Vfresh Aloe Vera: Marketing Plan

Marketing Plan – VFresh Aloe Vera
MARKETING PLAN
VFRESH ALOE VERA
August 29th 2012

Lecturer: Jis Susan Kuruvilla
Group: 5
1) Phan Thi Lan Nhi
S3372930
2) Ky Gia Phuong
S3359358
3) Duong Thi Ha Tam
S3372753
4) Vo Thi Quynh Nhi
S3373070
5) Nguyen Nhu Thach Truc
S3360536
6) Dao Nguyen Anh
S3298291
7) Nguyen Tu Thang
S3373540
Contents
A. ANALYSIS ................................................................................................................................ 1
I. INTRODUCTION ....................................................................................................................... 1
II. SITUATION ANALYSIS .......................................................................................................... 1
1. VINAMILK – COMPANY PROFILE ............................................................................... 1
2. PRODUCT DESCRIPTION ............................................................................................... 1
III. MARKETING ENVIRONMENT ............................................................................................ 2
1. MICROENVIRONMENT .................................................................................................. 2
2. MACRO-ENVIRONMENT: .............................................................................................. 5
IV. SWOT ANALYSIS .................................................................................................................. 7
V. STP ............................................................................................................................................. 8
1. SEGMENTATION ............................................................................................................. 8
2. TARGETING ...................................................................................................................... 9
3. POSITIONING .................................................................................................................. 9
VI.MARKETING MIX STRATEGY ........................................................................................... 11
1. PRODUCT ........................................................................................................................ 11
2. PRICE ............................................................................................................................... 12
3. PLACE .............................................................................................................................. 13
4. PROMOTION ................................................................................................................... 14
B. OBJECTIVES .......................................................................................................................... 15
C. RECOMMENDATIONS ......................................................................................................... 16
D. ACTION PROGRAM .............................................................................................................. 23
E. CONTROL PROGRAM .......................................................................................................... 25
Executive summary
As the high-growth-rate Ready-to-drink (RTD) tea market is being more and more lucrative in the last
few years, Vinamilk, the leader in the dairy market, which is famous for milk and yogurt products,
decided to enter this market with Vfresh Aloe Vera. Vfresh Aloe Vera (Vfresh AV), a branch of
Vfresh brand that belongs to Vinamilk Company, was launched into the market in 2010 with two
flavors, namely Vfresh AV Tea and Vfresh AV Grape Juice with pieces of AV jelly inside. Though
belonging to a well-known domestic company like Vinamilk, Vfresh AV is still facing many strong
competitors with more years of experience in this industry. Consequently, after two years, Vfresh AV
still cannot beat these competitors; its market share takes only a small part in this attractive market
(12%). With the purpose of gaining more awareness of customers, increasing the market share of the
brand, and improving sales as well as profits for the company, this Marketing Plan was prepared. Its
mission is to build a new image for the product and also create a new and prosperous period for Vfresh
AV within the next one year – from the beginning of September 2012 to the end of August 2013.
In the first part of the Marketing Plan, there is an overview of Vinamilk Company and Vfresh AV. The
internal and external factors of the company which affect the development of Vfresh AV will also be
analyzed clearly in the Micro and Macroenvironment. Furthermore, SWOT Analysis section will give a
summary of current situation of Vfresh AV, including its strengths, weaknesses, opportunities and
threats. STP part will provide all information about the potential segments and the current target market
(teenagers and young adults) of Vfresh AV. It also discusses the competitive advantage of Vfresh and
its current positioning strategy- ‘More for more’. Through the detailed–informed Marketing Mix
Strategies: Product, Price, Distribution and Promotion, the contrast between strong promotional
programs and poor distribution of Vfresh AV is clearly identified. Also, there is a comparison between
product quality and the current price.
After that, next year objectives and segmenting, as well as targeting are discussed. With the main goals
to make Vfresh AV becoming one of the most famous four RTD brands in the market with 8% increase
in market share and 27% increase in sales, Vfresh AV will shift from the current target (teenagers and
young adults) to new one (Children and their main caregivers), the segment that is overlooked by most
RTD tea manufacturers.
Based on advantage and disadvantage consideration, the third part of the marketing plan will suggest
some recommendations for the next one year operating activities of Vfresh. Firstly, SWOT matrix is
created to generate overall strategies for the future performance. Besides that, some recommendations
for the 4Ps are proposed with the aim to help Vfresh overcome its current hurdles, build reputation and
popularity among the new target customers.
In addition to the current situation analysis and recommendations, the Action Program table schedules
all tasks that Vfresh has to deploy in the future with specific budgets. Finally, the Control part provides
all back-up plans to conform actual results to the objectives.
A. ANALYSIS
I. INTRODUCTION
Considered as a healthy drink for thousands of years, tea is the most favorite drink around the world,
especially in Asia, for example, in China, Japan and Korea, tea has been recognized as an art with
several complex etiquettes. However, since modern life requires more convenient and portable products
including food and beverage, tea has been made as a RTD product. In Vietnam, many domestic and
foreign corporations have taken advantage of this lucrative market to establish several RTD brands
such as C2, 0 degree, Pure Green and Dr Thanh. Despite being the leading company in terms of dairy
production, Vinamilk cannot resist joining this ‘war of tea’ as the profit brought by this market is
promising. As a result, Vinamilk has chosen Vfresh AV as a unique ready-to-drink tea to enter the
market; the company has implemented many marketing strategies for not only gaining customer
awareness but also increasing revenue. The purpose of this report is to analyze the current situation of
Vfresh AV, as well as suggest some recommendations for its next-year marketing strategies and
marketing mix ones.
II.SITUATION ANALYSIS
1. VINAMILK – COMPANY PROFILE
Vinamilk (Vietnam Diary Products Joint Stock Company) was founded in 1976, under the name of
Southern Coffee Dairy Company, a subsidiary of the General Food Directorate. Its quarter office is
now located in District 7, Ho Chi Minh City. This state-owned enterprise is the leading producer of
dairy products in Vietnam based on sales and revenue, which is 1 billion USD in 2011. In addition,
Vinamilk ranked 5th in the Top 200 private enterprises that paid the greatest business income tax in
Vietnam in 2011 (Vinamilk 2011). Recently, Vinamilk is the market leader by offering more than 200
dairy products, such as original milk, condensed milk, powder milk, cheese and yoghurt. Consecutively
from 1995 to 2007, Vinamilk products were elected to the top ten high quality Vietnamese Products by
the Ministry of Industry and Trade(Vinamlik 2010). The company consists of 9 dairy factories,
including Thong Nhat, Truong Tho and Saigon factory in Ho Chi Minh City, Dielac factory in Dong
Nai province, Tien Son factory in Bac Ninh province, Nghe An and Binh Dinh factory in Nghe An and
Binh Dinh province, respectively. Vinamilk also owns 4 different subsidiaries and 2 warehouses in
Hanoi and Ho Chi Minh City.
Vinamilk’s commitment is to bring the best nutrition-rich regime to the community with respect, love
and responsibility. Besides, the company is willing to expand its existing large network and improve its
products for not only maintaining its firm position as the market leader, but also increasing its
shareholder value (Vinamilk, 2012).
2. PRODUCT DESCRIPTION
Entering the market in the 1990s, Fresh was a brand of Vinamilk which specialized in soya milk and
smoothies. In 2006, the brand experienced some tactical reforms including changing the name into
Vfresh and expanding the brand to RTD tea production (Vinamilk 2011).
Besides traditional RTD tea, Vfresh introduced Vfresh AV in 2010 with two flavors, namely Aloe vera
green tea and Aloe vera grape juice. By adding aloe vera jelly into the tea, they are considered to be
innovative and pioneering in the field. Additionally, Vfresh AV claims to be the best in purity with
100% of tea made from natural young tea leaves collected in Bao Loc High Land- the most ideal and
A. ANALYSIS
desirable place for growing tea in Vietnam. The products are also made from other fresh and natural
materials like aloe vera and grape without preservative. (Vfresh 2012). In brief, Vfresh guarantees to
provide customers with clean and innovative beverages.
Currently, although other kinds of Vfresh tea are sold in plastic bottles and paper cartons, a 360 ml-pet
bottle is the only type of container available for Vfresh AV. With regards to the design, Vfresh AV has 1
Sem b - 2012
recently changed its wrapping from the two-year-old design to the new one to promote the current
sponsorship program of Vfresh (100-million-tree fund). (New 2012)
Figure 1. Reproduced from Vinamilk (2011) Figure 2. Reproduced from News (2012)
Former design of Vfresh Aloe Vera New design of Vfresh Aloe Vera
While Dancing Cows are the mascots of Vinamilk milk, ‘Pretty Gecko’
(Vietnamese: Tac ke xinh) represents Vfresh AV. The official website of
Vfresh AV is also named after the gecko, which is tackexinh.com.
Since Vfresh AV is the newest product of Vinamilk, a large financial budget
is invested in its promotion, advertisement and public relations in order to
raise customers’ awareness about the product and gain market share from the
competitors. However, up to now, Vfresh AV sales and profits cannot
compete with 0 Degree, Dr. Thanh and C2.
Figure 3. Reproduced from
Vinamilk (2011)
Pretty Gecko
III. MARKETING ENVIRONMENT
1. MICROENVIRONMENT
1.1 The Company
a) Top management
The top management of Vinamilk has determined the consolidation of the producing system and the
quality of distribution as the fundamental keys to the future success of Vfresh AV; this cannot only
help Vinamilk gain the market share but also enhance the reputation of Vfresh (Vinamilk 2012).
b) Finance
According to the Annual Report of Vinamilk (2011), the total sale revenue in 2011 has reached the
peak for the first time since its establishment with $ 1 billion. Additionally, as one of the 200 best
companies in Asia (Vietnamnews 2011), Vinamilk is able to prove its sufficient financial resource,
which is available for supporting effective marketing strategies.
1.2 Suppliers
a) Raw Material
Orana Vietnam and Chie Meei are the main suppliers of Vinamilk.
Orana Vietnam is a joint venture company, established based on the business
agreement between Orana A/S Denmark and PCM Vietnam. Its main operating
activity is providing materials related to producing juice, soft drink, milk and tea.
In July, 2004, the company received the certificate of ISO 9001:2000 after a short
Orana Vietnam time of operating (Orana Vietnam, 2012).
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The company- a part of Chie Meei Taiwan Group, is the supplier for not only
Vinamilk but also AceCook and Tan Hiep Phat beverage group. The company
thoroughly takes advantage of the diversity of Vietnamese fruits to produce raw
flavors used for making RTD tea, such as aloe vera and winter melon. Chie Meei
Chia Meei received certificates of many international organizations, including ISO 9001-
Vietnam Ltd 2000, HACCP and ISO 22000 (Chie Meei, 2012)
b) Wrapping
Van Don, Ltd and Rang Dong SG Co, Ltd are responsible of designing and providing the wrapping,
packing. Instead of choosing other international companies, Vinamilk cooperates with the two
aforementioned domestic companies in terms of designing the PETS (Vinamilk, 2012).
1.3 Intermediaries
a) Marketing service agencies
Despite of having an existing Marketing Department, Vinamilk still cooperates with Ogilvy and Mather
Vietnam to support its Marketing and Advertising campaigns; Ogilvy and Mather Vietnam is part of
Ogilvy and Mather Worldwide, known as one of the largest marketing communication networks in the
world, the company’s principal operating activities are public relations, advertising, digital marketing,
relationship marketing and activation (Ogilvy, 2012).
b) Distribution
Vfresh is available in Vinamilk’s stores and VINAMILK
supermarkets. Nonetheless, comparing with 0
degree and Dr. Thanh, Vfresh’s distribution is
more moderate. DISTRIBUTORS
The diagram reveals the general distribution METRO AND
SUPERMARKET
model of Vinamilk from the manufacturer to
RETAILERS
the buyers. This system has not been applied
for Vfresh yet. (See ‘Place’ for more detail)
CUSTOMERS
Figure 4. Adapted from Vinamilk (2010)

