ESSAY PRINCIPLES OF MARKETING ANALYSIS OF BRAND MARKETING STRATEGY VINAMILK AND RECOMMENTDATION

Over 40 years of establishment and development, Vinamilk has been leading the dairy industry in Vietnam for many years and predicted to continuously keeping its firm position in the futu

Trang 1

ESSAY PRINCIPLES OF MARKETING

ANALYSIS OF BRAND MARKETING STRATEGY VINAMILK AND RECOMMENTDATION

Ho Chi Minh City - 2021

Teacher: Nguyễn Thị Minh Ngọc Students: 1 Lê Ngọc Như _ 2021008512

2 Phạm Lê Khánh Chi _ 2021008415

3 Nguyễn Thị Diệu Linh _ 2021008465

4 Nguyễn Ngọc Xuân An _ 2021008399 Class: CLC_20DMA08

Course code: 2021702032613

Trang 2

CONTENT 5

I INTRODUCTION 5

1.Summary 5

2.History 6

3.Awards and Achievement 7

4 Message of Vinamilk 7

II.THE MARKETING ENVIRONMENT 8

1.The macro environment 8

1.1 Demographic environment 8

1.2 Economic environment 9

1.3 Cultural environment 10

1.4 Political environment 10

1.5 Technological environment develop of technology 11

1.6 Natural environment 12

2 The micro environment 13

2.1.The company 13

2.2 Suppliers 13

2.3 Marketing intermediaries 13

2.4 Competitors 15

2.5 Customers 15

2.6 Publics 16

III.STP STRATEGY 16

1 Market segmentation and targeting 16

1.1 Geographic segmentation 16

1.2 Demographic segmentation 17

1.3 Behavioral segmentation 19

2 Positioning 20

IV MARKETING MIX STRATEGY 21

1.Product 21

1.1 Product mix 21

1.2 Product quality 23

1.3 Branding 23

1.4 Packaging 23

1.5 Product support services 24

1.6 Product life-cycle 24

2 Price 24

2.1.Pricing method 24

2.2 Price strategy 25

2.3 Price-adjustment strategy 26

3 Place 27

4 Promotion 28

4.1 Promotion strategy 28

4.2 Promotion mix 29

V RECOMMENTDATION 30

1 Product 30

2 Price 31

3 Promotion 31

4 Place 32

Trang 4

ESSAY.PRINCIPLES.OF.MARKETING.ANALYSIS.OF.BRAND.MARKETING.STRATEGY.VINAMILK.AND.RECOMMENTDATIONESSAY.PRINCIPLES.OF.MARKETING.ANALYSIS.OF.BRAND.MARKETING.STRATEGY.VINAMILK.AND.RECOMMENTDATIONESSAY.PRINCIPLES.OF.MARKETING.ANALYSIS.OF.BRAND.MARKETING.STRATEGY.VINAMILK.AND.RECOMMENTDATIONESSAY.PRINCIPLES.OF.MARKETING.ANALYSIS.OF.BRAND.MARKETING.STRATEGY.VINAMILK.AND.RECOMMENTDATIONESSAY.PRINCIPLES.OF.MARKETING.ANALYSIS.OF.BRAND.MARKETING.STRATEGY.VINAMILK.AND.RECOMMENTDATIONESSAY.PRINCIPLES.OF.MARKETING.ANALYSIS.OF.BRAND.MARKETING.STRATEGY.VINAMILK.AND.RECOMMENTDATIONESSAY.PRINCIPLES.OF.MARKETING.ANALYSIS.OF.BRAND.MARKETING.STRATEGY.VINAMILK.AND.RECOMMENTDATIONESSAY.PRINCIPLES.OF.MARKETING.ANALYSIS.OF.BRAND.MARKETING.STRATEGY.VINAMILK.AND.RECOMMENTDATION

Trang 5

1 Reason for choosing this topic

Why Vinamilk? Over 40 years of establishment and development, Vinamilk has been leading the dairy industry in Vietnam for many years and predicted to continuously keeping its firm position in the future.

The question is how does Vinamilk have campaigns and strategies to approach the market and consumers in the wisest way? That is the reason why my group chooses the topic " MARKETING STRATEGY OF VINAMILK ENTERPRISES" as the final thesis of their Marketing Principles course.

2 Purpose of the study

Analyze the marketing strategy and propose recommendations to promote the growth of Vinamilk in general and Vinamilk's dairy products in particular.

3 Subjects and scope 3.1 Subjects of the study

Our subjects of the study are the marketing strategy of Vinamilk.

