REPORT FOR SUBJECT:

BUSINESS ORGANISATION AND MANAGEMENT

“TH*true Milk’s strategy for new product- TH*true Ice Cream”

Prepared by: 1. Nguyễn Thị Phương Anh

2. Nguyễn Thị Cẩm Anh

3. Trần Thị Trang Anh

4. Vũ Việt Vân Anh

5. Lê Thị Kim Dung

6. Hồ Hương Lam

7. Đặng Thị Linh

8. Nguyễn Thị Khánh Linh

9.Trịnh Phương Thảo

Instructor: Ms. Pham Huong Trang

TABLE CONTENT

I. Overview about TH- True Happiness

1. General information
 Portfolio
 Website
 Vision, mission, core value
 Position in the market
2. About TH true ice-cream
II. Analyzing
1. PESTEL analysis
 Political/legal
 Economic
 Social
 Technology
 Environment
2. Micro-environment
 Competition
 Customers
 Suppliers
3. SWOT
 Strength
 Weakness
 Opportunities
 Threat
III. Conclusion
IV. Reference
Part 1: Overview about TH*true Milk

1. General information

TH Milk True Milk Project: This is a new and innovative investment consulting
project with fresh and creative thinking. Since the end of December 2010, the
milk brand TH True Milk created a bright spot for the dairy industry in Vietnam.
TH Milk True Milk is produced in a closed and synchronized manner according to
international standards, from grass planting, cattle breeding, cattle feed
processing to veterinary management, processing, packing and fertilization,
product distribution. This project aims not only to meet the domestic demand for
milk, but also to create jobs, increase incomes for farmers, and contribute to the
restructuring of agriculture and the economy countryside. With the delicious
natural flavor, intact in every drop of milk, fresh milk TH true milk was warmly
received by the same project of North Asia Bank also received the warm praise
and support of the leaders.

 Portfolio

- TH True Milk:

+ TH True Nut: Walnut Milk, Macadamia nut milk, Almond milk, Nuts and Gac
fruit

+ Ice Cream: Stick, Sandwich, Cone, Cup

+ Butter, Phomat: Natural Unsalted Butter, String Cheese Mozzarella

+ Pastuerized milk: Pure, Less Sugar

+ UHT Fresh Milk: Less Sugar, Sweetened, Strawberry

+ Formula Fresh Milk

- TH True Yogurt:

+ Formula Top Kid: Natural Vanilla, Natural Banana

+ Sterilization Drinking Yogurt: Orange, Strawberry, Banana

+ Yogurt: Sweetened; No Sugar added;

Natural: Aloe Vera, Matcha, Durian, Blueberry, Fruit Probiotic

+ Probiotic Drinking Yogurt: Orange and Blueberry, Peach and Apricot, Strawberry,
Blueberry, Orange

+ UH Drinking Yogurt: Orange, Strawberry, Blueberry

 Website: thmilk.vn

 Mission, vision, core value

+Vision :

- Become the first company that has products derived from natural achieve
international standards in VN

- Use modern technology for creating fresh milk with high quality to
customers belief that : “ Clean fresh milk is the only way “

- Open chain stores with the name are TH True Milk Mart for distribution
products to customers

+ Mission:

- True & happiness

- Bring the best modern technology come to VN’s market

- Bring the fresh and natural product come to customers, nutrition is the
decide factor & milk is the important factor

- Create the best quality product and famous brand

- TH True Milk is proud of having been awarded an ISO:22000 2005

Certificate by BVQI
- The group has also been granted many other prestigious certificates in
terms of quality and brand name

- Achieving 70% of target customers and least 50% of the distribution system
in HN&HCM city.

+ 5 core values

- Public health

- Completely natural

- Fresh and nutritious

- Environmentally friendly

- Superior thinking

 Position in market

The market share of liquid milk in Viet Nam

18.00%
Vinamilk
TH milk
FCV
48.00% other

26.00%

8.00%

In 2015, TH true milk got 8% market share, became the third brand in Viet Nam. Main
competitors of TH are Vinamilk (48%) and FrieslandCampina- Dutch lady (FCV). After 2 year, TH
become one of the ten charismatic company about food.

