Final exam assignment vinamilk’s black sugar pearl love yoghurt marketing plan

The Financial University of Finance – Marketing The Marketing Department FINAL EXAM ASSIGNMENT VINAMILK’S BLACK SUGAR PEARL LOVE YOGHURT MARKETING PLAN Course Name Marketing Management Course’s code 2[.]

YOGHURT MARKETING PLAN

Course Name: Marketing Management Course’s code: 2021702006006

Team’s members names and IDs: Trần Trọng Hiếu – 1921005431

Huỳnh Ngọc Anh Thư – 1921005676

Lương Ngọc Mai – 1921005518

Team’s Class: CLC_19DMA16

Hồ Chí Minh City, 2021

Table of Contents

TABLE OF FIGURES 4

TABLE OF PICTURES 4

1 EXECUTIVE SUMMARY 5

2 INTRODUCTION 6

2.1 Mission Statement 6

2.2 Strategic Objectives 6

3 S.W.O.T & MACRO-ENVIRONMENT ANALYSIS 7

3.1 S.W.O.T Analysis 7

3.1.1 Strengths 7

3.1.2 Weaknesses 7

3.1.3 Opportunities 8

3.1.4 Threats 8

3.2 Possible Strategies 9

3.3 Macro-environment Analysis 10

3.3.1 Political environment 10

3.3.1.1 Opportunities: 10

3.3.1.2 Threats: 10

3.3.2 Economic environment 10

3.3.2.1 Opportunities 10

3.3.2.2 Threats: 10

3.3.3 Social environment 10

3.3.3.1 Opportunities 10

3.3.3.2 Threats 11

3.3.4 Technological environment 11

3.3.4.1 Opportunities 11

3.3.4.2 Threats 11

3.3.5 Enviromental condition 11

3.3.5.1 Opportunities 11

3.3.5.2 Threats 11

3.4 Competitors 11

4 S.T.P ANALYSIS 11

4.1 Segmentation 11

4.2 Targeting 12

4.3 Positioning 12

5 MARKETING MIX STRATEGIES 13

5.1 Product activities 13

5.2 Price activities 14

5.3 Place activities 14

5.4 Promotion activities 15

6 ACTION PLAN 16

7 CONCLUSION 17

7.1 Marketing Plan Summary 17

7.2 Control Plan 17

7.3 Further growth of the company 17

8 LIST OF REFERENCES & ORGINALITY 18

9 APPENDIX 19

9.1 Financial 19

9.2 Expense budget 20

10 APPENDIX: MEMBER’S GROUP WORK ASSESSMENTS 21

TABLE OF FIGURES

Table 3.1: S.W.O.T Analysis & Strategies 9

Table 9.1: Break-even analysis table 19

Table 9.2: Marketing Plan Milestones 20

TABLE OF PICTURES

Picture 2.1: Vinamilk’s Logo 6

Picture 4.1: The perceptual map of yoghurt product line in Viet Nam market 13

Picture 6.1: Marketing plan timeline for the Black sugar pearl Love Yoghurt ofVinamilk 16

1 EXECUTIVE SUMMARY

In this modern busy life, when people have to work continuously, they have to study toprepare for the incoming event in their life, for their family, friends, etc especially in therecent Covid-19 pandemic, where the economic suffered greatly, living condition aregetting worse to every family, etc But in the end, health are the only thing that matters themost in every person’s life If a person is not in a good condition, their immune systemsare weak, physical strength is not enough to move themselves, etc then it is verydangerous for them because of the variety of diseases, especially in these days, whereCovid-19 could kill people For that reason, we must prepare ourselves a planned diet, wemust choose our food carefully and drink water daily to enhance our health With that inmind, one the best food to improve our health is yoghurt A product made from milk,which was fermentated to create bacteria that support the digestive systems,supplementing zinc and calcium for humans This product have been produce and used allover the world since a very long time ago, it has been created under many kinds of styles,flavour, etc from a large variety of dairy companies in this world And in Viet Nam, there

is a company specializing in manufacturing and trading milk with other dairy products aswell as related equipment and machinery that existed for a long time and was trusted by alarge amount of people in Viet Nam It’s the Vinamilk company Vinamilk has producedmany types of yoghurt products over the years, and in those yoghurt products we see apotential product that can greatly help Vinamilk grow in the future, which is the Blacksugar pearl Love Yoghurt In this report, we will focus on providing: an overview of thecompany, the mission statement of this marketing plan, specific objectives to implement

in the first year, then we will conduct a S.W.O.T with macro-environment analysis,followed by an STP analysis, marketing mix, and a specific action plan with a cleartimeline and a financial forecast The final section will be summarizing the whole planand discuss on the control plan for the first year

2 INTRODUCTION

Vinamilk, in full is Vietnam Dairy Products Joint Stock Company Vinamilk was

Vinamilk’s logo:

