A REPORT ON ANALYZING AND PROPOSING MARKETING STRATEGIES FOR PASTEURIZED FRESH MILK OF MOC CHAU MILK IN VIETNAM

VIETNAM NATIONAL UNIVERSITY
INTERNATIONAL SCHOOL
-----0-0-----

A REPORT ON ANALYZING AND PROPOSING MARKETING STRATEGIES
FOR PASTEURIZED FRESH MILK OF MOC CHAU MILK IN VIETNAM

Lecturer:

Assoc. Prof. Pham Thi Lien

Course:

Principles of Marketing

Course ID:

INS2003 - 07

Researcher:

Group 7

Hanoi, June 2022


TABLE OF CONTENTS
CHAPTER 1: EXECUTIVE SUMMARY..................................................................................4
1.

Overview of this marketing plan.......................................................................................4

2.

The reason we selected moc chau milk for our research................................................4

CHAPTER 2: COMPANY’S OVERVIEW................................................................................5
2.1.

Introduction.....................................................................................................................5

2.2.

Business Model Canvas..................................................................................................8

CHAPTER 3: CURRENT MARKETING SITUATION.........................................................12
3.1.

Marketing Environment...............................................................................................12

3.2.

Competitive Situations..................................................................................................16

3.3.

Current STP Analysis...................................................................................................18

3.4.

Current Marketing Mix (4P).......................................................................................19

CHAPTER 4: SWOT ANALYSIS OF MOC CHAU MILK...................................................22
4.1.

Strengths........................................................................................................................22

4.2.

Weaknesses....................................................................................................................24

4.3.

Opportunities.................................................................................................................24

4.4.

Threats...........................................................................................................................26

CHAPTER 5: OBJECTIVES AND ISSUES.............................................................................28
5.1.

Common goals in one next year (from 6/2022 to 6/2023)..........................................28

5.2.

Ideas for marketing strategies for Moc Chau Milk pasteurized fresh milk products
28

CHAPTER 6: MARKETING STRATEGIES IN NEAR FUTURE FOR PASTEURIZED
FRESH MILK OF MOC CHAU MILK....................................................................................31

6.1.

STP Analysis..................................................................................................................31

6.2.

Marketing Mix (4P)......................................................................................................33

CHAPTER 7: ACTION PROGRAMS AND BUDGET...........................................................35
CHAPTER 8: CONTROLS........................................................................................................37
CHAPTER 9: CONCLUSION...................................................................................................38
REFERENCES............................................................................................................................39

2


WORK BREAK DOWN STRUCTURE

Full Name

Student ID

Task

Contribution

Lê Thị Ngọc Linh
(Leader)

19071053

Chapter 2, 4 + STP Analysis
(Chapter 6) + Write report
and edit other parts

100%

Imamura Keita

21070921

Chapter 1, 7

80%

Lê Thu Phương

19071069

Chapter 3

95%

Phạm Mai Chi

21070226

Chapter 9

90%

Phạm Thị Quỳnh

20070591

Chapter 8

85%

Trần Thùy Dương

20070436

Chapter 6

90%

Vũ Như Mai

20071032

Chapter 5

70%

3


CHAPTER 1: EXECUTIVE SUMMARY
1. Overview of this marketing plan

We will describe a 1-year marketing plan for Moc Chau Milk pasteurized fresh milk from
1/6/2022 to 1/6/2023. In order, we referred to the current information and data which is in 2021.
This report is divided into 9 CHAPTERS.
For these chapters, we will show the following report will analyze the current marketing
situation in the macro environment, market strategy, marketing mix, and SWOT of Moc Chau
Milk, specifically in the current Vietnamese market. This report also will cover new marketing
strategies and new objectives for the pasteurized fresh milk products. In addition, its major action
programs and budgets are also recommended to advertise products and promote sales, revenue,
and profits by 2022.
2. The reason we selected moc chau milk for our research
We have two main reasons to select Moc Chau Milk for our research. The first reason is
we think it’s better to propagate ordinary Vietnamese milk rather than international milk. The
second reason is that Moc Chau Milk’s quality is maintained by the company’s efforts and by
some high institutions. What we discovered recently is that Vietnamese people tend to prefer to
drink imported milk from overseas because people think Vietnamese milk is not well maintained.
Although, it’s different from Moc Chau Milk’s case. It’s already being pasteurized as a beverage.