1.4 Competitors
a) Main competitors
Tan Hiep Phat Tan Hiep Phat is both the pioneer and leader in RTD tea industry with 0 Degree
green tea and 0 Degree diet tea (Tan Hiep Phat 2011). After being launched in
1. MICROENVIRONMENT
2006, 0 Degree quickly increased its market share to 56.1% at the end of the next
year. At present, 0-degree still maintains its position as the “King of RTD tea”
(Ngoc Mai 2012).
Dr Thanh herbal tea which entered the market in 2008 is also a successful product
of Tan Hiep Phat (Tan Hiep Phat 2011). 0 Degree and Dr Thanh both focus on
cooling and refreshing. Moreover, while 0 Degree targets teenagers and young
adults, Dr Thanh has broader age-varied segments.
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Universal Robina C2 green tea is first manufactured in Vietnam in 2006 (Universal Robina
Corporation Corporation 2012). According to Thanh Dat (2007), C2 was launched right after
(Filipino the enormous introduction of 0 Degree; therefore, it was totally over-shined by
company) the competitor. He also discusses that since the C2 slogan is too similar to 0
Degree’s (both concentrate on cooling and refreshing), it does not offer any
valuable differences. However, C2’s competitive advantage is its diversified
favors, namely lemon, orange, apple and peach. C2 also specially targets
teenagers, but the drink is very popular with children.
Lipton Pure green- the result of the partnership between Unilever and Pepsico first came
into Vietnamese market in August 2008 with two variants- lemon tea and honey
tea. (Hoai Tam 2008) Though Pure Green is less popular than 0 Degree, Dr.
Thanh and C2, it still attracts a specific group of consumers.
b) Minor competitors
Tribeco 100 green tea, a product of the domestic brand Tribeco, aims to gain back the
market share from others by offering high percentage of ECCG- the anti-
oxidization process compound. (Tribeco 2011). However, 100 green tea is sill
unsuccessful because of its low marketing budget.
Coca-Cola & Realizing the attraction of RTD industry, Coca-Cola and Nestle also jumped into
Nestle it with Real leaf green tea in March 2011. Real leaf has two different favors, yet
they are both the combination of herbs and ginseng. Since Real leaf has just
entered the market in a relatively short time, it is still considered as a question
mark. (Hieu Nam 2011)
Vedan Thien Tra green tea is the newest product of Vedan- a Taiwanese company.
Thien Tra is one of the last beverage brands entering the market (Thien Tra
2012); nevertheless it is not evaluated as a strong competitor of existing brands
because Vedan’s notoriety in polluting Thi Vai river is an extremely huge
obstacle for Thien Tra to develop in Vietnamese markets.
1.5 Customers
According to Tak et al. (2011), soft-drink consumption is rapidly decreasing since customers are
extremely aware of health issues. As a result, a need for substitute beverages has become greater than
ever, and green tea is considered as one of the best alternatives. (Brownell et al. 2009).
1. MICROENVIRONMENT
Unfortunately, everyday green tea cannot satisfy customers’ high expectation for creative products,
thereafter it leads to the innovation of bottled tea. RTD tea has an affordable price and common taste,
thus it is popular with most people. Hence, this market could be penetrated more and beverage
companies still have many opportunities to target different segments.
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2. MACRO-ENVIRONMENT:
1.1 Demography:
a) Population:
Thu Huong (2012) points out that there was a slight growth in Vietnamese population from 2010 to
2011 by 1.04%. However, the population in Vietnam is really crowded, which is approximately 87,84
million people. Overall, it creates a potential market for businesses.
b) Obesity:
Although Vietnam is one of the developing countries with many malnourished children in rural areas,
in some cities, obesity has become a common societal issue. To illustrate this point, according to the
National Institute of Nutrition (n.d, cited in Nguyen 2010) the percentage of obese children in Hanoi
and Ho Chi Minh City in 2010 is 10% and 20%, respectively. Nguyen (2010) asserts that the present
percentage of children suffering from obesity is much higher than that in the past meaning obesity is
now an alarming situation. Therefore, children should exercise more and adjust their diets like
consuming less oil-rich food and soft drink.
c) New lifestyle:
Hollingworths (n.d) points out that more and more women are starting to enter the workforce. Thus,
mothers now spend less time than they did in the past to take care of their children. As a result, they try
to find the most effective and time-saving ways to raise their children. Buying healthy drinks like V-
fresh instead of homemade beverages or soft drink (coke) for their children is a typical example of this
lifestyle.
1.2 Economy
Economy is one of main factors affecting people’s consumption.
Figure 5.CPI and GDP of Vietnam from 2000 to July 2011

