Sec4 vinamilk marketing strategry based on groups of products

TRƯỜNG ĐẠI HỌC KINH TẾ - TÀI CHÍNH KHOA: KINH TẾ BÁO CÁO ĐỀ ÁN CUỐI KỲ MÔN: QUẢN TRỊ MARKETING Giảng viên: Đỗ Thị Hoàng Mai VINAMILK MARKETING STRATEGY BASED ON GROUPS OF PRODUCTS -

TRƯỜNG ĐẠI HỌC KINH TẾ - TÀI CHÍNH KHOA: KINH TẾ

BÁO CÁO ĐỀ ÁN CUỐI KỲ MÔN: QUẢN TRỊ MARKETING

Giảng viên: Đỗ Thị Hoàng Mai

VINAMILK MARKETING STRATEGY BASED

ON GROUPS OF PRODUCTS - 2019

Contents

I Product 3

II Price: 4

1 Currently available price 4

2 Pricing Strategies 4

III Place: 5

1 Location 5

2 Marketing channel 5

IV Promotion: 6

1 Advertising: 6

2 Sale Promotion: 6

3 Public Relation: 7

V Implementation plan: 7

1 Objective Growth: 7

2 Marketing Objective Growth: 8

3 Key Success Factors: 8

I Product

MARKETING MIX

PRODUCT

In December 2018, Vinamilk JSC released a new Piedielac product which is infant

cereals for kids, that contribute in variety and vibrant improvement of infant cereals

market in Viet Nam

Level of

product

Current

Core benefit Piedielac baked corn snack especially provides essential nutrients for your baby’s body

The core value of baked corn snack is to help children digest, absorb vitamins and fiber to prevent constipation

Actual

product

cereals for kids, in order to build up Vietnamese brand, by Vietnamese and for Vietnamese with foreign quality

with high technology

in order to keep the flavor and the smell originally from the fruit, easily to melt when in the mouth

Style design

Logo:

Logo message is to: “committed to bring to the social the best nutrition source, best quality, by the respect,

love and high responsibility with human life and the social" by Vinamilk

Augmented

product

Guarantee If there is anything wrong with the product due to production or storage mistake,

consumer can exchange for another new one

II Price:

1 Currently available price

Product Wholesaler Retailer

2 Pricing Strategies

Vinamilk product’s price is set based on:

- Pricing Objectives: maintain and improve market share leadership

- Marketing mix strategies:

+ Value based pricing: Vinamilk prices its products based on products’ quality and brand

+ Competition based pricing: Vinamilk price has to depend on its

competitor’s price: here it is Gerber (Nestle)

+ Discount and allowance:

● Bulk discount (For customers)

● Trade discount (For Wholesalers)

Type of partner Monthly sales Discount rate

● Cash discount (For customer who complete their payment before deadline) + Psychological strategies: Vinamilk should set it as an order number such as

48.000VND or 64.000VND

- Cost: Vinamilk has a low average cost as they produce a huge quantity

III Place:

1 Location

Shops selling Vinamilk’s products are allocated not only in most of cities in

Vietnam such as Ha Noi, Da Nang, Ho Chi Minh but also in foreign countries sush as Middle East, South East Asia

2 Marketing channel

From customer statistic conducted by Vinamilk, most people who willing to but

weaning pie are located in big cities - because their income are higher than those in the countryside Therefore, Vinamilk may distribute PieDielac mainly

in Ha Noi, Da Nang, Ho Chi Minh for the best result

Modern channel Interior

Retailer

Customer

IV Promotion:

1 Advertising:

TARGET

AUDIENCE

ACTION PLAN

Parents from 25 to

35 year old

Television (estimate to reach 45% customers)

Advertising Vinamilk's weaning pie on television during the day, especially on the golden hour (20s advertisement before and after national new at 7pm)

Newspaper (estimate to reach 15% customers)

Release advertisements on newspaper 4 - 5 times per month, focus on Tuoi Tre, Thanh Nien, Nguoi Lao Dong newspaper

Magazine ( estimate to reach 25% customers)

Vinamilk may cooperate with well-known magazine like Tiep Thi Va Gia Dinh, Phu Nu, Sai Gon Tiep Thi, Suc Khoe

Ba Bau, … to promote its weaning pie with whole page once

a month

Internet (estimate to reach 8% customers)

Build a sale page for weaning pie product on Vinamilk's website, and focus on advertising through other famous websites and social media platforms such as Facebook, Instagram, Cafef,

2 Sale Promotion:

Building a clear discount policy for wholesale and retail distributors

Giving free samples to magazines, newspapers, retailers and wholesalers to encourage customers trying Vinamilk's weaning pie