4


CHAPTER 2: COMPANY’S OVERVIEW
2.1. Introduction

Moc Chau Milk (MCM), or Moc Chau Dairy Cattle Breeding Joint Stock Company, is one
of the most famous, largest and oldest domestic dairy brands in the North and Central regions of
Vietnam, as well as one of subsidiaries which is indirectly owned by Vinamilk through
GTNFoods Joint Stock Company (Moc Chau Milk’s Annual Report, 2019). The Company
supplies, processes and manufactures a wide range of dairy products, primarily milk and yogurt.
Moc Chau Milk, formerly known as Moc Chau Military Farm, was established on 8th
January, 1958 with the task of raising dairy cows, providing dairy cow breeds, manufacturing

and processing dairy products, and producing livestock feed. It is also the first unit which
initiates an animal husbandry and dairy producing industry in Vietnam. The Company currently
operates 02 pasteurization and sterilization factories that produce and package high-quality,
nutrient-dense dairy products using imported modern processing equipment from Tetra Pak
(Sweden) and completely sterile automatic packaging technology from Korea. Taking advantage
of the Moc Chau plateau's perfect climate and soil, Moc Chau Milk owns more than 27,138 dairy
cows from over 600 dairy farming households and 03 dairy breed centers. To ensure the quality
of raw milk materials, all dairy farms must commit to fully meeting 73 strict criteria of the
VietGAP1 process on dairy cattle raising, ranging from food and water management to livestock
sanitation. Before being purchased at the 21 milk collection places throughout the livestock area,
all milk expressed from cows will be preliminarily tested and checked by Moc Chau Milk’s
expertise team based on 10 quality criteria. The purchased milk will be refrigerated and
1

VietGAP: Vietnamese Good Agricultural Practices.
5


transported immediately to factories, where it will be manufactured and packaged before being
delivered to consumers across the country.
Product portfolio of this dairy brand is fairly diverse, including fresh milk products,
products made from milk. Not only does the Vinamilk brand offer various products ranging from
core dairy products like liquid milk (both UHT and pasteurized fresh milk) to value-added dairy
products like drinking and spoon yogurt, milk cakes, pure butter, cheese and milk scum, but it
also caters to the different needs of children, as well as other uses such as bartending, baking and
making desserts. Moc Chau Milk’s products must all go through a rigorous quality management
process based on ISO2 and HACCP3 international standards to ensure that they fulfill
international quality requirements for food safety and hygiene, thereby meeting almost all
nutritional needs of consumers which are increasing day by day.
The Vietnamese dairy market is usually a competitive industry, drawing a lot of interest

and investment from enterprises. Moc Chau Milk presently holds roughly more than 2% of the
country’s milk market share and 23% of the milk market share in the North market after
Vinamilk and TH True Milk, according to the Company’s Annual Report 2021. Although these
numbers are a modest amount in comparison to other domestic and foreign dairy brands in the
Vietnamese market, the Company nevertheless has a significant presence in the Vietnamese
dairy sector, with over 60,000 retail stores. In the context of worldwide socio-economic
instability and struggles due to detrimental impacts of the Covid-19 pandemic, the supply chain
crisis has caused serious damage to many businesses around the world, including Vietnam.
Domestic demand for dairy products, on the other hand, is less impacted because milk is an
essential product, and people's demand remains to increase for more fresh milk and yogurt
during epidemics. As a result, some fortunate dairy businesses have been able to maintain
positive revenue and profit levels. Moc Chau Milk has put a lot of effort into developing the
revenue growth over the last 02 years. Unlike 2020, net revenue increased by 3.6% to VND
2,926 billion, and profit after tax increased by 13.7% to VND 319.1 billion in 2021. Mrs. Mai
Kieu Lien, Chairwoman of the Board of Directors of Moc Chau Milk, stated that the Company
has been promoting the core strengths of the sustainable and self-contained agricultural value
chain, developing high-tech dairy cow breeding projects, investing in a modern milk processing
factory, and increasing the quality of raw milk materials in order to bring healthy products and
increase resistance to improve the quality of life of Vietnamese families. Moc Chau Milk has
also been working on enhancing the distribution and sales system, being flexible in coordinating
production plans, ensuring the supply of commodities, and focusing on implementing both shortterm and long-term investment and development initiatives.
Vision, Mission and Values

2
3

ISO: International Organization for Standardization.
HACCP: Hazard Analysis and Critical Control Point System.
6

1. Vision statement
“Bringing the desire to dominate the Vietnamese dairy market with love and enthusiasm
for the homeland, as well as serious investment and methodical strategy, Moc Chau Milk strives
to become the number one dairy brand in Vietnam, trusted and loved by everyone.”
2. Mission statement
“Moc Chau Milk has been offering Vietnamese people with the most scrumptious, fresh,
and high-quality products from the Moc Chau - Son La motherland. By delivering the message
“Green grassland - Fresh cool milk” 4, the Company is contributing to boost the quality of life of
people, particularly children, both physically and emotionally.”
3. Core values
Connection - “Moc Chau Milk is proud to be a company that has a solid relationship with
farmers, creating the highest value for their products.”
Innovation - “Constantly learning and embracing the quintessence of technology in order
to retain the full delicious taste and nutritious quality in each product.”
Trust - “Moc Chau Milk thrives on the trust of its entire workforce, consumers' confidence
in the product's quality, and its partners' and shareholders' deep faith and seriousness for the
Company.”
Responsibility - “Moc Chau Milk recognizes that success can only be achieved by always
attempting to add value to the lives of consumers while also acting responsibly toward the
environment and society as a whole.”
In gist, through 64 years of establishment and development, Moc Chau Milk has
confronted challenges and overcome limits to continuously transform, evolve and thrive. When
the vision, purpose, and core values all come together at the intersection point, it can be
concluded that this Company is not only steadily affirming the position of the Vietnamese dairy
brand in the domestic market but also strengthening its competitiveness when reaching out to the
global market. Along with that, Moc Chau Milk increasingly demonstrates positive imprints in
bringing values to the community, in the direction of a better and more sustainable development.
Other information
Moc Chau Milk’s CEO: Mr. Pham Hai Nam