(Reproduced from World Economic Outlook 2011)
a) Income:
According to Dan Tri (2011) the GDP per capita of Vietnam grew rapidly from $114 to $1.061 between
1991 and 2010. In 2011, the world was in an economic crisis but the average income of a Vietnamese
still fluctuated between $1300 and $1350. It means that nowadays the living standard of a Vietnamese
is higher than the past, so one can afford more products. Furthermore, as illustrated in figure 1, the CPI
has increased dramatically, especially in 2007 and 2008. In other words, Vietnamese demand of
consumption has increased significantly.
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b) Inflation:
Đai Tieng Noi Hoa Ky (2011) points out that while the inflation rate in Vietnam in February was
12.32%, the government decided to raise the price of electricity and petrol by 18% and 5 %,
respectively. Consequently, people would rather save than spend their money. Most women who were
interviewed by VOA newspaper said that they would spend as less as possible. Hence, it is difficult for
V-fresh to expand its market.
1.3 Natural environment
 Tea:According to Nhat Hoa (2010), Doan Anh Tuan, the director of Vitas (Vietnamese tea
organization) declares that Vietnam is the 5th largest tea exporting country. However, the number of
tea products cannot meet the intensive demand of both domestic and international markets due to
the shortage of raw materials. As a result, chemicals and fertilizers have been used widely in
growing tea to stimulate the productivity. Consequently, that leads to the decline in tea quality and
tea value.
 Aloe vera:Sand areas are suitable to aloe vera. E- binhthuan (2003, cited in Minh Hang 2003)
Vietnam is a country with long shores so it is ideal for aloe vera’s growth. In contrast, Vietnamese
weather is hot and rainy, consequently, in the rainy season, aloe vera industry can stumble upon
hindrances.
 Grape:Although Viettnam is not an ideal country for grape’s growth, there are around 2500- 3000
hectares of grape field in middle Vietnam (RHQ, 2007). Grape from these areas is collected to
product Vfresh AV grape juice.
1.4 Political environment
Vietnamese government has quite strict regulations that require products to meet with certain standards.
In recent years, the stability of politics has leaded to the rapid growth of the economy, for example in
2010, it fluctuates between 6.5% and 6.7% (Le, 2010). Additionally, political policies provide some
benefits for beverage industry. For instance, the government has invested 2000 billion VNDs in project
deployment of these companies until 2020.
1.5 Cultural environment
For years, East Asian people, especially Vietnamese have been familiar with drinking tea every day; it
has become an integral part of their daily life. As a matter of fact, tea has various benefits such as
curing, preventing diseases and refreshing. Additionally, it can slow the aging progress down and
improve health (Tinmoi, 2012). Due to busy life, people nowadays do not have time to make
themselves tea. Hence, it is a huge opportunity for the RTD tea industry.
1.6 Technological environment
In recent years, the new technological industry has been developing at an unimaginable pace. Vinamilk
(2012) is one of the companies that have used modern equipment and advanced technology in
production. All of the machines are of international standards which were all imported from Europe
like Germany, Italy, and Switzerland. Vinamilk is the only company in Vietnam that owns spray drying
technology of Niro- the most famed Danish company in the field. Next, they are also provided with
international standardproduction chains by Tetra Pak.
Moreover, Vinamilk is one of the first companies in Vietnam to apply QR code (Quick Responding
code) to their marketing strategies. According to Anh Tuyet (2011), this marketing strategy help
customers to search for information regarding the product more actively by scanning the QR printed on
the bottle. Vfresh also has a bilingual website to increase the interaction between the company and the
customers.
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IV. SWOT ANALYSIS
STRENGTHS WEAKNESSES
 Vinamilk has very good reputation as a dairy  Despite of having a large and strong
company with 36 years of experience. distribution, Vinamilk has not used up
 Competitive advantage: product quality these channels to distribute VfreshAlow
 Receiving many awards: High Quality Vietnamese Vera widely, which makes this product
Product (Sai Gon Tiep Thi 2011), Trusted Brand available only in supermarket and
2011 (Vietnamese Enterprise Institute – Department Vinamilk’s stores.
of Trade Promotion 2011).  Less experience in producing products
 Large distribution network with more than 178.000 not related to milk. Vinamilk failed to
retailers (Vinamilk 2011) invest in SABMiller beer and Moment
 The unique RTD tea in the market that has aloe vera Coffee; they had sold their shares of
jelly SABMiller beer for their foreign partner
 Prestigious and trustworthy suppliers: (VBN, 2010), as well as sold factories to
OranaVietnam - Chie Meei Vietnam Ltd Trung Nguyen Coffee, which marks the
 Modern equipment, high technology matched with loss of 5-year investing (N.Anh 2009).
international standards (Vinamilk 2012)  Entering the RTD tea market later than
other competitors  low market share
OPPORTUNITIES THREATS
 Culture: Vietnamese people enjoy drinking tea  High competitive market with many
 The high growth-rate market for RTD tea strong competitors: not only domestic
 The development of mass media, especially the firms (Tan HiepPhat, Tribeco) but
Internet  the company can easily raise awareness foreign companies (URC, Coca-cola and
 Since joining WTO, Vietnam economy has achieved Unilever) have entered the RTD market
relative rapid growth. As a result, the standard living successfully
of Vietnamese has increased significantly which  77% of Vietnam consumers prefer
stimulates the purchasing power. foreign brands to Vietnamese brand
 As being educated well, today consumers concern (tin247 2011). As a result, Vinamilk may
more about their health  a great opportunity for have difficulties in competing with
company to launch healthy product like Vfresh AV. current foreign RTD brands.
 Environment protecting is becoming a trend. People  Inflation and unstable economy in the
prefer Green products and concern about future can affect the business.
environmental activities (CSR) of the business IV. SWOT ANALYSIS
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Sem b - 2012
V. STP
1. SEGMENTATION
Demographic Psychographic Behavioral
Children Lifestyle: -Benefit Sought: sweet
Age: 6-12 -They love consuming sweet things such as and yummy flavors.
Gender: Male & Female candy, high-calorie carbonates soft drinks; -Loyalty: prefer to try
therefore, RTD tea can be a healthier alternative. new things, easily be
-They spend a lot of time on watching TV, doing influenced by peers,
Income: depends on outdoor activities. attracted bythings that
parents who have middle- -Easily attracted to lovely cartoon characters. simulate cartooncharacters
high income Personality:  their taste will be
Occupation: Students easily changedUsage rate:
-Playful, hyperactive, energetic, curious, and
medium users
changeable.
-Occasion: daily use,
outdoor activities.
Teenagers Lifestyle: -Loyalty: easily follow
Age: 13-19 -Spend time on hanging out with friends. trends and try new things.
Gender: Male & Female -Appearance is essential to them -Occasion: daily use,
especially for hot months,
Income: some of them are -Often watch TV channels for teen, read teen or outdoor activities.
financial independence, magazines, and play online games. Often use
but mostly depends on Internet to study, entertain, and get information. -Usage rate: heavy users
parents who have middle- -Susceptible to fads, but hyper-individualism is
high income increased (Cimigo 2011)
Occupation:Students Personality: Impulsive, active, outgoing, curious.
Young adults Lifestyle: -Loyalty: prefer indoor
Age:20-29 -Perceive appearance is important factor beverages, for example,
-Spend time on working, hanging out with coffee, juice in coffee
Gender:Male &Female shop, beer in restaurant, or
friends, meeting business partners
Income:financially -Often watch fashion program, game shows, and wine in bar, club.
independent from middle- read magazines to update news or fashion trends -Usage rate: medium
high income. -Frequently use Internet and Social media user.
Family status: single
Personality: Sociable, ambitious, active. -Occasion: picnic,
Occupation:Students, outdoor activities.
office workers.
Family main caregivers Lifestyle: -Loyalty: are not likely to

(mothers or fathers) -Be more health-conscious and eager to pay more try new things, don’t like
for healthy products (Eisenmann et al. 2008) to change habits. More
Age:30-40 -Be responsible for taking care of family consistently use products
Gender:Female &Male members, and mainly decides daily products. that are healthy.
Income: middle – high -Often create leisure days for their family at zoo, -Usage rate: low users
V. STP
income theme park, and popular family restaurants

