tiểu luận CTCP sữa việt nam (vinamilk) VINAMILK YOGURT MARKETING PLAN 2019

VINAMILK
YOGURT REPORT
2019
CTCP Sữa Việt Nam (Vinamilk)
Email:
Website: vinamilk.com.vn


2

VINAMILK
YOGURT
MARKETING
PLAN 2019

Prepared by:
Hoang Khanh Huyen
Nguyen Thi Thu Van
Nguyen Hoang Truong
Ngo Duy Hieu

Class: INS3042


TABLE OF CONTENTS
EXECUTIVE SUMMARY _____________________________________________ 4
INTRODUCTION ________________________________________________ 5
1. Vinamilk Overview ______________________________________________________ 5
2. Product and Distribution __________________________________________________ 5
3. Vision Statement _______________________________________________________ 5
4. Mission Statement ______________________________________________________ 5

5. Core Value_____________________________________________________________ 6
6. Revenue ______________________________________________________________ 6
SITUATION ANALYSIS_______________________________________________ 7
1. Vietnam yogurt market overview ___________________________________________ 7
2. Products ______________________________________________________________ 7
3. Competitive analysis ____________________________________________________ 7
4. Macro-environment: _____________________________________________________ 8
CURRENT MARKETING STRATEGY & MARKETING MIX ______________ 12
1. Marketing Strategy: _____________________________________________________ 12
2. Marketing mix (4Ps) ____________________________________________________ 12
3. Projected marketing budget: _____________________________________________ 15
4. Controlling: ___________________________________________________________ 17
SWOT ANALYSIS ______________________________________________ 19
1. Strength: _____________________________________________________________ 19
2. Weakness: ___________________________________________________________ 19
3. Opportunities: _________________________________________________________ 19
4. Threats: _____________________________________________________________ 19
OBJECTIVES _________________________________________________ 20
CONCLUSION _________________________________________________ 21
REFERENCE __________________________________________________ 22
WORKING DISTRIBUTION TABLE ________________________________ 23
Auditor’s Report _________________________________________________________ 23
EVALUATION OF TEACHER _____________________________________ 24


4

EXECUTIVE SUMMARY
T h i s ma r k e ti n g p l a n w i l l a n a l y z e s e v e r a l p a r ts o f V i n a m i l k Y o g u r t, w h i c h i s t h e
most popul ar a nd su cces sful yogu rt b rand in th e Vie tna m mar ket. The

inve stigat ion focu ses o n an alyzi ng the yogu rt ma rket, in cludin g the ov ervie w,
prod uct, compe tito rs an d the mac ro -en viron ment . Be sides, the resea rch
figu res ou t t he cu rrent marke ting stra tegy , ma rket ing mi x an d S WOT ana lys is
as well. From t he info rmat ion resea rched , an off icial a nd sp ecif ic ma rke ting
plan for Vina milk Yogu rt du ring 201 9 wi ll be deve lope d.


5

INTRODUCTION
1. Vinamilk Overview
•

The Viet Nam Dairy Products Joint Stock Company (Vinamilk) is the country's largest
private enterprise in Vietnam. The company was founded in 1976. For more than 40
years of development, Vinamilk has been contributing to the development of the
Vietnam economy and dairy industry as well.

2. Product and Distribution
•

•

Vinamilk has more than 20 brands and 200 products including liquid milk, yogurt, infant
cereal, powdered milk, condensed milk, ice cream, beverages, cheese and soymilk. So
far, Vinamilk has 251.000 retail outlets, more than 200 distributors across the country.
Besides, it is exported to 53 countries in the world. (2019’s report)
Vinamilk yogurt is a dairy product produced by bacterial fermentation of milk. Recently,
it has 6 yogurt brands with nearly 30 kinds of yogurt and different flavors.

3. Vision Statement

grade
industry,
“To become a world g
rade brand in ffood
ood and beverage in
dustry,
where pe
ople put al
rient and health produc
ts”
people
alll their trust in nut
nutrient
products”

4. Mission Statement

deliverr the valuab
valuable
“To delive
le nutrition to community with our respect, love
and respons
ibility”
responsibility”


6
5. Core Value

Vinamilk focuses on 5 values:
• Integrity: Integrity and transparency in actions and transactions
• Respect: To have self-respect, to respect colleagues. Respect the Company and
partners.
• Ethics: Respect established ethical standards and act accordingly.
• Fairness: To be fair with employees, customers, suppliers and other parties.
• Compliance: To comply with legal regulation, the Company Code of Conduct, and
the Company’s procedures and policies

6. Revenue
•

At the end of 2019, Vinamilk’s revenue reached VND 56.400 billion. Profit before tax
was VND 12.796 billion. Profit after tax was VND 10.554 billion.