Address: Moc Chau Farm Town, Moc Chau District, Son La Province
4

“Green grassland - Fresh cool milk”: “Thảo nguyên xanh - Sữa mát lành”.
7


Email:
Website: www.mcmilk.com.vn
Tel: 0212 3866 065 / Fax: 02123 866184
2.2. Business Model Canvas
COMPONENTS

DETAILS
- Individual consumers

Customer
Segments

- Distributors, wholesalers, retailers, stores & supermarkets
- Schools, canteens & bakeries
- Pure fresh milk
- Belief
- Sustainable development

Value Propositions
- Culture
- Tradition, creativity, innovation and modernity
- Environmentally friendly
- General trade: distributors, wholesalers and retailers

- Modern trade: supermarkets and convenience stores
Channels
- Online stores: Shopee, Lazada, Tiki, etc.
- “Cửa hàng sữa tươi Mộc Châu Milk” showroom system
Customer

- Customer service staff communicate with customers through
8


mobile phones, social media, etc.
- They listen to all its customers' suggestions and complaints
patiently
Relationships
- They support to exchange and return products
- Moc Chau Milk conducts a number of programs/funds to assist
underprivileged youngsters all around the country
- Sales of finished and merchandise goods
- Sales that are related to parties/stakeholders
Revenue Streams
- Other services
- Other revenues
- Raw materials developments (dairy farms, farmers, cows & milk)
- Distributors & retailers
Key Resources

- R&D expertise
- Financial resources (shareholders & investors)
- Factories

Key Activities

- Process, manufacture, distribute and retail dairy products
- Raise cattle and cultivation
- Develop new products to innovate and diversify product types
- Build farm systems integrated with advanced technologies and
9


machinery
- Expand market and increase revenue and profit
- Promote R&D activities, develop organic foods and apply advanced
biological technologies
- Advertise and brand products
- Farmers & dairy farms
- Vets
- Distributors & retailers
Key Partners

- Foreign partners who support the activities of exporting and
importing
- Associations & NGOs
- European suppliers for advanced machinery & equipment system
- Government

Cost Structure

- Employee salaries
- Provision for severance allowance
- Raw materials costs

- Machinery & equipment costs
- Manufacturing & packaging costs
- Warehousing & transportation costs

10


- Utilities costs (electricity, water, heating, etc.)
- Cost of cow vaccination for the dairy farm system
- Depreciation costs
- Taxes, charges and fees
- Cost of support, advertising & promotion
- Cost of product invention & development
- Additional costs

11


CHAPTER 3: CURRENT MARKETING SITUATION
3.1. Marketing Environment
3.1.1. Microenvironment
a. Enterprise
Moc Chau Milk is currently chaired by Mrs. Mai Kieu Lien as the Chairman of the Board
of Directors with many years of experience in the industry, so it can be seen that the building of
relationships and the ability to coordinate with departments is very good. Since participating in
the governance of Vinamilk from the beginning of 2020, Moc Chau Milk has recorded
significant growth with significantly improved operational efficiency. The Company has a board
of directors with many years of experience in the industry to help the Company grow and
develop.
b. Supplier

The supply of fresh milk materials: Moc Chau Milk has built a closed system of livestock
farms to supply its own milk processing factory. Besides always accompanying farmers, Moc
Chau Milk has been associated with nearly 600 farmer households for many years, both
transferring modern breeding technology and establishing an insurance fund. Milk prices,
livestock insurance, output for quality milk help farmers feel secure in production. In addition,
the company also invested hundreds of billions of VND to build the first modern production
plant, breeding center, and the first modern TMR animal feed factory in Vietnam. Selfmanufacturing of raw materials makes the company not have to worry about shortage of raw
materials and reduce the cost of importing raw materials. 
c. Marketing intermediaries
The distribution intermediaries of Moc Chau Milk are distributors, wholesalers, retailers,
organizations and businesses such as supermarkets, dairy agents, grocery stores, etc. The
selection of intermediaries Marketing for a company is not an easy task. Product distributors are
responsible for bringing products to consumers. These intermediaries create favorable conditions
for consumers to access products by displaying Moc Chau Milk's products. This will contribute
to promoting the image of Moc Chau Milk, creating convenience for the sale of products when
customers have a need to buy and use the product, contributing to increasing sales for Moc Chau
Milk. Thanks to agents and retailers, the Company has reduced a huge cost compared to opening
its own sales showrooms.
d. General public
Moc Chau Milk's PR activities are mostly associated with social activities, community
development and programs associated with young children, typically with programs such as:
12