-Love shopping at malls and supermarkets -Occasion: family parties,
Occupation:House wives, outdoor activities.
office workers Personality: Introverted, caring, fussy, careful.
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2. TARGETING
2.1 Evaluating Market Segments
a) Segment size and growth
Firstly, all of the aforementioned market segments are large enough to be profitable and measurable. As
most young adults are financially independent while teenagers at least have a few amounts of savings
every day, so they are able to purchase VFresh. Besides, although many children are not able to afford
the product frequently, they depend on their parents who are the middle or upper class, and can be
affected by their children’s choice. Moreover, except family main caregivers, the other younger
segments have a potential growth rate since Vietnam is a young country with 30% of the population in
2006 was under 14 (Schiffmann 2006).
b)Segment structural attractiveness
In terms of the level of competition, teenagers and young adults are less attractive since many strong
RTD manufacturers like 0 Do, C2, Dr Thanh, and Real leaf have already taken these markets.
Therefore, children and their parents appear to be more potential. Nonetheless, for children, sweet
beverage like coke seems to be more attractive than RTD tea. Regarding bargaining power of buyer,
children, teenagers and young adults are more attractive than family caregivers because they often use
trendy products and less care for the product quality or price. In contrast, family main caregivers have
strong bargaining power due to their experience in consuming various products, so that they often
compare products and demand more services.
2.2 Profile of target markets
a) Teenagers
Students are the main targeted customers in this segment. As they are active, and outgoing, they are
perfectly fit for VFresh AV’s characteristics (portability and innovation). In addition, they often enjoy
trying new things and are strongly influenced by others (Cimigo 2011). Vietnamese teenagers do not
only use traditional medias (TV or print medias), but theyspend time surfing the Internet. In essence,
95% Vietnamese from 15-24 years old are Internet users (Cimigo 2012).
b) Young adults
University students and office workers from 20-30 years old are the ones who really care about their
appearance (Papadopoulos 2010). Thus, VFresh AV’s skin-friendly materials will satisfy their needs
for better appearance. The best time for them to use RTD tea would be the break time at work and
school. Camping, doing exercises, and playing sports are moreover suitable for taking the beverage.
The Internet is also one of the most popular channels that young adults use to get information, and
entertain themselves.
2.3 Targeting strategy

Although Vinamilk resources for VFresh AV are not too limited, they have applied the concentrated
marketing to gain larger market share of a few niches which are teenagers and young adults. This
method will help Vinamilk adjust VFresh AV quality and prices to satisfy its target market better than
the competitors.
2. TARGETING
3. POSITIONING
3.1 Competitive advantages
Claiming as an innovative and good-for-skin beverage, Vfresh aims to differentiate itself based on
product quality (Vfresh 2012). By combining solid (jelly) with liquid (tea), Vfresh AVseparate the
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Sem b - 2012
brand from their competitors who traditionally focus on producing liquid drink. In terms of health
benefits, Vfresh declares that most of its materials are natural and vitamin-rich, especially Aloe Vera
which is widely known for its skin improvement property.
Although product differentiation is chosen by many beverage companies, Vfresh competitive

advantages- “innovative” and “skin-friendly” are quite different and outstand the competitors. Since
other RTD manufacturers solely concentrate on “refreshing” aspects (Thanh Dat 2007), the rest are
underestimated. As a result, “innovation” and “skin friendliness” can create the difference for Vfresh.
However, concurrent offering two completely unrelated advantages is unnecessary. While “innovation”
is a successful advantage, “skin friendliness” is not important and superior. According to the research
of Wilson (2005) on RTD tea industry, most consumers of this drink do not really care about the
beautifying aspects, and vice versa, people who want to improve their skin would prefer natural or
herbal drink to RTD beverage.
3.2 Overall positioning strategy

By delivering drinks with jelly and charging higher prices, Vfresh is now choosing the “more for
more” strategy. Vfresh states that an outstanding beverage must not only slake one’s thirst, but provide
them with enjoyment, thus there is a combination between tea and jelly (Vfresh 2012). Besides tea leaf,
Vfresh adds Aloe Vera and grape to the drink which are skin caring ingredients. The company is
willing to offer customers many benefits since it believes that they are ready to pay more for these
superior values. This strategy is logical and suitable for Vfresh because its mother brand- Vinamilk is
well-known for high quality and high price products.
3.3 Positioning map
Vfresh Aloe Vera Dr Thanh 100 green tea Real Leaf
C2 Thien Tra O degree Pure Green
High level
of energy
Low High
price price
3. POSITIONING
Low level
of energy
Figure 6. Positioning map 1 10

Sem b - 2012
As can be illustrated from the above positioning map, Vfresh offers the highest level of energy and also
charges the highest price, which means that the more calories it provides, the higher the price is. In
terms of price, the ranks of Dr Thanh, Real Leaf, Lipton, C2, 0 degree, Thien Tra and Pure Green
descend respectively. However, the price of these brands is not corresponding to the level of calories.
Higher level of
distribution
Shorter Longer
existing time existing time
2012 2011 2010 2009 2008 2007 2006
Lower level of
distribution
Figure 7. Positioning map 2

The second positioning map reveals the rank of Vfresh in existing period and level of distribution.
There is a correlation between how long the product exists on the market with how available it is. As a
result, 0 degree, the pioneer in RTD industry takes the first position in the distribution channel. Since
Vfresh entered the market later than the others, the drink is not as popular as C2, Dr. Thanh and Pure
Green (Vfresh 2012). It is necessary for the company to increase the rank of Vfresh in terms of
distribution, since low level of availability negatively impacts the sales. Vinamilk is in the top largest
companies in Vietnam with more than 178,000 retailers in 2011 (Vinamilk 2011), it is possible to
increase Vfresh’s distribution channel rank.
VI MARKETING MIX STRATEGY

1. PRODUCT
1.1 Production classification
VI MARKETING MIX STRATEGY
Being distributed widely and sold with relatively low price, Vfresh AV is classified as a convenience
product; customers purchase such the kind of product frequently with minimum shopping effort.
1.2 Levels of Product
a. Core product
The core benefit of Vfresh AV is to provide vitamin that help consumers’ skins become smoother and
brimful of vitality. Besides, the mixture of jelly and tea offer new experience for customers to enjoy. In
other words, they can drink and enjoy the crispy jelly as the same time. In brief, drinkers take Vfresh
AV to enjoy the innovative combination as well as improve their skin, instead of simply slaking their
thirst.
11
Sem b - 2012
b. Actual product
Brand name: Even though Vfresh AV belongs to Vinamilk, it is launched to the market under
the brand Vfresh. In other words, Vinamilk does not totally take advantage of their powerful brand to
influence the business operation of Vfresh.
Design: Like other RTD tea product, Vfresh AV wrapping’s theme color are green and purple. The
green color not only creates the feeling of ‘fresh’ and ‘natural’ toward the beverage, but also reminds
customers of protecting environment. Vinamilk is a typical pioneer in terms of corporate social
responsibility (CSR), which means that all of their products are designed to be environmentally
friendly. (Vinamilk 2012)
c. Augmented product
Homepage Website: Vinamilk has built an exclusive website for Vfresh AV, which is
http://www.tackexinh.com.This website offers viewers four main services, namely giving detail
information about the product, allowing customers to give their feedback, releasing interesting contests
and providing game online for young customers. Customers find it convenient and simple to access to
this website; they feel satisfied as being served in this way. (Tackexinh 2012)
1.3 Brand development
Vinamilk has implemented brand extension and line extension strategy to expand Vfresh brand. In
2006, under the same brand name- Vfresh, Vinamilk has entered the market with different kinds of
product categories such as Soy milk, Juice and Tea. This brand extension strategy has helped the
company save a large amount of advertising costs for building a whole new brand (Vinamilk 2011).
Besides that, in regard to tea product, Vinamilk has created two variants, which are Vfresh AV Grape
Juice and Vfresh AV tea. These additional choices can meet customers’ desire for variety of flavors.
Moreover, by offering only two types of Vfresh Tea, Vinamilk may have no trouble with
“cannibalizing” since it can reduce customers’ confusion for vacilliating between many choices.
2. PRICE
Current Vfresh AV is considered as one of the most expensive products compared to others.
price
 Vfresh AV’s current price is 7.900 VND/360 ml. By contrast, the price of other
competitors such as C2, O degree and Lipton are 5.200 VND/360ml, 7.200
VND/500 ml and 5.700 VND/360 ml, respectively.In general, even though these
competitors’ products are all cheaper, theirs net contents are equal or larger than
Vfresh AV.
 The real price of Vfresh has been pushed up since it is distributed to small shops
on the streets. These traders realize the potential demand for ready-to-drink of
drivers who often ignore the price of convenience products. Moreover, Vinamilk
cannot control the price offered by these traders because they do not have right to
interfere their businesses. The price of Vfresh in these cases often higher than the
real one by 4.000 VND, which means it has been pushed up to 12.000VND/pet.
PRICE
12
Sem b - 2012
General Value-added pricing:

Pricing
 The demand for fresh drinks in Torrid Zone like Vietnam increases rapidly in
Approach
summer. As a result, many small private traders take advantage of hot weather to
sell aloe vera tea that has unknown label or resource of material, which means that
customers are experiencing the low quality street-tea.Vinamilk has thought of
making long term profits by serving a high-quality Vfresh AV guaranteed by strict
inspections. In other words, Vinamilk considers the value of customers first before
launching new products to create a sustainable customer relationship.
 With the slogan: “Drinking and Chewing for Radiant Beauty”, Vfresh AV is the
first ready-to-drink product that mixes the jelly with original aloe vera tea
(Baomoi 2012). This strategy encourages customersto get the idea of buying
Vfreshtea as its quality and differentiation, not as its price.
Product-Mix Product Bundle Pricing:
Pricing
 Customers will be charged as a lower price as they buy a set of
Strategy
6 pets of Vfresh. In detail, customers only need to pay
44.660VND for 6 pets, which mean the real price of 1 pet is
now charged only 6.767 VND/pet, instead of 7.900 VND.
Price Psychological Pricing:
Adjustment
 Vfresh makes customers perspective that Vfresh AV’s price is around
Strategy
7.000VND/pet by offering the price of 7.900VND/pet while its actual price is
about 8.000 VND/pet.
 Vfresh is guaranteed by a powerful brand, Vinamilk. In addition, Vfresh AV is
created as a differentiated product with high quality. Therefore, customers may
think that a high quality product of a prestigious company may be worth paying.
3. PLACE
3.1 Marketing channel
Currently, Vinamilk (2012) has applied the indirect marketing channel for Vfresh to sell the products to
the final customers. The company distributes Vfresh to its drinkers through resellers ranging from
supermarkets like Coopmart, Citimart, Big C, and Maximart, to wholesalers, for instance Metro.
Moreover, Vinamilk also has their own stores that exclusively sell Vinamilk products, including Vfresh
Alove Vera. These stores are located in center areas of the city namely district 1, district 3, district 5
and Binh Thanh district (Ho Chi Minh City).
3.2 Channel organization
Vinamilk uses the Multichannel distribution system to make Vfresh widely available. The multichannel
distribution in this case contains two kinds of vertical marketing systems: Corporate VMS and
Contractual VMS.
13
Sem b - 2012
Vfresh Aloe Vera -

Vinamilk's manufacturers
Contractual VMS
Corporate VMS
- METRO
Vinamilk's stores
- Supermarkets
 Corporate VMS: Vinamilk has seven exclusive stores in many different locations in HCMC and one
in the Middle and another one in the West of Vietnam. After being manufactured, Vfresh AV is
directly allocated to these stores. Not only are all products displayed in the stores sold at the fixed
and accurate price, but correct information from the manufacturer as well as promotion and
discount programs are also available. This system gives the company full control of selling.
However, they are expensive to be applied, so these stores are not too popular and usually being
used as showrooms rather than used for increasing sales or profit.
 Contractual VMS: Besides Vinamilk exclusive stores, Vfresh are also sold through wholesalers and
retailers like Metro and supermarkets. Although this system is cheaper, it causes horizontal
conflicts among the resellers. To prevent undesirable conflicts, Vinamilk makes contracts with the
resellers to standardize the store conditions and set the price.
3.3 Marketing intermediaries
Due to the fact that Vfresh AV is a convenient product, Vinamilk implements the intensive
distribution- stocking the product in as many places as possible including Metro and supermarkets. As
a result, Vfresh is now available in most of the supermarkets in HCMC and Hanoi. However, Vfresh
AV is not sold in convenience stores, wet markets or grocers’.
4. PROMOTION
4.1 Advertising
Advertising strategies:
 Message strategy: With a wonderful combination of crunchy aloe vera’s pieces (jelly) and cool
green tea, VFresh AV not only brings enjoyment to teenagers and young adults, but also helps them
have smooth and healthy skins.
 Message execution: The message is visually animated with an image of gecko. The gecko’s
appearance is green and youthful which represents the benefits of Vfresh (refreshment and healthy
skin). “Slice of life” style is mainly used because the TV commercial shows three young people at a
park talking about how innovative and skin-caring VFresh AV is.
Advertising media:
 Television Commercials: VFresh AV’s TV Commercial is shown in national channels, namely
VTV3, VTV1, HTV9 and HTV7.
4. PROMOTION
 Print advertisments: VFresh AV’s print advertisement is published on some magazines for teen and
young adults, for example VTM, 2!, Muc Tim and The gioi van hoa.
 Billboards: several billboards, especially electric ones, are placed on high-traffic spots in the central
of HCMC such as district 1, 3, and 5.
14
Sem b - 2012
4.2 Public relations

Advertorials: Many VFresh’s advertorials are posted on teen websites and online magazines, in
addition to traditional print advertisements. This form is the combination of advertisement and
editorial, which is written in a form of an article, but the main purpose is to deliver the advertising
message.
Interactive websites: “Tackexinh.com” is an exclusive website of VFresh Alove Vera. The website
contains many fun activities with vivid colors and effects.
CSR activity: “One million trees” is the CSR program that Vfresh sponsors afforestation. With every
unit bought, customers can contribute 50 VND to plant tree and protect the environment.
Celebrity endorsements: Thanh Loc, a comedy artist, and Thanh Van, an actress are the two famous
celebrities who dub to the theme song of Vfresh AV.
Events and Activation: many promotion booths are placed in big supermarkets to hand out samples and
introduce the product. In many high schools in HCMC or Hanoi, the activation teams give out “gecko
tattoos” and introduce the “Gecko dance”.
Sponsorship: VFresh AV sponsors the teen and young adult TV show “Just the two of us”.
4.3 Sales promotion
Samples: Many samples are given to customers by both offline and online methods. People can come
to promotion booth of VFresh AV to receive them, or they can register online to get them.
4.4 Direct marketing
Online advertisements: Panels and pop-ups are posted on teenagers and young adults’ websites in order
to attract their attention, for example Kenh14.vn, Zing.vn and Ngoisao.net.
B. OBJECTIVES
I. CORPORATE OBJECTIVES
 To make Vfersh AV become one of the top four most famous RTD brands in Vietnam, especially in
urban areas. Currently, following 0 degree, Dr. Thanh, C2 and Pure Green, Vfresh is the fifth well-
known tea brand. To achieve this goal, popularity enhancement is completely essential.
 To strengthen the relationship between Vfresh AV and Vinamilk. Since Vinamilk is a strong
domestic brand which is famous for its product quality, we desire to acknowledge the customers the
connection between Vinamilk- the mother brand- and Vfresh- its strategic business unit. In other
words, whenever customers think about Vfresh, they also refer to Vinamilk and vice versa.
 To make Vfresh become an environmentally friendly and child-caring brand.
II. FINANCIAL OBJECTIVES