3.2 Scope of the study

Scope of the study on Vinamilk dairy business in Vietnam market The fact that there are personal points of view and orientation recommendations cannot immediately put into practice.

4.Research method

In the study process, a group discussion method was implemented to identify the marketing strategy of the company Our group also applies methods from the knowledge that learned from: Management, Marketing principes, etc In addition, the study also get support from reference documents of Vinamilk.

Trang 6

Trang 7

I INTRODUCTION

VINAMILK is a leading nutrition group in Vietnam reaching more than 31 countries and generating over USD 1,5 billion/year in revenue The firm has been in operation and development for over 40 years, with continual changes Although being present in the Vietnamese market for a long time, Vinamilk's position in our country's dairy sector has not been defeated Their products range from core dairy products such as liquid and powdered milk, to value- added dairy products such as condensed milk, drinking and spoon yoghurt, ice cream, cheese and healthful beverages.

Despite being hit by the COVID-19 outbreak in 2020, VINAMILK strongly demonstrates the need for sustainable growth for society, especially businesses In the face of a pandemic, trade war, global supply chain slowdown, and other challenges, Vinamilk has updated its business strategy and continues to provide innovative and high-quality products to consumers In 2020, Vinamilk's consolidated net sales and profit after tax were VND 59,723 billion and VND 11,236 billion, respectively, increasing 6% and 6.5 percent from 2019.

1.Summary

Vietnam Dairy Products Joint Stock Company was established on the Decision No 155/ 2003 QD- BCN dated October 10, 2003 of the Ministry of Industry on transforming the State-owned enterprise Vietnam Dairy Products Company into Vietnam Dairy Products Joint Stock Company Company business registration certificate No 4103001932 issued by the Department of Planning and Investment of Ho Chi Minh City on November 20, 2003 Before December 1, 2003, the Company was a State-owned enterprise under the Ministry of Industry.

 Full name: Vietnam Dairy Products Joint Stock Company

 Name: VINAMILK

Trang 8

Trang 9

 Logo:

 Slogan: “ Vuon cao Viet Nam”

 Authorized capital: 20,899,554 million dong

 Head office: 10 Tan Trao, p Tan Phu District 7, HO CHI MINH

 1978: The Company was transferred to the Ministry of Food Industry and was renamed United Enterprise of Milk Coffee Cookies and Candies I

 1992: The United Enterprise of Milk Coffee Cookies and Candies I was formally renamed Vietnam Dairy Company.

 2003: The Company was formally transformed into a joint stock company in November, and renamed as Vietnam Dairy Products Joint Stock Company (Vinamilk), to reflect its change in legal status (Vinamilk, 2014)

 2010, Expanded to New Zealand and more than 20 other countries.

 2016, With USDA United States- standard Vinamilk Organic Fresh Milk, we are paving the path for the high-end organic food market in Vietnam Angkormilk Dairy Factory in Cambodia is the first dairy factory in a foreign country.

 2017, The first European-standard 100 percent Organic Fresh Milk produced in Vietnam was launched.

Trang 10

Trang 11

 2018, Vinamilk was the first company in Vietnam to introduce 100 percent A2 Fresh Milk.

 2019, Inaugurated Vinamilk Tay Ninh dairy cow “Resort”, and officially confirmed to own the Global G.A.P Standard Farm System Asia's largest in terms of number of farms.

3.Awards and Achievement

 1985 - 1996, Medal labor gain from class III to class I.

 2005 - 2016, Medal independent gain from class III to class I.

 1995 - 2020, Top 10 high quality VIETNAM goods (Association of high quality Vietnamese goods).

 2012 - 2020, National brand (Ministry of Industry and Trade).

 2013 - 2010, 50 Best listed businesses in VIETNAM (Forbes magazine) and Top 500 biggest private enterprises in VIETNAM (Joint Stock Company Assessment Report VN).

 2016 - 2020, 50 most valuable brands in Vietnam (Forbes magazine) and Top 10 sustainable businesses in 2016 (VCCI).

4 Message of Vinamilk 4.1 Vision

“Becoming Vietnam's top symbol of faith in nutrition and health products that benefit human life.”

4.2 Mission

“Vinamilk is committed to providing the community with top quality and high-quality nutrition with its own respect, love, and responsibility for human life and society.”

Trang 12

Trang 13

4.3 Core values

 Integrity: Integrity, honesty in conduct and in all transactions.

 Respectability: Respect yourself, respect colleagues, respect the company, respect partners, respect cooperation.

 Equity: Employees, customers, suppliers, and other stakeholders must all be treated fairly.

