analyze marketing strategy (4p) and 3 step stp model of vinamilk

It is the bewilderment and worries of consumers that motivate Vietnam Dairy Joint Stock Company to launch Vinamilk fresh milk products.. For the above reasons, | chose the topic "Marketi

MINISTRY OF EDUCATION AND TRAINING

SAIGON BUSINESS SCHOOL

Saigon

School

ESSAY

Ho Chi Minh City, Month 5/2024

TABLE OF CONTENTS

PROLOGUE

e Reasons for choosing a topic

Vietnam's dairy market has made strong developments in recent years, with an increase in consumer demand, product diversification and competition of enterprises Therefore, Vietnamese consumers are increasingly interested in the quality and nutritional value of milk, especially fresh milk It is the bewilderment and worries of consumers that motivate Vietnam Dairy Joint Stock Company to launch Vinamilk fresh milk products For the above reasons, | chose the topic "Marketing Analysis (4P) of Vietnam Da iry Products Joint Stock Company Vinamilk” to help the company analyze and build a long -term strategy in its business plan as well as implement its Marketing Mix strategies according to the 4P model effectively

e Topic structure

Chapter 1: Theoretical basis

Chapter 2: A brief overview of Marketing theory

Chapter 3: Analyze Marketing strategy (4P) and 3-step STP model of Vinamilk

CHAPTER 1: THEORETICAL BASIS

1.1 What is a Business ?

Business is an organization that provides goods and services to meet the needs and desires of customers In a profitable or unprofitable way Combine the use of scarce/limited production factors to provide goods/services Factors of production are the resources necessary to produce goods and services

1.2 What are the functions of the marketing department in an organization/company

in relation to the Product department, Financial Department, and other internal

supporting departments such as: Human Resource, IT, Logistics department and the external environment

Marketing is an important part of business operations Have a role in connecting

businesses with customers, generating revenue and profits

1.2.1 What does the function of the marketing department in the business have to

do with the product department ?

This department makes products differentiated, tailored to customer needs and according to market trends [ex: vinamilk changed its brand identity, changed the packaging of dairy products to reposition its position in Vietnam's dairy market] [1]

1.2.2 What does the function of the marketing department in the business have to do with the finance department ?

Marketing and finance These are two parts of the business that think and behave differently, because one side spends money and the other cuts costs But these two departments have the same purpose of developing the company, where the function of marketing is to generate profits and benefits for the financial department [2]

1.2.3 What are the functions of the marketing department in the enterprise related

to internal departments such as human resources, IT, logistics

The marketing function in an enterprise cannot exist in isolation from other departments

organization Marketing for the personnel department is to define the scope of work, job description and job advertisement.[ ex: The company is in need of recruiting employees for

a certain position, the marketing department will post on websites, distribute leaflets, to describe the job position that the company is looking for.]

e IT

IT is an important department that is not inferior to the human resources department, it has the function of ensuring the information systems of the business operate stably The function of marketing for IT departments in the business is to help find customer information, put products on the company's system to help customers know the quantity of products, prices [ex: Shoppe puts products on the system indicating price, quantity , ]

@ Logistic

Like the above two departments, logistics is the department that needs to coordinate with the marketing department The function of marketing in logistics is to sell products that are still in stock, manage the quantity and storage time of products to bring

to market [3]

CHAPTER 2: A BRIEF OVERVIEW OF MARKETING THEORY

2.1 In Marketing, what Value means?

Value is the set of benefits that customers recevice when buying and using goods

2.1.1 What marketing does with Value?

Marketing builds relationships between consumers and businesses and their brands to create value, make customers feel a position when using products and services that businesses bring.[4]

2.2 What are the differences & similarities between Selling and Marketing? [5]

GOAL Focus on attracting the attention of potential | Focus on closing

customers, building brand recognition deals and increasing revenue

- Market research - Prospecting

- Identify target customers - Contact customers

- Develop marketing messages - Product consulting

ACTIVITY

- Create engaging content - Solve customer inquiries

- Implementation of advertising campaigns | - Negotiating and closing deals

- Branding - After sales customer care

- Creative - Give a talk

- Data analysis capabilities, - Negotiate

SKILL

- Good communication - Capture customer psychology

- Update market trends - Relationship building skills

; ; ; Focus on potential customers Works across a wide range, including leads ;

