(Tiểu luận) marketing report topic marketing strategy of vinamilk

Established in 1976 with the mission set out "Vinamilk iscommitted to providing the community with top quality and high-quality nutrition with its own respect, love and high responsibili

NATIONAL ECONOMICS UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

Student full name : 1 Vu Nguyen Khuong – DSU06038

2 Thai Ba Quang – DSU06055

3 Tran Khoi Nguyen – DSU06050

4 Nguyen Anh Kiet – DSU06037

5 Ngo Phuong Thao – DSU06062

6 Doan Diem Quynh – DSU06056

HaNoi - 2022

OVERVIEW 1

EXTERNAL FACTORS 3

I: MICRO ENVIROMENT : MARKET ANALYSIS 3

1 Customer Behaviors 3

2 Market Trends 4

3 Market size 5

4 Market growth 5

5 Competitors analysis 6

6 Business environment 6

7 Industry Environment 8

II MACRO ENVIROMENT: PESTEL ANALYS OF VINAMILK 9

1 Political Environment 9

2 Economics Environment 9

3 Social – Cultural Environment 10

4 Technological 10

INTERNAL FACTOR: COMPANY 11

1: Human resources 11

2: Economic and financial resources 11

3: Machinery and equipment 11

MARKETING PLAN IN THE NEXT 3 YEARS 12

I: Marketing Vinamilk by STP (Segmentation, Targeting, Positioning) 12

1 Segmentation 12

2 Targeting 14

3 Positioning 15

II: Marketing Mix of Vinamilk 17

2 Price 18

3 Place 19

4 Promotion 21

OVERVIEWI: INTRODUCTION ABOUT VINAMILK

Vinamilk is Vietnam's largest food processor and deals in a wide variety ofdairy products, including milk and yogurt It is said to account for about 50% ofVietnam's dairy market Established in 1976 with the mission set out "Vinamilk iscommitted to providing the community with top quality and high-quality nutrition

with its own respect, love and high responsibility for human life and society" https://www.vinamilk.com.vn/vi/ve-cong-ty

II: DEVELOPMENT STRATEGY

Maintaining the No.1 position in Vietnam market and aiming to reach the Top

30 of World’s Largest Dairy Companies in terms of revenue, Vinamilk hasidentified a development strategy with three main pillars for execution, including:

BECOME ONE OF THE 30 LARGEST DAIRY COMPANIES IN THE WORLD

- LEADING IN HIGHLY APPLICABLE INNOVATIONS: Focus on dairyindustry and dairy related products, which is the core business that has establishedthe Vinamilk brands Continue to R&D to develop more new products withinnovations; expand and diversify portfolio based on consumers’ preferences anddemands; as well as bring various and convenient experiences to them

- CONSOLIDATING THE LEADING POSITION IN THE VIETNAM’SDAIRY INDUSTRY: Prioritize to exploit the domestic market which still has greatgrowth potential Promote more high-end and added value products, especially inurban areas Penetrate and cover rural areas with mainstream products that growthpotential is large Continue to build a large and strong domestic distribution system,increase market share and maintain Vinamilk’s leading position in the market

- BECOMING THE MOST VALUABLE DAIRY COMPANY IN THESOUTHEAST ASIA: Be ready for M&A activities and expand strong cooperationwith partners in all three directions of horizontal, vertical and combined integration;Prioritize to seek M&A opportunities with dairy companies at other countries for

new export markets with the strategy of converting the traditional goods exportmodel into types of deep cooperation with the distribution partners in new keymarkets.

https://www.vinamilk.com.vn/en/development-strategy/

III:VISION

“Becoming the leading symbol of trust in Vietnam about nutrition and health

products serving human life” https://www.vinamilk.com.vn/en/about-us/

IV: FINALCIAL GOALS

- Vinamilk's revenue is expected to continue to grow at 7.7%/year

- Towards the goal of becoming one of the Top 30 largest dairy companies inthe world in terms of revenue

Vinamilk: Thận trọng với mục tiêu tăng doanh thu 7%/năm (24hmoney.vn)

EXTERNAL FACTORSI: MICRO ENVIROMENT : MARKET ANALYSIS

1 Customer Behaviors

a Cultural factor

- Culture: Vietnam is not a country with a tradition of milk production andconsumption, so the majority of people do not have the habit of consuming milk everyday In addition, compared with other foods and the income of most families inVietnam, especially in rural areas, the price of dairy products in Vietnam is still quitehigh

- Social class: The existence of social classes and classes is an inevitableproblem of society People with high social status and high income will choose themost expensive and quality dairy products for themselves, and those with lowersocial status will choose suitable products for their income With a long-termreputation of more than 10 years, Vinamilk milk has gained the trust of consumersnot only in price but also in product quality with the current human developmenttrend Customers buy Vinamilk milk from all walks of life They choose Vinamilkbecause it has high quality, reasonable prices, and is the leading dairy company inVietnam With a wide distribution channel throughout Vietnam, Vinamilk dairyproducts are present in all supermarkets and grocery stores from the big city tovillages

b Social factor

- Reference groups:

 Groups of influence directly and often include family, friends, neighbors, andco-workers When the people around you trust and regularly use Vinamilk'sproducts, you will tend to learn and use those products

 Influential reference groups less often include organizations, groups, andassociations they have an important role in orienting a new way of life, new

attitudes, and new perspectives The frequency and amount of milk used daily canalso be affected by them.