Among the 10 prestigious enterprises in the food industry, the dairy sector has 2 enterprises
namely Vinamilk and TH True Milk (9th in the ranking). For dairy and dairy products, Vinamilk is
the preferred choice over competitors in the industry, followed by TH True Milk at 18%.

2. About TH*true Ice Cream

As one of the largest producers in the Vietnamese dairy market, TH brand name is
occupying the fresh milk segment with more than 60 dairy products and dairy
products. In this mid-summer of 2018, on June 27, TH Group officially launched its
new product line in the "ecosystem" of its dairy products, the TH True ICE CREAM.

Always make a difference when joining the market, TH true ICE CREAM
really different when the strength is the product of the leading clean milk
production in Vietnam. When launching the true ice cream ICE CREAM, TH once
again pioneered the industry, creating a new market segment: Pure Milk Ice
Cream!

The new True ICE CREAM range of creams includes creams, cinnamon and
cream cakes, sandwiches with flavors such as chocolate, vanilla and green tea. In
particular, in the ice cream line, TH also develops the true product TH true ICE
CREAM formula TOPKID supplemented with vitamins and minerals for children.

TH true ice cream ICE CREAM keeps the taste and nutrients in fresh milk.
The true cream ICE CREAM has a characteristic aroma and is very smooth, giving a
full taste and a pleasant experience when the cream dissolves the tongue.
Customers enjoy true ice cream ICE CREAM not only be refreshed or enjoy the
delicious taste that will regain energy, relieve all tensions, fatigue.

The careful and strict selection of raw materials, ensuring the requirement
"completely natural", combined with pure milk from clean milk of the farm TH
absolutely do not use powdered milk, brought To taste soft natural smooth cream
products. Fresh milk is also the secret of longstanding reputation of the famous
ice cream brands in the world. TH true ICE CREAM also says "no" completely with
synthetic additives or preservatives - chemicals that are harmful to health but are
present very common.

Surprisingly, with the true cream ICE CREAM formula TOPKID researchers
also added to the group B vitamins, C, K and calcium minerals, folic acid ... help
support metabolism, strengthen the system, immune to the body, good for the
development of the brain, children's bones. Each true ICE CREAM ice cream is not
only fun, it is also a source of nutrition, helping to eliminate the heat, summer
heat and provide nutrition for children.

With true ICE CREAM, you will also be able to contribute to the balance of
consumer habits, helping consumers choose healthy creams.

TH true ICE CREAM is the latest "rookie" to be launched among more than
60 products processed from TH's mouthpieces. Like other dairy products, true ICE
CREAM is distributed in nearly 250 True Mart stores, traditional stores and
supermarket chains.

In the future, TH true ICE CREAM will focus on investment and

development of dairy products from pure fresh milk. With the demand for “
fresh and healthy” life, these product will occupy the most market share and
have the strongest development potential of TH
II. Analyzing

1 .PESTEL analysis
Political/legal

Vietnamese: land lease, tax incentives for foreign investors (attract external investment)

2010: Vietnamese Ministry of Health approved the regulation that requires milk products
(especially those for children) to meet quality standard

2010: Development budget- 2,000 billion for Vietnam market

Lower tax rate for dairy products

2014: National Fund for for Children, Ministry of Education and Training, National Institute of
Nutrition=> partner with milk company to implement social programs
2015: VBCF (Vietnam Business Challenge Fund) supports 100,000 USD for selected project in
dairy sector particular

Vietnam is a country with a stable political institutions that facilitate doing business in Vietnam.
The government has many policies to support dairy industry for running business. (Approved
2000 billion for projects to develop dairy industry to 2020)

Economic

2015: Vietnam’s GDP increased 6.21% (World Bank)

High growth led to growth in people's incomes and led to a growth in demand for frozen
desserts, including ice cream.

Inflation rate: low figure

Economy recovers from the slump in 2013

Healthy market, high income and stronger consumption confidence lead to significant change in
consumption trend. (Nielsen)

- In addition, milk products and creams are encouraged by the State to produce and apply
many preferential policies. Under the program "Development planning for the milk industry in
Vietnam to 2010 and orientation to 2020" (approved by the Minister of Industry), the target of
milk sector growth for the period of 2006-2010 is 5- 6% / year, in which the growth rate of ice
cream is 10% / year.

