2 Figure 1-3: Top 20 Formula Milk brands with the highest sales on e-commerce platforms ...4 Figure 1-4: The sales of PediaSure compared to other companies in the baby and mother product
INTRODUCTION – ABBOTT VIETNAM AND PEDIASURE
About Abbott and Abbott Vietnam
Abbott, a leading milk brand from Abbott Nutrition, was founded by Dr Wallace C Abbott in 1894 and is based in the United States Renowned globally, Abbott specializes in infant formula, ready-to-drink milk, maternal milk, and powdered milk for adults, with popular product lines including Ensure, PediaSure, Similac, and Grow.
Entering the Vietnamese market in 1995, Abbott Vietnam has since established offices in
Abbott is dedicated to improving the health and well-being of the Vietnamese population by offering a wide array of scientific nutrition products, pharmaceuticals, diagnostics, and medical devices With over 2,200 employees across Ho Chi Minh City, Hanoi, and five other regions in all 63 provinces, Abbott's commitment to enhancing lives in Vietnam is unwavering (Abbott, 2024).
Abbott has been recognized as Fast Company’s World Changing Company of the Year for three consecutive years (2020-2023) and has earned a spot on DiversityInc's list of top companies for diversity for 20 years (2004-2023) In Vietnam, Abbott was named one of the 100 best companies to work for and recognized as the best workplace in the pharmaceutical, medical device, healthcare, and consumer goods sectors in 2022 As a global leader, Abbott is committed to advancing innovative technologies in medicine, science, healthcare, nutrition, and technology This expertise has enabled Abbott to collaborate effectively with the Vietnamese government and the Ministry of Health to tackle the country's healthcare challenges.
The executive team at Abbott Vietnam is headed by General Director Mr Douglas Kuo, who oversees various business areas through a structured leadership team.
Figure INTRODUCTION – ABBOTT VIETNAM AND PEDIASURE-1: The organizational structure of the executive team base on PediaSure Vietnam Citizenship
Figure INTRODUCTION – ABBOTT VIETNAM AND PEDIASURE-2: Abbott's growth indicators
By the close of 2024, Abbott reported remarkable revenue growth of approximately 4.59% and a gross profit increase of 5.03%, highlighting the company's strong performance in the market Other essential metrics also demonstrated positive growth, underscoring Abbott's ongoing expansion and success.
Product
Pediasure is known as a milk brand under the Abbott group, with a product line primarily focused on nutrients to support the comprehensive development of children from
Abbott's Pediasure, launched in 1988, is a globally recognized ready-to-drink powdered milk brand that supports children's growth from ages 1 to 10 (Ngọc Đỗ, 2022) Renowned for its rich nutrient content, Pediasure aids in weight gain, height increase, and overall physical and mental development, as affirmed by experts (Lại Thảo, 2022) With a diverse range of products, Pediasure makes it easy for parents to select the ideal option for their children's nutritional needs.
Currently, Pediasure offers a powdered milk product in 3 different sizes and a single flavor, including Pediasure vanilla-flavored powder in 380g, 800g, and 1.6kg boxes (Abbott, 2024)
Pediasure's height-boosting formula is enriched with protein, calcium, and Vitamin D, now featuring the added benefits of Arginine and natural Vitamin K2, which work together to enhance bone growth and support optimal height development.
PediaSure is a comprehensive nutritional solution designed to support healthy weight gain and appetite enhancement, delivering 1 kcal/ml of energy along with 37 essential nutrients that foster growth and promote optimal weight gain.
PediaSure boosts immunity as it contains prebiotics (FOS fiber) and probiotics (beneficial microorganisms), helping to strengthen the immune system and reduce the number of sick days for children (Abbott, 2024)
Price Strategy: PediaSure's pricing in Vietnam is positioned in the premium segment, reflecting its quality and clinically proven effectiveness According to (Abbott,
In 2024, the price of PediaSure varies from 324,000 to 1,162,000 VND based on different sizes (380g, 800g, and 1.6kg) While it is priced higher than competitors such as Junior Horlicks, PediaSure aims to attract parents who prioritize investing in their children's health.
The product is extensively distributed across major supermarkets including BigC and Co.op Mart, as well as specialized stores for mothers and children like Con Cưng, AVAKids, and Kid Plaza It can also be found in large pharmacies such as Long Châu Furthermore, Pediasure is accessible through popular e-commerce platforms like Shopee and Lazada.
2024), it is also distributed through Pediasure's official website (Abbott, 2024) This helps increase the product's coverage.
Pediasure effectively promotes its milk products by focusing on their nutritional benefits, growth support, and immunity enhancement, targeting parents through family-oriented channels like HTV and VTV In 2023, the brand launched the successful 'Mẫu Giáo Cao Lớn' campaign, which ranked among the top 10 media campaigns in September, showcasing its strong market presence and appeal to decision-makers in family nutrition (Kompa, 2023).
Pediasure focuses on the mid-to-high-end market by implementing strategies rooted in nutritional science, which differentiates the brand from its competitors This strategic approach effectively utilizes various media channels to communicate key messages and enhance brand positioning.
Market position
On e-commerce platforms (Shopee), foreign milk companies hold a large market share According to The Metric, leading sales is Abbott (including PediaSure) with over
703 billion VND, accounting for 20.81% of the market share, a significant gap compared to other brands (Bình Khánh, 2024).
Figure INTRODUCTION – ABBOTT VIETNAM AND PEDIASURE-3: Top 20 Formula
Milk brands with the highest sales on e-commerce platforms
PediaSure stands out as a leading brand in the mother and baby product market, generating impressive sales of nearly 125 billion VND and selling 129,699 products through e-commerce platforms in 2024 (Brands Vietnam, 2024).
Figure INTRODUCTION – ABBOTT VIETNAM AND PEDIASURE-4: The sales of
PediaSure compared to other companies in the baby and mother product industry.
However, according to the prominent powdered milk brand ranking on social media platforms by YouNet Media Index Ranking, in 2024, PediaSure ranked only 9th (dropping
4 spots compared to 2023), behind Colosbaby (ranked 4th) PediaSure is only ahead of theGrowPLUS+ brand (ranked 11th) (YouNet Media, 2024)
Figure INTRODUCTION – ABBOTT VIETNAM AND PEDIASURE-5: Formula milk brand ranking on social media platforms
With strong resources, a good brand image, and effective strategies help the company lead the market However, PediaSure needs to improve its communication aspects in Formula Media Ranks.
SITUATION ANALYSIS
Category Analysis
The Infant Formula and Baby Powder Milk market is anticipated to generate revenue of 2.24 billion USD by 2025, reflecting a robust growth trajectory with a projected annual growth rate of 5.99% from 2025 to 2030, as reported by Statista in 2024 This marks an increase from the current market revenue of 2 billion USD.