Miss Dairy, Moc Chau Milk: Accompanying the family in a new normal life with the slogan:
"Moc Chau Milk - Green grassland with cool Milk". In all communication activities in general
and advertising in particular, the message "The essence of nature is kept intact in every drop of
clean fresh milk". The main advertising activities of Moc Chau Milk must be mentioned such as:
Broadcasting TVC on TV channels VTV3, VTV1, VTV6, HTV7, SCTV2, ... with images of the
production process of clean fresh milk.

e. Customer
Talking about customers and distributors, the biggest problem is undoubtedly the price,
they can compare products in the same industry to create price pressure on the manufacturer. The
number of buyers will directly affect the revenue and brand of Moc Chau Milk. The Company in
the eyes of customers is a clean milk product from nature, so it is very accessible to customers
who care about health.
3.1.2. Macroenvironment
a. Vietnam Demographics 2021
As of December 31, 2021, the population of Vietnam is estimated at 98,564,407 people, an
increase of 830,246 people compared to the population of 97,757,118 people the previous year.
In 2021, the natural population growth rate is positive because the number of births exceeds the
number of deaths by 912,801 people. Due to migration the population decreased -82,555 people.
The sex ratio in the total population of 0.997 (997 men per 1,000 women) is lower than the
global sex ratio. The global sex ratio in the world in 2021 is about 1,017 males per 1,000
females. Below are the key figures for Vietnam population in 2021:
1,545,374 babies born
 632,573 people died
 Natural population growth: 912,801 people
 Migration: -82,555 people
 49,208,169 men as of December 31, 2021
 49,356,238 female as of December 31, 2021


13


Scale of Vietnam's liquid Milk market in the period 2014-2018
Liquid milk market excluding other dairy products such as yogurt, cheese, ice cream,
butter, powdered milk, in 2018, revenue reached VND 48.9 trillion, with a stable growth rate of
10%. CAGR is predicted to decrease but still close to 7% to reach 66 trillion in 2023. Due to

limited income sources and distribution conditions, dairy products are being skewed towards
urban populations in terms of sales as well like product variety. Therefore, the rapidly growing
population size opens up a large market for Moc Chau Milk, creating opportunities to consume
products and increase sales. The population in urban areas increases, leading to improved living
standards. This also creates opportunities for dairy businesses in the market with great potential
and growing.
b. Economic

Vietnam is considered as a country with the highest demand for milk in the world, with
good premises such as stable economic growth, annual GDP per capita increase of 6-8%,
population growth on average 1%.  However, domestic raw materials for milk production in
Vietnam are still low, only meeting about 20% of market demand. Most companies producing
finished milk have to import raw milk. And while the retail milk price in Vietnam is always at a
very high level compared to the region and the world, the price of raw milk from companies for
farmers is very low.  In fact, the dairy market in Vietnam has emerged 3 big companies,
accounting for 75% of the market share and they seem to have an advantage when negotiating
prices with farmers, as well as offering the desired selling price of finished milk. Domestic raw

14


materials only meet 20% of market demand. Meanwhile, Moc Chau has milk that can produce its
own ingredients, so there is no need to worry about material supply problems.
c. Politics & Legal

The stable political situation of Vietnam is decisive in creating and implementing Moc
Chau Milk's marketing strategies. After the doi moi period, Vietnam officially normalized
relations with China in 1992 and with the United States in 1995 joining the ASEAN bloc in
1995, Vietnam has established diplomatic relations with 171 countries. The most important
turning point was January 11, 2007 Vietnam officially became the 150th member of the WTO.

The above events have had a significant impact on market expansion as well as attracting
investors, increasing revenue from which to launch marketing strategies of Moc Chau Milk.
d. Cultural and community

In Vietnam, consumers have the habit of using sweet products as well as canned products
or milk-related products. The access of the source becomes easy through radio speakers,
newspapers, television, etc. Therefore, marketing, advertising and distributing products to
customers becomes more convenient. One of the characteristics of Vietnamese people's concept
is that they often use what they feel secure about prestige and quality, so they rarely change.
Therefore, when Moc Chau Milk creates a brand of natural milk, it will be easily accepted by
consumers.
e. Science and Technology

In order to achieve that success, Moc Chau Milk plays the role of a technical training
center and transfers scientific technology to farmers, helping them access advanced science and
technology to apply in animal husbandry. All nearly 600 households of Moc Chau Milk meet
VietGap standards, apply breeding technology to European standards with milking machines,
and feed the cows nutritional standards with TMR feed, American Alfalfa grass, fine food, fresh
grass, automatic waste treatment system that does not pollute the environment, etc. In particular,
Moc Chau Milk has always maintained an insurance fund for livestock and milk price insurance
for many years, in order to best protect the interests of farmers so that they can confidently
produce.
Moc Chau Milk transfers scientific technology to farmers to apply in animal husbandry,
making the milk production process more developed and more efficient than the company's raw
material problem.
Moc Chau Milk pasteurized fresh milk with new pasteurization line and technology is
marked by the launch of many products with the current packaging design of paper boxes, plastic
bottles and bags because of the convenience for users.
15