Picture 2.1: Vinamilk’s Logo

Vinamilk has business activities in processing, manufacturing and trading dairyproducts These products are not only sold domestically but also in some other countries

in the world market such as Cambodia, Philippines, etc

Increase sales of the Love Yogurt product line by 1.5% through the Black sugar pearl

2.2 Strategic Objectives

3 S.W.O.T & MACRO-ENVIRONMENT ANALYSIS

3.1.S.W.O.T Analysis

3.1.1 Strengths

- Famous brand: Vinamilk is a company that has existed for 34 years in Vietnam

and is well known in Vietnam and many countries around the world

- Marketing is highly effective: Advertising, PR, and Marketing programs are

highly effective

- Great and experienced leadership and management: Vinamilk has a strong,

experienced and ambitious leadership team proven by sustainable business profits

- Leader in pricing products in the market: In Vietnam, Vinamilk holds a large

market share of 37%, of which 85% is in condensed milk and yogurt

- A wide diversity of products: There are 8 types of yogurt for people with

different interests: in addition to Vinamilk Yogurt, there are Ong Tho

condensed milk, Pasteurized drinking yogurt,

- Low price but high quality products: Product price is cheaper than imported

products of the same type, but still retains high quality

- Nationwide distribution network: Vinamilk now has a wide distribution

network in 64 provinces, more than 250 distributors and more than 135,000 sales pointsnationwide This large network helps Vinamilk capture a large number of customers andensure the introduction of new products and effective marketing strategies across thecountry

Germany, Switzerland, and Italy to be used in production lines

In addition, the company also invests in building Organic dairy farms to support milkproduction

2020, Vinamilk achieved a total revenue of VND 59,723 billion (the highest revenue in theVietnamese dairy market)

3.1.2 Weaknesses

- The source of raw materials still depends on foreign countries: domestic raw

materials only meet about 30% of production needs, while 70% are imported

from New Zealand, the US, the EU and Japan Therefore, input costs increase and product prices also increase.

3.1.3 Opportunities

- Support from the government: According to the policy of WTO, import tax on

dairy materials is reduced, this is an opportunity to reduce production costs while importedmilk powder sources account for 75%

- High consumer demand: Along with economic development, consumers are more

interested in health, and dairy products are consumed more The dairy industry is in a growthphase, so Vinamilk has a lot of potential for development

- High potential customer force: The trend of "Vietnamese people use Vietnamese

products" to help dairy products be promoted first has increased the competitiveness ofdomestic dairy companies, including Vinamilk

- Impact of the Covid-19 epidemic: With the Covid epidemic, people will buy a lot

of food such as noodles and milk for storage This will be an opportunity for Vinamilk toaccelerate dairy products

3.1.4 Threats

- Many Competitors in the market: The force of domestic competitors is

increasing, in addition, Vinamilk also has to compete with big brands in the world such asNestle, Dutch Lady,

- Unstable input materials: The dairy industry in Vietnam is currently mainly

households, not earning much profit, but also being pressured by raw material buyers Rawmaterials are mainly imported from abroad

3.2 Possible Strategies

Table 3.1: S.W.O.T Analysis & Strategies

foreign countrieseffective

S3: Great and experienced

S.W.O.T Analysis for leadership and management

products in the marketS5: A wide diversity ofproducts

S6: Low price but highquality products

S7: Nationwide distributionnetwork

capacity

technology

customer force

during the epidemic

O4: Impact of the Covid-19

epidemic

the market

materials

materials

3.3.1.2 Threats:

enforcing competition law against unfair competition acts is not really effective

the content of substances that cause difficulties for dairy businesses

3.3.2 Economic environment

3.3.2.1 Opportunities

Investors are increasingly interested in ESG (environmental, social, governance) wheninvesting in dairy companies Therefore, dairy companies have started to diversify theirproducts

3.3.2.2 Threats:

demand was negatively affected by the epidemic and the average income of workersdecreased by 2.3% (GSO) Accordingly, the FMCG industry recorded a decrease of 7% invalue, and the dairy industry alone decreased by 6%

3.3.3 Social environment

3.3.3.1 Opportunities

consumption increased => is a potential and developing market According to the Ministry ofIndustry and Trade, by 2015, the domestic market will consume about 1.3 billion liters ofliquid dairy products, equivalent to 15 liters/person/year

nutrition products, health care, with beauty effects

3.3.5 Enviromental condition

3.3.5.1 Opportunities

Vietnam's climate has hot and humid monsoon conditions, but there are temperateclimates such as Tuyen Quang, Lam Dong, Ba Vi, etc., which are especially suitable forgrowing grass for high quality, raising dairy cows with productivity

3.3.5.2 Threats

The climate is unfavorable for storage and processing which affects milk quality

4.1.Segmentation

Our team segments the market by the life cycle, buying decisions and mainly by age.Ages from 5 to 14: this is the age when children enter the development stage, this ageneeds a lot of food and drinks to supplement nutrition for the body, serving the process oflearning and playing

Age 15-25: at this age, consumers will mostly be autonomous in their purchasingdecisions, they will choose the right product lines for themselves, usually vibrant andyouthful.