 Morality: Respect established moral norms and act morally.

 Retainer: Comply with the law, the Code of conduct and the company's regulations, policies and regulations.

4.4 Business philosophy

Vinamilk aspires to be a popular product in all regions and countries Therefore, we keep in mind that Vinamilk's companions are quality and inventiveness Customers are at the heart of Vinamilk's business, and the company

is dedicated to serving all of their demands.

II.THE MARKETING ENVIRONMENT 1.The macro environment

1.1 Demographic environment 1.1.1 Population

- The results of the 5th Census in Vietnam show that on April 1, 2019, the total population of Vietnam reached 96,208,984 people According to the portal of the Ministry of Labor, the population of urban areas in 2019 in Vietnam is 33,059,735 people, accounting for 34.4%; in rural areas is 63,149,249 people, accounting for 65.6%.

→ This is an essenttial factor for the development of the dairy industry in our country and the fact shows that this great potential has a great influence on the annual increase in milk consumption by up to 30%, which is strongly concentrated

Trang 14

Trang 15

in urban areas At the same time, living standards are increasingly improved, this also creates opportunities for dairy businesses in the market with great potential and developing like Vietnam.

1.1.2 Age structure

Picture 1: Chart of population composition by age

(Source: Asian Demographics www.asiandemographics.com)

Population data by age (estimate):

- 23,942,527 adolescents under 15 years old (12,536,210 boys / 11,406,317 girls)

- 65,823,656 people aged 15 to 64 years (32,850,534 men / 32,974,072 women)

- 5,262,699 people over 64 years old (2,016,513 men / 3,245,236 women)

→ Large population, high birth rate, gradually improving income, increasing material life, health issues are increasingly concerned The campaigns to drink and distribute free milk of dairy companies all contribute to promoting, expanding brand awareness and creating a potential market for the Vietnamese dairy industry in general and for Vinamilk in particular.

1.2 Economic environment

According to the forecast of the National Center for Socio-economic Information and Forecast (NCIF), the Ministry of Planning and Investment, on the basis of assessing Vietnam's economic background after the 2016-2020 period, considering the Domestic and foreign factors are likely to affect Vietnam's economy

in the coming period, NCIF forecasts that in the period of 2021 - 2025, Vietnam's GDP growth rate will reach about 7%/year economy is basically stable, inflation is

at 3.5 - 4.5%/year Labor productivity improved with an increase of about

Trang 16

Trang 17

6.3%/year With this growth result, by 2025, Vietnam's GDP per capita will reach about 4,688 USD, bringing Vietnam into the group of high-middle-income countries.

→ In general, people's living standards have been relatively improved and increased The upward trend in average income will not only create a higher purchasing power in the market but also lead to different needs and wants from consumers They may demand more or are willing to increase their spending for factors such as quality, variety, convenience, aesthetics, etc In addition, another trend is the distribution of income Many divisions among the population is also an issue that the company needs to pay attention to.

1.3 Cultural environment

The 4.0 era brings easy access to information through newspapers, social networks, the internet contributing to increasing human demand, Vinamilk took advantage of this opportunity to offer advertisements that target customers' psychology, habits of using sweet products as well as canned products or milk- related products This makes marketing and advertising activities and product distribution to customers more convenient

At the same time, one of the psychological habits of Vietnamese people is that they tend to be less likely to change their choices when they trust a certain brand, so it's easier for Vinamilk to increase sales and have more loyal customers If quality, brand image, high reputation In addition, Vinamilk's advertisements always emphasize the formation of a healthy lifestyle, comprehensive development of the body and mind of Vietnamese people as a strength.

1.4 Political environment

The stable political situation of Vietnam is decisive in economic development, creating jobs, increasing incomes for workers, and increasing consumption demand of the society This also has a positive impact on the creation

Trang 18

Trang 19

and implementation of strategies of Vietnamese enterprises in general and Vinamilk

in particular

No matter where a business operates, it is affected by the legal system and policies of that country's government Those systems and policies are: business to regulate business behavior, consumption, trade exchange relations 

a The situation of political security, the government's operating mechanism:

This is a factor that affects all business industries in a territory, institutional and legal factors can threaten the viability and development of any industry

Evidence: Risks from unstable export markets: More than 90% of the

company's export revenue comes from Iraq The country's unstable political and economic situation has adversely affected Vinamilk's export revenue So the company is expanding its export market to Australia, USA, Canada, Thailand and other countries

b The system of tools and policies of the State have an impact on Marketing activities such as: tax policy, financial policy, monetary policy, foreign

policy, policy on development of economic sectors…

Evidence: For businesses, advertising is an effective marketing activity.