- Family:

 Some people usually use the things buyed by their family members,especially, children who use dairy every day If their parents give them a dairy, theywill use it directly without choosing the brand as a habit

- Personal factor:

 With the different stages of age and personality, there will be different types

of dairies for them

 For children, most parents give them milk every day as a side meal

 For some young people, they have a preference for drinking milk because

of the benefit, taste and convenience of the milk, they can drink milk as breakfast

 Some people can be attracted by an interesting advertisement movie, andthey want to try the products in this movie

 Some people will check the ingredients before buying or using a dairy,whether it is suitable or not

2 Market Trends

- According to market developments, the dairy industry is restructuring,although domestic dairy brands such as Vinamilk are still dominating the market(43.3% in 2021) but competitive pressure from foreign brands is still a problem.Existing externalities such as EVFTA will eliminate the tax rate of 5-20% for

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enter Vietnam Therefore, exports will become an important channel to promotegrowth, of which China is one of the potential markets Currently, domestic dairycompanies have officially exported to China, including Vinamilk.

- Domestic consumers are more and more concerned about the origin of rawmaterials as well as the origin and safety of dairy products Therefore, they oftenchoose dairy products produced directly from fresh milk over reconstituted milkproducts or products with additional nutritious ingredients such as: fresh milkcontaining bird's nest, milk from other ingredients, seeds,

USD and increasingly affirmed the brand and reputation of Vietnamese milk in theinternational market.

5 Competitors analysis

a For internal market:

- Dutch Lady is a dairy brand from the Netherlands, although "joined" late and

is playing away, this brand quickly asserted its position not inferior to Vinamilk inthe Vietnamese market Over the years, Dutch Lady has continuously launched newcompetitive strategies to challenge rival Vinamilk

- TH True Milk is considered a bold and ambitious competitor Since itsinception, this brand has set a target of capturing 50% of Vietnam's dairy marketshare by 2020 This ambition is completely grounded by a series of extremelydrastic investment strategies of TH True Milk

- If Dutch Lady 1-on-1 with Vinamilk's products, TH True Milk decides tofight in the fresh milk segment, then Nutifood is Vinamilk's No 1 competitor in thepowdered milk segment

- Nutifood is famous in the ready-to-drink milk powder segment, especiallyformula milk for specific target groups such as stunted children and the elderly Thisbrand has for many years ranked in the top market share of powdered milk in theVietnamese market More importantly, Nutifood has an extremely affordable price,10-15% lower than Vinamilk This is the pedestal for this brand to become a big riskfor Vinamilk in the popular segment

b For external market:

In other countries, domestic milk sources are also very diverse Moreover, thetaste of Vinamilk milk, based on the taste of Vietnamese people, is completelydifferent from the taste of foreigners (although there has been a change in taste tosuit foreign users), it still creates a difficult barrier for Vinamilk in penetrating theforeign milk market to compete with their domestic milk companies

a The problem of Vinamilk's product consumption market

- Vietnam currently possesses an extremely large population of more than 97million people, which is considered a growth rate that is too large Therefore, thedairy market is also growing This is also one of the opportunities for Vinamilk toincrease its market share and dominate the market more

- Next is the issue of urbanization as well as population distribution This isalso the issue that Vinamilk is currently paying a lot of attention to because thepercentage of the measurement of urbanization has reached the threshold of nearly40% and with that is the price that has increased much higher

b The problem of Vinamilk's competitiveness today

- Not only Vinamilk, but every business also has different competitors anddifferent strengths and weaknesses

- According to reports in recent years, Vinamilk is currently leading andholding the highest market share in the dairy market in Vietnam with more than65% market share and this number is still showing signs of increasing

- Not only that, Vinamilk also has to compete a lot with other competitors thatare cereal flour, nutritional drinks, fermented yogurt, mineral supplements, etc.These are all cockroach competitors continue to Vinamilk

c The element on customer

- Customers are the deciding factor should a business succeed and develop ornot, not only Vinamilk but all businesses

- The customers updated on the topic here are individual customers andcorporate customers, large and small agencies More specifically, work, businesses,and Vinamilk are currently under a lot of pressure from customers for both price andproduct quality today Therefore, Vinamilk constantly changes, adjusts to improvegoals, and gives customers the best possible service experience with its productsnow and in the future

that is the limitation applied to by-product pricing which is also very reasonable andtechnical by researching to get what is the best for its customers.