- This number continues to increase from 26,841 tones and 2,323 billion dongs in 2015.
According to Euromonitor, in the year 2016, Vietnam consumed 28,700 tons of ice cream, with
sales reaching 2,620 billion VND. Euromonitor estimates that the Vietnamese ice cream market
will grow in the next five years, with an average growth of 6.2% in both sales and volume,
reaching a market value of 3,676 billion copper in 2021.

- According to market research of TH company, ice cream sales in 2018 will reach about
3,400 billion VND, expected output is 26,387 tons, growth rate is 6% per year. The cream is the
most favorite Vietnamese consumers are stick cream (46%), followed by cinnamon cream (27%),
box cream (25%), the rest are other creams.

Social
Vietnam’s demographic is its golden age: 54.1% of total population under 30, 3.6 mil: children
under 3 years ( This population receives better education, adopt Western culture and earns
higher income=> better life quality standard)

People today want to have the "fresh" life , they look to dairy products made from fresh milk,
grains to purify the body and nutritional supplements for the body

Level of education: The needs to improve health and beauty is increasing. Vietnamese
parents who are concerned about their children health are willing to spend more money for
buying products from fresh material.

Technology

- Farms are invested in technologies as well as human resources, imported dairy cows from
well-known countries, Israeli livestock technology and applying advanced dairy technology in
the world.

- 100% computerized management system to detect mastitis, monitor milk composition, ensure
milk flow

- In addition, health checks for cattle are carried out periodically by experienced veterinarians.
With true investment principles and long-term planning at the cow farm of TH ensure the
essence of every drop of milk, bring a healthy life, fun for the Vietnamese. That is the
superiority of TH true MILK

- Each TH true ICECREAM to the customers is a process of production on the line of modern
technology closed from Europe, strict selection of raw materials, pasteurization process,
assimilate, refrigerate, freeze, refrigerate, freeze and pack, always preserve at -18 C, to ensure
uniformity of shape, taste, quality, integrity.

Environment

- Nghia Dan (Nghe An): has a harsh climate, is affected by the west wind (Laotian wind) is hot
dry, so often drought (May to July), the temperature can exceed 40oC and humidity down 30%.
Little impact of rainstorms , but often heavy rain and flood.

- TH True Milk has extensive grassy hills for dairy herds, irrigated with So river, fertilized
with organic fertilizer.
3.Micro-environment analysis

a. Competitions

Entering into the ice cream market , TH* have to compete with a lot of strong opponents, such as
Kido Food , Vinamilk ,Unilever Viet Nam , Fanny Viet Nam, Trang Tien… TH True Milk, also has a bold
step in deciding to invest in a large-scale production line of milk from fresh milk factory (Nghia Dan, Nghe
An). In the context of most cream products in the market use milk powder to make ice cream; not to
mention a lot of small kind of creams in the countryside - where craft units are made - use mostly flour
and chemicals to make creams. Making ice cream purely from fresh milk is really attractive.

Director of Kidofoods Nguyen Thi Thuy Linh, KDF (40.2%) is fully aware of the competitive
pressure in the market and to maintain its leading position there is no other way to diversify products
and develop more segments and do not miss any price range. According to Tran Le Nguyen, KDF's vice
president, instead of costing a product for sale to the consumer, KDF sets a price that fits the needs of
the consumer first. At acceptable prices, large output products that once marketed, have large sales, the
profit will increase correspondingly. This can be seen through KDF's Merino ice cream branded with very
thin margins to match the majority of consumers but contributes 55% of KDF's revenue and profitability.
According to Ms. Linh, KDF focuses on 4 main segments.

+ Lower segment: focus on customers that have low income, suitable with rural areas.

+Middle segment: focus on customers that have normal income, are interested in taste.