According to regulations, advertising costs are allowed at 10%, but companies with higher costs are Dutch Lady Company (19.2%), Vinamilk Company (12.9%), etc.

1.5 Technological environment develop of technology

Science - technology factors creates many opportunities and also exists many challenges, forcing businesses to learn carefully to come up with marketing strategies As one of the input factors of the production process, this is an important factor determining whether the production of the enterprise is effective or not.

Therefore, it also affects Vinamilk's marketing activities: What technological factors will Vinamilk use to promote product consumption in the market?

Currently, the production technology equipment used by Vinamilk are of international standards, using modern packaging technology , and importing

Trang 20

Trang 21

technology from famous equipment suppliers such as: trota Pak (Sweden), APV (Denmark) The lines are synchronous, new generation, modern, automatic control,

or semi-automatic to meet the requirements of food safety and quality Using advanced technology for herd rearing such as: Ethernet network, Bluetooth wireless connection technology, Wi-Fi and remote radio wave identification technology with automatic identification chip RFID tags, the system Biosensors, surveillance cameras help increase the production of dairy cows.

1.6 Natural environment

Vietnam's climate is tropical and monsoonal, which will create great opportunities and challenges for the dairy industry

1.6.1 Opportunity

- In spite of tropical weather, in general, the natural conditions are quite suitable for

the development of the dairy industry, especially in the provinces of Tuyen Quang, Lam Dong, Ba Vi, Nghe An, Son La, etc.

→ Easily obtain raw materials for production needs such as fresh yogurt, sugar, etc,

at a much lower cost than the production that has to import input materials from abroad

1.6.2 Challenge

- Some trends of the natural environment have great influence on marketing activities of enterprises: Scarcity of some raw materials, increase in energy costs, increase in environmental pollution, the intervention of state into the rational use and reproduction of resources

- Perishability, easy metamorphosis of milk if not preserved and handled in time This adversely affects the quality of the milk From here, there is a requirement to have a specific strategy to preserve milk and produce high quality products.

Trang 22

Trang 23

2 The micro environment 2.1.The company

Vinamilk's organizational chart is presented in a professional manner and allocates departments in a scientific and reasonable manner, specifically decentralizing the responsibilities of each member and department in the company The organizational chart helps Vinamilk operate in the most effective way, helping departments work closely together to create a strong Vinamilk

2.2 Suppliers

In addition, dairy farms are very important strategic partners of Vinamilk in providing consumers with leading premium products Milk purchased from farms must always meet the quality standards signed between Vinamilk and domestic dairy farms Vinamilk also imports powdered milk from Australia and New Zealand

to meet production needs in both quantity and quality Vinamilk's two major milk powder suppliers are Fonterra, Hoogwegt International

Table 1: List of some major suppliers cooperating with Vinamilk

2.3 Marketing intermediaries 2.3.1 Distribution intermediaries

- Vinamilk's distribution intermediaries are distributors, wholesalers, retailers, organizatioDistribution intermediaries and businesses such as supermarkets, dairy agents, grocery stores, and marketing companies Product distributors are responsible for bringing products to consumers

- Thanks to agents, retailers, etc., Vinamilk can reduce a huge cost compared to opening its own sales showrooms According to the collected statistics, Vinamilk

Supplier Products Offered

· Fonterra (SEA) Pte Ltd Milk powder

· Hoogwegt International BV Milk powder

· Perstima Binh Duong Box

· Tetra Pak Indochina Cartons and packing machines

Trang 24

Trang 25

has more than 141,000 sales agents across 64 provinces and cities across the country, along with domestic distribution, Vinamilk also expands to foreign If Vinamilk spends its own money to open agents, the capital will be very large, leading to high risks Marketing intermediaries such as supermarkets, agents, etc., have good performances in marketing - sales, and deliver products to customers quickly, will contribute to increasing the prestige and reputation of products, making an impact to Vinamilk's product consumption ability

2.3.2 Transportation

- Warehouse system with two warehouses: Ho Chi Minh City Logistics Enterprise Minh and Hanoi logistics enterprise

- Invest in more than 300 small trucks for distributors

- Having a refrigerated vehicle system to ensure the amount of milk is an advantage compete against the opponent

2.3.3 Financial intermediaries

- Funded by the State, specifically the Ministry of Finance Equity accounting for 77% is free capital, capital mobilized from the seller of bonds, shares bonds, FDI, and ODA for investment in dairy processing projects as well as other investment project to develop material areas

- Bear foreign currency risk arising when there is a difference between accounts receivable and payable in foreign currencies, which materially affects business results and risk of high liquidity.