7 Industry Environment

a Risk of Entry by Potential Competitors: For the dairy product segment,

the entry cost is not high, but the entry cost for yogurt or liquid milk products isquite high In addition, today with the strong development of multimediacommunication, Vinamilk will have to have many marketing plans and face manycompetitors with relatively high potential infiltration

b Rivalry among established companies: Although Vinamilk is leading the

dairy segment, it has faced many difficulties with smaller competitors such asNutifood, Dutch Lady and TH true Milk, Nestle These competitors are small butoften hit the market new products This is a big challenge in terms ofcompetitiveness for Vinamilk's product policy, which has become so familiar Inthe future, the Vietnamese dairy market will continue to expand, and the level ofcompetition will increase

c Bargaining Power of Customers: Vinamilk's customers include consumers

as well as wholesalers, retailers, supermarkets, distributors Because milk is anessential commodity needed for young children, pregnant mothers, the elderly, andthe sick … so, the price factor is not so important to consumers Therefore, thedairy industry can transfer disadvantages from outside suppliers to customers Thebargaining power of buyers is low

d Bargaining Power of Suppliers: Vinamilk has 4 dairy farms in Vietnam,

providing more than 50% of the company's raw milk, the rest is purchased fromsmall farmers The disadvantage of this supply is that farmers do not have good caretechniques, mainly spontaneous and amateur, so the quality of milk is oftenunstable Regarding powdered milk, because the facilities are not up to technicalstandards, it still depends on the supply from abroad With this supplier, Vinamilk is

in a passive position when it depends on taxes and changes in market prices

milk from nuts (soy milk, walnut milk, macadamia nut milk ) cereals, soft drinksmixed with milk However, it can be said that products from milk are often lessthreatened by substitutes due to their universality and necessity No matter howmany new drinks are born, dairy products and especially Vinamilk milk will never

Because Vietnam became a member of WTO and ASEAN, Vinamilk canconstruct processing factories in neighboring countries, and thus reducingproduction cost The government’s propaganda to increase average national heightleads to the growing perspective “Vietnamese use Vietnamese products” This is afavourable condition for domestic businesses such as Vinamilk to compete againstforeign brands To Vinamilk, it is also an opportunity to partner with governmentbodies to implement corporate social responsibility campaigns and reinforce itsbrand image as a responsible entity It can be said that governmental support hasfacilitated many Vinamilk’s projects, including both business-related andcommunity-related ones

2 Economics Environment

The Vietnam’s GDP trend increased day, it is a great opportunity for business Itmeans that the income and life will go up and the demand to spend money is high

It will effect on the price of Vinamilk product in market Vietnam is a member of WTO

is a big pressure for local business to compete another foreign competitor In addition,

it also helps the company to expand its business scales and attract more foreigninvestment Healthy market, higher income, and stronger consumption confidence lead

to significant changes in consumption trend According to Nielsen, customersnowadays are deeply concerned about health and inclined to purchase health products.Statistically, when it comes to health products, 32% tend to purchase milk Indeed,liquid milk is the second fastest growing section in nutritional products Withincreasing demand for high-quality milk, Vinamilk, certified by British RetailConsortium standard for food safety, has great opportunities to grow sales and expandits market

3 Social – Cultural Environment

Vietnam is a young population country; it will lead the consumption of milkproduct in market According to WTO, Vietnam's average income 1300 USD eachperson and the buyer in middle class is high Therefore, they are the importantcustomers that the company should focus on They will buy products not only forthem but also for their children The demand for improving health and beauty hasincreased so they need a product that can meet their satisfaction such as fresh milk.Not only committed to its own sustainability, Vinamilk is also dedicated to thesustainable development of society The company has organized strategic citizen-actionprograms with socialization purposes such as ‘Stand Tall Vietnam’ Milk Fund and ‘OneMillion Green Trees for Vietnam’ Fund 2014 was the 7th year of ‘Stand Tall Vietnam’Milk Fund In this program, Vinamilk partners with the National Fund for VietnameseChildren to give away nearly 23,5 million glasses of milk to 310,000 stunted children

in the country This program has been implemented this program in southern provincesincluding Lam Dong, Ben Tre, and several other provinces in the central

4 Technological

Milk Joint Stock Company Vinamilk is still the leading enterprises of the milkprocessing industry of Vietnam Vinamilk leaders always factor in science and