7

SITUATION ANALYSIS
1. Vietnam yogurt market overview
a. Demand of growth potent
potential
ial
According to Euromonitor International, sales of yogurt in 2009 the total market in
Vietnam increased by 11% compared with 2008, reaching 2.000 billion. However, until
2010, yogurt products sales reached 3,300 billion VND, 2012 was 5,737 billion VND and
this figure is estimated at 12 465 billion VND in 2013. Accordingly, the rate of annual
compound growth (CAGR) in sales is over 31%, 14% own production.
According to the VP Bank Securities Company, yogurt is quite a potential item, with
strong growth of 30% compared to other milk products. The rate of using yogurt is higher

than milk in some countries recently. In France, it is 80:20; Singapore and Thailand are
70:30 to 50:50, Vietnam is about 50:50.

b. Yogurt market structure
In general, yogurt is very diverse and has many kinds. In 2009, the analysis report
showed that sales of Vinamilk yogurt scale 60% industry wide sales to 105.3 million.
This growth is not small. Nowadays, Vinamilk holds 84% of the domestic market for
yogurt, 16% held by other brands such as TH true milk, Ba Vi, Moc Chau, etc.

2. Products
Vinamilk Yogurt has diverse kinds of yogurt with many flavors. Firstly, the original yogurt of
vinamilk such as Vinamilk Yogurt (Sweetened, Low sugar or no sugar), Vinamilk 100% Fresh
Milk yogurt. The drinking yogurt Vinamilk Probi (Sweetened, less sugar), Vinamilk Probi Melon
Favor, Strawberry Flavor, eating yogurt Vinamilk Probi mixed fruit flavor, strawberry flavor.
Vinamilk aloe vera yogurt, Vinamilk pomegranate yogurt. Vinamilk Probeauty.

3. Competitive analysis
Vietnam yogurt market is the potential market, so there are many new yogurt enterprises willing
to enter this dynamic market. This is also an important factor that can impact on market share
as well as competitiveness of Vinamilk yogurt.
Currently, Viet Nam yogurt market has many different kinds of products and a lot of yogurt
companies such as: TH True Milk, Moc Chau, Dalat Milk, Love In Farm, etc., in which Vinamilk
‘s the strongest competitor having main market share is TH True Milk.

a. Strategies of TH True Milk:


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TH True Milk is the leading company for producing yogurt in Viet Nam. In 2019, TH True
Milk gained an impressive growth rate 8% market share after 3 years appearing in the

market.
Development strategies:
•

Development products for heath.

•

Finding the way to apply normal international practices consistently with corporation
management.

•

Implementing financial actions carefully, being aware that risk management, assets
safekeeping and liquid maintenance are necessary to the company’s success.

•

Developing and launching product marketing campaigns to meet customers’ demand,
building the company’s reputation for competitive price, constant quality, great service
as well as new product and service development.

•

Investing in human resource, developing the ability of employees and giving them the
opportunities to be shared in the company’s general prosperousness.

•

Respecting standards about food and environment safety.

b. Strengths and weaknesses of TH True Milk
• Strengths
- Being the new product, the new experiences with consumers.
- Owning the most modern yogurt processing equipment and technologies.
- Distribution systems are wide in the whole country.
- Having loyal customers.
- Strong marketing in social media, TV…
• Weaknesses
- Market share is much lower than Vinamilk.
- Brand is not common with consumers.
- Price for production higher.
- The product is not diversified.

4. Macro-environment:
“There are many factors in the macro-environment that will affect the decisions of the managers
of any organization. Tax changes, new laws, trade barriers, demographic change and
government policy changes are all examples of macro change. To analyze these factors,
managers can use the PESTEL model.’’ (Gillespie, 2007). Macro-environment has a large


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influence on the growth of a company. It brings both opportunities and challenges for a
company. It is very important for Vinamilk and other companies to analyze macro
environment before implementing manufacture and business activities in order to seek profits.
Analysis below will conduct macro-environment factors having impact on Vinamilk
development.

a. Economic factors:
Economics factors have a large impact on companies. These include interest rates,

taxation change, economic growth, inflation, and exchange rates. Economic factors play
an important role to determine the formation and development of a business
environment. Highly and strongly developed economy will lead to increased laborers'
income, and also increase purchasing power. This is an opportunity for businesses to
meet customers’ demand, enhance company’s market share, dominate the market, and
increase profit.
According to Vietnam General Statistics Office, average core inflation in the first quarter
of 2019 increased by 1.83% over the same period last year.
Vietnam - Inflation Data

Inflation
Rate (CPI,
annual
variation
in %)

2015

2016

2017

2018

2019

0.631

2.668

3.52

3.54

2.796

In 2019, consumption growth rate was positive but low, reaching 2.1 - 3.9% compared
to 2018, only equivalent to the consumer price index (CPI). Among the FMCG products,
dairy products (accounting for 13% of total FMCG sales volume) is one of the categories
with poor growth.


