TAN TAO UNIVERSITY

Lecturer: Professor Mosses Anak Enjob

Subject: SBE301 Marketing Management II,

in Spring semester 2020

THE MARKETING ANALYSIS OF

 The term paper presented by

Nguyen Van Chieu, ID: 1701007

Table of Content

I. Introduction

II. Marketing Environment

1. Political environment

2. Economic environment

3. Demographic environment

4. Technological environment

5. Natural environment

6. Cultural environment

III. Marketing Mix

1. Product

2. Price

3. Place

4. Promotion

IV. Recommendation

V. Conclusion

Reference
 I. Introduction

Today, the trend of international integration, the constantly changing taste of customers
and the fierce competitive environment require companies to always adapt and actively change
with the market. To respond to the changing market, companies must always investigate and
analyze the factors that influence their business, especially marketing strategies. In this easy,
Vinamilk will be chosen to see how a company can adapt to the market change. Vinamilk is the
sixth largest private company in Vietnam ("Top 10 largest companies in Vietnam 2019", 2020).
Vinamilk is the abbreviation of Vietnam Dairy Products Joint Stock Company, a
company producing and trading milk and dairy products as well as related equipment in
Vietnam. The ticker on the Ho Chi Minh City Stock Exchange is VNM. The company is a
leading enterprise in the dairy processing industry, currently occupying 75% of the market share
of milk in Vietnam. In addition to strong domestic distribution with a network of 183 distributors
and nearly 94,000 sales points covering 63 provinces, Vinamilk products are also exported to
many countries in the United States, France, Canada, Poland, Germany, Southeast Asia.
Officially operating from 1976 to now, the company has 3 branches (Hanoi, Da Nang, Can Tho),
15 factories, 2 warehouses, and 3 subsidiaries with a total staff of up to 5400 people. Vinamilk
always aims to become one of the top 50 leading dairy enterprises in the world. Vinamilk
advocates investing in factories with the most advanced technology both at home and abroad to
create products of international quality in line with the trend of modern competition
("Subordinate units - Vinamilk", 2020).
II. Marketing environment
1. Political environment
Vietnam has a stable political environment. The State attaches great importance to social
justice, and creates favorable conditions for enterprises to rest assured production and business.
2. Economic environment
Nowadays, with the development of the economy, people's income level increases,
improved living standards make consumers pay more attention to the quality and food hygiene
and safety, especially dairy products. Thanks to the rising living standards of the people,
spending on dairy products in households has also been increasingly facilitating Vietnam's dairy
industry to develop. However, in recent years, rising inflation rates have forced people to cut
spending, especially in rural areas, cutting down on dairy consumption is the first thing that can
happen, which is why cause difficulties for the dairy industry.
3. Demographic environment
 Currently, the speed of urbanization in Vietnam is quite fast, the population distribution
has also changed a lot. The restructuring of economic sectors by reducing the proportion of
agricultural value and increasing the proportion of industries and services also changes the
population structure. According to statistics, the proportion of the population in agriculture
accounts for over 50%, so this gap can be shortened. People's income is increasing, this figure
has exceeded 2000USD / person / year. The standard of living of Vietnamese people is
improving gradually. In today's life, human needs are extremely diverse and plentiful. Meeting
this demand is a great opportunity for dairy businesses like Vinamilk.
4. Technological environment
Up to now, Vinamilk Dairy Products Joint Stock Company is still the leading enterprise
in Vietnam's dairy processing industry. Vinamilk's management always attaches great
importance to science and technology factors, depending on capital sources, market demand and
product structure for timely technology transfer and investment. Vinamilk has conducted 3
assessments of production technology level. Vinamilk regularly organizes to assess the
technology level of each period and to compare with the technology level of the world. After
each evaluation of technology level, Vinamilk again adjusted its investment in technology
transformation. At present, it can be affirmed that Vietnam's dairy processing sector has reached
the advanced and modern level of the world in terms of both technology and equipment.
5. Natural environment
The effect of temperature on dairy cattle: temperature affects the behavior, milk intake
and digestibility, milk growth, reproduction and production. Temperature and humidity affect
feed sources and changing weather conditions are pathogens for dairy cows. Temperature affects
the yogurt fermentation. Environmental conditions also affect the storage of raw milk and cow's
milk products.
6. Cultural environment.
For Vietnam, the habit of using sweets as well as canned or milk-related products is not
too high, but it is gradually increasing. This habit began to spread and spread from the urban
population with higher income. This is one of the changing influences from the achievements of
the country's renovation and development integration. People's awareness, income, lifestyle, and
mindset also changed. Access to information resources is easy, through radio speakers,
newspapers, television, pictures, banners making people feel increasingly in need of care and
satisfy the needs of physical. For many it has become a daily use routine. Especially when
creating trust in quality reputation such as Vinamilk, it is easy to make loyal customers use with
their products. Because one of the characteristics in the concept of Vietnamese people is that
they often use products that they trust and rarely change.
Moreover, the weight and height of Vietnamese people lower than the world average
create a desire for physical development. Therefore, one of the emphasis on Vinamilk's
advertising is the formation of a healthy lifestyle, fully developed physically and intellectually,
dynamic, creative people.
III. Marketing Mix
 1. Product
Vinamilk's products portfolio. Vinamilk's products are diverse in categories with more
than 200 milk and dairy products. With a variety of products, Vinamilk has fully met the
consumer needs of customers. Moreover, the diversification of products also helps Vinamilk
minimize risks.
Design and packaging. Vinamilk pays great attention to the appearance of the product.
Vinamilk's products have eye-catching colors and bring messages to consumers.
Brand. After decades of operation, Vinamilk's products have become well-known in
Vietnam's dairy market. Vinamilk is frequently listed in the top 100 brands in Vietnam.
Product quality. To meet consumer demand, Vinamilk constantly innovates technology,
enhances the management and product quality. Since 1999, Vinimilk successfully applied the
ISO 9002 Quality Management System.
Researching new products. Currently, Vinamilk has researched many new products to
suit consumers such as diet milk, coffee and beer.
2. Price.
Price is the most important factor leading to the success of the company. Vinanmilk
pursues a pricing strategy to maximize the market share. Although foreign dairy companies are
often racing for profit, Vinamilk has maintained a stable selling price since 2008.
Product line Number of product types Price fluctuations (VND)
Condensed milk 7 8,455 – 13,182
Milk powder 31 30,808 – 152,909
Nutritional powder 18 19,545 – 48,182
Fresh milk 33 2,455 – 18,000
Yogurt 8 2,273 – 3,727
Fruit juice 5 15,141 -21,627
Soymilk 4 2,000 – 9,545
Ice-Cream 31 2,455 – 35,182
Cheese 1 16,364