 Sales: In the first six months of the year 2012, total sales of Vfresh AV are about 6 million units.
B. OBJECTIVES
After applying the marketing plan, the estimated sales of the first half of the year will increase
about 30% which means 7.8 million bottles will be consumed. Followed that, sales in the last 6
months will be stabilized between 7.2 to 7.5 million.
 Profit: Although the revenue earned is significant, we do not aim to generate much profit in the
next year. Vfresh AV reenters the market with new target segment, therefore promotion and
15
Sem b - 2012
advertisement must be heavily invested. As a result, profit will only increase about 9% to 10% at
the end of the next year.
III. MARKETING OBJECTIVES
 Market share: Regarding the RTD industry, 0 degree, Dr. Thanh, C2 and Pure Green are great
competitors who make up about 75% of the market share. Vfresh’s current market share is less than
14%, thus, the objective of Vfresh marketing plan is increasing its market share for 8%, to achieve
more than 20% of the total sales in the industry.
 Brand positioning: Reinforce the highest position in product quality. Vfresh targets to spread its
image as the innovative drink. The brand also desires to strengthen its “more for more” strategy by
continuously delivering superior beverage and charging the higher price.
 Brand awareness: Vfresh will target a new market next year, therefore it will spend a large budget
on raising customer awareness. For the first 6 months, 40% of the target customers must know about
the brand and for the later half of the year, the total number will reach 65%.
 Brand loyalty: 30% of customers will become the brand’s loyal customers.
C. RECOMMENDATIONS
I.MARKETING STRATEGIES
1. TARGET MARKET: children (primary) and their family main caregivers (secondary).
Vietnamese children from 6-12 years old are highly susceptible with trends and peers. They often want
to buy products that are related to most popular games or cartoon movies because they spend a lot of
time on watching cartoon programs on TV and playing online games. However, they could only be
loyal customers in short time because of the fast-changing entertainment industry. In addition, as the
major personality of children is changeability, they are often willing to try new and fun things (Perry et.
al 2004),. The majority of children love sweet flavors like candy, and high-sugarised carbonates soft
drinks.
As they cannot purchase the product frequently by themselves, their parents are the one who can buy
what their children want. However, parents are becoming more health conscious; therefore, quality and
hygiene are their first concerns (Eisenmann et al. 2008). Parents also want to take their children to
restaurants, zoos, or theme parks at the weekend. Because family main caregivers also go to online to
gain more useful information and advice, social media is also a potential channel to make VFresh more
credible through third parties.
Targeting strategy
In Vietnam RTD market, VFresh AV Kids will be a pioneer who first enters the niche segments which
are children and their main caregivers. Only focusing on this segment also help VFresh AV Kids to
maximize their market share, effectively achieve customer’s satisfaction and loyalty.
C. RECOMMENDATIONS
2. DIFFERENTIATION AND POSITIONING

2.1 Competitive advantage
As mentioned in the current analysis, Vfresh’s current advantages-
“innovative” and “skin-friendly” are different than the others, but the
second one is unnecessary and ineffective. Besides that, Vfresh Aloe Vera
is now targeting new segment- children, who do not really need a
skin-caring product. For these reasons, the team decides to Figure 8. Jelly- the innovative element
of Vfresh Alove Vera 16
Sem b - 2012 Reproduced from Vfresh (2012)
abandon the “skin-friendly” aspect and only focus on “innovative” instead.

 Important: According to Perry and her colleagues (2004), every product that aims to target
children, especially urban ones, must be as creative as possible because in terms of psychology,
new things can attract their attention better than normal products.
 Distinctive: With regard to RTD beverage, Vfresh is the unique drink in the market that has the
combination of tea and jelly.
 Communicable: This Unique selling proposition (USP) is visible and communicable to
customers. Through advertising tools, the message about “innovative drink” can be easily and
widely spread.
 Affordable: Due to the addition of jelly to the drink, Vfresh Aloe Vera’s price is quite higher
than the competitors, yet its target consumers are still able to purchase.
2.2 Overall positioning strategy
The “more for more” strategy (Higher energy level and jelly addition for higher price) has been
applied well by Vfresh Alove Vera, that is why the company should maintain its brand’s value
proposition. Moreover, other RTD brands like 0 degree, Dr. Thanh, C2 and Pure Green are probably
choosing “the same for less” position by offering the same drink with more competitive price, thus
Vfresh can gain the market share from upper middle or high class customers, who are willing to pay
more for superior benefits, namely high energy and the combination of jelly and tea. However, as
shown in the second positioning map, Vfresh distribution channel ranks after fifth in the industry,
therefore Vinamilk should intensively focus on improving Vfresh’s level of distribution. Details of
distribution improvement shall be discussed later in the “Place” section.
II. SWOT MATRIX

SO WO
 Develop Vfresh AV brand associated with  Advertise Vfresh AV strongly through mass
Vinamilk company, to ensure the quality medias such as TV, websites and social
and healthiness of our product networks related to the new target segment
 Emphasize the Aloe vera specialty of our  Develop the Vfresh AVexclusive website to
product in the advertisement interact more with the customers
 Reduce sugar in the product to make it  Keep positioning “More for more” to
more suitable and healthier for children. reinforce the product quality differentiated
ST WT
 Use line extention strategy: offer the new  Apply “Market development strategy” for
500ml bottle of Vfresh AV along with the Vfresh AV: Target children and their main
C. RECOMMENDATIONS
current 360ml bottle in order to give the caregivers segment as this segment has not
customers more choices in order not to been focused by the competitors yet
shift to the competitors’ products.  Apply Pull strategy: Having promotional
 Apply Push strategy: Seeking and signing campaigns in places where children and family
more contracts with the distributors for usually go to in order to encourage the retailers
Vfresh AV, offering them benefits in these areas to sell the products
therefore they will help the company to  Train staff, invest in the R&D department to
promote our product to the small retailers . have more information about the RTD market.
17
Sem b - 2012
III. MARKETING MIX-STRATEGIES

1. PRODUCT:
New bottle size:In addition to the current size (360 ml), Vinamilk had better offer one more additional
choice, which is 500ml-bottle size to meet customers’ demand.
New products:As targeting the new segment, namely children and their caregivers, Vinamilk should
modify the product and the wrapping to be suitable to children’s taste. Vinamilk must also focus on
producing new version of Vfresh called Vfresh AV Kids to satisfy the new target customers. The below
table identifies some suitable changes in terms of ingredients and wrapping to keep up with the segment
and size changes.
Ingredients Wrapping and Brand Name

New version of  Low level of sugar  Attractive wrapping covered by
Vfresh for the new  Not contain caffeine colorful images
segment: Children  High percentage of energy  Add playful icon (green gekco)
 Organic and natutal  Products’ names:
and their main
ingredients Vfresh Aloe Vera Tea Kids
caregivers Vfresh Aloe Vera Grape Juice Kids
(see appendix for visual actualization)
500ml-bottle  Change as the same with  A little change in color (make it darker
the aformentioned one or lighter to distince with the existing
size, which is 360ml)
2. PRICE
2.1 Current price
a) The current price of Vfresh AV should be kept the same with the price of 7.900VND/360ml for
following reasons:
 Being positioned as a high-quality and innovative product, compared to competitors’ one, Vfresh
AV’s price should be higher than the rest. Customers may find it acceptable and worthy paying
more for a product that brings greater benefits.
 Vinamilk should not increase the price of Vfresh AV; customers may not pay too much for such a
convenience product no matter how high-quality it is. Therefore, company should keep a reasonable
gap of price between its own product and competitors’ one.
b) As mentioned in recommendation for Product, Vinamilk should enter the market with higher-net
content Vfresh AV (500ml bottle). Therefore, there should be new price as the change of the product
C. RECOMMENDATIONS
feature; the price of 500 ml-bottles can be around 10.000VND.