Building promotion programs for every month and every special event (discount, giving gifts, …)

Creating competitions, product introduction event, lucky draw, … to give free sample for customers and give prizes to winners

Kick-off with the “Buy 1 get 1” program to promote people buy Vinamilk's weaning pie

3 Public Relation:

Vinamilk has done a very great job on public relation, and they should continue doing it

to improve Vinamilk's image in customers’ mind

Vinamilk may continue donating money, milk and other products to poor people, people

in the center of Viet Nam and unfortunate kids

Sponsoring game show, event, movie, national football match

Continue making conferences, seminars on how to raise kids effectively, both mentally and physically

V Implementation plan:

1 Objective Growth:

- Target products sold: 100,000,000,000 unit

- Target revenue: VND 6,500 billion

- Profit before tax: VND 1,300 billion

- Profit after tax: VND 1,000 billion

2 Marketing Objective Growth:

- Focus on advertising - especially in 2019 - to make PieDielac becomes well-known among Vietnamese parents

- Continue contributing to the society (do charity; donate money, products; …) to better position Vinamilk's image in customer's mind

- Actively participate in trade fair, press conference, products introduction events, … to attract more attention to PieDielac

- Frequently cares about customers to understand their needs and what they think about PieDielac Always looks for ways to improve PieDielac in order to meet the customers' standard

3 Key Success Factors:

a Product promotion:

- For a new product, promotion strategy plays a paramount important role for success In order to make PieDielac a key player in weaning sector, we have to pay attention to:

Promotion: Conduct a large discount event for the first 6 months after the launch

Frequently give free sample to the distributors in order to encourage customers to buy

Advertisement: Focus on building a trustworthy brand for PieDielac, increase the

frequency of advertising on TV, magazines and online platforms

b Vinamilk's distribution:

- With the wide distribution network which contain more than 212,000 retail stores across the country; 2 international standard warehouse and transport companies in Ha Noi and

Ho Chi Minh; as well as the network of many wholesalers (big and small supermarkets like Co.op Mart, Vinmart, …), Vinamilk has what it takes to store and distribute the best quality products to its customers anywhere within Vietnam

c Long-term strategy:

- Vinamilk commits to make PieDielac becomes the most used local weaning pie brand, constantly looks for ways to improve products, focus on R&D in order to make Vinamilk becomes a key player in weaning sector

d Macro environment:

- Political factors: Vietnam is among the top 10 countries which do not have any serious

external or internal conflict (published by IEP) Vinamilk can take advantage on this political stability to launch PieDielac

- Economic factors: Vietnam's economy is considered as one of the top 18 economies

which has been “effectively growth" for the last 50 years (research conducted by MGI and announced in WEF 2018 held in Ha Noi) Vietnam’s GDP per person has kept the average annual growth exceed 5% for the last 20 years and there are no signs which prove this number is going to diverse, which means Vinamilk can be leveraged by higher income of Vietnamese people - who are now having enough money to buy more

Vinamilk products

- Social factors: According to UN's research published on December 22, 2018, there are

4,270 children given birth everyday in Viet Nam Which means the demand for weaning products are enormous, and Vinamilk surely can take advantage on this information

Appendix: Financial Goal for PieDielac

Business

Result

Quarter 1/2019 (01/01 - 31/03)

Quarter 2/2019 (01/04 - 30/06)

Quarter 3/2019 (01/07 - 30/9)

Quarter 4/2019 (01/10 - 31/12)

Net

Revenue

VND 1625 billion

VND 1625 billion

VND 1625 billion

VND 1625 billion

Profit

Before Tax

VND 325 billion

VND 325 billion

VND 325 billion

VND 325 billion

Profit After

Tax

VND 250 billion

VND 250 billion

VND 250 billion

VND 250 billion

Ansoff Matrix:

- Vinamilk can focus on product development strategy for PieDielac because Vinamilk's current customers is the right target customers for weaning products, so they do not have

to apply a high-risk diversification strategy

Annual Budget:

- Vinamilk spent approximately VND 11,536 billion (22,5% of revenues) on selling expenses in 2017

- Vinamilk should keep the same level of marketing spending with increases to match inflation

- Vinamilk need to allocate around 25% of the total marketing budget towards the launch

of PieDielac

3-year Marketing Campaign:

- Objective: Make PieDielac becomes a most used weaning pie brand in Vietnam and

help Vinamilk to dominate the weaning sector

- Create a trustworthy brand for PieDielac as a complete weaning solution for baby in the age of 6 to 24 month