3. Place
Vinamilk's distribution network is a competitive advantage that can be stronger than
other competitors in the Vietnamese market. The company owns an extensive distribution
network across the country, which is a favorable condition to bring products to a large number of
consumers.
Vinamilk has two main distribution channels
 Traditional channel: Vinamilk has 220 independent distributors in 63 provinces and more
than 140,000 retail outlets around the country.
  Modern channel: Vinamilk distributes milk through supermarket chains.
In 2008, Vinamilk invested 7,000 freezers and more than 300 small trucks for
distributors.
In addition, Vinamilk's professional management team has contributed greatly to their
success. The sales teams not only support distributors but also promote the product to the public.
Experienced sales team always analyzes and identifies Vietnamese tastes and trends.
4. Promotion
Advertising: The promotion activity that Vinamilk focuses most on is advertising. Over
the years, Vinamilk has been constantly innovating and improving its advertising quality. The
message that Vinamilk wants to convey to everyone is that Vinamilk's milk products are fresh,
pure and natural.
Public Relations: Each year, Vinamilk offers millions of free glasses of milk to poor
children. In addition, hundreds of houses and bridges were built and donated free of charge to the
poor. Thereby, Vinamilk has upgraded its image to become a national enterprise.
IV. Recommendation
To solve the problems in the future, Vinamilk needs to focus on improving the following
three issues:
 Infrastructure: The investment in facilities will increase the supply capacity of the
company. In addition, milk production systems need to be constantly improved and
ensure hygiene and safety.
 Personnel: The company's turnover is directly related to the product so that the staff
needs to be closely and methodically managed. Training programs need to be focused
 Marketing activities: Currently, marketing activities have not yet filled Vinamilk's
production capacity. Therefore, a large and methodical marketing strategy should be
implemented.
V. Conclusion
Vinamilk has been operating effectively in recent years through dominating the dairy
market. One of the main reasons for this decision is that Vinamilk always changes to suit
consumers. Responding quickly to market changes has brought Vinamilk competitive
advantages.
 References

Subordinate units - Vinamilk. Vinamilk.com.vn. (2020). Retrieved 7 May 2020, from

https://www.vinamilk.com.vn/en/subordinate-units/.

Top 10 largest companies in Vietnam 2019. VietnamCredit. (2020). Retrieved 8 May 2020, from
https://vietnamcredit.com.vn/news/top-10-largest-companies-in-vietnam-2019_13658.