SCOPE and customers who are in need

and existing customers ;

of buying products

CHAPTER 3: ANALYZE MARKETING STRATEGY (4P) AND 3 - STEP STP

MODEL OF VINAMILK

3.1 Use the Marketing Mix 4Ps (Product, Price, Place, Promotion) to describe that

product/service

Vietnam Dairy Joint Stock Company (VINAMILK) is known as a leading enterprise

in the dairy industry, accounting for about 75% of the dairy market share in Vietnam

** General information

e Native name: Vietnam Dairy Products Joint Stock Company - VINAMILK

e Company type: Public joint-stock company

e Date of establishment: 20 August 1976

e Headquarters: No.10, Tan Trao Stress, Tan Phu Ward, District 7, Ho Chi Minh

e Main business products: Dairy products (fresh milk, sugary condensed milk,

powdered milk, ), dairy products (ice cream, cheese, yogurt, ), tea, coffee, fruit

juice

e Services: Milk and dairy products, polyclinic, juice/beverage, financial investment

e website: https:/Awww.vinamilk.com.vn/

Vinamilk

Figue 1 Source wikipedia

« Logo:

“* Product

For Vinamilk's marketing mix strategy on products, the brand has applied a product diversification strategy and focused on improving the quality of its products Vinamilk's products are diversified and abundant with over 200 dairy products and dairy product lines: condensed milk, powdered milk, nutritional powder, creamy fresh milk, yogurt, This helps the brand diversify its consumers

Vinamilk's product lines, in which condensed milk accounts for 34% of total

revenue Fresh milk accounts for about 26% of sales, powdered milk and instant cereals account for 24% of revenue, and the remaining products account for 16% of revenue

In the period of 2021-2022, packaging and brand identity are gradually faded by competitors in Vietnam's dairy market increasingly, but during this time, Vinamilk is focusing

on researching brand identity to prepare for launching to the market to reaffirm its position

in Vietnam's dairy market

s% Price

Price is always the top concern factor of consumers As soon as entering the dairy market in Vietnam, Vinamilk's marketing mix strategy has positioned its brand as a high- end product line but the price is suitable for all classes [ex: Vinamilk has a price of 31.5 thousand VND / 4 boxes and 1 carton of milk with prices ranging from 200 thousand VND

to about 400 thousand VND ]

“* Place

Vinamilk's product distribution system from online sales to retail outlets across the

country

EX: - Sell online: Shoppe, Lazada

- Retail sales: Chain of stores throughout the country and large supermarkets [6]

“* Promotion

One of the main factors that make up the success of Vinamilk's marketing strat egy is the diversification of communication channels such as:TVC, Video,Online Marketi ng,Fanpage Advertising, Outdoor Billboard, Sponsorship of contests and scholarship pr ograms To promote your products

Vinamilk - Bi Quyét Ngon

Khỏe Từ Thiên Nhiên ®

@yinamilkbiquyetngonkhoetuthiennhien - Công ty

thực phẩm & đồ uống

Trangchủ Giớithệu Ảnh Xemthêm v

Giới thiệu Xem tất cả 9

ie

0 Sữa chua Vinamilt với công nghệ lên men

f Ệ tt

hiện đại từ Châu Âu chính là “bí quyết lag Anh/Video

ngon khỏe từ thiên nhiên” cho cả gia định

luôn khỏe mạnh &: tràn đầy sức sống

lở 645.474 ngưỡi thích trang này, trong đó có 3 amet - Bí Quị

6 qở @

người là bạn của bạn

S29 CUOC THI ANH 20-10:

VAI

Figue 2 VinaMIIk's adverftising strategy via fanpage and outdoor Billboard

Source https://amis misa vn/24388/chien-luoc-noi-dung-cua-vinamilk/

In addition, Vinamilk also organizes many attractive promotions for customers:

- Customers who buy one carton of 100% pure Vinamilk fresh milk will be lucky drawn

