Customer and Vinamilk advertisement on TVT3 in 2009.DOC

Topic research:
“Customer and Vinamilk
advertisement on TVT3 in
2009”
Student: Ta Hoang Linh
Student’s ID: CQ501481
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I. Introduction
1.1 Abstract:
The report contains the investigation of how the two advertisements: 100% fresh milk and
V-fresh affect the customers when they saw them on the VTV3. the research will be
divided in to two parts, the first part is to investigate the preference of customers when they
watch these commercial, the second part is to research the sales of Vinamilk in 2009. I
think this way of research will let you see carefully and it is comparative between the
attention of customers on TV advertisement and the change in sales.
1.2 Background:
In the fourth quarter of 2008, the news that spread through the nervousness of the
consumers was about the dairy products made the consumer suspected the quality of these
products.
Firstly, the buyers worried when there was a piece of news mentioned the milk
powder that produced in china has a chemical called Melamine. Some of companies in
China tended to be producing for profit so in order to increase the profit per product, these
companies used the chemical called Melamine. Melamine is extracted from coal, the
industrial chemical commonly used in the manufacture of plastics, fertilizer, fire resistant
fabrics, dyes and household products. Major element in its composition is nitrogen (up
66%). Although no nutritional value, but it is usually given to raw milk to increase protein
content, by the method of assessment in milk protein content is often based on the
percentage of nitrogen in the product. Experts confirmed the chemical structure of
melamine makes it easy to pass the devices analyzed. When in the body, melamine causes
kidney stones and urinary calcium tube. Thus, the milk powder products contained
melamine as yogurt; ice cream ... can also cause disease. In Viet Nam, after the news was

spread the Ministry of Health had verified all companies, at the end result that 23 brands of
dairy products contained Melamine, the echo of the news prolonged till 2009.
Nevertheless, at the same time, in 9
th
October 2008, the Environmental Police of
Division Police in Tien Giang province give the sample of product of Vinamilk to the lab
when heard the feedback of the customer named Nguyen Cong Phuc and result that in the
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sample had 7 bacteria and 4 of them were exceed the standard. This news had affected the
Vinamilk image which it was built in the customer thought.
These 2 things were the most affected news during the late 2008 and 2009;
consumer’s choice in 2009 changed much compare with 2008. For example, the customer’s
behavior till 2008 preferred cheap one, buyers tended to buy things without
Realize the quality of dairy products. However, when the scandal of San Lu
Company in China happened, then the Ministry of Health published the list of dairy brands
whose products had Melamine, the habits had changed. Now buyers tend to buy products
with certificated standard quality.
These scandals happened in the late 2008 there is no doubt that in 2009; dairy
companies had to surfer the bad effects. Buyers were so doubtful and suspect the quality of
the product. Customers’ purchase power was decreasing.
Vinamilk, the largest and powerful company in term of dairy products during 2009
had to experience those effects too. And in 2009, Vinamilk presented 2 new types of dairy
products, the first product was “100% fresh milk”, the second one was “vfresh”. Company
knew the difficulties in 2009 so that the promotions of the new products were extremely
necessary because Vinamilk understood very well the effects of advertising on consumers.
The role of a good advertisement is to informing them about product and services and
influencing their attitudes, beliefs, and finally their purchase. This research follows the idea
how customer response to advertisement of Vinamilk about those two brands name, or how
effective these commercials were. The topic of this research is: “Customer and Vinamilk
advertisement on TVT3 in 2009”.