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Source: The World Bank.data
The gross domestic product (GDP) growth rate in 2019 of Vietnam was at a high level
in the last 5 years (7.017%); decreased by 0.059% compared to the last year because
of COVID-19. The GDP growth rate of later quarter in 2019 was always higher than the
former quarters.

Source: statista.com


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In the current economy and yogurt market of Vietnam, Vinamilk has lots of opportunities
to develop their brand, along with it, they also have some difficulties and challenges in
development business activities.

b. Legal/Political:
Creating a business environment whether good or not depends on law factors and the

administration of the state. The enactment of the legal system having quality and put
into life is the first condition to ensure a fair business environment, promoting businesses
in the healthy industry’s competition.
Vietnam's political and law system is stable. Vietnam has many incentive policies to
attract foreign investors to create favorable conditions for capital and technology to help
the yogurt industry open wide production. Besides, administrative procedures
cumbersome being less improvement is a significant factor hindering foreign investors.

c. Social/Cultural:
National Institute of Nutrition has shown a yoghurt 250gr box contains 370mg calcium
to (compared to 300 mg of calcium in 250ml milk). In addition, the amount of vitamin D
available in yogurt helps your body absorb calcium more easily. Especially for children,
yogurt can make them taller. Just create a habit of eating yogurt every day for 2-3 adults
in order to be healthy. That would make people tend to buy yogurt more and more.
Yogurt becomes the beverage popular with Vietnamese families.

d. Technology:
Technology factors are a very important competition, new technology will create new
products with higher quality. Modern technology will enable faster production processes,
save raw materials, reduce costs and still ensure quality assurance. Modern technology
helps employees to perform operations quickly and promote productivity. Goods were
made abundantly appropriate to customers' needs.
In order to have the best quality products and reasonable prices, Vinamilk always tries
to reduce production costs, lower costs and bring to market products that fit customer
needs. To do that, Vinamilk has used the best technology to create quality products.


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CURRENT MARKETING STRATEGY &

MARKETING MIX
1. Marketing Strategy:
a. Segmentation and targeting:
Segmentation Variables
• Country: Vietnam
Geographic Demographic
• Cities: Focusing on the cities
• Density: Urban
• Age: 5 - 30
• Gender: Unisex, women
• Income: Average
• Family life cycle: young, married with children, single parents
Psychographic
• Lifestyle: young and dynamic
Behavioral
• User status: potential user, first-time user and regular user

b. Marketing positioning:
- In the local country, the brand reputation of Vinamilk has been known for 40 years. Vinamilk is in the top 50 of leading listed companies in Asia – Pacific (FAB 50).
- The only one milk company in Vietnam which has manufactory in foreign country (New
Zealand, Cambodia).
- Vinamilk’s local market share is 61%.

c. Market differentiation:
- Vinamilk is trying to build more differences from customer care services by
implementing nutritional counseling for consumers.
- Others milk companies make the differences by producing products for specific targets,
like Anlene which focus on the old people… Vinamilk concentrates on international quality
standards.

2. Marketing mix (4Ps)
a. Product:
• Product diversification:


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o Vinamilk has 6 yogurt brands with approximately 30 products and flavors.
Meanwhile, TH True Milk now has 6 brands and about 20 products.
o Always keep researching to provide new product launching the market • Product
quality:
o Vinamilk commits to bring customers the nutrition solution with international
standards, meeting the needs of consumers with delicious and nutritious products and
leading favorite brands in the market. Vinamilk yogurt always brings the best quality to
satisfy customers.
o Vinamilk has been ranked in Top 10 Vietnamese High Quality Product since 1995.
• Branding:
o Vinamilk is one of the most popular brands in Vietnam market.
• Packaging:
o Vinamilk always pays more attention to their packaging.
o Design attractive cover to catch customer’s eye.
o Cooperate with 2 packaging company from Sweden and Germany to provide highquality packaging for every product.
• Product support services:
o Customer service department is always willing to support and answer customer
problems, provide nutritional advice about products.

b. Place:
• Product diversification:
o Vinamilk has 6 yogurt brands with approximately 30 products and flavors.
Meanwhile, TH True Milk now has 6 brands and about 20 products.
o Always keep researching to provide new product launching the market.