Age 25 and up: They will tend to use nutritional products, supplement calcium for thebody In addition, they also use yogurt to improve the digestive system and take care ofbeauty

Now group will present the perceptual map of the yogurt line in the Vietnamesemarket The position of each brand is positioned through two dimensions: price andquality The size of each logo will be equivalent to the market share captured

Picture 4.1: The perceptual map of yoghurt product line in Viet Nam market

With the above positioning map, it can be seen that Vinamilk brand holds the largestmarket share in the Vietnamese yogurt market Along with that, Vinamilk's yogurtproducts are in the higher price segment compared to Yakult and TH True Yogurt andlower quality than Acti-V of NultiMilk and Yakult However, with Vinamilk's currentposition, users will still trust the product thanks to its reputation and quality from past topresent

5 MARKETING MIX STRATEGIES

5.1 Product activities

Product’s name: Black sugar pearl Love Yoghurt, was first introduced to the Viet Nam

(12%) and other additives to ensure the great taste of the black sugar pearl and consumers’health Yoghurt gas a shelf life of 45 days since the manufacture date and is packed in 1pack of 4 boxes with a weight of 400g This product contained in a special HIPS plasticcontainer for food and meets food hygiene and safety requirements according to QCVN12-1:2011/BYT In addition, the product has been tested for medical safety at the Institute

of Public Health in Ho Chi Minh City on March 30, 2021

The Black sugar pearl Love Yogurt will provide customer with these outstandingfeatures:

 The soft, flexible pearls make it enjoyable to chew.

With those amazing feature of the product and the characteristics of our targetedsegment ranging the age between 15 and 25, who love to explore new things and love toenjoy the experiences, the Black sugar pearl Love Yoghurt will definitely provide the bestexperience to the customer Not only that, with the growing trend of teenagers consumingbubble milk tea recently, this product will help diverse the scale of the milk with sugarpearls on the market

However, after Vinamilk has introduced on the market for 2 months, it seems like notmany consumer come to take interest in this product As this result in the low profit of theproduct to the company After doing some research discovered that the Black sugar pearlLove yoghurt had some issue with the taste and quality not reaching the standards of thecustomer Specifically, in some reviews, customers have complaints about the unscentedscent, sharp sweetness and some products appear water separation, negatively affectingthe quality promised by the product bring to consumers

With that in mind, our team decided to propose about the the decision of improveproduct quality by using advanced machine technologies to overcome the above-mentioned product conditions

5.2 Price activities

Black sugar pearl Love yoghurt products are currently sold at prices ranging from VND33.000 - VND 35.000, but now the product is not bought much compared to similarproducts, showing that this price is not suitable, need to be adjusted

For that reason, the group will propose to adjust the product price of VND 34.000 andorganize a short-term price discount of VND 30,000 per pack for about half a month,specifically on the last 2 weeks of September 2021 and the first 2 weeks of May 2022

5.3 Place activities

Currently, Vinamilk only distributes at Vinamilk's own agents and large supermarketAeon centers With this makes it difficult for consumers to reach to buy the product

The group recommends the following ideas:

stores, local retail stores, wholesalers, etc

customers faster, saving time for the company and for customers

-Sign contracts with familiar distributors to sell products and pay commissions when they reach sales in the month and year

5.4 Promotion activities

which leads to a lack of information and product identification to consumers

as follows:

make it easier for followers to aware about the product faster

on the links of kols, they will get a discount

pearl Love yoghurt” in November of 2021 and January of 2022

the team surveys to

will collect customers

surveys and who have

discuss on used the

how to product on

improve the the fanpage

product and directly

on media platforms, and hire influencers and KOLs to review products and give them disocounts.

Begin at 1

st

Sep 2021, introduce new improved products to the market

Picture 6.1: Marketing plan timeline for the Black sugar pearl Love Yoghurt

of Vinamilk

7 CONCLUSION

7.1 Marketing Plan Summary

With the mission of increasing sales of the Love Yogurt product line by 1.5% throughthe black sugar pearl yogurt, the team has analyzed the company's strengths, weaknesses,the opportunities and threats that the company might face from the market Afteranalyzing S.W.O.T, the team came up with a number of strategies that can be applied toVinamilk Next, the team conducted STP analysis and selected the segment of the agegroup from 15-25 years old to be the target segment and located Vinamilk's black sugarpearl yogurt product on the positioning map to identify the target segment the direction to

go for this plan and the company in the long-term Completing the company analysis andpositioning the company, the team proceeded to develop the marketing mix includingproduct activities, price activities, place activities and promotion activities Afteranalyzing the marketing mix strategy, the team proceeded to plan the implementationfrom June 24, 2021 to June 24, 2022

The purpose of Vinamilk’s marketing plan is to serve as a guide for the

organization The following areas will be monitored to gauge performance:

7.3 Further growth of the company

With this marketing plan, we hope to able to use as the reference for the later plan of the company