Moc Chau Milk's raw milk source is obtained 27,138 dairy cows raised at 03 breeding
centers and nearly 600 farms of farmers affiliated with the company. 100% purebred
Holstein Friesian cows originating from Cuba, Canada, USA, Australia, Israel, which
bring the sweetest taste of milk.
 With pasteurization technology at a temperature of 95 degrees Celsius in a short period of
time, fresh milk is pasteurized while keeping vitamins and important nutrients.
 Poured into high-grade preservation paper boxes by the multinational Evergreen
Packaging, Korea, Moc Chau Milk pasteurized fresh milk can now be used for up to 15
days at a temperature of 4-6 degrees Celsius.


f. Nature & environment

Vietnam's climate is tropical and monsoonal, which will create challenges for the dairy
industry. Perishability, easy to deform of milk if not preserved and handled in time. This
adversely affects the quality of the milk. This sets forth a requirement for a specific strategy to
preserve milk and produce high quality products. Besides, the nature of the climate also has
advantages, that is, the climate is very favorable for farming, creating a source of raw materials
for production. This point can also create enough raw materials to meet the production. This is an
opportunity as well as a challenge for Moc Chau Milk. If Moc Chau Milk grasps and knows how
to overcome it, this is indeed a good thing. This will help them reduce the cost but the quality of
milk remains unchanged.
3.2. Competitive Situations
3.2.1. Competitor Analysis
There are 2 types of competitors, which are:
- Direct competitors: The industries that have been operating in the industry have a strong
influence on the business situation of Moc Chau Milk enterprises.
- Potential competitors: Companies specializing in the production of substitute products
such as: cereal flour, functional foods (IMC, DOMESCO, BIBICA, etc.) but the potential is not

strong enough to compete with milk products.
Moc Chau Milk company is currently facing relatively high and fierce competition from
domestic and foreign milk brands such as Vinamilk, TH True Milk, Dalat Milk, Dutch Lady,
Nestlé, Abbott, Meiji. The future dairy market will continue to expand and the level of
competition will increase.
By type and product characteristics: There are many dairy brands in Vietnam's dairy
market, including both domestically produced and imported dairy products. In which, Vinamilk
and Moc Chau accounted for 45%, Dutch Lady accounted for 24%, 22% were imported
16


powdered milk products such as Mead Johnson, Abbott, Nestlé, and the remaining 19% were
domestic brands such as Hanoimilk, TH True Milk, Nutifood.
Below is the competitor analysis table of Moc Chau Milk. We are divided into 3 groups:
Vinamilk (big competitor), domestic dairy companies, and foreign dairy companies.

COMPETITOR

STRENGTHS

WEAKNESSES

Vinamilk

- The strongest, most longstanding and reputable brand. - Lack of self-control in the
supply of raw materials.
- Understand
people's
- Unable to manage the quality of
consumption culture.

raw materials.
- Good customer care system,
reasonable prices, diverse
products.

Domestic dairy
companies (TH True
Milk, Dutch Lady, Ba
Vi)

- Understand
people's - Products are not diversified.
consumption culture.
- Lack
of
management
- Modern
production
experience, not yet selftechnology, high product
sufficient in raw materials.
quality.
- The distribution system is still
- Good price.
limited.

Foreign dairy
companies (Nestlé,
Abbott)

- Strong brand, big brand

channel.
- Good product quality.
- Diversified products.
- Modern
production
technology.
- Professional, highly skilled
workers.

- Not understanding the new
market well.
- The political and cultural
barriers
have
not
been
overcome.
- High price.
- All products must be imported.

Moc Chau Milk is facing a lot of competition in the dairy market with many big brands
thriving in the market, making it difficult for Moc Chau Milk's products to reach consumers.
3.2.2. Competitive Strategies
17


According to Mintel Group, the domestic dairy market is estimated at $4.4 billion and is
being driven by three main trends: Brand credibility, Brand credibility, Healthy taste and
Diversification seeking.
These trends show that more and more consumers are concerned about food health and

