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

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VINAMILK
YOGURT
MARKETING
PLAN 2019

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

Class: INS3042

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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


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EXECUTIVE SUMMARY
This marketing plan will analyze several parts of Vinamilk Yogurt,
which is the most popular and successful yogurt brand in the Vietnam
market. The investigation focuses on analyzing the yogurt market,
including the overview, product, competitors and the macro
-environment. Besides, the research figures out the current marketing
strategy, marketing mix and SWOT analysis as well. From the
information researched, an official and specific marketing plan for
Vinamilk Yogurt during 2019 will be developed.


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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

“To become a world grade brand in food and beverage industry,
where people put all their trust in nutrient and health products”

4. Mission Statement

“To deliver the valuable nutrition to community with our
respect, love and responsibility”

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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.

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SITUATION ANALYSIS
1. Vietnam yogurt market overview
a. Demand of growth potential

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
2015

2016

2017

2018

2019

Inflation
Rate (CPI,
annual
variation
in %)
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 high-quality 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 high-quality 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…).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 VND
b. Advertising media budget:


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