2024, this shows the growth of the baby powdered milk market in Vietnam (Giulia Interesse, 2023).
The baby powdered milk industry in Vietnam shows significant profitability, with an average profit of 318.08 million USD and a profit margin of 14.2% (IBISWorld, 2022) In 2023, the powdered milk market revenue reached 2 billion USD, resulting in a profit of 284 million USD, highlighting the industry's growth potential and robust market dynamics (Giulia Interesse, 2023).
Figure SITUATION ANALYSIS-6: Formula milk product life cycle
The baby powdered milk industry is currently in the Growth and Maturity stage, as indicated by revenue factors and the average growth rate, highlighting its significant potential and promising prospects for future development.
Vietnam is currently a net importer of powdered milk, primarily relying on specialized products like infant formula from globally recognized brands, as domestic production fails to meet local demand Contributing factors include a rise in breastfeeding among mothers, a declining birth rate, and longer maternity leave, all of which have influenced market growth and intensified competition.
The 2024 population survey by the General Statistics Office reveals a decline in the average growth rate to 0.99%, down from 1.22% between 2014 and 2019 (Hồng Chiêu, 2025) Over the last two years (2023-2024), this trend highlights ongoing demographic challenges.
In 2024, Vietnam's fertility rate has experienced a significant decline, with the total fertility rate (TFR) falling to 1.91 children per woman, which is below the replacement level This trend is particularly pronounced in urban areas, where the TFR is just 1.67 children per woman, compared to 2.08 children per woman in rural regions.
2025) The continuous decline in the birth rate is and will significantly impact the infant powdered milk industry in Vietnam.
Vietnam's GDP growth rate reached 7.09% in 2023, with the economy's size estimated at 476.3 billion USD, raising the GDP per capita to 4,700 USD—an increase of 377 USD from the previous year This robust growth, coupled with effective inflation management, has enhanced the real income of the population As a result, the expanding middle class is expected to drive demand in the powdered milk industry, shaping a promising market landscape.
The Vietnamese government has implemented safety regulations for milk production, specifically focusing on powdered milk As outlined by Thư Viện Pháp Luật (2021), powdered milk is included in the list of processed dairy products that are required to undergo specialized food safety inspections, in accordance with QCVN standards.
The 5-2:2010/BYT standard, along with the Food Safety Law (Law No 55/2010/QH12), establishes essential regulations for ensuring food safety in the dairy processing industry, which includes monitoring production processes, inspecting raw materials, and overseeing food storage Additionally, relevant legislation such as the Product and Goods Quality Law (Law No 05/2007/QH12), Decree No 15/2018/ND-CP, Circular No 43/2018/TT-BYT, and Circular No 11/2014/TT-BNNPTNT significantly influences the operational landscape for new companies entering this market (Luật PVL Group, 2024).
Table SITUATION ANALYSIS-1: Category factor affect to Formula Milk Market
The growth of the baby powdered milk industry in Vietnam is positively influenced by factors such as the threat of new entrants, pressure from substitutes, and unused capacity The market faces significant barriers to entry, including stringent legal regulations, high research and development costs, and strong brand loyalty to established players like Vinamilk, Abbott, Nutifood, and Nestlé These barriers result in low pressure from substitutes, as new companies struggle to enter the market and provide alternative options Additionally, baby formula is a specialized product that requires substantial R&D investment, leading Vietnam to rely heavily on imports, currently meeting only 35 to 40% of its domestic milk demand.
Despite a declining birth rate in Vietnam, the demand for infant formula is on the rise, highlighting significant growth potential in the market This trend is supported by three key factors that indicate a shift towards formula milk consumption, helping to maintain low levels of unused capacity in the industry.
The powdered milk industry faces significant challenges due to the strong bargaining power of buyers and suppliers, along with intense rivalry among competitors Despite the barriers to entry, the market is saturated with numerous players and an increasing number of substitute products, all of which adversely affect the growth prospects of the infant formula sector.
Figure SITUATION ANALYSIS-7: The baby formula market with a multitude of competitors
The baby formula market in Vietnam presents significant growth potential driven by rising formula milk consumption, economic development, and population growth, alongside increasing revenue and profits Despite challenges like market entry barriers and a declining birth rate, opportunities remain for innovative products to cater to the diverse needs of consumers.
Competitor Analysis
The infant formula market in Vietnam for children under 12 months shows lower demand compared to other regional countries, but the supply is significant This market segment competes with around 30 domestic and international brands, offering a total of 60 different labels (Hồ, 2024).
International brands like FrieslandCampina, Mead Johnson, Abbott, Nestlé, Aptamil, Glico, Meiji, and Morinaga provide a range of products across various price levels These leading competitors primarily target urban consumers who prioritize high-quality offerings Nestlé, in particular, has experienced remarkable growth through innovative customer relationship management strategies that successfully attract new users (Hồ, 2024).
Dielac Pedia, a product line from Vinamilk, Vietnam's top dairy company, offers a specially formulated milk formula for children aged 1 to 10 This nutritional product is designed to support picky eaters, children who are slow to gain weight, and those at risk of malnutrition.
The Dielac Pedia product line features two primary variants tailored for different age groups: Dielac Pedia 1+ for children aged 1-2 years and Dielac Pedia 2+ for those aged 2-10 years This high-quality milk formula is the result of a collaboration between Vinamilk and esteemed European nutrition partners, including Chr Hansen from Denmark and Lonza from Switzerland As of now, Vinamilk's total capital is reported to be 35,026 billion VND.
Appetite-Stimulating Ingredients: The milk is fortified with essential micronutrients such as zinc, B-group vitamins, and lysine, which stimulate appetite in children, helping them eat more eagerly.
The Dielac Pedia formula offers digestive and absorption support by integrating probiotic strains BB-12 and LGG with dietary fibers such as Inulin and FOS (fructo-oligosaccharides), effectively inhibiting harmful bacteria while fostering the growth of beneficial gut bacteria.
Dielac Pedia offers high-energy, easily absorbable nutrition with its premium protein derived from milk and soybeans, enriched with essential amino acids This formula also includes medium-chain triglycerides (MCT) fats, which are rapidly absorbed and efficiently converted into energy.
Dielac Pedia not only supports healthy weight gain but also enhances children's immunity with its rich blend of vitamins A, C, D, zinc, and selenium, essential micronutrients that fortify the immune system and help reduce the frequency of illnesses.
Vinamilk emphasizes the effectiveness and superiority of Dielac Pedia in its communication strategy, aiming to persuade parents The promotional messages highlight that the milk promotes healthy eating and weight gain in children, with specific commitments such as ensuring weight gain within three months of use.
Vinamilk positions Dielac Pedia as a trusted "nutrition expert" for picky eaters, utilizing engaging campaigns with slogans such as “No more picky eating, kids grow tall” to foster a positive brand image The company actively hosts seminars and nutrition talks for parents, featuring expert insights that indirectly promote their products Additionally, Vinamilk offers a dedicated Nutrition Consultation Center via hotline 1900, further enhancing their commitment to supporting children's nutritional needs.
Vinamilk is dedicated to addressing children's dietary needs through a unique after-sales service that supports parents in nutritional care To build trust, the brand prominently features any medals, awards, or certifications earned by Dielac Pedia on its packaging and promotional materials.
Vinamilk utilizes its vast nationwide distribution network to effectively deliver Dielac Pedia to consumers, ensuring availability in supermarkets, mom-and-baby stores, pharmacies, and general stores throughout the country Additionally, the company enhances market reach and shopping convenience through its dedicated product introduction stores and the Vinamilk e-shop for online retail.
Vinamilk aims to enhance its presence in the domestic market and boost its market share in specialized children's milk through its Dielac Pedia/Pedia Kenji products Despite leading the overall dairy market, Vinamilk faces competition from Grow Plus (Nutifood) in the niche market for malnourished children To address this, the company is prioritizing product innovation and brand enhancement to directly compete, with a long-term goal of regaining the leading position in the pediatric specialty milk segment.
Vinamilk has introduced the Pedia Kenji line in 2022, an enhanced version of Dielac Pedia, featuring the innovative PROTEIN PEDIA formula developed in collaboration with Japan This new formula is enriched with 39 essential nutrients designed to assist picky eaters and malnourished children in gaining weight and promoting healthy growth The launch of Pedia Kenji demonstrates Vinamilk's commitment to investing in research and development, prioritizing quality improvements over mere price competition.
- Portfolio Expansion and Product Formats: Vinamilk’s development plan for Dielac Pedia extends beyond traditional powdered milk to include other milk formats.
In 2022, the launch of Pedia Kenji marked a significant milestone as the next generation of Dielac Pedia This innovative product features the exclusive Protein Pedia formula from Japan, designed to enhance the digestibility and absorption of milk protein Additionally, it offers a balanced blend of 39 essential nutrients, including vitamins and minerals, to support the overall healthy development of children.
VitaDairy Vietnam Joint Stock Company, founded on January 27, 2005, has emerged as a leading player in Vietnam's dairy industry, specializing in the production and distribution of powdered milk, ready-to-drink milk, and nutritional food products With a commitment to quality and innovation, VitaDairy has strengthened its market position and continues to thrive in the competitive landscape of the Vietnamese dairy sector (VNR500, 2024).
Customer Analysis
2.3.1.1 Who buy and used the product
Parents or guardians of children aged 1 to 3 years living in urban areas with a Category C household income are focused on their child's growth and development They prioritize aspects such as height, healthy weight, and immunity to ensure optimal health during this crucial stage of comprehensive development (Nhật Lệ, 2022).
Children aged 1 to 3 years are at a critical stage of growth, often exhibiting signs of poor appetite and potential nutrient deficiencies, which can lead to underweight issues, stunted height development, and weakened immune systems (Nhật Lệ, 2022) As breast milk intake decreases and the weaning process begins, it is essential for toddlers to receive additional milk in their daily diets (Purelac, 2024) This period is crucial for both physical and mental development, often referred to as a golden stage for height growth With adequate nutrition and care, children can grow an impressive 25 cm in their first year and continue to add about 10 cm annually, potentially reaching a total height increase of 35 cm within their first two years (Abbott, 2023).
Figure SITUATION ANALYSIS-9: Factors affecting a child's height growth in the first five years of life
By analyzing the nutritional factors that play an important role in children's development, parents will pay attention to choosing products for their children.
There are two main reasons for creating new products for the brand:
- Each child at different ages will have different physical conditions, which requires nutrients from various functional groups.
At every developmental stage, specific nutrients play a crucial role in promoting key aspects like height and intelligence It is vital for mothers to understand these nutritional needs to effectively nourish their children in a scientifically informed manner.
2.3.1.2 The purchasing behavior of the target customer group
Table SITUATION ANALYSIS-4: Target Market of new PediaSure
Household Families with young children aged 1 to 3 years old.
Household income Income from 20 million to 30 million, in the middle class (Grade C)
(Cimigo, 2024) Geography The urban, town, and township areas where 58% of households have this income level (Cimigo, 2024) Age From 27 to 35 years old (according to the authors' survey).
The article categorizes middle-class occupations into four main groups: state management, private company management, household business ownership, and specialized expertise, which encompasses technical, professional, service, and trade roles (Cường, 2020) Furthermore, the survey conducted by the authors highlights that homemakers are also considered part of this classification.
Job Position Specialists, university lecturers, doctors, senior specialists, Professor (Cường,
2020), household business owners, office staff.
Seeking (Needs) According to (Gấm, 2024), Parents are seeking a product that can provide complete nutrition for children aged 1 to 3 years, addressing the following issues:
● Supplementing essential vitamins and minerals for picky eaters and slow- growing children,
● Providing calcium to support height growth and strong bones,
● Supporting the digestive system and immune system during this sensitive immune stage,
● Enhancing nutrient absorption for children.
● Notably, they are looking for a solution to make the "mealtime battle" between mothers and picky eaters more "enjoyable" and stress-free (Golden
Ad Group, 2022) Interest According to (Ngọc, 2022), Parents' concerns when choosing infant formula:
When selecting the right type of milk for your child's needs, it's essential to research various options online, utilizing resources like parenting forums, expert websites, and brand comparison videos Ensure you purchase milk from reputable distributors such as Con Cưng, pharmacies, or large supermarkets to avoid counterfeit products, or opt for official online channels of the brands for a safe and reliable choice.
Consumers increasingly prioritize high-quality and safe products that come with clear and transparent certifications from nutrition experts (Bệnh viện ĐKQT Thu Cúc, 2024) This trend reflects a growing preference for reputable brands in the market (Anisha Sharma, 2024), with many individuals favoring foreign brands or well-established domestic brands.
Lifestyle Having a modern lifestyle and making smart consumption choices, focusing on improving quality of life and considering investment in their children essential (Định, 2024)
Value People seeking the freedom of a proud mind They look for products that showcase their expertise, knowledge, and sophistication (Định, 2024).
Consumers are increasingly sophisticated and discerning in their purchasing habits, demonstrating a strong focus on value and thorough comparison before making decisions They prioritize both product quality and the overall service experience, reflecting a careful consideration of their choices.
Consumers prioritize rational products that align with their needs, viewing their expenditures as future investments They are more influenced by advertisements highlighting benefits and functionality than those that focus on aesthetics.
According to team survey, sometimes recommendations from reference groups (friends, family, experts) can also influence this customer group.
A recent Mintel survey reveals that 48% of parents with children aged 0–3 have increased trust in high-tech baby care products and those with transparent nutritional ingredient labels.