2.2 Price Adjustment Strategy
Special Event Pricing:In Tet holiday, many food and beverage companies have increased their
products’ price rapidly. In detail, Heneiken had increased by 10.000VND/case; soft drinks such as 7up,
Pepsi and Coca-Cola also take advantage of this occasion to increase sales revenue (Nguoilaodong
2012). This occasion occurs only once per year; due to its importance, people are readily to pay higher
price than usual for these kinds of products. Therefore, Vinamilk should consider this opportunity to
decide whether the price should be pushed up.
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Sem b - 2012
3. PLACE
3.1 Marketing channels
For the next year, the company will continue the current indirect marketing channel. Since Vfresh AV
is a convenient product, distributing through resellers will help the company broadly spread the
beverage and reach a large number of target customers.
However, for the distribution system, we suggest some changes. The company is now using
multichannel distribution system including Contractual VMS and Corporate VMS. We will invest more
deeply on the Contractual VMS and also combine it with the Conventional distribution system.
 Contractual VMS: besides collaborating with large supermarkets, Metro and resellers, Vfresh
should also build relationship and make contracts with national convenience stores like Shop&Go
and Circle K in order to widely popularize the product.
 Combination of Contractual VMS and Conventional distribution system: Although Vinamilk has
been using this traditional system for its dairy products, it is not applied for Vfresh AV.
Consequently, Vfresh is not as popular and widespread as it competitors such as 0 degree, C2, Dr.
Thanh and Pure Green. Hence, the company should distribute Vfresh to the distributors using the
contracts to set the price, discount programs, and benefits in order to avoid horizontal conflicts
between them (Contractual VMS), so they will help us to promote and distribute the products to the
retailers (Conventional distribution system). We shall focus on retailers that have not have any
connections or agreements with Vinamilk yet, such as:
o Grocery stores and small convenience stores near residential areas
o Elementary schools’ canteens, children playground canteens: We can allocate Vfresh to
school canteens. Essentially, Vfresh shall distribute the drink to elementary schools,
especially ones in center of the city like Hoa Binh (district 1, HCMC) and Luong Dinh Cua
(district 3, HCMC), as well as international primary schools such as Saigon South and
Vietnam Australia International school. Moreover, canteens in children playgrounds, zoos and
water parks are also taken into account.
o Family restaurants: focusing on restaurants that families enjoy going to at the weekend, such
as BBQ, hot pot restaurants, fast-food outlets or Vietnamese food restaurants.
o Theme park’s restaurants ranging from Dam Sen, SuoiTien and Dai Nam (HCMC) to Thu Le
and Bach Thao (Hanoi)
We will also have promotional activities in these places where children enjoy spending time to
encourage the retailers in these areas to buy Vfresh AV from the distributors. Although the company
may unable to control about the price of the product when they are sold to final customers from the
small retailers, it will make the product more available.
3.2 Marketing intermediaries
We still keep implementing intensive distribution for the next one year, but we will stock the products
not only in large supermarkets and Vinamilk’s stores but also in smaller retailers as mentioned above.
C. RECOMMENDATIONS
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Sem b - 2012
MANUFACTURERS
Resellers Distributors
Vinamilk's stores
(Contractual VMS) (Contractual VMS)
(Corporate VMS)
- Metro (Wholesaler)
Small retailers
- Supermarkets (retailers)
(Conventional distribution
- Nationwide convenience system)
stores : Shop&Go, Circle K
- Grocery stores
- Canteens at elementary
schools and children
playhouses
- Family restaurants
- Restaurants and stores in
theme parks
4. PROMOTION
4.1 Advertising:
Advertising objectives:
With the new product version (Vfresh AV kids) for new target markets, VFresh should initially raise
awareness about the product to build its image as the first RTD tea specialized for children. However,
as competition is intensive, VFresh also needs to use Integrated Marketing Communication to persuade
children’s caregivers to choose VFresh AV instead of soft drinks.
Advertising strategy:
 Message: VFresh AV kids with low-sugar, caffeine-free, and organic ingredients is a safe
alternative beverage that does not only keep children healthy, but also makes their family worry-
free. The combination of jelly and tea also brings children enjoyment.
 Message execution:Because Vfresh has chosen the Gecko as its symbol, this new message
execution should be consistent with the Gecko image. As children tend to be attracted by cartoon
characters and fun songs, VFresh should use the combination of “personality symbol” and
“musical” to optimize effects. To illustrate, the Gecko will be humanized to have a unisex name
(Jamie) and act as a companion of children in their daily activities.
Channel/Programs
Media Description Rationale
& Time
C. RECOMMENDATIONS
VTV3/ Do Re Do Re Mi is the Broadcasting TVCs in this program will

Mi8:00pm-10:00pm most popular help Vfresh effectively reach the target
Television (before and in break annual singing customers who are children. Moreover,
time of the contest for 6 to 12- as it is broadcasted during gold time in
program). year-oldchildren in the evening when family often gathers
Vietnam. to watch TV together, it will increase
Vfresh’s TVC exposure.
20
Sem b - 2012
HTV7/ Bac Si Gia This is a talk show Because plenty of useful information
Dinh thatdiscusses from credible sources is provided in the
common diseases program, it attracts many family
6:10pm –
of children and caregivers who are health consicous.
6:40pm(right after
family members, Therefore, TVC of Vfresh at this time
the end of the
and how to prevent will make customers link Vfresh to the
program)
them. image of a healthy product.
Rua Vang, Khan These are By advertising on favorite magazines
Quang Do, Nhi magazine for for children, VFresh can effectively
Dong and Tuoi tho primary school approach to the target customers and
children. increase the frequency level of ad’s
exposure.
Magazines Tiep Thi va Gia It is the women This magazine is very popular with
Dinh magazine with women from 25-45, who are family care
columns like givers that are similar to VFresh AV’s
fashion, food, target. Therefore, placing print ad in this
health and magazine will help VFresh approach its
entertainments. target segment.
In September, Display in major The chosen locations for placing the
October, and streets like Nam billboards are high-traffic streets with a
November. Ky Khoi Nghia large number of pedestrians. Moreover,
(district 3, the streets should have manyfamily
Billboards
HCMC) or Thai restaurants such as KFC, Pizza Hut and
Ha Street (Ban Ngon. It caneffectively raise awareness
Nguyet Lake, and remind customers about VFresh.
Hanoi)
In the first six Place in family Many families often gather together in
months. restaurants and these places at the weekend. Hence,
Posters retaurants in theme placing VFresh posters there will
parks. popularize Vfresh AV Kids to children
and their families.
Inflatable In the first and the Deliver to official Inflatable toys of Gecko will be placed
advertising last four months. store of Vinamilk. in front of the stores to attract people’s
(see appendix attention.
for visual
actualization)
4.2 Direct marketing: Online banners

C. RECOMMENDATIONS
News sites Description Rationale

While Dantri is the leading Vietnamese Since these websites and forums are
Dantri.com.vn,
news sites in 2010, VnExpress is in the top well-known to Vietnamese people
VnExpress.net,
five of most visited ones (Cimigo 2010). including family caregivers, posting
Webtretho.com,
Moreover, Webtretho and Lamchame are online banners on these pages will
lamchame.com.
very popular with mothers. The banners help VFresh AV Kids attract a large
will be posted on these sites’s homepage. number of the target customers.
21
Sem b - 2012
4.3 Public Relations
Media vehicles Description Rationale

Events The event will be run in primary schools at Through this event, VFresh AV aims
the center of HCMC and Hanoi. It will be a to raise children’s awareness of the
“Back to school
big day with many games and outdoor new beverage by offering them fun
with Jamie”
activities for children, and will be hold in experiences that make them
September when students start coming back associate VFresh with fun and
to schools. interesting image.
“Love what you There are three things that children are After watching the play and getting
hate with supposed to hate to do most: brushing their the comic books, children would
Jamie” teeth, doing homework, and eating probably tell their parents. Thus, the
vegetables. VFresh will create activations in purpose of doing these activations is
From January
some primary schools to change their to let parents know that VFresh AV
to February
perspectives. VFresh will present a play Kids really cares about their children
2013
about Jamie’s family (all are geckos). Jamie by helping them improve their
will act as a child who used to hate these behaviors. Creating meaningful
things, but with family advice and through activities for children is also an
suffering from bad consequences, Jamie effective way to gain coverage and
eventually changed behaviors and happily build reputation.
enjoyed those things. This play will be
converted into comic books.
“Sing with A family karaoke contest will be held once a The activity shall remind the
Jamie” In the month in theme parks to encourage children customers how friendly VFresh is to
last four months and their families to spend time together. the children and their families.
Press releases Press releases will be posted on the These credible channels shall
aforementioned magazines and websites one increase the credibility of Vfresh
week before the launch of Vfresh AV Kids. among its target customers.
Website will be Tackexinh.com is continually used as This official website is the easiest
used during the Vfresh’s exclusive page, but more games for way for target customers to be
one-year children and informative sessions about informed with news and special
marketing plan. obesity for family caregivers will be also promotion of Vfresh AV kids. Fun
added to. Unnecessary parts shall be activities will attract and entertain
removed, as well. children.
Social media/ VFresh will raise topics about childhood These popular social networking
During the one- obesity in forums, namely Webtretho.com, sites will not only help VFresh
year marketing Lamchame.com, and Facebook. By this way, spread news through word of mouth,
C. RECOMMENDATIONS
plan. VFresh can create opportunities for itself to but also monitor and update
suggest VFresh AV Kids as a healthier feedback from the public.
beverage than high-carbonate soft drinks.
22
Sem b - 2012
4.4 Sales promotion
Media vehicles/
Description Rationale
Time
Free samples will be handed out in large As these places attract many target
supermarkets in HCMC and Hanoi. In major customers of Vfresh, VFresh AV
Samples
primary schools, samples will be given away kids can increase awareness by
through events and activations. encouraging them try the product.
Jamie (gecko) teddy bears will be given to Theses lovely teddy bears will
children who win some games in events and attract children, and also make them
Advertising activations hold by VFresh. associate VFresh AV kids with a
Specialties (see friendly image.
appendix for
visual Toothbrushes, folks and pens designed with Children will believe that brushing
actualization) Jamie’s picture will be attached to every four teeth, doing homework, and eating
Vfresh kids bottles reminding customers about vegetable will be more fun when
“Love what you hate with Jamie” activations. using these things.
D. ACTION PROGRAM
2012 2013 Budget