safety. 89% of Vietnamese consumers are willing to pay higher prices for quality food, according
to Nielsen. Up to 88% of consumers carefully read the information on the packaging of dairy
products before buying, and 80% are concerned about the long-term impact of "artificial"
ingredients in milk.
Understanding consumer psychology is the basis for Moc Chau Milk to continuously
launch a series of new products. All are made entirely from pure fresh milk with natural
delicious taste, no preservatives are used. From 2018 to now, Moc Chau Milk has launched many
new products to the market such as: Pasteurized Banana Flavored Milk, Guava Drink Yogurt,
Taro Yogurt and Pasteurized Low-Sugar Milk.
Thanks to the right long-term vision, Moc Chau Milk currently holds about 10% of the
market share in the dairy market. For the Northern region alone, this rate is 35%. In addition,
Moc Chau Milk Company is one of three selected units to export fresh milk to the Chinese
market, along with a plan to enter the southern market in 2019, bringing fresh milk from the
prairies. green closer to Southern consumers.
3.3. Current STP Analysis
3.3.1. Segmentation
The market segment of Moc Chau Milk is divided into 4 age groups: 0-6 months old, 6-12
months old, 1-3 years old and over 3 years old. There are specific types of milk for each
audience such as: people with special nutrition, pregnant women, people who use diseases,
people with diabetes. The division of these objects is based on segmenting the market according
to the behavior, reasons and usage needs of the customer groups.
3.3.2. Target Market
Moc Chau Milk always brings the best quality, nutritious and delicious products for the
health of consumers. Most of Moc Chau Milk's products are suitable for all ages. Strong product
lines for children and teenagers because this age group has a great demand for milk and
consumption of dairy products is the largest. Moc Chau Milk divides the target market into 2
main customer groups:
-

Group of individual customers:



Age: 0-6 months old, 6-12 months old, 1-3 years old and over 3 years old.
18




Occupation: All professions can be purchased and used.



Lifestyle: As consumers, who have the need to buy and use pasteurized milk
products.



Economy: Anyone can afford to buy Moc Chau pasteurized milk products.

This is a group of customers with relatively high demand for products (good product
quality, high nutritional value, reasonable price, etc.), they will be loyal customers if pasteurized
milk Moc Chau Milk can meet their needs.
-

Organizational customer group:

This group is the distributors, wholesale and retail agents, shops, supermarkets, ... wishing
and willing to distribute Moc Chau pasteurized milk products. This is the group that has
requirements for discounts, sales bonuses, and timely and timely fulfillment of orders related to
product distribution.

3.3.3. Positioning
In the 1980s, when Vietnam's dairy industry at that time was almost entirely dependent on
imported raw materials, Moc Chau Milk cooperated with farmers to develop a herd of several
thousand cows. With the longest experience in “raising cows - making milk” in the country, Moc
Chau Milk's products are distinguished by their ingredients entirely from pure fresh milk and
high natural nutritional content. Each year, Moc Chau Milk supplies to the market more than
100,000 tons of fresh milk “clean from meadow to table”, serving consumers across the country.
For pasteurized milk products, the preservation requirement is that the milk must be used
within 2-3 days after opening the box, thus ensuring the milk quality as well as the taste of the
product. In 2-3 days, not every customer can use up 1 box of 900ml, so Moc Chau Milk's launch
of a pasteurized milk product with a capacity of 250ml is a great competitive advantage
compared to other pasteurized milk manufacturers. This carton pasteurized milk product will
attract customers with low demand for milk during the day.
3.4. Current Marketing Mix (4P)
3.4.1. Product
a. Quality:
The quality of each pasteurized fresh milk products (both sugar, less sugar or no sugar)
must be required to conform these rules:
-

Pure ingredients.
No growth hormone.
19


-

Do not use genetically modified varieties.
No antibiotic residue.
Many nutrients are preserved, especially antioxidants.

Meets European organic standards.
Rigorous process.

b. Stages of the product
Introduction stage: Faced with many difficulties because it is the first enterprise dealing in
pasteurized milk, when introducing products, consumers are not aware of pasteurized milk and
pasteurized milk, making the product introduction not attract much attention. After several times
of reinforcing consumer awareness, the product was well received. Moc Chau Milk has built a
brand of pasteurized milk that is beneficial for health and nutritious.
Development stage: There are many more competitors, but Moc Chau Milk still develops
and maintains its position because of the image of clean milk and the leader in the field of
pasteurized milk with consumers.
Maturity Stage: Revenue continues to grow but more slowly. Once the product has been
perfected, the enterprise is trying to develop strategies so that dairy products in general and
pasteurized milk in particular can capture market share in our country's dairy product industry.
3.2.2. Price
a. Cost-based pricing
The price of all finished products has to include the cost of using technologies and the
production line. For example:
-

Scientific and technological factors not only ensure product development but also create
advantages for enterprise development.
Application of many advanced technologies.
Meeting the demand for food quality and safety.
Cost of input materials.
Selling expenses account for the second largest proportion of milk prices.

b. On-demand pricing
- Demand for products has grown steadily.

- The tendency of Vietnamese consumers to choose the most expensive products possible
also contributes to the increase in product prices.
- Must learn, analyze carefully about customers, product goals and customer acceptability.
c. Price leader
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-

Be careful about increasing product costs.
Cut, optimize costs, restructure brands, control retail points well.
Quickly capture consumer feedback, respond to market needs quickly and best.

d. New products pricing
- Policy of keeping the same price but the quality must be higher.
e. Pursuing basic goals
- Maximize profit.
- Increase market share and lead in quality.
3.2.3. Place
Moc Chau Milk has built a quite large distribution system extending into the North Central
of Vietnam.
The Company currently sells its products through two main distribution channels:
- Morden channel: showrooms, supermarkets or convenience stores
- General channel: through intermediaries such as distributors, wholesalers, retailers
This retail system, which also involves other promotional activities, allows customers to
easily access Moc Chau dairy goods whenever they have a need.
3.2.4. Promotion
Moc Chau Milk applies attractive promotions to attract consumers such as buying 12 boxes
get 1 box of the same capacity, or buying 2 packs get 1 box.
The application of promotions helps Moc Chau Milk promote products better, and at the

same time, it also hits consumers' psychology when buying products that are often attractive and
like to buy promotional and discount products.