Figure SITUATION ANALYSIS-10: Chart of Expected Changes for the PediaSure
A recent survey reveals that 42.3% of customers want enhancements to the PediaSure product, particularly in pricing and flavor Furthermore, there is a demand for quicker and more visible results, a wider variety of packaging sizes, and more tailored nutritional options to address specific dietary needs.
Insight Truth: Parents always want to provide the best nutrition for their children aged 1 to 3, ensuring comprehensive physical and intellectual development.
Parents often feel overwhelmed by the abundance of similar information and vague advertising regarding milk formulas, which creates confusion and anxiety about selecting the right option for their child Each child has distinct nutritional requirements that many mainstream products do not fulfill, making the decision even more challenging Additionally, when seeking recommendations from other mothers, parents frequently encounter issues, as their children may reject the suggested milk products, resulting in fussiness and refusal to drink.
Parents are looking for a specialized nutritional milk product that caters to their child's specific needs while providing clear and reliable information, ensuring they feel confident in their choice for optimal development.
Figure SITUATION ANALYSIS-11: The competitive matrix image of PediaSure compared to its competitors.
PediaSure, despite some limitations, boasts significant strengths that establish a strong competitive advantage, reinforcing its position in Vietnam's powdered milk market Analyzing the CPM competition matrix reveals that PediaSure excels in several key areas.
- Superior product quality, highly appreciated by consumers, including: ingredients and nutrient content, clinical evidence of the product’s effectiveness, and components ensured by experts.
- A strong financial foundation, supporting long-term development in optimizing production, leading to more competitive prices.
Modern infrastructure and technology systems enhance production efficiency and facilitate ongoing product improvements tailored to specific geographical segments Notably, in Vietnam, there is a significant gap in specialized products for children aged 1-3 years.
The author group recommends a specialized nutrition positioning strategy for a new product aimed at children aged 1 to 3 years in Vietnam, tailored to their health and developmental needs This strategy leverages competitive advantages that will serve as a strong foundation for brand growth By capitalizing on its existing strengths, PediaSure can successfully introduce this new product line, addressing current limitations while enhancing brand value and meeting the rising market demands.
2.3.3 Unique Value Proposition (UVP) of PediaSure Baby
OBJECTIVE
Company Vision and Mission
Abbott is committed to fostering a healthy and prosperous society by prioritizing responsible, sustainable, and inclusive business practices Through its initiatives and partnerships, Abbott aims to enhance economic, environmental, and social development, ultimately benefiting both the community and the business.
We are dedicated to developing transformative technologies that promote heart health and nourish your body throughout all life stages, enhancing your comfort and mobility while equipping you with essential information, treatments, and innovations to effectively manage your health (Abbott, 2024).
"Dedicated to applying scientific research for the service of human health." (Abbott, 2024).
Abbott Group is dedicated to delivering holistic medical and nutritional solutions in Vietnam, with a particular focus on children's health Their mission is to address the increasing demands for growth and development among the Vietnamese population, ultimately contributing to improved health outcomes and promoting economic, environmental, and social progress.
Developing a completely new product for the people of Vietnam, especially for children, that fully meets the nutritional and health needs, ensuring the rapid development of children.
Alternative Strategies
The baby formula industry in Vietnam is projected to experience significant growth, with an annual rate of 5.99% from 2025 to 2030, equating to roughly 0.5% monthly growth (Statista, 2024) As a market leader, Abbott has the potential to expand its market share during the upcoming six months.
By 2025, the industry aims to implement a market development strategy designed to attract new customers, particularly parents of newborns and those unfamiliar with Abbott products Key initiatives will involve the enhancement of new baby formula offerings tailored to meet the nutritional and health requirements of young children.
Hierarchy of Objectives
Table OBJECTIVE-6: Objective of New PediaSure in the last 6 months of 2025
Currently, Abbott (including PediaSure) holds about 17.6% of the baby formula market share, leading the powdered milk market in Vietnam On e-commerce platforms, Abbott commands 20.81% of the market share.
The industry is expected to grow at a CAGR of 5.99% from 2025 to 2030, with a projected volume growth of 4.1% in 2026.
The company's gross profit margin and revenue growth rates are 5.03% and 4.59%, respectively.
To sustain our market-leading position, we will introduce innovative products aimed at both retaining existing customers and attracting new ones Our focus will be on building long-term, trustworthy relationships with middle-class consumers who have stable incomes.
Abbott aims to enhance its market presence in the powdered milk segment, where it holds a competitive edge, targeting a compound annual growth rate (CAGR) of 5.99% To successfully implement a market development strategy, the company seeks to increase its market share from 17.6% to 18% between June and July 2025, and further to 18.6% by the end of 2025 in Vietnam's baby powdered milk market.
To enhance its market share, Abbott aims to achieve a growth of 1.25%, raising its powdered milk market share from 20.81% to 21% between June and July 2025, and further increasing its e-commerce market share to 22% by the end of 2025.
PediaSure provides a single type of milk designed for children aged 1 to 10 years, available in both liquid and powdered forms The majority of these products are manufactured internationally.
Based on the Category Analysis, the baby formula market in Vietnam has the potential to develop products due to
Develop a new PediaSure product line to meet the growing demand from parents with children aged
Introducing a specialized PediaSure product line tailored for children aged 1 to 3 years, focusing on variants that cater to picky eaters, enhance digestive health, boost immunity, support height growth, and promote IQ development This new line will also include supplementary products designed to monitor basic health symptoms and offer additional nutritional support The development aligns with current trends in formula milk usage, while addressing economic and demographic factors, ultimately aiming to increase revenue and profits.
Currently, the product life cycle of the baby formula industry is generally in the growth and maturity stages.
Introduce the new PediaSure product into the market, using appropriate strategies for the PediaSure product line.
To enhance the market share of the new PediaSure product, we aim for a 1% increase from June to October 2025, followed by an additional 2% growth from October to December 2025 Additionally, our revenue target is to reach 18 billion VND between June and September 2025, with a significant rise to 50 billion VND by the end of December 2025.
Achieve a profit of 3 billion VND from June to October 2025, and increase it to 8 billion VND from October to the end of 2025.
In the competitive baby formula market, brands like Nutifood Grow PLUS Green and Dielac Pedia 1+ offer similar features tailored for children of the same age group.
1 to 2 years, and Colosbaby Gold +1 for children aged 1 to 2 years.
In 2024, PediaSure holds the 9th position among leading baby formula brands on social media platforms, according to YouNet Media This ranking presents a challenge for the brand in launching its new product line in the market.
To boost awareness of the new PediaSure product, it is essential to implement effective marketing strategies that enhance brand recognition and contribute to an increased market share, ultimately helping to achieve the established sales and profit targets.