Responsibility
Task (million
(Department) 9 10 11 12 1 2 3 4 5 6 7 8 VND)
Product Development
Research on products Research and x x x 750
ingredients (level of Development
sugar) that suitable for (R &D)
children
Change wrapping to Marketing x 1200
attract children
Add new 500 ml bottle R&D x 1000
Pricing Strategies
Special pricing event Financial & x x x 100
strategy (increase price Marketing
in Tet Holiday)
D. ACTION PROGRAM
Research price on bottle Marketing x 70

500 ml
Stabilize the current Financial x x x x x x x x x x x x 150
price
23
Sem b - 2012
Distribution Channels
Maintain with current Logistic x x x x x 300
channel members
Seek and collaborate Logistic x x x x x x 400
with the new distributors
Seek retailers Logistic x x x x x x x 200
Build delivery team Logistic x x x x x x x x x x x x 300
Promotion
Advertising
VTV3/ Do Re Mi x x x x 300
HTV7/ Bac Si Gia Dinh Marketing x x x x x x 400
Nhi Dong, Cong Chua, Marketing x x x x x x x 350 x 3
Khan Quang Do
Magazines
Tiep Thi va Gia Dinh Marketing x x x x x x 400
Magazine
Billboards Marketing x x x 500
Posters Marketing x x x x x x 5
Inflatable advertising Marketing x x x x x x x x 10
Direct Marketing
Online banners Marketing x x x x x x 100
Public Relations
Have fun and stay Marketing x 500
healthy at school with
Jamie
Jamie will make you Marketing x 50
like what you hate
Sing along with Jamie Marketing X x x x 200
Press release Marketing x x x 20
Website Marketing x x x x x x x x x x x X 10
Social media Marketing x x x x x x x x x x x x 10
D. ACTION PROGRAM
Sales Promotion
Samples Marketing x x x 30
Advertising Specialties Marketing x x x x x 10
Family price pack Marketing x x 70
24
Sem b - 2012
E. CONTROL PROGRAM
Timeline and Performance Measurement Actions checklist

Goal & Evaluation
Practical sales: > 4.3 millions -Increase the estimated sales volume for the next quarter
Exceed the expectation to 4.2 million units
Practical sales: 3.9  4.3 mil -Continue the current marketing strategies and mix
Meet the expectation strategies
November/
2012 Practical sales: < 3.9 millions -Sales department:
Fail to meet the expectation +Contact with resellers to review the sales performance
Estimated  Stop distributing to unsalable stores
sales: 3.9 -Marketing department:
million units/ +Review primary schools and theme parks in HCMC &
3 months Hanoi that Vfresh has not came yet approach to these
places
+Review the number of viewers of online advertorials
 Publish more articles on more websites to gain more
attention
Practical sales: > 4.3 millions -Operation department:
Practical market share: >16% +Increase the number of products produced to 20% (4.8
Exceed the expectation million bottles for the next quarter)
Practical market share = 16% strategies
February/ Meet the expectation
2013
Practical sales:<3.9 milunits -Marketing department:
Estimated Practical market share: <16% +Conduct surveys on brand awareness, product quality,
sales: 3.9 Fail to meet the expectation price and service satisfaction online, in schools, theme
million units/ parks and exclusive stores of Vfresh
3 months Adjust the price, offer discount and promotion to
stimulate sales, Increase service quality & Organize
Estimated more public events
market share: +Measure viewer numbers and efficiency of TV
16% commercials, billboards, print advertisement Re-
change the broadcasting time
-Research and development department: modify the
product
E. CONTROL PROGRAM
-Sales department: +Review sales of resellers and

collect their feedback about the product and the service
Practical sales: > 4.1 millions -Logistic and Operation department: Produce and
Exceed the expectation distribute more products to resellers to meet the high
demand of customers
May/ 2013 Practical sales: 3.7  4.1 mil -Continue the current marketing strategies and mix
Meet the expectation strategies
25
Sem b - 2012
Practical sales: < 3.7 millions -Marketing:

Fail to meet the expectation +Conduct online survey on customers' satisfaction
+Do marketing research on brand positioning
Reinforce and spreader the advertising message
Estimated -Sales: +Frequently check distributors' operating
sales: 3.7 activities
million units/  Review the contracts and force resellers to follow
3 months them correctly
-Finance: +Based on feedback, propose more
appropriate price
-Purchasing department:
+Deal with suppliers to lower the cost of materials or
find new ones
Practical sales: > 4.1 millions -Finance: +Set new budget for the next year
Practical market share: >14% -Marketing: +Prepare the new marketing plan (focus
Exceed the expectation more on expanding the market)
August/ 2013
Estimated Practical market share: =14% strategies for the next year
sales: 3.7 Meet the expectation
million units/ Practical sales: < 3.7 millions -Marketing:
3 months Practical market share: <14% +Do the customer survey and marketing research
Fail to meet the expectation ->Fix the goals for the next year
Estimated -Finance:
market share: +Set larger budget for next year advertising and
14% promotion
-R&D department:
+Continue or modify the products to meet customers'
expectations
E. CONTROL PROGRAM
26
Sem b - 2012
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30
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APPENDIX
E. CONTROL PROGRAM
31
Sem b - 2012

Vfresh Aloe Vera: Marketing Plan

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Vfresh Aloe Vera: Marketing Plan

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Marketing Plan – VFresh Aloe Vera

VFRESH ALOE VERA

August 29th 2012

Figure 4. Adapted from Vinamilk (2010)

Figure 5.CPI and GDP of Vietnam from 2000 to July 2011

IV. SWOT ANALYSIS

Family main caregivers Lifestyle: -Loyalty: are not likely to

income theme park, and popular family restaurants

2.3 Targeting strategy

Although product differentiation is chosen by many beverage companies, Vfresh competitive

3.2 Overall positioning strategy

3.3 Positioning map

Vfresh Aloe Vera Dr Thanh 100 green tea Real Leaf

C2 Thien Tra O degree Pure Green

Figure 6. Positioning map 1 10

Figure 7. Positioning map 2

VI MARKETING MIX STRATEGY

General Value-added pricing:

Vfresh Aloe Vera -

4.2 Public relations

II. FINANCIAL OBJECTIVES

2. DIFFERENTIATION AND POSITIONING

abandon the “skin-friendly” aspect and only focus on “innovative” instead.

II. SWOT MATRIX

III. MARKETING MIX-STRATEGIES

Ingredients Wrapping and Brand Name

feature; the price of 500 ml-bottles can be around 10.000VND.

VTV3/ Do Re Do Re Mi is the Broadcasting TVCs in this program will

4.2 Direct marketing: Online banners

News sites Description Rationale

4.3 Public Relations

Media vehicles Description Rationale

4.4 Sales promotion

2012 2013 Budget

Research price on bottle Marketing x 70

Timeline and Performance Measurement Actions checklist

-Sales department: +Review sales of resellers and

Practical sales: < 3.7 millions -Marketing:

Cimigo 2012, “Net Citizens 2012”, Slideshare, view August 2012,

Eisenmann, J, Gentile, D, Welk, G, Callahan, R, Strickland, S , Walsh, M & Walsh, D 2008,

Ogilvy and Mather, ‘Careers’, Ogilvy, viewed 1 August 2012, <http://www.ogilvy.com/careers.aspx>.

Thientra 2012, homepage, Vedan, Dong Nai, viewed 2 August, 2012,<http://thientra.com.vn/vi>

Thu Huong2012, “DânsốViệt Nam sẽvượtngưỡng 88 triệungườitrongnăm 2012”, Baomoi.com, January

Vinamilk n.d, “Nhãnhiệu”, Vinamilk, view 15 August 2012,

Vinamilk n.d, “Lịch sử h nh thành”, Vinamilk, viewed 18 July 2012

Vinamilk n.d, “Giới thiệu chung”, Vinamilk, viewed 18 July 2012

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