UNIVERSITY OF ECONOMICS AND FINANCE
FINAL PROJECT
IMC Plan for New Brand
VINAMILK HEALTHY MILK TEA
Course: Brand Management
Lecturer: Dang Truong Thuy Anh
Class: A06E
Group 3
Le Kim Ngan – 185040599
Tran Anh Thu – 185120033
Phan Phuc Hai – 195041706
Nguyen Thi Thao – 185050114
Tran Thi Kim Ngan – 195041990
Pham Nguyen Quynh Nhu – 185120210
November, 2021
BRAND MANAGEMENT – GROUP 3
ACKNOWLEDGMENT
Firstly, we would like to thank the University of Economics and Finance for creating good
conditions for our group to complete this project.
Secondly, we would like to send our sincere thanks to Ms. Dang Truong Thuy Anh (Teacher of
Class A06E). The teacher enthusiastically guided us to complete the final project this time. We
would like to express our deep thanks to all the teachers who have taught and equipped us with
valuable knowledge during the past years - University of Economics and Finance.
Sincerely thanks!
Ho Chi Minh City, November 2021
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TABLE OF CONTENTS
1. Introduction .............................................................................................................................. 5
2. Current Situation Analysis ........................................................................................................ 8
2.1 Market Analysis ................................................................................................................... 8
2.2 Background Rearch & Analysis .......................................................................................... 8
2.2.1 Internal analysis ............................................................................................................. 8
2.2.2 External Analysis ......................................................................................................... 14
2.3 SWOT Analysis ................................................................................................................. 21
2.4 Key Marketing Problem or Opportunity ............................................................................ 22
3. Key Strategic Decisions include any support material (assumptions, data analysis) ............. 23
3.1 Marketing Objectives ......................................................................................................... 23
3.2 Communication Objectives................................................................................................ 24
3.3 Customer Segmentation ..................................................................................................... 24
3.4 Targeting ............................................................................................................................ 25
3.5 Positioning ......................................................................................................................... 25
3.6 Brand Personality/ Character ............................................................................................. 27
4. Integrated Communication (Creative) Brief ........................................................................... 27
5. Marketing Mix Strategy .......................................................................................................... 31
5.1 4P Strategy ......................................................................................................................... 31
5.2 IMC Master Plan ................................................................................................................ 33
5.3 Detailed IMC Plan Across Media ...................................................................................... 34
5.3.1 Advertising .................................................................................................................. 34
5.3.2 Sale Promotion ............................................................................................................ 35
5.3.3 PR ................................................................................................................................ 36
5.3.4 Digital Marketing ........................................................................................................ 37
6. Timeline................................................................................................................................... 42
7. Campaign Budget .................................................................................................................... 43
8. References ............................................................................................................................... 44
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TABLE OF FIGURES
Figure 1. Achievements of Vinamilk. ........................................................................................... 5
Figure 2. Values of Vinamilk. ....................................................................................................... 6
Figure 3. Vinamilk product. .......................................................................................................... 6
Figure 4. Vinamilk product (2) ..................................................................................................... 7
Figure 5. Vinamilk product (3) ..................................................................................................... 7
Figure 6. Vinamilk factory. ......................................................................................................... 11
Figure 7. Vinamilk factory (2) .................................................................................................... 11
Figure 8. Vinamilk factory (3) .................................................................................................... 12
Figure 9. Vinamilk factory (4) .................................................................................................... 12
Figure 10. Management system of Vinamilk. ............................................................................. 13
Figure 11. Nestle – Nestea packaged milk tea. ........................................................................... 17
Figure 12. Hillway Bubble Milk Tea. ......................................................................................... 17
Figure 13. Ajinomoto - Birdy 3in1 Instant Milk Tea. ................................................................. 18
Figure 14. Royal Myanmar Teamix. ........................................................................................... 18
Figure 15. Aik Cheong Classic Milk Tea The Terik Classic 3in1. ............................................. 19
Figure 16. Positioning Map Vinamilk. ........................................................................................ 26
Figure 17. Creative Brief For Vinamilk. ..................................................................................... 30
Figure 18. Place Vinamilk Healthy Milk Tea. ............................................................................ 32
Figure 19. IMC Master Plan ........................................................................................................ 33
Figure 20. Packaging Vinamilk Healthy Milk Tea. .................................................................... 36
Figure 21. SEO Google Vinamilk Healthy Milk Tea. ................................................................ 37
Figure 22. SEO Google Vinamilk Healthy Milk Tea (2) ............................................................ 37
Figure 23. SEO Google Vinamilk Healthy Milk Tea (3) ............................................................ 37
Figure 24. Facebook Ads Vinamilk Healthy Milk Tea. .............................................................. 38
Figure 25. Tiktok Ads Vinamilk Healthy Milk Tea. ................................................................... 39
Figure 26. Tiktok Ads Vinamilk Healthy Milk Tea (2) .............................................................. 39
Figure 27. Youtube Ads Vinamilk Healthy Milk Tea. ................................................................ 40
Figure 28. Youtube Ads Vinamilk Healthy Milk Tea (2) ........................................................... 41
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TABLE OF TABLES
Table 1. SWOT Analysis. (Khiem, 2020) ................................................................................... 22
Table 2. Sales Forecast. ............................................................................................................... 23
Table 3. Price For Vinamilk Healthy Milk Tea. ......................................................................... 31
Table 4. Timeline Table. ............................................................................................................. 42
Table 5. Timeline Table (2)........................................................................................................ 42
Table 6. Budget Vinamilk's Campaign. ...................................................................................... 44
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1. Introduction
Vinamilk is a leading nutrition group in Vietnam and has been reaching more than 50 countries,
generating over USD 2,5 billion per year in revenue.
Figure 1. Achievements of Vinamilk.
- Vision:
"Becoming the number 1 belief symbol in Vietnam about nutrition and health products serving
human life."
- Mission:
"Vinamilk is committed to providing the community with the best and most quality nutrition
with its own respect, love and high responsibility to people and society."
- Core values:
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"Becoming the leading symbol of trust in Vietnam about nutrition and health products serving
human life."
Figure 2. Values of Vinamilk.
- Product:
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
market such as: Vinamilk liquid milk, Vinamilk yoghurt, Longevity sweetened condensed milk,
Southern Star Sweetened Condensed Creamer, Dielac powdered milk, Vfresh Fruit Juice, etc.
Figure 3. Vinamilk product.
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Figure 4. Vinamilk product (2)
Figure 5. Vinamilk product (3)
- Outstanding achievements:
Internal Achievements:
+ Top 10 Vietnamese high quality product by Association of Vietnamese high quality products
from 1995 to 2020.
+ Vietnam’s 50 top valuable brands by Forces Vietnam since 2016.
+ Ms Mai Kieu Lien - Vinamilk’s Chairwoman and CEO was honored with the following noble
award: Top 50 most influential women in Viet Nam 2019, Prize “Lifetime achievement” in 2018
International Achievements:
+Top 200 ASIA’s best over a billion by Forbes Magazine in 2019.
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+ Top 300 most dynamic ASIAN companies since 2016. (VINAMILK, ANNUAL REPORTS,
2020)
2. Current Situation Analysis
2.1 Market Analysis
- Market growth:
The Vietnamese milk tea market is now growing at a rate of around 20% per year. More than
1,500 milk tea stores and roughly 100 brands compete aggressively in the country.
Because of the impact of the covid 19 epidemic, Vietnam's milk tea market is predicted to slow
down in the near future, with a natural growth rate of only 5.7 percent per year. That is, the
growth rate is only a quarter of what it was during the peak years of 2017 and 2018, when it
reached 200 percent.
- Market trend:
According to market research on milk tea, users and awareness of the product are quite high, as
is the frequency of use; 50% of respondents drink milk tea at least once a week. Furthermore,
because this is a drink that appeals to Vietnamese tastes and is a rapid, compact, and quick drink,
it is easy to transport and handy for those who consume it.
- Market need:
The current market demand for milk tea is very high when customers drink 1-2 cups/week on
average.
- Market size:
Milk tea is a favorite beverage of young people, students, and office workers aged from 18 to 35,
mainly in big cities such as Ho Chi Minh and Hanoi. , Da Nang and mostly focused on female
subjects (53%) and young people aged 15-22 (35%).
- Market share:
With 36% of users, the grindstones are the most popular. Cappuccino and Latte were ranked
fourth and fifth, respectively, with 4% and 1% of respondents preferring to use them.
Surprisingly, Milk Tea is the second most preferred beverage, with 23% of the vote. This is a
strong indicator that this is a high-potential market that attracts a large number of people, causing
products with a much longer "older" lifespan to be phased out.
2.2 Background Rearch & Analysis
2.2.1 Internal analysis
• 5M - Internal analysis
- Money:
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In 1Q2021, consolidated net revenue of Vinamilk reached VND 13,190 billion, completed 21.3%
of the annual guidance, of which: Domestic business recorded net revenue of VND 11,178 billion.
This result reflects a reduction in the purchasing power of consumers for FMCG products due to
the long-term effects of the Covid-19 pandemic. Specifically, according to AC Nielsen, the total
value of the FMCG sector contracted by 7% in 2M202.
However, the Company has actively strengthened distribution channels, expanded farm network
and developed new products in order to catch up with domestic consumption which is expected
to gradually recover after the impact of the Covid-19 eases.
For Moc Chau Dairy Joint Stock Company (“MCM”), net revenue reached VND 621 billion.
Solutions to restructure distribution channels are being actively implemented to increase
coverage in both traditional and modern channels.
Vinamilk continued to have a successful quarter with export activities when export net revenue
reached VND 1,166 billion, up 7.9% YoY thanks to Vinamilk’s persistent companion with and
additional incentive programs for export partners in difficult circumstances. Following the
success of 1Q2021, export sales in April 2021 are estimated to grow above 30% YoY.
In addition, net revenue of foreign subsidiaries was VND 846 billion, in which Angkor Milk1
continued to record double-digit growth. In 1Q2021, according to Plimsoll2 , Vinamilk has been
promoted by 6 consecutive ranks on the Top 50 leading dairy companies in the world, reached
36th and is close to the goal of entering the Top 30 dairy companies top of the world. Vinamilk
is also the only representative of Southeast Asia on this list.
- Material:
Vinamilk Fresh milk 100% with immune system support is produced from farm fresh milk
mainly sourced from our dairy farms, strictly selected and controlled to ensure food hygiene and
safety.
Imported raw materials are sourced from the prestigious suppliers of America, Australia, New
Zealand, France, etc.
Vinamilk has highly paid attention to product quality control and management. The company
has therefore applied advanced management systems such as BRC and ISO 17025 to strictly and
thoroughly manage all manufacturing stages including pre, mid and post production in order to
ensure the quality and safety of Vinamilk's products. In addition, a product tracking system has
also been applied to the product recall and the disposal process of faulty products in order to
minimize the possible negative impacts on consumers and society.
At the end of March 2021, Vinamilk imported 2,100 HF dairy cows from the US to Vinamilk’s
new farm in Quang Ngai, raising the average total herd to nearly 33,000 cows. This new farm
has the capacity of 4,000 cows on the size of over 100 hectares with the total initial investment
of VND 700 billion, being a part of the eco-friendly farm network “Green Farm” that Vinamilk
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has been investing in and developing since the beginning of 2021. As planned, the company will
import more than 5,000 highyielding dairy cows to increase the total herd for domestic farm
projects this year. In addition, Laos-Jagro dairy farm is expected to start producing milk in
1H2022.
- Method:
The company's overall goal:
+ Positioning the brand as a pride of Vietnamese people.
+ Build new emotional value of Vinamilk brand_ embodiment of life.
+ Maintain the No. 1 position in Vietnamese market and become one of the 30 largest dairy
companies in the world in terms of revenue.
Company strategy
+ Leading in innovation with high applicability.
Focusing on the dairy industry and milk-related products, which is the core business that creates
the Vinamilk brand. Continuing to research and develop many new products with the aim of
innovating, expanding and diversifying the product portfolio on the basis of suiting the tastes and
needs of consumers; at the same time bring consumers a rich and convenient experience.
+ Consolidate the leading position in the dairy industry.
Expand penetration and coverage in rural areas with popular product lines, where growth
potential is still great. Promote focus on high-end product segments with many added values,
especially in urban areas. Continue to build a large and strong domestic distribution system,
increase market share and maintain the leading position.
+ The dairy company that creates the most value in Southeast Asia.
Ready for merged and acquisitions (M&A) activities and expand strong cooperative relationships
with partners in all three directions of horizontal integration, vertical integration and
hybridization. Prioritize looking for M&A opportunities with dairy companies in other countries
with the aim of expanding markets and increasing sales. Continue to penetrate new export
markets with the strategy of transforming the traditional commodity export model into forms of
deep cooperation with distribution partners in new key markets.
- Machine:
Vinamilk’s research and product development staff always keeps up to date the latest knowledge
on technology, as well as surveys the domestic and international market to find opportunities and
ideas for product development.
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Figure 6. Vinamilk factory.
The Vietnam Dairy Factory is equipped with modern fresh milk production lines applied stateof-the-art production technology, operated with a completely closed process from raw material
input to finished product output.
Figure 7. Vinamilk factory (2)
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Figure 8. Vinamilk factory (3)
After tested for quality, raw milk will be weighed, filtered and entered into a cold storage silo
tank system (150 m3/ tank).
The warehouse is the leading smart warehouse in Vietnam which has an area of 6000 m2 with
20 entrances and exits, width of 105 m, height of 35 m. It is designed with 17 stores, containing
up to 27168 lots. Automatic import and export with 15 Rail guided vehicles (RGV) transport
pallets of finished product to the warehouse and then 8 stacker cranes align them to the shelf
system. The management of import and export goods is controlled by Wamas software.
Figure 9. Vinamilk factory (4)
The operating system is based on the Tetra Plant Master Automation solution, which is the
integration, enables it to connect the entire plant from raw materials to finished products.
According to that, people can control every activity in the factory, monitor and control the quality
continuously. The Tetra Plant Master system also provides all the necessary data that helps to
continuously improve its production and maintain operations.
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In addition, Wamas Warehouse Management System integrated ERP management system and
Tetra Plant Master Automation solution provides integrated operation of the plant from
production planning, material input to the finished product output.
- Man power:
Figure 10. Management system of Vinamilk.
Working Motto:
+ Praise Integrity
Honesty in behaviors and in all transactions.
+ Promote Respect
Respect yourself / Respect your colleagues / Respect the Company / Respect your partners /
Corporate respectively.
+ Guaranteed Fairness
Be fair to employees, customers, suppliers and other stakeholders.
+ Respect Ethics
Respect established standards and act ethically.
+ Maintain Compliance
Comply with the Law, the Code of Conduct and the Company's regulations, rules and regulations.
(VINAMILK, n.d.)
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2.2.2 External Analysis
• PESTLE
- Political:
+ Vietnam's political system is regarded as one of the world's most stable. This is viewed as a
positive development for the industry as a whole, and the milk tea industry in particular.
+ China imposing tariffs on US dairy product boosting Vietnamese dairy industry.
+ Free Trade agreement has allowed export of dairy products to EAEU.
+ Vietnam is a peaceful country without war and terrorism.
+ Vietnam is agricultural. So, to produce, there are policies that the government encourages milk
companies to develop. Therefore vinamilk can be easily produced and sold.. According to the
Law, milk and almost all kinds of produce from agriculture or health for society have just paid
8% tax.
+ Politics is stable for the business of the company. However, Vietnam is a mixed economy so
the government still plays a big role in the market.
+ The Vietnamese government decreases the foreign trade barrier to attract more investment
from foreign investors.
+ Government promulgated preferential policies (Approved 2000 billion for projects to develop
dairy industry to 2020).
- Economics:
+ Vietnam's economy still maintains growth with an estimated GDP growth rate of 2.91% despite
being heavily affected by the covid-19 pandemic.
+ Although GDP growth in 2020 is the lowest in the 2011-2020 period, before the negative
impacts of the Covid-19 epidemic, it is a success for our country with a growth rate among the
highest in the world. Along with China and Myanmar, Vietnam is one of three countries in Asia
with positive growth this year; at the same time, the scale of our country's economy reached more
than 343 billion USD, making Vietnam become the 4th largest economy in Southeast Asia.
+ CPI for the first seven months of 2021 has increased by 1.64 per cent compared to the same
period last year while inflation has increased by 0.89 per cent => the cost of production will
increase.
+ Worldwide economical and political instability.
+ Vietnam's GDP trend increases every day, it is a great opportunity for business. It means that
the income and life will go up and the demand to spend money is high.
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+ When a series of milk tea shops were opened in dense numbers in just a few tens of meters of
the street. That means that the milk tea saturation stage is approaching and needs a similar product
but with more advantages to replace it.
- Social-cultural:
+ Parents are especially concerned about the current obesity and overweight problems of their
children, and do not want their children to eat junk food of unknown origin, which easily causes
unwanted diseases. But in fact, children have a preference for sweets and fast food. For young
people who are especially interested in body and health issues but still want to enjoy delicious
food, especially trending foods such as milk tea, etc.
+ For the elderly and middle-aged people: Pay special attention to the foods that are loaded into
the body every day, do not have the habit of snacking and have not been affected by trends too
much.
+ Office workers have a habit of using packaged beverages such as packaged coffee and tea
because of the convenience they bring. Students will have the habit of drinking milk tea: 53% of
Vietnamese students have the habit of drinking an average of 1 cup of milk tea a day (according
to Lozi - 2016 data). No matter what industry they are in, they also want a drink that can be
prepared quickly and good for health.
+ Consumers also especially favor products with clear origins, good for health. Products that
have been contaminated such as: drinking milk tea with poisoning or acute kidney failure milk
tea have unclear origin materials, all of which cause buyers to have a boycott attitude or be afraid
to use the product.
+ Nowadays drinking milk tea has become a trend of the majority of young students - students
and most of the age before 30. When milk tea is now becoming a trend, it develops at a dizzying
speed. It is normal, but it will grow to saturation rate in the market and this market is close to
reaching this point. This is an advantage when a healthy product is launched with a large number
of potential customers from milk tea.
- Technology:
+ The State issues policies to encourage and promote the application and innovation of
technology by enterprises.
+ Representing the state owner, assigning ownership rights and the right to use scientific research
and technological development results free of charge to organizations having investment
incubation projects or projects on establishing science and technology enterprises, production
and business projects on the condition that there is a commitment of the investor to contribute
capital to the project. This regulation will help businesses access and use scientific research and
technological development results effectively and practically. Helping businesses easily access
the best and most advanced technology transfer: From there, product research is also facilitated.
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+ Processing technology inherits modern and standard processing technologies from abroad.
- Legal:
+ Any business or store operating is strongly influenced by the law. Business registration license
and tax registration certificate required.
+ Food safety certificate: this certificate is quite important because milk tea is a hot beverage
industry and competition is strong, so having this license will help reduce harm caused by being
sued for food poisoning, etc. (In fact, there has not been any case of milk tea poisoning that has
resonated in the milk tea industry).
+ For the ready-to-drink milk tea, instant coffee and packaged coffee industry, proposed by the
Ministry of Finance to be subject to special tax (SCT) Tax rates from 10% to 20% from 2019.
+ Tax increases force selling prices to also increase, negatively affecting customer behavior.
+ Thanks to the ASEAN-China goods trade agreement ACFTA: Beverages, alcohol, carbonated
water (except beer, wine, fermented wine with tax of 5%), will be taxed from 5% until 2018 to
0%. (from countries participating in the agreement) => Opportunity to bring products to the
international market. There are competitive pressures with foreign businesses and products.
- Environment:
+ Characteristics of tropical monsoon, humid tropics: Number of hours of sunshine: 1400 - 3000
hours/year. The average temperature of our country is over 21 degrees Celsius
+ The climate is diversified: forming regions and the North has cold winters, hot and rainy
summers, and the South has 1 rainy season and 1 dry season.
+ The climate of our country is very erratic and fluctuates strongly: cold years are late, cold years
are early, years of heavy rain, little rain, especially storms and floods, droughts greatly affect
people's lives.
+ Vietnam has a large amount of tea, creating stability for the cost of input materials of the
product.
+ State policies, especially decision 167 of the government, contribute to encouraging people to
develop the dairy industry in our country. Hybrid cows such as HF hybrids are being replicated
to improve productivity and quality.
+ The scale of dairy farming in our country is still small, the method is simple, the raw materials
are mostly concentrates and vitamins, premixes, etc. Most of them are imported, so the cost is
high. Since then, the selling price of the product is also high.
• Competitive analysis: 5 FORCES
- Direct competitors:
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+ Nestle – Nestea packaged milk tea.
Affordable price – 32,000 dong with wide distribution system in convenience stores,
supermarkets, grocery...Origin of milk tea from Taiwan, Nestea packaged milk tea has already
been tested for quality and safety. The brand mainly focuses on highschool students, college
students, etc.
Figure 11. Nestle – Nestea packaged milk tea.
+ Hillway Bubble Milk Tea.
Hillway Bubble Milk Tea is a product of the Hillway brand, produced, packaged and responsible
by FES Vietnam Company, one of the first companies to bring instant coffee culture into the
market. Vietnam. With more than 20 years of establishment and development, FES has brought
to consumers many delicious and convenient packaged products such as instant coffee,
nutritious cereals, instant chocolate and instant pearl milk tea Hillway.
Figure 12. Hillway Bubble Milk Tea.
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+ Ajinomoto - Birdy 3in1 Instant Milk Tea.
Birdy Instant Milk Tea by Ajinomoto made from Thai Nguyen tea leaves has a slight bitterness.
The brand targets officers and has the benefit to relieve stress, fatigue and affordable price.
Figure 13. Ajinomoto - Birdy 3in1 Instant Milk Tea.
+ Royal Myanmar Teamix.
Is the number 1 instant milk tea in Myanmar. It is a popular drink in the 2017 seagame period.
Low-fat milk tea with strong tea flavor, suitable for both children, the elderly and vegetarians
High price: 119,000 VND.
Figure 14. Royal Myanmar Teamix.
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+ Aik Cheong Classic Milk Tea The Terik Classic 3in1.
It is a combination of black tea powder, premium milk cream and sugar. When drinking, there
will be light cream foam on top, strong tea flavor. Reasonable price: 99,000 VND.
Figure 15. Aik Cheong Classic Milk Tea The Terik Classic 3in1.
- Consumers:
+ High bargaining position: Packaged milk tea products belong to the FMCG industry, which is
a non-essential item => Buyers are price-sensitive and will tend to switch to substitute products
if there is a promotion.
+ For retailers, wholesalers have the ability to navigate customers. If the policy of commissions
and discounts is not satisfactory, they can direct customers to other products to increase their
income.
- Substitution:
Homemade milk tea.
It is a product from small and medium milk tea factories and home processing facilities. In the
past, it was often chosen by many people because they trusted the manufacturer. However, the
assurance of food quality, safety and hygiene has not been assessed by competent authorities.
On the other hand, this product has difficulties in food preservation and is easily penetrated by
insects and bacteria.
Imported milk tea.
Mainly powder packaging. The milk tea powder product lines imported from developed
countries such as Myanmar, Malaysia, Taiwan, Indonesia, Thailand... are all manufactured
according to modern processes, ensuring food safety and hygiene standards and nutritional
quality. The nutrients still retain the natural flavor of the tea leaves. Convenient storage. The
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amount of imported milk tea consumed in the Vietnamese market is always high and constantly
increasing. Only in the past 2 years, due to the epidemic, consumers tend to switch to using
instant packaged milk tea to solve their cravings for milk tea during the epidemic season.
Besides, there are other substitutes including lemon tea, coffee or Pearl yogurt.
- Suppliers:
Vinamilk's milk source mainly comes from farms that the company develops itself and also
includes small farmers. They do not have good caring techniques, mainly spontaneous and
amateur, so the quality of milk often changes erratically, putting them at many disadvantages.
Therefore, the initiative usually belongs to the side of the enterprise.
As for the raw materials and sources of tea, milk powder.., Vinamilk is mainly imported from
abroad by the leading big brands in the world. For these suppliers, Vinamilk does not have much
advantage in bargaining power and is under a lot of pressure, but is assured of the quality of
input materials. (Hanh, 2020)
- Potential rivals:
This is a potential market that numerous business wants to join because:
The group of customers who are young people has a higher frequency of drinking milk tea than
other subjects, 60% have a frequency of drinking at least once a week. Milk tea market research
also shows that the percentage of people aged 15-21 who drink milk tea 2-3 times a week is the
highest, accounting for 24%. Middle-aged people aged 30-38 have a rate of using milk tea 2-3
times a week, accounting for 19%, which is also an impressive number for this group of
customers who are difficult to access.
Barriers to entry into the industry:
+ Cost of entering the industry: It is high. Not every company can make bubble milk tea products.
Specifically, the company has to spend money on finding ingredients, recipes for advertising,
marketing, and designing product packaging so that it's safe. safety and ensure the health of
consumers. Besides, there are also costs related to distribution channels, both traditional retail
channels or e-commerce channels. In addition to fierce competition in the industry, there are
now more than 100 different milk tea brands covering Vietnam in various forms.
+ Distribution channel:
In 2022, the trend of the FMCG industry will be extremely developed and grown on e-commerce
channels. Therefore, managers need to balance and shift costs from traditional distribution
channels to e-commerce channels.
+ Create a difference for the brand:
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As mentioned, the bubble tea industry now has many brands competing with each other both at
home and abroad. When it comes to milk tea, consumers often think of Thai and Taiwanese milk
tea… rather than Vietnam. So to be able to survive in the market, your product and brand must
be outstanding compared to other product brands. This is not easy.
2.3 SWOT Analysis
Strengths
Weaknesses
- Strong global brand – Vinamilk is the number 1 dairy - Unable to control the source of raw
materials.
brand in Vietnam.
- Products are diverse but not
outstanding other than dairy products.
- Strong finance.
- Wide distribution system.
- Controversy about product origin.
- Affordable price.
- Modern, high-quality technology equipment.
- Product variety: Limited in taste
compared to market alternatives.
- Product’s function:
•
•
•
•
Just mix milk tea powder with boiling water to
have a delicious cup of milk tea right away.
Efforts for a green industry: Using paper
packaging outside, and environmentally
friendly aluminum foil milk tea bags inside.
Compact packaging, easy to carry from home
to office, school.
Quality, food safety: ISO 9001, ISO 22000.
- Product quality:
- The product is a combination of healthy nuts and
dietary sugar, combined with mass production in line,
so the ability to retain the maximum original nutrients
of milk tea.
Opportunities
Threatens
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- Climate issues causing difficulties
- Increasing demand of the group of potential for the care and irrigation of tea
customers.
plantations. Insect damage reduces the
quality of tea. Prolonged drought also
- Trends of consumption of products towards health: causes difficulties for tea fields.
• Changes in lifestyle, such as longer working
hours, more women in the workforce, and more - Increased competition in the food
single-parent households, increase demand for and beverage industry consisting of
prepackaged foods. Among the top 5 factors many small, large and multinational
affecting Vietnamese consumers' decisions companies.
made by Nielsen, the two factors that choose to
buy healthy products or choose to buy organic - The psychology of consuming
or natural products are given the highest foreign milk tea.
priority by consumers (77). %), then other
factors. => Paying attention to transparency in
the source of production materials.
• Product Origin: According to research
conducted by Deloitte, consumers today tend to
buy products with accurate and clearly labeled
labels. Accordingly, nearly 62% of consumers
are likely to choose products that are free of any
hazardous substances, 51% say that their
purchase decision will be influenced by clear
labeling, and 47% want to be informed. Product
information is clearly printed.
- The source of raw materials is supported by the
government, import of raw materials is tax-reduced.
- Vietnam has a large amount of tea, creating stability
for the cost of input materials of the product.
Table 1. SWOT Analysis. (Khiem, 2020)
2.4 Key Marketing Problem or Opportunity
The key problem we have discovered for Vinamilk is that we are seeing an increase in healthier
savory milk tea options in the market that contain more trustworthy and beneficial products.
While Vinamilk still holds a large percentage of shares in the savoury milk market, we have
considered potential threats and competitors and decided to launch a new campaign to increase
profit and to maintain Vinamilk’s position as one of the top savoury milk competitors.
Consumers are becoming increasingly more health conscious over recent years, therefore we
believe this demand needs to be met to cater to consumers.
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BRAND MANAGEMENT – GROUP 3
We will be making changes to the “Product” aspect of Vinamilk existing marketing mix by
introducing Vinamilk healthy milk tea.This product will be a healthier, lighter option for
customers as it is sourced with all natural flavours and ingredients mainly come from healthy
nuts. Further, making changes to the products packaging by using resealable packaging will
likely allow doritos to stand out against competitors due to the unique packaging.
3. Key Strategic Decisions include any support material (assumptions, data analysis)
3.1 Marketing Objectives
- Vinamilk set the goal to account for 10% market share in the “instant milk tea powder” market
in Vietnam.
- Vinamilk set a target of selling over 500,000 tea boxes in the first 6 months since its launch.
- Sale Forecast:
POTENTIAL CUSTOMER
Vietnam population……..…………………………....………………....…..…..…98.446.496
Living urban …………….………..….……..….. 34,4% ……….….…….…….... 33.122.548
Age 15-35.…………………………...…………. 35%…….…...…..………..……11,592,899
Middle Class.…………………………...………. 30% …….…...…..………..……3,477,896
Instant Milk Tea Powder Penetration……….........25%…...………….……………....869,467
POTENTIAL MARKET SIZE
Frequency / 6 months…………………………....………..…………………………..6 boxes
Market size (units)………………………………………………....……….……....5,216,802
POTENTIAL MARKET SHARE & SALE
Market share………………………………………….…………………………...……...10%
Unit price……………………………………………………………….……..…64,000 VND
Potential
Sell out in unit…………………………………….……………………....521,680 boxes
Sell out in value…………………………………......……..............35,947,520,000 VND
Table 2. Sales Forecast.
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BRAND MANAGEMENT – GROUP 3
3.2 Communication Objectives
- Brand Awareness:
By the end of the campaign, 70% of the target audience will be able to recognize Vinamilk
Healthy Milk Tea at the point of purchase through social media (including Facebook, TikTok,
and Youtube) and through traditional media such as TV.
Posters that are posted on Facebook after 6 months will attract a total of 50.000 likes and 5.000
shares. The Facebook Fanpage will increase over 70,000 followers along with more 50,000
subscribers on Vinamilk Youtube Channel. Moreover, TVC on Youtube will get 10.000.000
views. On TikTok social media, the results after 6 months running the campaign are 10 million
views for hashtag #VinamilkHealthyMilkTea along with over 3000 videos that use Vinamilk’s
music advertisement.
The company plans to acquire brand awareness and recognition through TVC advertisements
posted on various media vehicles, such as television and YouTube. In addition, Vinamilk also
run advertising on social media like Facebook and TikTok.
- Brand Attitude:
The second communication objective is to transform new customers' attitudes towards the milk
tea due to the product of Vinamilk.
When mentioning milk tea, people often thought this was an unhealthy drink, especially
affecting the shape because it easily causes weight gain and obesity with the extremely large
amount of sugar and calories. Therefore, Vinamilk has launched a healthy milk tea product with
barley extract. Consumers when using it will no longer worry about weight gain when drinking
every week, moreover, the taste is extremely delicious along with nutrients will improve the
health's consumers.
3.3 Customer Segmentation
- Geographic:
Region: rural and urban areas.
Focus on targeted customers who live in urban regions, big cities such as Hanoi, Da Nang, Ho
Chi Minh City, etc. in Vietnam.
- Demographic:
Age: This product line's target demographic ranges from 15 to 35 years old.
Gender: Male and Female.
Generation: Customers who are Gen Z (born between 1997 and 2012), Gen Millennials (born
between 1981 and 1996).
Occupation: students, office workers, etc.
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