1.3 Rationales
Today, there are mass of advertisements in every channel on TV. Because that
option of advertising is the quickest and easiest way to reach the potential customers. In
order to have the advertisement on TV screen, businesses has to pay VTV3 a lot just for a
30-second advertisement. It is important to business to evaluate the effectiveness of the
advertisement toward the customers. The main purpose of this research is to define the
affections of Vinamilk’s advertising during 2009 toward the buyers. Because of the
limitation of knowledge so that this paper will include only two of those advertisements.
They are the advertisement of 100% fresh milk and vfresh’s advertisement
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This research was conducted in order to know how effective the Vinamilk’s
advertisements on TV are in the year of many dairy scandals.
1.4 Research question:
1, How did customers response toward Vinamilk’s commercials on VTV3 in 2009?
(In this research question, I only focus on 2 advertisements which have been
recommend in the background part of this report)
2, How did the responses affect Vinamilk sales and market share in 2009?
1.5 Research method:
This research based on two types of data: Primary data and second-hand data.
Primary data use the survey method. The population of this research is the students
from Intake 50 Advance program. The survey questions will be answered by a population
of 56 students. The type of survey question is multiple choice questions. Surveys spread
out are 56 copies of survey questions. Surveys collected are 56 copies. Survey questions
are stored in Appendix part of this report.
Second-hand data are information on the Internet. The address on the Internet of
Vinamilk is . Company has very detailed financial statements
since it became Joint Stock Company and listed on the stock market.
II Major finding:
Research question 1: How did customers response toward Vinamilk’s
commercials on VTV3 in 2009?

The commercials this report includes are “100% fresh milk” advertisement and
“vfresh” commercial.
+The advertising is very important and vital part of a successful business.
Advertising can be of any kind, some of the popular forms of advertising are:
Print Media Advertising: This is the advertising in which we promote the business
through Newspapers, Magazines, Journals and books. This advertising covers all of people
who are related directly or indirectly with above said media. This is very popular form of
advertising as print media is very important. We can further categorize the print media
(newspapers) into Entertainment, Careers, Classifieds, technology (Computers, Electronics,
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defense), Real Estate, Lifestyles, Comics and much more. It also includes hoardings and
banners.
Television: TV is a very popular platform for advertising. It covers nearly all kind
of audience and of all genders.
Internet: The newest and increasingly getting popular form of media is internet. As
it is the widest platform for the advertisers. It covers everything from a needle to a ship.
These days more and more companies are focusing on advertising through internet. Internet
advertising comprises of websites, portals, gadgets, feeds and search engines.
With help of advertising the business firms publicize their businesses to make it
more popular and to create brand awareness. Advertising help them in increasing revenues
which directly increases the profit of the companies. Many companies are having separate
departments for advertising. The function of these departments is to make plan and make
budgets for advertising. Advertising helps in forecasting sales of a company. If the
company spends more on advertising then definitely the people will be more aware about
the brands of the company.
Impact of Television: We live in a culture bombarded with promotional
messages. Studies differ on the number of ads seen by the average American, but
researchers cite from 850 to 3,000 ad messages experienced daily. These messages come
from traditional sources like TV and newspapers but also on coffee cups, bill inserts
catalogs, T-shirts and the like. The competition for the eyes and ears of the American

consumer is fierce. Getting attention fosters the awareness that is the first rung of the
advertising action hierarchy. It is so very critical to creating sales of an advertised product.
Medium Properties: Television has the properties of sight; sound and motion that
traditionally set it apart from other media such as radio (sound only) or print (sight only).
With its three-pronged assault on its viewer's senses, TV is able to create broad awareness
for a product. Television is considered a mass medium because of the numbers of people it
reaches.
Pervasiveness of TV: National broadcasters like VTV3, VTV2, VTV1 and VTV4
reach more than 87% of households in Vietnam have TV. Television reaches more than
94% of the country's population, a huge potential audience for a television commercial. But
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even TV's mass audience gets segmented as viewers fragment along age, gender and racial
groups to watch particular networks, channels and programs.
Effectiveness of TV Ads: The actual impact of an individual television ad depends
on the kind of product being advertised. Some product categories are just naturally more
interesting than others. More important is the creativity of the message itself.
This is where specialists in television advertising truly earn their paychecks as it is their job
to create ads that break through the clutter of television advertising, get attention, and
communicate its unique selling proposition and so position the product for a sale.
Television advertising has established a pantheon of highly regarded brands and brand
icons like Coca-Cola, Pepsi-cola…
Television Broadcasters: All national broadcasters have affiliated local stations.
Local broadcast stations have some autonomy in program lineup, especially during the
daytime and late-night periods. Local news is the bread and butter of local TV. Local
stations have their own inventories of local ad units for sale and are given a share of some
time slots available in prime-time programming for local ad sales. Buying local ads might
provide a savings over national ad prices in the same TV program.
Cable television advertising brings a new level of audience targeting and cheaper
advertising costs. Cable TV practically invented the long-format commercial known as
Infomercials, which even national broadcasters use to sell available time inventories,