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CHAPTER 4: SWOT ANALYSIS OF MOC CHAU MILK
4.1. Strengths
4.4.1. Strong and long-standing dairy brand
Moc Chau Milk is a long-standing dairy brand that has been serving consumers across the
country with clean, delicious, fatty, and nutritious fresh milk products for over 60 years of
construction and development. Moc Chau Milk is ranked 4 th among the top dairy companies in
Vietnam, despite not being strong enough to compete with its parent company (Vinamilk) and
any other significant local dairy companies. It demonstrates that Moc Chau Milk products have
become a symbol of purity and freshness from nature as a result of unremitting efforts. The
Company has been rated by consumers as a high-quality Vietnamese product for many years in a
row, and also recognized by Kantar Worldpanel as one of the top 5 most chosen brands in 2018.
In addition, regardless of great contributions to the economy of the country, Moc Chau Milk was
honored to receive the Labor Medal from the Party and Government, as well as numerous other
awards and certificates, including top 10 Sustainable Development Brands and High-Quality
Products, top 10 Prestigious Food Companies in 2020 in the Dairy and Dairy products industry
according to Vietnam Report.
4.4.2. High-quality products
To maintain its position as one of the leading firms in Vietnam's dairy market, Moc Chau
Milk follows the principle of making milk “Clean from the meadow to the table” 5. Being trusted
and selected to take care of nutrition for millions of Vietnamese families, what has helped Moc
Chau Milk conquer customers over the six decades after all? This is thanks to the great quality in
each product. In the F&B6 industry generally and Moc Chau Milk particularly, a commitment to
quality is a paramount priority. The reason is that food and drink are intimately tied to consumer
health, so the level of safety and quality of each offered product is vitally important. Therefore,

all raw fresh milk which is collected by Moc Chau Milk's expertise team in order to put into
production, must be grade A with the maximum natural nutritional content. Despite the fact that
Moc Chau Milk’s product portfolio is not as vast as that of other major domestic dairy
companies, its popularity and current position indicate that product quality must be outstanding,
meeting consumers' basic needs.
Specifically, pasteurized milk products, which are made from 100% pure fresh milk,
contain a high natural protein content, plentiful minerals, protein, carbs, and vitamins, and no
impurities or preservatives. These nutrients are excellent to strengthen the digestive system, the
immune system, bone and tooth health. Thus, choosing Moc Chau Milk products in general, and
pasteurized fresh milk in particular, will aid the user’s body in becoming healthier and more
energetic.
5
6

“Clean from the meadow to the table”: “Sạch từ đồng cỏ đến bàn ăn”
F&B: Food and Beverage
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4.4.3. Raw and natural milk sources, and international standard farm system
To accommodate production needs, Moc Chau Milk and its dairy farms have agreed on
quality standards for milk obtained from farms. All of Moc Chau Milk’s dairy farms have been
certified as satisfying VietGAP standards. The quality of livestock feed is always ensured
without using chemical fertilizers or pesticides, and the dairy cows must not be administered
growth hormones or antibiotic residues. Overall, the entire process is strictly checked and
monitored, from the planting of grass and corn to the care of dairy cows on farms, to ensure that
all operations such as product production, harvesting, and preliminary processing are safe.
Thereby, the Company may be able to assist in enhancing product quality, ensuring the social
welfare and health of producers and customers, protecting the environment, and tracing product
origins.

To preserve the top level of freshness of raw milk materials, all milk collection places are
within 1km from farms. Furthermore, milk production and packaging factories are strategically
positioned near farms, allowing Moc Chau Milk to maintain and deepen relationships with
suppliers while also ensuring that raw milk is carried directly to factories after purchasing while
keeping the highest quality with full of nutrients.
4.4.4. Building relationships with raw material suppliers
Farmers are regarded as a key strategic partner of the Company in offering top-tier
premium items to consumers. Enterprises invest synchronously and focus on cohesiveness at all
phases of animal husbandry and production. Accordingly, Moc Chau Milk has provided
technical training and scientific technology transfer to farmers, helping them access advanced
science and technology for animal husbandry and production, while constantly researching and
applying advanced standards in animal husbandry in order to ensure the highest quality for raw
milk materials.
To operate Moc Chau Milk smoothly, the Company has offered financial assistance and
protected the interests of farmers, allowing them to feel secure in their production while always
accompanying and sharing risks in unexpected situations. In addition, Moc Chau Milk has
organized the Miss Dairy Cow Contest, which serves as a bridge for farmers to share their
husbandry experiences and receive enthusiastic support from the Company’s own team of
engineers and experts who are specialized in animal husbandry. That is the sustainable
agriculture strategy that Moc Chau Milk has deployed for many years. This strategy not only
ensures the Company receives the best quality of input materials, but it also gives farmers a more
stable living.
4.4.5. Investing in modern and advanced equipment and technologies

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Moc Chau Milk’s two dairy processing and packaging factories are equipped with modern
and advanced technologies, which are primarily imported from Switzerland and Korea, and are
operated in the manufacturing line. This ensures that all final products are fresh, flavorful, safe

and hygienic when they will be directly consumed by end users.
Pasteurized milk products are made in a self-contained process and packaged on Sweden’s
innovative Tetra Pak production lines (ISO 9001:2008 and HACCP 2008). In combination with
ESL (Extended Shelf Life) pasteurization technology, which also fulfills international standards,
all hazardous bacteria in milk are eliminated, keeping only beneficial bacteria for the digestive
system. Milk will be pasteurized before being poured into high-quality and safe plastic bottles or
paper cartons imported from Korea’s Evergreen Packaging Corporation. It will then be stored in
cold storage and transported to retailers. To increase the quality of input material before
providing raw milk to industries, the Company also used DeLaval automatic milking equipment
that satisfied international safety and hygiene standards.
4.2. Weaknesses
4.4.1. The entire market share in Vietnam's dairy industry is still low
By the end of 2021, Moc Chau Milk still has a very limited market share in the entire dairy
industry in Vietnam, roughly 2-3%. Meanwhile, competitors like Vinamilk dominate over 55%,
which includes 2-3% market share of the Company (2021), and TH True Milk also accounts for
45% of the whole market share in this industry. This low market share could be attributed to a
number of disadvantageous reasons, including the level of product coverage, brand awareness,
and customer experience, or the Company’s inefficient product promotion strategies.
4.4.2. Marketing activities are ineffective
As customers, we notice that the marketing of Moc Chau Milk’s dairy products has not
been carried out methodically and professionally. In fact, Moc Chau Milk’s advertising
campaigns appeared infrequently and received very little attention in the mass media,
demonstrating that the Company might make the mistake of deploying the wrong advertising
channel, or the method of promotion failed to leave an impression on viewers, resulting in the
failure to convey the Company’s desired messages to consumers.
4.4.3. The distribution network is still limited
Moc Chau Milk now has a distribution network that stretches from north to south, with
over 60,000 retail points across the country. However, the Company's showroom system, as well
as several other big distribution channels, are mostly located in Vietnam's Northern regions. The
number of users does not strongly increase as a result of this limitation, making it more difficult

to compete for market share. Moc Chau Milk needs to upgrade and expand its distribution

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network in order to maintain its position, development, and dominance in the domestic dairy
industry.
4.3. Opportunities
4.4.1. Potential customers are consistently increasing with a great demand
Milk and dairy products are required to consume by the majority of Vietnamese.
According to unofficial statistics, per capita milk consumption is currently 27 liters/person/year.
Annual per capita milk consumption is expected to increase by another 7-8% in the coming
years.
Dairy products are also used for beauty and cookery, in addition to nutritional supplements.
Furthermore, Vietnam is experiencing a golden population period, in which the population is
growing at a rapid rate, the proportion of people who are urbanizing has increased in recent
years, the level of education has increased, and the middle-class income has progressively
improved.
These mentioned factors have offered Moc Chau Milk with several opportunities and a
great potential to become stronger and larger in the dairy industry, allowing the company to
increase domestic market share and expand home and abroad markets.
4.4.2. Consumers are gradually paying more attention to their health
As the economy grows, health becomes the major priority of Vietnamese consumers.
According to the Nielsen “Consumer Confidence Index” report released in 2020, a health factor
has risen to No.1 of Vietnamese consumers’ top concerns. Accordingly, the percentage of
Vietnamese consumers who choose the right diet to prevent health problems accounts for 83%.
This is higher than the world average of 79%. Besides, 89% of consumers are willing to spend a
higher price for good quality and healthy products. They also tend to read the information on the
packaging to understand the product’s ingredients and nutritional supplements.
Moc Chau Milk’s pasteurized fresh milk line is one of the goods that can satisfy health

needs. Because of its excellent nutritious value, this is the product that has made the Moc Chau
Milk brand loved and trusted by millions of Vietnamese people for many years. In general,
customer confidence in nutritious products, and the growth index of the healthy and nutritious
beverage and food market over years indicate that demand for these products has only increased,
not reduced over time. These are factors that will positively affect the development of Moc Chau
Milk.
4.4.3. The dairy market remains to develop strongly and steadily
Due to a number of objective factors, the growth rate of Vietnam's dairy market has begun
to decelerate since the Covid-19 pandemic became widespread. Domestic demand for dairy
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