Increase PediaSure's ranking in the baby formula brand rankings to 7th from June to October, and achieve a ranking of 6th from October to the end of 2025.
Launch the new PediaSure Baby product line in June 2025 and maintain sales of the product from June to the end of 2025.
Starting in June 2025 and continuing through the end of the year, the pricing for the PediaSure product line will be updated During this period, efforts will also focus on enhancing brand associations for the new product line to meet strategic objectives.
To enhance brand recognition for the new PediaSure product line, we aim to achieve a 15% increase from June to August 2025, followed by a 20% rise from September to the end of October 2025, and a 25% boost from November through the end of 2025, specifically targeting our desired customer segment.
From June to October 2025, distribution will begin in Ho Chi Minh City and Hanoi, covering over 50 towns and districts Following this, from October to the end of 2025, the distribution will expand to include four additional major cities—Hue, Hai Phong, Da Nang, and Can Tho—along with 50 more towns and districts throughout Vietnam.
PRODUCT STRATEGY
Specific product details
- Chapter 5: 5.1 Price strategy and 5.2 Place strategy
- Chapter 4: 4.3 Products Attributes, 4.4 Augmented Products and 4.5 Product Strategy according to product life cycle
I would like to express my heartfelt gratitude to the Board of Directors, faculty, and staff of the University of Finance - Marketing (UFM) for their invaluable support during my academic journey Special thanks to my supervisor, Ms./MSc Nguyễn Thị Minh Ngọc, for her dedicated guidance and expertise in helping me complete this thesis.
In the course of my research and writing, I recognize that my knowledge and experience may have resulted in certain limitations and shortcomings I sincerely invite constructive feedback and suggestions from professors and experts to enhance and refine this work.
Once again, I extend my heartfelt appreciation to everyone who has contributed to the realization of this thesis.
Figure 1-1: The organizational structure of the executive team base on PediaSure
Figure 1-3: Top 20 Formula Milk brands with the highest sales on e-commerce platforms 4
Figure 1-4: The sales of PediaSure compared to other companies in the baby and mother product industry 5
Figure 1-5: Formula milk brand ranking on social media platforms 5
Figure 2-1: Formula milk product life cycle 7
Figure 2-2: The baby formula market with a multitude of competitors 10
Figure 2-4: Factors affecting a child's height growth in the first five years of life 20
Figure 2-5: Chart of Expected Changes for the PediaSure Product 24
Figure 2-6: The competitive matrix image of PediaSure compared to its competitors 24
Figure 2-7: The radar positioning matrix of the PediaSure Baby brand compared to competitors in the powdered milk market in Vietnam 27
Figure 4-1: PediaSure Baby logo Product 32
Figure 4-2: Packaging Design of PediaSure Baby 33
Figure 4-3: PediaSure's Nutritional Assessment System 42
Figure 4-4: New PediaSure's Nutritional Assessment System 43
Figure 4-5: The product life cycle of PediaSure Baby during its market introduction stage 44
Figure 4-6: The product life cycle of PediaSure Baby during its market growth stage 45
Figure 5-1: Market share versus price/costs of Formula Milk 47
Figure 5-2: The distribution channel structure of PediaSure Baby 50
Figure 5-3: Website channel of PediaSure Abbott Vietnam 51
Figure 6-1: Risk assessment matrix for New Product 68
Table 2-1: Category factor affect to Formula Milk Market 9
Table 2-2: Functions of Nutifood's Product Lines 16
Table 2-3: Competitve Image Matrix (CPM) Data 19
Table 2-4: Target Market of new PediaSure 21
Table 3-1: Objective of New PediaSure in the last 6 months of 2025 29
Table 4-1: The nutritional content of PediaSure Baby Energy 34
Table 4-2: The nutritional content of PediaSure Baby Growth 37
Table 4-3: The nutritional content of PediaSure Baby Shield 39
Table 5-1: Competitive Price and Cost Analysis Table 46
Table 5-2: The price of PediaSure Baby milk line when applying a value-based pricing strategy 48
Table 5-3: The price of PediaSure Baby milk line when applying a skimming pricing strategy 49
Table 5-4: Complete Distribution Channel Structure of PediaSure Baby 51
Table 5-5: Detail for IMC plan of PediaSure Baby in the last 6 months of 2025 53
Table 6-1: Detail of Gantt Chart for PediaSure Baby in the last 6 months of 2025 58
Table 6-2: The risks of launching PediaSure Baby product into a new market 65
Table 6-3: Risk solution for new product 68
TEAM MEMBER EVALUATION TABLE ii
CHAPTER 1 INTRODUCTION – ABBOTT VIETNAM AND PEDIASURE 1
1.1 About Abbott and Abbott Vietnam 1
2.3.3 Unique Value Proposition (UVP) of PediaSure Baby 25
4.4.1 Nutritional Advice Support System for children 41
4.5 Product Strategy according to product life cycle 44
5.2.1 Selecting a strategy for the distribution channels 50
5.2.3 Deciding on the distribution channel structure 50
5.3 Promotion – Integrated Marketing Communications (IMC) plan 52
CHAPTER 1 INTRODUCTION – ABBOTT VIETNAM AND
1.1 About Abbott and Abbott Vietnam
Abbott Nutrition, established in 1894 by Dr Wallace C Abbott, is a renowned quality milk brand based in the United States The company is globally recognized for its diverse range of products, including infant formula, ready-to-drink milk, maternal milk, and powdered milk for adults Some of Abbott's well-known brands include Ensure, PediaSure, Similac, and Grow, highlighting its commitment to nutrition across all life stages.
Entering the Vietnamese market in 1995, Abbott Vietnam has since established offices in
Abbott is dedicated to enhancing the health and well-being of the Vietnamese population, employing over 2,200 staff across Ho Chi Minh City, Hanoi, and five additional regions in all 63 provinces The company offers a wide array of scientific nutrition products, pharmaceuticals, diagnostics, and medical devices to support healthier, more fulfilling lives for the people of Vietnam (Abbott, 2024).
Abbott has been recognized as Fast Company’s World Changing Company of the Year for three consecutive years, demonstrating its commitment to innovation and impact (2020-2023) Additionally, the company has earned a spot on DiversityInc's list of top companies for diversity for 20 years, from 2004 to 2023 In Vietnam, Abbott was named one of the 100 best companies to work for and recognized as the leading workplace in the pharmaceutical, medical device, healthcare, and consumer goods sectors in 2022 As a global leader in advancing cutting-edge technologies across medicine, science, healthcare, nutrition, and technology, Abbott has partnered with the Vietnamese government and the Ministry of Health to tackle the country's healthcare challenges effectively.
Abbott Vietnam's executive team is headed by General Director Mr Douglas Kuo, who oversees various business areas through a structured leadership team.
Figure INTRODUCTION – ABBOTT VIETNAM AND PEDIASURE-1: The organizational structure of the executive team base on PediaSure Vietnam Citizenship
Figure INTRODUCTION – ABBOTT VIETNAM AND PEDIASURE-2: Abbott's growth indicators
By the end of 2024, Abbott reported a remarkable revenue increase of approximately 4.59% and a gross profit growth of 5.03%, reflecting a positive trend in its key financial metrics This growth signifies that Abbott is currently experiencing a robust expansion phase in the market, as highlighted by Investing (2024).
Pediasure is known as a milk brand under the Abbott group, with a product line primarily focused on nutrients to support the comprehensive development of children from
Abbott's Pediasure, launched in 1988, is a globally recognized ready-to-drink powdered milk brand that supports children's growth from ages 1 to 10 (Ngọc Đỗ, 2022) Renowned for its rich nutrient content, Pediasure aids in weight gain, height increase, and overall physical and mental development, as affirmed by experts (Lại Thảo, 2022) With a diverse range of products, Pediasure makes it easy for consumers to select the ideal option for their children's nutritional needs.
Currently, Pediasure offers a powdered milk product in 3 different sizes and a single flavor, including Pediasure vanilla-flavored powder in 380g, 800g, and 1.6kg boxes (Abbott, 2024)
Pediasure's height-boosting formula is enriched with protein, calcium, and Vitamin D, now featuring added Arginine and natural Vitamin K2 to support optimal height growth These key ingredients work together to promote stronger and longer bones.
PediaSure is a complete and balanced nutritional solution designed to support healthy weight gain and appetite enhancement, delivering 1 kcal/ml of energy along with 37 essential nutrients that promote growth and facilitate healthy weight gain.
PediaSure boosts immunity as it contains prebiotics (FOS fiber) and probiotics (beneficial microorganisms), helping to strengthen the immune system and reduce the number of sick days for children (Abbott, 2024)
Price Strategy: PediaSure's pricing in Vietnam is positioned in the premium segment, reflecting its quality and clinically proven effectiveness According to (Abbott,
In 2024, the price of PediaSure varies from 324,000 to 1,162,000 VND, depending on the package size of 380g, 800g, or 1.6kg This positions PediaSure at a higher price point compared to competitors like Junior Horlicks, appealing to parents who prioritize investing in their children's health.
The distribution strategy for the product includes a strong presence in major supermarkets like BigC and Co.op Mart, as well as specialized stores for mothers and children such as Con Cưng, AVAKids, and Kid Plaza Furthermore, it is accessible in large pharmacies like Long Châu and on popular e-commerce platforms including Shopee and Lazada.
2024), it is also distributed through Pediasure's official website (Abbott, 2024) This helps increase the product's coverage.
Pediasure effectively promotes its nutritional benefits, growth support, and immunity enhancement through targeted campaigns on family-focused channels like HTV and VTV, aiming to engage parents as key decision-makers in milk product purchases In 2023, the brand launched the successful 'Mẫu Giáo Cao Lớn' campaign, which achieved recognition by ranking among the top 10 media campaigns in September 2023 (Kompa, 2023).
Pediasure's strategic focus on the mid-to-high-end market, combined with a foundation in nutritional science, differentiates it from competitors This smart approach utilizes various media channels to effectively communicate its message and enhance brand positioning.
On e-commerce platforms (Shopee), foreign milk companies hold a large market share According to The Metric, leading sales is Abbott (including PediaSure) with over
703 billion VND, accounting for 20.81% of the market share, a significant gap compared to other brands (Bình Khánh, 2024).
Figure INTRODUCTION – ABBOTT VIETNAM AND PEDIASURE-3: Top 20 Formula
Milk brands with the highest sales on e-commerce platforms
PediaSure stands out as a leading brand in the mother and baby product industry, generating impressive sales and revenue, with nearly 125 billion VND in 2024 and selling 129,699 products through e-commerce platforms (Brands Vietnam, 2024).
Figure INTRODUCTION – ABBOTT VIETNAM AND PEDIASURE-4: The sales of
PediaSure compared to other companies in the baby and mother product industry.
However, according to the prominent powdered milk brand ranking on social media platforms by YouNet Media Index Ranking, in 2024, PediaSure ranked only 9th (dropping
4 spots compared to 2023), behind Colosbaby (ranked 4th) PediaSure is only ahead of theGrowPLUS+ brand (ranked 11th) (YouNet Media, 2024)
Figure INTRODUCTION – ABBOTT VIETNAM AND PEDIASURE-5: Formula milk brand ranking on social media platforms
With strong resources, a good brand image, and effective strategies help the company lead the market However, PediaSure needs to improve its communication aspects in Formula Media Ranks.
CHAPTER 2 SITUATION ANALYSIS 2.1 Category Analysis
Product Attributes
Vanilla, Chocolate, and Strawberry flavors are natural and contain no artificial sweeteners However, the flavored product is encouraged for use in children under 2 years old.
The reason for updating these flavors, according to the ACT Nutrition Support Service, is that:
- On average, flavoured milk contains about one teaspoon of added sugar per 100ml of milk
- Reduced-fat* flavoured milk contains about the same number of kilojoules as plain full-fat milk (~290kJ per 100ml).
Children who consume flavoured milk tend to have reduced consumption of sugar-sweetened beverages and fruit drinks, unlike those who do not drink flavoured milk This indicates that children who avoid flavoured milk are likely replacing it with less nutritious sugary drinks rather than opting for plain milk.
- Flavoured milk drinkers are more likely to meet their requirements for calcium (2).
- Flavoured milk consumption does not lead to weight gain or changes in BMI (2,4).
- There is no association between flavoured milk intake and dental caries (5).
- Unlike other sugary drinks, flavoured milk is low GI, meaning it provides a sustained release of energy rather than a quick energy high (6).
After reviewing the nutritional details on the official Pediasure website (pediasure, 2025), it is evident that each Pediasure product line is designed with specific nutritional components tailored to its target audience Below is a summary of the nutritional elements found in Pediasure Baby products.
Designed for children who need to enhance their appetite, improve their taste perception, and meet higher energy needs.
Table PRODUCT STRATEGY-7: The nutritional content of PediaSure Baby Energy
Energy kcal 461,32 Protein: 13,87g x 4 kcal/g = 55,48 kcal
Fats: 18,12g x 9 kcal/g = 163,08 kcal Carbohydrate: 60,69g x 4 kcal/g = 242,76 kcal
Protein g 13,87 Supports muscle development, tissue repair, and maintenance.
Fat g 18,12 Supports vitamin absorption, organ protection, and provides long-lasting energy.
Phosphopeptides (CPP), derived from hydrolyzed casein, a key protein in milk, offer improved digestibility and absorption compared to whole protein Acting as a magnet, CPP attracts vital nutrients essential for children's growth, including calcium, iron, and zinc.