especially late night.
VTV3 a TV channel broadcasts sports information, entertainment and economic
information of Vietnam Television Station. This is a popular TV channels in Vietnam with
the type of program can serve diverse entertainment needs of audiences of all ages.
Although VTV3 hasn’t make any research about viewer rating but it’s obviously that the
rating is very high due to 2 reasons
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Firstly, VTV3 is the channel of entertainment, sport, film, talk show, games…
46%
34%
14%
6%
Daily
w atchting
4-5 times per
w eek
less than 4
times per
w eek
never w atch
The pie chart above showed the percentage based on the number of people and their
habit of watching VTV3 clustered in 4 categories: daily watching, 4-5 times per week, less
than 4 times per week and never watch. There is 46% of the research sample frequently
watch this channel which means major of the sample consider VTV3 is their favorite
channel. 34% of them said that the frequency of watching VTV3 is 4-5 times a week. 14%
rarely watch this channel and only 6% never watch VTV3
It is obviously that VTV3 is one of the most successful TV channel in Vietnam.
Broadcasted officially since 31/3/1996, part of VTV (Vietnam Television). Till 2010,
VTV3 is the first choice of every household in this country. The reason is the content of the
channel can satisfy all hobbies of viewers. Children can find their entertaining TV shows in

4pm to 5pm, it’s just the time children come back home for a long day studying and at 4 to
5pm is the time for them to relax. For adults, there are many film, TV shows, games shows,
sport… Moreover, the time frame of each show is very fit for the family. At 7pm, when all
members in a family gather together, having dinner is the time for news, weather forecast.
At 8pm, when the dinner is done and family sit together and watch film.
Golden hour is the term which means a period of time when the number of people
expected to watch the channel is the highest. In 2009, the golden hour is between 8pm and
9pm. However, the time 7pm to 8pm is often have the same amount of viewers as the
golden hour because news of this day would be summarizing at this time. Further more,
advertisements which broadcast at these time also have to paid higher price because the
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+ “100% fresh milk” advertisement
Description (Company intention of 100% fresh milk advertisement): The
commercial presents a view of nice and clean green field. Where a class of cows marching
and the slogan of this product appear: “100 percent fresh milk”. The melody was great and
memorable. The image of cute cows impressed the audiences. You can see for yourself by
follow this link: />In order to be objective we have investigated more and due to the theory in MKTG
(the book for marketing learner), 100% fresh milk ad is categorized in production
advertising; its type was competitive advertising. Firms use this type of advertising to
influence the demand for a specific brand. In this type, the promotion becomes less
informative and appeals more to emotions during this phase. Advertisements may begin to
stress subtle differences between brands, with heavy emphasis on building recall of a brand
name and creating a favorable attitude toward the brand. In this advertisement, the
information in this advertisement was not informed, however, the emotion of this
advertisement was emphasized. In detailed, the joy of drinking Vinamilk’s products
appeared on cows’ face. The competitive thing that against other product is the liquid milk
contain in the box is 100% pure fresh milk. We have heard about two dairy scandals were
the toxicant named melamine in Chinese milk powder and the case of misusing the term
fresh milk. Because of that, was the milk used in liquid milk real fresh milk or not was the
customers’ prior doubt. Vinamilk needed to emphasize the brand Vinamilk in customers’s

mind so that they chose the name of the brand was 100% fresh milk. The meaning of this
was they need the customers knew that their product did not have toxic substance.
Youtube.com, the popular website for uploading and watching videos and when the
commercial of 100% fresh milk was uploaded, it has reached 447528 views
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