• Product quality:
o Vinamilk commits to bring customers the nutrition solution with international
standards, meeting the needs of consumers with delicious and nutritious products and
leading favorite brands in the market. Vinamilk yogurt always brings the best quality to
satisfy customers.
o Vinamilk has been ranked in Top 10 Vietnamese High Quality Product since 1995.
• Branding:
o Vinamilk is one of the most popular brands in Vietnam market.
• Packaging:
o Vinamilk always pays more attention to their packaging.


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o Design attractive cover to catch customer’s eye.
o Cooperate with 2 packaging company from Sweden and Germany to provide highquality packaging for every product.
• Product support services:
o Customer service department is always willing to support and answer customer
problems, provide nutritional advice about products.

c. Price:
• Price is an important element in marketing mix, it reflects the quality of products as
well as the companies’ revenue. Vinamilk yogurt’s average price is not too high
compared to the domestic market.
• Vinamilk yogurt price is shown on the following table (compared with TH True Milk
Yogurt)
Vinamilk Yogurt TH True Milk Yogurt
Normal Yogurt VND 20,400/4jars - VND 22,000/4 jars
Drinking yogurt (180ml) VND 26,000/4products - VND 30,000/4products
• There are some factors that impacts on Vinamilk yogurt price:
o Customer valued-based cost.

o Cost-based pricing: costs of producing, selling, distributing, etc. o Competition-based
pricing.
• Some policies that Vinamilk applied to their products (including yogurt): o Keep the
price but higher quality.


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o Stable price
• Vinamilk yogurt price:
Products Price Packaging
▪

Vinamilk Yogurt VND 20,400 4 jars

▪

Vinamilk Probi Yogurt VND 28,000 4 jars

▪

Vinamilk Probi Drinking Yogurt VND 17,000 65 ml x 5 jars

▪

Vinamilk Aloe Vera Yogurt VND 24,000 4 jars

▪

Vinamilk Strawberry Drinking Yogurt VND 24,300 180ml x 4 boxes

▪

Vinamilk Probeauty Yogurt VND 31,000 4 jars

▪

Vinamilk SuSu Yogurt (drinking)VND 24, 000 80ml x 6boxes

d. Promotion:
• The promotion mixes tools
o Advertising: Vinamilk uses the multimedia to spread their products to the customers.
From there, it helps customers understand clearly about the product they purchase. For
example, we often see the dairy cow image in every Vinamilk advertisement, it means
that they want to share a message that their products were made from high-quality
materials.
o Sale promotion: Vinamilk yogurt almost does not discount on their product. But they
often attract small gifts like toys in order to attract customers, especially children.
o Direct marketing: Sometimes, when Vinamilk launch new products, they usually give
it freely to customer.
o Public relation: Vinamilk usually sponsors for the TV game shows. Besides, they often
sponsor milk in many schools across the country and they also take part in
environmental events. Moreover, they have been distributing more in the development
of society. Therefore, they can build better brand image and public relations as well.

3. Projected marketing budget:
a. Promotion budget:
Social welfare (Charity, scholarship…).
scholarship…).25 billion VND
Vietnam milk festival 1 billion VND
Giving samples to customers 4 billion VND

Estimating the total cost of promotion is estimated about 30.000.000.000 V
VND
ND

b. Advertising media budget:


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❖ Television:
• YEAH1 TV, VTVcab 1, VTVcab 7:
Time 10s 15s 20s
11h - 11h30’
11h30’:: 12.000.000 VND; 25.000.000 VND; 28.000.000 VND
18 - 20h
20h:: 20.000.000 VND; 27.000.000 VND; 35.000.000 VND
20h – 22h
22h:: 25.000.000 VND; 32.000.000 VND; 40.000.000 VND
• VTV1, VTV3, VTV7:
Time 10s 15s 20s
18h59’
18h59’:: 20.000.000 VND 25.000.000 VND 32.500.000 VND
20h30’
20h30’:: 22.500.000 VND 28.000.000 VND 36.250.000 VND
21h – 21h30': 25.000.000 VND 31.000.000 VND 40.000.000 VND
Estimating of advertising in media in gold hours is about 168.000.000 VND
VND.

❖ Internet (top banner):
Size (mm) Price
24h.com.vn: 360*110 15.000 VND/click

Webtretho.com: 468*90 20.000 VND/click
Facebook.com: 360*90 200.000.000 VND/month
Kenh14.com: 980*90 100.000.000 VND/month
Estimating advertising in social networks is about 320.000.000 VND.