Transports fatty acids into the mitochondria for energy production Supports fat metabolism, helping the body use fat as an efficient energy source.
Vitamin A IU 926 Vitamin A plays an important role in body growth, reproductive health, immune system function, and maintaining vision.
Vitamin B1 mg 1,12 Vitamin B1 helps children stimulate their appetite It is crucial in converting sugar and carbohydrates into energy for the body.
Vitamin B2 mg 0,98 Vitamin B2 helps the body produce red blood cells and enhances the circulatory system’s activity.
Vitamin B6 mg 1,21 Vitamin B6 is one of the vitamins that help children stimulate their appetite and is often used to treat iron-deficiency anemia.
Vitamin B9 mcg 111 Vitamin B9, also known as folic acid, is essential for cell creation A deficiency can lead to symptoms like glossitis, difficulty breathing, loss of appetite, and mental effects.
Vitamin B12, at a dosage of 1.39 mg, plays a crucial role in stimulating appetite and aiding the body's conversion of food into energy It is essential for the metabolism of fats and proteins and contributes to the health of the liver, skin, and hair A deficiency in Vitamin B12 can lead to symptoms such as poor appetite, pallor, and fatigue.
Niacin (Vitamin B3) Mg NE 6,94 Niacin (Vitamin B3) supports energy metabolism and helps the body produce ATP It also maintains the health of the skin, nervous system, and digestive system.
(Vitamin B5) mg 3,24 Pantothenic acid (Vitamin B5) participates in the synthesis of coenzyme A (CoA), a critical factor in the metabolism of carbohydrates, proteins, and fats.
Biotin (Vitamin B7) mcg 9,3 Biotin (Vitamin B7) is necessary for the metabolism of carbohydrates, fats, and proteins.
Calcium mg 463 Calcium builds and maintains strong bones and teeth, supports muscle contraction, and nerve transmission.
Zinc mg 3,10 Zinc is a component of more than 300 enzymes
Source: Author Group 4.3.2.2 PediaSure Baby Growth:
Designed for children needing height growth, undernourished, and cognitive development support.
Table PRODUCT STRATEGY-8: The nutritional content of PediaSure Baby Growth
Energy kcal 461,32 Protein: 13,87g x 4 kcal/g = 55,48 kcal
Fats: 18,12g x 9 kcal/g = 163,08 kcal Carbohydrate: 60,69g x 4 kcal/g = 242,76 kcal
Protein g 13,87 Provides energy, supports muscle development, repairs, and maintains tissue.
Fats g 18,12 Helps absorb fat-soluble vitamins, protects internal organs, provides long-lasting energy. carbohydrate g 60,69 Provides the body's main source of energy.
(CPP) mg 163 Supports bone development, CPP helps maintain calcium levels in the blood, supports calcium deposition in bones, especially important for growing children.
(Omega-3) g 0.47 Supports brain and eye development, reduces inflammation, supports cardiovascular health.
Acid) mg 21.0 Structural component of the brain and retina, supports brain and vision development. involved in activities like enhancing absorption and protein synthesis, which helps stimulate appetite.
Magnesium mg 91,7 Magnesium supports muscle and nerve function, regulates blood pressure, and synthesizes proteins.
Potassium mg 606 Potassium maintains fluid and electrolyte balance and supports nerve and muscle function.
Sodium mg 176 Sodium helps maintain muscle and nerve function, balances water, and regulates blood pressure.
Chlorine mg 469 Chlorine helps maintain electrolyte balance and aids digestion by producing stomach acid.
Cholin mg 139.0 Important for cell membrane structure, helps maintain cell integrity.
Supports brain development and memory, especially important during early childhood.
Vitamin A IU 926 Vitamin A plays an essential role in body growth, reproductive health, immunity, and maintaining vision.
Vitamin D3 IU 370 Helps absorb calcium and phosphorus, maintains strong bones and teeth.
Vitamin B1 mg 1,12 Vitamin B1 helps children eat better This vitamin is crucial for converting sugar and carbohydrates into energy for the body.
Vitamin B2 mg 0,98 Vitamin B2 helps the body create red blood cells, boosting circulatory system activity.
Vitamin B6 mg 1,21 Vitamin B6 is one of the vitamins that helps children eat better, often used to treat iron- deficiency anemia.
Vitamin B9, or folic acid, is crucial for cell creation and overall health A deficiency in Vitamin B9 can lead to symptoms such as an inflamed tongue, shortness of breath, loss of appetite, and mood changes.
Vitamin B12 mg 1,39 Vitamin B12 stimulates appetite, helps the body convert food into energy, metabolizes fats and proteins, and maintains liver, skin, and hair health.
A deficiency can lead to poor appetite, pale skin, and fatigue.
Niacin (Vitamin B3) Mg NE 6,94 Helps energy metabolism, assists the body in creating ATP.
Maintains healthy skin, nervous system, and digestive system.
(Vitamin B5) mg 3,24 Participates in the synthesis of coenzyme A
(CoA), a key element in carbohydrate, protein, and fat metabolism.
Biotin (Vitamin B7) mcg 9,3 Essential for carbohydrate, fat, and protein metabolism.
Vitamin K1 mcg 27.3 Supports bone strength by providing necessary proteins for the development and maintenance of strong bones
Vitamin K2 mcg 8.2 Vitamin K2 activates osteocalcin, a protein that binds calcium to bone structure, increasing bone density and reducing the risk of fractures.
Calcium mg 463 Builds and maintains strong bones and teeth, supports muscle contraction, and nerve transmission.
Iron mg 6.48 A component of hemoglobin in red blood cells, helps transport oxygen to cells, supports brain and immune system development.
Zinc mg 3.10 Supports growth, improves appetite, enhances height, and aids in brain development.
Phosphorus mg 388 Forms bones and teeth, metabolizes energy, and maintains acid-base balance.
Manganese mg 0.69 Involved in bone metabolism, enzyme production, and protects cells from oxidative damage.
Iodine mcg 44.9 Important for thyroid function, supports brain development, and regulates metabolism.
Source: Author Group 4.3.2.3 PediaSure Baby Shield:
Designed for children with illnesses or weak immunity, it strengthens the digestive and immune systems.
Table PRODUCT STRATEGY-9: The nutritional content of PediaSure Baby Shield
Energy kcal 461,32 Protein: 13,87g x 4 kcal/g = 55,48 kcal
Fats: 18,12g x 9 kcal/g = 163,08 kcal Carbohydrate: 60,69g x 4 kcal/g = 242,76 kcal
Protein g 13,87 Provides energy, supports muscle development, repairs, and maintains tissue.
Fats g 18,12 Helps absorb fat-soluble vitamins, protects internal organs, and provides long-lasting energy. carbohydrate g 60,69 Provides the body’s primary energy source.
