of nature’s

ancient grains to give you the rich and dreamy taste you

crave, with vitamins and minerals your body needs

Dream Oat is a creamy beverage that has even dairy milk

drinkers coming back for more Our simple ingredients

and rich, creamy taste make it a pantry favorite Dream

Oat’s creamy sweetness is delightful swirled into your

morning coffee, poured over cereal, added as a smoothie

base, or drank on its own for a rewarding treat.”

Health Benefits

- Excellent source of Calcium, Vitamin D and Vitamin B12

- Higher in fiber vs cow’s milk, almond and soy

- Nut, Soy, Dairy Free & Lactose Free

- Non-GMO Project verified

- Easy to digest

- Kosher

4.1 Dream™ Oat Beverage Original

INGREDIENTS

OAT BASE (WATER, OATS),

SAFFLOWER OIL, CALCIUM

VITAMIN D2, VITAMIN A

PALMITATE, VITAMIN B12,

TRICALCIUM PHOSPHATE

4.2 Dream™ Oat Beverage Unsweetened

INGREDIENTS

OAT BASE (WATER, OATS),

SAFFLOWER OIL, CALCIUM

CARBONATE, SEA SALT,

VITAMIN D2, VITAMIN A

PLMITATE, VITAMIN B12,

TRICALCIUM PHOSPHATE