2.3.4 Advertising

Advertising agencies play a very important role in promoting Mostly, Vinamilk usually use the image of a happy dairy cow on a green meadow with children has been deeply imprinted in the minds of Vietnamese consumers, especially children.

Trang 26

Trang 27

2.4 Competitors

Vinamilk's current competitors in liquid milk products include: Dutch Lady, F&N, Dutch Mill, Hanoimilk, ELOVI, Nutifood, Tan Viet Xuan, Lothamilk In which Dutch Lady is still a direct and worthy competitor especially when the two sides are quite balanced in terms of liquid milk consumption The data in the chart shows that as of May 2007, Vinamilk's liquid milk market share was 38.7%, taking the No 1 position from Dutch Lady with 35.7% market share (by volume)

Picture 2: Chart of market share of liquid milk

(Source: Nielsen 2007)

For liquid milk, the alternative products that are likely to reduce the company's market share are nut milk, milk-based beverages, almond milk, non- dairy milk, goat milk, etc.

2.5 Customers

Customers and their needs have an important influence on a company's operations In order for customers to trust and buy a product, the product must be of good quality and the price must match the tastes of consumers Vinamilk has succeeded in satisfying their clients, it can be seen in this chart.

Picture 3: Chart of experience of using Vinamilk’s product

In addition to domestic customers, Vinamilk has also managed to restore a relatively good number of potential customers abroad.

Trang 28

Trang 29

2.6 Publics

A group of people who are and are likely to be interested in the impact of a business Public groups include: Finance, media, community-society, government, local government, employees

- With the desire to become the most favorite product in all regions and territories, Vinamilk is always interested in the stages of media advertising on radio, television, newspapers, Vinamilk brand is recognized Voted as "famous brand" and 100 strongest brands voted by the Ministry of Industry and Trade in 2006, Vinamilk was also voted in the top "10 high-quality Vietnamese goods" from 1995 to 2007

- For many years, Vinamilk has always been interested in sponsoring activities: scholarship funds for children, taking care of 20 Vietnamese heroic mothers, building 72 gratitude houses, 120 charity houses In addition, Vinamilk also sponsors many other television programs such as: National Youth - Children's football named "Vinamilk Cup"; "Three stars lost edition", "Vietnamese movie weekend",etc.With regular appearances Advertising on television, participating in sponsorship programs, and being constantly mentioned by the media is an opportunity for Vinamilk to widely promote its dairy products to a wide range of consumers.

is the domestic market Vietnam dairy market is divided into two segments:

 Rural areas : accounting for 65.6% of the population (2019), this rate has

decreased a lot compared to previous years but is still a high number However, the view that "rural people have low incomes and living standards, so they rarely consume dairy products" is no longer true Today the consumption for

Trang 30

Trang 31

nutrition of rural people is increasing But the products they welcome are

popular dairy products such as fresh milk, yogurt, condensed milk.

 Urban areas : accounting for 34.4% of the population (2019) and it’s tending

increase Until now, urban areas have always been a large market for milk consumption (more than 80%) due to the high population density, living standards and income They are more concerned about health than rural people,

so urban people often look for more high-end dairy products.



 TARGETING: : Based on the level of milk consumption, Vinamilk

always choose urban area is the main target market But since 2013, Vinamilk has

been expanding penetration and covering rural areas with popular product lines, where growth potential is still great, the evidence is that the consumer reach point in rural areas increases year by year.

Table 2: Vinamilk's consumer reach points in urban and rural areas over the years.

Table 3: The dairy market segment table is based on age

Market segment by age

Children (33,6 % Vietnam’s population )

0-4 years These are the ages need to be added with plenty of

nutrition, DHA for development process.

5-14 years

These are the age which children enter the development process, needs plenty of nutrition for their body, serving the study and training process.

Adults (55% Vietnam’s population)

15-25 years

These are the youths-the last of development process, need to be added nutrition from milk but less.

Tiêu đề	Analysis Of Brand Marketing Strategy Vinamilk And Recommendation
Tác giả	Lê Ngọc Như, Phạm Lê Khánh Chi, Nguyễn Thị Diệu Linh, Nguyễn Ngọc Xuân An
Người hướng dẫn	Nguyễn Thị Minh Ngọc
Trường học	University of Finance - Marketing
Thể loại	Essay
Năm xuất bản	2021
Thành phố	Ho Chi Minh City

Định dạng
Số trang	63
Dung lượng	729,19 KB