- Buy VNM milk and get a plate as a gift

3.2 Use 3 steps model STP (Segmentation — Targeting — Positioning) to define and analyze the customer segments ?

3.2.1 Segmentation

Segmentation | Demographics Psychographics | Pehavior Geography

Children Age: 5-14 Personality: Daily use Vietnam

All genders Dynamic,

inquisitive, creative

Character:

Youth Age: 15-25 Character: Daily use Vietnam

aggressive, All genders Good for

enthusiastic,

; body

| growth,

income or loW | novelty

; recharge

income

energy

Education:

university/college

students

Adults Age: 26-44 Lifestyle: Busy, | Daily use Vietnam

All genders creative, flexible Benefits to | From big Marital status: look for: | cities to even Married, unmarried Good — for | small

health, villages Family size: single delicious

or 3-4 people taste

convenienc

e

The Elderly Age: 65-70 Lifestyle: Daily use suburban,

Income: pension, organized, health- Benefits rural

most live off CONSCIOUS, sought

children focused on after: The

physical and

Gender: mental milk helps

predominantly improvement, maintain

female seeking peace strong

Family: single, | Personality: bones or

with children, | family-oriented bone

married without structures

children

Social classes:

middle class,

upper class

Occupation: mostly

retired

3.2.2 Targeting

The main segment that Vinamilk's marketing strategy targets is children from 5 to 14 years

old, Vinamilk wishes to improve children's physical fitness and aim to nurture young talents

as preschoolers who are considered as the pillars of the national tomorrow

3.2.3 Positioning

® Price

About prices in Vietnam's dairy market: Meadow fresh has the highest price with (43.5 thousand VND / 4 boxes) compared to Vinamilk with quite reasonable prices (31.5 thousand VND / 4 boxes) suitable for the pockets of most Vietnamese consumers

e Brand identity

Overall, Vinamilk leads in both factors including high company stock and brand recognition with 40% (Euromonitor, 2020)

3.3 Estimate the market size (currency USD, VND ) of the whole market and the current target customers ?

@ Scale

Vinamilk is currently the leading enterprise of the milk processing industry, accounting for more than 54.5% market share of liquid milk, 40.6% market share of powdered milk, 33.9% market share of drinking yogurt, 84.5% market share of edible yogurt and 79.7% market share of condensed milk nationwide It is estimated that by the end of

2020, Vinamilk still holds the highest market share in the dairy industry with 43.3%( Source:

Studucu)

® The current target customers

Vinamilk's current target customers (2021-2022) are children aged 5-14 3.4 List the current competitor(s), propose the figure of market share

Vinamilk top competitor is TH True Milk

mi \\ Winamilk

Criteria Vinamilk TH True Milk

Developed for nearly 50

years

Raw Materials Get raw materials from the

international standard barn system, from cow farmers Invest in a quality barn

system And only taken at the system

powdered milk

Products Variety of items Fewer product items

Aimed at popularity, but Dive into the research and providing an adequate development of dairy

Quality

source of essential products for each customer nutrients for human health group Easy to drink with

Taste ¬ Somewhat fatter

deliciousness

The company occupies

43.3% market share and

leads Vietnam's dairy industry Strong distribution

at home and abroad with a | The company accounts for

Market Share network of 244 distributors and nearly 140,000 points 6.1% of Vietnam's milk

of sale covering 64/64 provinces and cities, exporting to the United States, France, Canada market share

Bibliography

(1) https://yccmarketer.com/functions-of-marketing-

department/#:~:text=The%20 Marketing%20Department%20is%20responsible% 20for%2 0defining%20and%20managing %20the,strategies%2C%20and%20executing%20promo

tional%20activities

(2) https://imm.ac.za/the-relationship-between-marketing-and-finance/

(3) https:/Avww.marketingteacher.com/marketing-and-functions/

(4) https://uk.indeed.com/career-advice/career-development/value-marketing

(5) https://amis misa vn/24388/chien-luoc-noi-dung-cua-vinamilk/

(6) https:/Avww.scribd.com/document/576347689/So-sanh-2-%C4%91%E1%BB%91i-

th%E1%BB%A7-c%E1%BA%A 1nh-tranh-TH-True-Milk

(7) https://oriagency vn/chien-luoc-marketing-cua-vinamilk