CPP (Casein Phosphopeptide) mg 163, derived from hydrolyzed casein, is a highly digestible milk protein that effectively attracts essential nutrients such as calcium, iron, and zinc, promoting growth and overall health.
FOS/Inulin g 2.06 Soluble fiber, supports gut microbiota, improves digestion, boosts immunity, and prevents constipation.
6) g 4.17 Supports immune function, growth and development, and maintains healthy skin and hair.
Vitamin A IU 926 Vitamin A, Vital for body growth, reproductive health, immunity, and maintaining vision.
Vitamin B1 mg 1,12 Helps create enzymes involved in sugar metabolism, stimulates appetite, and supports digestion.
Vitamin B2 mg 0,98 Involved in cell metabolism, helps absorb iron, and maintains a healthy intestinal lining.
Vitamin B6 mg 1,21 Participates in biochemical reactions of the immune system, aids digestion, and protein metabolism.
Vitamin B9 mcg 111 Supports the creation of new cells and boosts immune function.
Vitamin B12 mg 1,39 Helps maintain nervous system function and produce blood cells, supporting a healthy digestive system.
Niacin (Vitamin B3) Mg NE 6,94 Supports energy metabolism and helps create ATP, maintaining skin, nervous, and digestive health.
(Vitamin B5) mg 3,24 Stimulates digestive muscle contractions, helping alleviate constipation.
Biotin (Vitamin B7) mcg 9,3 Necessary for carbohydrate, fat, and protein metabolism.
Vitamin C mg 46.3 Maintains the integrity of the intestinal lining, protects the digestive system from harmful bacteria,and boosts immune function.
Zinc mg 3.10 Enhances immune function, supports cell division, wound healing, and brain development.
Molybdenum mcg 24.0 Involved in enzyme metabolism, helps detoxify the body, and supports important enzyme functions.
Chromium mcg 13.9 Helps regulate blood sugar, supports carbohydrate and lipid metabolism.
Selenium mcg 14.8 Antioxidant, supports immune system and thyroid function.
Cu mg 0.3 Giúp cơ thể hấp thu sắt, hỗ trợ sản xuất hemoglobin và duy trì hệ miễn dịch khỏe mạnh.
Chloride mg 469 Helps produce stomach acid, supports digestion, and balances bodily fluids.
PediaSure Baby Energy is designed to support picky eaters and promote healthy weight gain, featuring 20 essential nutrients with a focus on high energy from proteins, fats, and carbohydrates Key ingredients like Casein Phosphopeptides (CPP) enhance mineral absorption, while Carnitine aids in fat metabolism The inclusion of B vitamins (B1, B6, B9, B12, Niacin) stimulates appetite and supports digestion Additionally, minerals such as Zinc, Magnesium, Sodium, Chlorine, and Potassium play a vital role in enhancing appetite and promoting physical growth.
PediaSure Baby Grow is designed to support height and brain development in children, featuring 25 essential nutrients It includes Calcium, Vitamin D3, Vitamin K1, K2, and Casein Phosphopeptides (CPP) to promote strong bones Additionally, Omega-3, DHA, and Choline contribute to cognitive development and memory enhancement The formula is further enriched with Iron and Iodine, which are vital for blood formation and optimal thyroid function.
PediaSure Baby Immune is designed to enhance immunity and support digestion with 22 essential nutrients It includes FOS/Inulin to balance gut bacteria and key vitamins and minerals like Vitamin C, Zinc, Selenium, and Copper to strengthen the immune system Additionally, Omega-6 promotes immune function, while Molybdenum and Chromium assist in enzyme metabolism and detoxification Chlorine further aids digestion by promoting stomach acid production.
Augmented Product
4.4.1 Nutritional Advice Support System for children
Pediasure offers a growth assessment tool that evaluates a child's physical development by analyzing their age, height, and weight This tool generates results that indicate whether a child's height and weight are appropriate for their age, providing insights into their overall health and growth status.
However, Pediasure's solution is currently focused on the brand's sales website, offering various product options but not tailored to the specific needs of individual children.
Figure PRODUCT STRATEGY-15: PediaSure's Nutritional Assessment System
The upgraded version offers a personalized nutritional solution designed to meet the unique developmental needs of each child during their early life stages Utilizing advanced AI technology and a data system created by top nutrition experts and medical professionals, this approach ensures optimal growth and health for children.
Parents input their child's age, height, weight, and current symptoms, such as frequent seasonal illnesses or poor digestion, to identify the best milk option The system also takes into account the child's food preferences to recommend a suitable flavor By analyzing this information, it offers insights into the child's health and ongoing nutritional and lifestyle recommendations Ultimately, it suggests the most appropriate product from the Pediasure line tailored to the child's specific needs.
Figure PRODUCT STRATEGY-16: New PediaSure's Nutritional Assessment System
An automated chatbot system utilizes AI technology to assist customers by answering inquiries with pre-set data, facilitating decision-making, purchases, and product usage For inquiries beyond its database, the chatbot promptly directs users to the appropriate customer service hotline during business hours.
Pediasure has created specialized community pages for customers to connect with fellow users and nutrition experts These platforms encourage parents to share their experiences and seek advice on improving their children's health and nutrition Joining the community offers valuable insights into effective child care practices.
Product Strategy according to product life cycle
Figure PRODUCT STRATEGY-17: The product life cycle of PediaSure Baby during its market introduction stage
PediaSure Baby is a newly launched brand currently in the introduction phase of its product life cycle In the next six months, it is anticipated to transition into the growth phase, driven by key market factors.
Despite challenges like entry barriers and a declining birth rate, opportunities exist for new products to cater to the diverse needs of consumers The Vietnamese children's milk market is currently in a developmental phase, characterized by significant scale and potential, with projections indicating substantial market revenue growth.
USD 2 billion by 2024 This market is expected to grow at an annual rate of 5.99% (CAGR 2025-2030).
Regarding customers, they tend to buy products with clear nutritional ingredients, high content, but must be suitable for their child's condition, along with the increasing trend of online consumption.
PediaSure Baby differentiates itself in a crowded market by offering high nutritional content, a unique formula, and exceptional supplemental services Renowned for its premium quality, PediaSure leverages AI technology for customer consultations and employs a team of nutrition experts to evaluate children's needs and recommend appropriate products.
After six months, the authors anticipate the product will transition into the growth phase, where the marketing strategy will prioritize product expansion by introducing additional sizes such as 400g and 1.6kg, alongside improved customer services Customers will have the opportunity to register as members on the website/app, gaining access to discounts and gifts A point system will reward customers with gifts, including toy sets, milk cups, bottles, and discount vouchers, based on their milk purchases Membership levels—Silver, Gold, and Platinum—will be determined by spending, offering exclusive benefits like birthday gifts for children.
Figure PRODUCT STRATEGY-18: The product life cycle of PediaSure Baby during its market growth stage