❖ Magazine:
Size (page) Price:
Tuoi Tre: Whole page 20 million VND/time
Lao Dong: Whole page 15 million VND/time
Estimating advertising in magazines is about 35.000.000 VND
VND.

c. Budget for improvement:
Redesign the packaging 30 million VND
Improve product line 2 billion VND
Total cost for improvement is about 2.030.000.000 VND
VND.
So, the total cost for all the marketing actions in 2019 is estimated about 32.553.000.000
VND


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Action program for 2019:
Activities

Responsible Time

Remark
Budget

Q1
Advertising

Television

Marketing

Q2

Q3

Q4

X

523

Department

million
VND

Internet
Magazines

Promotion

Social

Marketing

welfare

Department

Vietnam

X

30
billion
VND

X

milk festival
Giving

X

samples to
customers
Improvement Redesign

Design

the cover

Department

Improve

Engineering

product line

Department

X

2.030
million

X

VND

Total = 32.553.000.000 VND

4. Controlling:
In order to achieve the target of the marketing plan for 2019, each department must supervise
how they work. From there, they need to make the reports about their activities that they are
doing.
Research & Development:
• Provide information about the market including competitors monthly.


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• Update the trends of customer habit in the market during each quarter. Sales Department
• Report the sale activities from the distributors.

• Promoting to reach the new target during each month
Marketing Department:
• Manage the promotion strategies via media channels
• Expand and introduce products on social networks such as Facebook.
Finance & Accounting Department:
• Report on the budget that the companies have to pay for each event.
• Calculating how much we gain from the events.


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SWOT ANALYSIS
1. Strength:
o One of the products’ lines of Vinamilk company (strong brand, big market share).
o Wide distribution network throughout Vietnam and abroad with both traditional and modern
channel.
o Competitive price.
o Marketing team and product research have highly experienced.
o One of the most modern and advanced production lines.

2. Weakness:
o Marketing activities is not uniform in all locations.
o Products mainly focused on the domestic market.

3. Opportunities:
o Quantities of potential customers- young population.
o Perspective "Vietnamese people use Vietnamese goods" is responding of Expanding
market share because supply of raw materials are actively construction and investments.
o More easily in exports through incentives trade agreements- Vietnam has joined.
o Income tends to increase per year.

4. Threats:
o Trade agreements bring more competitors.
o Export markets face many risks.
o Psychological prefer foreign goods by domestic customers.


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OBJECTIVES
• Contributing to the whole company to achieve sales levels and become one of the 50 largest
milk companies in the world, with the goal in the period from 2014 to 2019 reaching sales of 3
billion dollars.
• Boost revenue from 8-10%.
• Customer satisfaction for quality of yogurt products with reasonable prices and leading
distribution system in Vietnam.
• Marketing objective:
• Launching for new product and new product packaging.
• Attracting more extra potential customers (about 12% new customers).


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CONCLUSION
Based on the information in this report, it can be concluded that Vinamilk Yogurt is having many
chances to develop and get more profit in the Vietnam market. Since the day this product
launched the market, it has become the most leading yogurt product in the Vietnammarket and
it tends to expand to foreign markets. However, the development of global integration has been
bringing many competitive products into the Vietnam market. Therefore, Vinamilk yogurt has to
build a specific strategy to make the products better and attract more customers. This report

includes a marketing strategy that is designed as a plan for Vinamilk to continue improving and
growing strongly in the future. Creating new products with more flavors and improving product
quality is the main strategy for product strategy. Price strategy is also important, Vinamilk has
to keep the price stable so that they can compete with the other competitors and remain their
customers. Besides, Vinamilk needs to expand the distribution across Vietnam and some new
markets as well. Finally, they have to promote their sale through promotion activities.


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REFERENCE
1. Báo cáo thường niên Vinamilk 2019:
/>d=IwAR2SsOktbzkW0DMTusLjoZEEoXOm13pGE7RF5t-LknVYuNftgC9RTtl7cbc
2. Vinamilk.com.vn.
3. Giấc mơ sữa Việt - Vinamilk eShop: Giacmosuaviet.com.vn
4. Statista.com
5. Data.worldbank.org


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WORKING DISTRIBUTION TABLE
Auditor’s Report
Member

Missions

Reviews

Hoang Khanh Huyen

Introduction; Marketing strategy

25%

Nguyen Thi Thu Van

Situation analysis; Controlling

25%

Nguyen Hoang Truong

Marketing mix (4Ps); Projected

25%

marketing budget

Ngo Duy Hieu

SWOT analysis; objective

25%


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EVALUATION OF TEACHER
Grade:

Hoang Khanh Huyen
Nguyen Thi Thu Van
Nguyen Hoang Truong
Ngo Duy Hieu

Judgment: