group assignment course mkt101 marketing principles topic vinamilk vnm

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<b>GROUP ASSIGNMENTCourse: MKT101 Marketing Principles</b>

<b>TOPIC: Vinamilk (VNM)</b>

<b>Group name: Introvert</b>

Ho Chi Minh City, 28/02/2024

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- Vinamilk (VNM) was established in1976. It is a world grade brand in the F & B ( Food &Beverage) industry and is trusted by customers in nutrient & health products with 3criteria: quality, innovation & demand of customers.

- VNM is the NO.1 position in the VN market & aims to reach the top 30 of World’sLargest Dairy Companies in terms of revenue.

- VNM has identified a develop strategy with 3 main pillars for execution, including:+ Leading in highly applicable innovations : continue to R&D ( research & develop)

more new products with innovation, expand & diversity portfolio based onconsumer’s preferences & demand

+ Consolidating the leading position in the VN’s dairy industry: continue to build &prioritise large & strong domestic distribution systems, increase market share &maintain VNM leading in the market.

+ Becoming the most valuable dairy company in the Southeast area: be ready forM&A (merger & acquisition) activities & prioritise to seek M&A opportunities &expand strong cooperation with partners in all 3 directors of horizontal, vertical &combined integration. Continue to penetrate new markets with the strategy ofconverting the traditional goods export model into types of deep cooperation withdistributors partners in new key markets.

- Competitors of VNM : TH true milk, Alemilk, Dutch Lady,...

<b>II.Marketing environment analysis ( macro - micro environment )</b>

<b>1. Micro - environment</b>

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- In 2020, VNM accounted for nearly 43,3% of market share milk in Viet Nam. Importedmilk from firms such as FrieslandCampina accounted for 15.8%, TH True Milk 6,1%,Abbott 5%belonged to smaller scale dairy companies such as Nutifood, Moc Chau Milk,IDP,..etc account for the remaining small market share.

- VNM, accounting for more than 54,5% of liquid milk, 40,6% of the powdered milk, 33,9% of the drinking yogurt, 84,5% of the yogurt & 79,7% of the condensed milk marketshare nationwide.

<b>2. Macro - environment</b>

Vinamilk, for the past few years as well as currently, mainly focuses onthe market of consumers as children. However, as seen by future trends,the children's consumers will be very small and crowded, especially when thereare and will be more dairy companies entering this market. Therefore, thisfuture change in Vietnam's demographic will definitely have a great impacton Vinamilk if it continues to just centralize its products around its current

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target market of children consumers. On the other hand, elder consumerscan be a great potential market for Vinamilk and with its strengths,experiences in dairy products.

- In 2010, the population below 10 years old was at 15,7 % while the population above 60was at 8.9%. In 2018, the population below 10 years old increased only 1%meanwhile the population above 60 has reached 9.5%. The growing of old populationforesees a shift in milk industry in the future: focusing more on the potentialcustomers of the elderly

- The market segmentation:

<b>ObjectDemographicCustomer buying behaviour(purchasing needs)</b>

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on their parents.Children Age : 5-14

Income: dependon their parents.

Drinking everyday - potentialcustomers

Young people Age : 15-25Income : don'thave a stableincome.

Drinking everyday - replenishenergy.

VN but highpopulationdensity

Adults Age: 26 - 44Income : stableincome.

Usually use - Benefits to lookfor: Good for health, delicioustaste, convenient.

VN & have highpopulationdensity & themajority are inurban areas.The elderly Age: over 65

Their income isbased onpension, mostlive off theirchildren.

Benefits to look for:reasonable price, easy to buy,prevents osteoporosis, keepsthe body hydrated, increasesresistance, reduces fatigue.

VNArea: rural,countryside.

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Culture: Around 72% of Vietnamese women have joined the workforce, bringingthe country to the group of nations with the highest percentages of women in thelabor pool. And as women become busier, it is expected that liquid milk boxes orfresh milk become more popular due to their convenience.Children also account fora large market share because, according to Vietnamese people, milk provides a lot ofnutrition and energy for children. Most children drink milk every day and with everymeal.

<b>III.Target and Positioning</b>

<b>1. Target</b>

<b>Consumer behaviors: Consumers are increasingly concerned about health issues,</b>

leading them to learn about the quality of ingredients in products and the benefitsthat come from that product. In addition, promotions and discounts also stimulatecustomers' consumption behavior.

<b>Segmentation: Vinamilk will prioritize exploiting the domestic market</b>

because the domestic market still has great growth potential. Vinamilkincreases advertising and develops quality products, supporting healthissues, especially in urban areas. Besides, Vinamilk also promotes popularproducts with growth potential to rural areas. In addition, they also focuson building a large and strong distribution system, increasing market shareand maintaining Vinamilk's leading position in the market. And finally,they carry out M&A activities and expand strong cooperation withpartners to expand markets and increase sales.

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new and innovative products. Expanding and diversifying productportfolio based on consumer preferences and needs, Vinamilk ensures tobring many convenient experiences to customers. Vinamilk has enoughproduct diversity to meet the consumption needs of different customersegments from infants to the elderly.

<b>Targeting: Vinamilk focuses on high-end and value-added products while</b>

also developing existing products. From there, they can maintain andoptimize their leading position in the Vietnamese dairy market. This willcontribute to making Vinamilk the most valuable dairy company inSoutheast Asia.

<b>2. Positioning</b>

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- In terms of price, Meadow Fresh has both the highest price (11.5 VND / 1 box) and thehighest calcium level (125 mg) while the Th true milk has the low level of calcium ( 9VND / 1 box) compared to the other milk brands.On the other hand, Vinamilk has a quitereasonable price (8 VND / 1 box) suitable for the budget of the majority of Vietnameseconsumers today. Vinamilk is a popular and leading milk brand in Vietnam so consumerscan easily find this milk in supermarkets, bachhoaxanh or any other retail stores,..

<b>IV.Analysis of the marketing mix 4Ps and the societal marketing concept.</b>

In the marketing process VNM has used many strategies, but the most successful & standout are the market segmentation & the 4Ps marketing mix & societal marketing concept.

<b>1. The marketing mix 4Ps model:</b>

+ Products for children to the elderly people.

- Price: Vinamilk’s products all meet international standards, their prices are much lowerthan imported milk lines. In addition, VNM also improved some products to improvequality and price. For example: Dielac - Dielac Alpha, Dumex - Dumex Gold, Friso -Friso Gold.

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+ For example, Vinamilk’s powdered milk for children is only one-third the price ofother milk lines on the market.With a high level of competition in the dairymarket, if Vinamilk raises its price to half that of other brands, its market sharewill be negatively affected. ( Excerpted from research article by Le Quang HieuPhD & Truong Dinh Trang Master)

- Place: distribution system

+ At present, Vinamilk has 3 main branches in Ha Noi, Da Nang, Can Tho and oneheadquarter in Ho Chi Minh City.

+ Vinamilk’s distribution system spreads across the country in all three forms ofdistribution: wholesale, retail and direct distribution stores.Vinamilk products arealso present in large and small supermarkets and convenience stores nationwideand on the e-commerce channel

+ Vinamilk's dairy products have become popular and easy to find throughoutVietnam due to the use of 3 main distribution channels, the first channel is thesupermarket system, from large supermarkets such as Coopmart, Big C to smallsupermarkets. such as Vinmart, Family mart, B's Mart.

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- Promotion: Multimedia marketing in Vinamilk's marketing strategy focuses on themessage "100% pure fresh milk", which both conveys the product's competitiveadvantage and increases reliability for consumers.Vinamilk creates short advertisementsbut must make a strong impression on consumers through images, sounds, andattractiveness.Vinamilk has conducted multi-channel product advertising such asadvertising on fanpage, advertising on television, outdoor advertising, developing videoson YouTube,…

<b>2. The societal marketing concept:</b>

A marketing strategy of Vinamilk that is effective in attracting customers and increasingbrand awareness is sponsoring competitions and scholarship programs such as:- On July 20th 2014, Stand Tall Vietnam Milk Fund held a ceremony to give milk to the

children of dead and wounded soldiers’ families in Quang Tri Province.

- Also in the program, pupils had the chance to meet, chat and play funny games with theambassadors of the program—comedian Xuan Bac and comedian Tu Long. Previously, in2014, Vinamilk also held events to present milk to children at Co To Island District(Quang Ninh) and Ba Tri District (Ben Tre).

- Vietnam Dairy Product JSC ("Vinamilk"), one of Vietnam's first advocates for the SchoolMilk Program (SMP), marked its contribution towards the health and well-being of 3.3million students on this year's World milk day. 14 years on and the company remainscommitted to the better nutrition of Vietnamese children.

- This strategy helped the company increase profit & brand awareness, helping thecompany continue to maintain the No.1 position in the Vietnam market.

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<b>4. Target Market:</b>

· Clearly define the target audience for Vinamilk products.· Identify demographics, psychographics, and behavior patterns.

<b>5. Marketing Mix (4Ps):</b>

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· Highlight product features and benefits.· Introduce any new products or variations.

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· Allocate resources based on priority areas.· Specify the budget for each marketing initiative.

<b>8. Implementation:</b>

· Detailed timeline for the execution of marketing strategies.· Roles and responsibilities for each team member.

<b>9. Monitoring and Measurement:</b>

· Key performance indicators (KPIs) for tracking success.

· Regular monitoring of social media, sales data, and customer feedback.

<b>10. Contingency Plan:</b>

· Identify potential challenges and develop contingency plans.· Ensure flexibility in adapting to changing market conditions.

<b>11. Evaluation and Review:</b>

· Regularly assess the effectiveness of marketing strategies.· Collect feedback and make adjustments as needed.

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Following the analysis process and developing a marketing plan for the next year ofactivities is critical to ensuring the success and effectiveness of the strategy. Thefollowing are general conclusions:

- Understand the Market and Environment- Clearly Identify Objectives and Target Audience- Integrating Media and Campaigns

- Manage Resources Effectively, Establish Measuring and Tracking Systems- Learn and Gain Experience, Integrate Flexibility and Adjust

<i>● Brade Mar. (2023, October 31). Vinamilk. Brade Mar. Hiếu, L. Q. (2022, January). Further Discussion on Marketing Mix Strategy of Vinamilkin Vietnam - A Lesson for Maintaining its Leadership Position in the Market.ResearchGate.

<i>● Tuoitre. (2014, December 24). Stand tall vietnam milk fund visits children of Quang TriProvince. Vinamilk.</i>

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<i>● Vinamilk celebrates 14 years benefiting Vietnamese children with School Milk Program.</i>

Vinamilk. (2020, October 7).