+High segment: focus on customers that have high income, suitable with people in big city.
 Vinamilk (9.1%) competes in the low segment with basic flavors. Currently, the total size of the
ice cream market in Vietnam is less than 6% of total revenue of Vinamilk in 2016, a relatively small
number. However, Vinamilk still has a certain position when it occupies 10% market share in ice cream,
thanks to brand advantage. Recently, Ms. Mai Kieu Lien - General Director of Vinamilk said that the
company has considered the strategy of developing ice cream. Recently, Vinamilk introduced the ice
cream brand with the nostalgic brand of the subsidy period, attracting the attention of consumers,
always in the status of not enough goods to sell. Especially, Vinamilk's ice cream only focuses on the
popular segment, competing strongly with similar products that bring good profit margin for KDF.

With Unilever (8.4%), Wall's reappear with the new creams next to the ice cream unforgettable
for many young to continue conquering their taste. This brand focuses on customers that have middle
and high income in Viet Nam. However, at present, Wall has not put pressure on KDF because there are
no factories in Vietnam but have to import from Thailand, so it affects the distribution system, high
logistics cost and Limited product range.

Fanny (4.8%) is a foreign brand. Customer structure will gradually shift from general to middle
and high level, this will be the pressure for Vietnamese brand in the future.

Trang Tien(4.5%) is a brand that focuses on low segment. With low price and suitable quality,
Trang Tien is popular in rural areas of Viet Nam.

Other competitors are foreign Ice-Cream Brands like: 33 % market share, mainly powdered milk.
The import tax for milk is decreasing, making it more competitive advantages for domestic milk brands.

New factor-TH true milk enters into the ice-cream market. Unlike any other ice cream brand in
the market valued more than VND3,400 billion in Vietnam, TH true ICE CREAM is different when the
strength is the product of Dairy Group freshest in Vietnam. It focuses on customers that are interested
in health. Main segment concentrate on middle income customers. The products of TH Group always put
the criteria "fresh", "clean" on the top, towards the core value "Absolutely from nature", "For public
health". With advantages about brand, TH true Ice-Cream will become big brand in the ice-Cream market
in the near future.

b. Customer

Nowadays, need’s customers about the ice-cream market are more and more high. Therefore, ice-
cream must become more delicious, better for heath and more beautiful image. TH-true ice-cream will
really make the new whirlwind of ice-cream, open the trend of eating delicious ice cream from fresh
milk - to taste delicate taste of Vietnamese people.

Ice cream connoisseurs, who ate ice cream in five continents, all shared the same cream of fresh milk as
the cream of choice. Ms Ho Thi Phuc - Overseas American - often refers to a brand of American ice
cream with milk cream, famous for many flavored ice cream. When she returned to Vietnam, she didn’t
ate ice cream because "it was hard to find such a delicious ice cream". Similarly, the ice cream line is
made from fresh milk like Japanese fresh cream; Freshly sandwiched sandwiches of Singapore are all
creamy ice cream reminiscent of distinct taste. Especially fresh ice cream made from fresh Hokkaido
milk, do not use coloring or food flavors should always keep the natural freshness of raw materials. The
delicacy of fresh milk in the pasture has turned Hokkaido ice cream into a "nostalgic food not bored."

Quynh Anh, who has just picked up ice cream, eagerly shared, "I am a customer of TH products so I
know that there is a new product called true ice cream ICE CREAM. I came to the store to buy a trial.
Cream is very fatty, delicious"

Meet Thu Phuong and Minh Anh are using ice cream just take a picture check in, when asked about the
first time enjoy, they both are very excited: "Ice cream is always great! The first time I was eating
sandwich like this unique. Chocolate is a favorite of mine. Surely this will be my favorite food”.

True ice-cream is also expected to contribute to calibrate the habits of consumers, giving users more
options when looking for products that are both delicious, clean, quality and good for health.

Customer of TH*true milk is people in all ages. The true ICE Cream delivers the original taste of pure
milk, and natural ingredients such as pure chocolate, natural vanilla flavor and natural green tea.

Ages 4-10: this is the young step into the development process, need more nutrition for the body, to
serve the learning process.TH have Ice-cream top kid helps Kids get more vitamins and minerals.

Teenager, the adult and old are suitable with taste of TH true ice-Cream. Each ice cream brings a lot of
nutritional value. It may be become a soft meal for teen or office worker. It brings happiness for older
when they savour an ice-cream similar to savouring a glass of fresh milk.
 c. Suppliers

3. SWOT

a.Strength

TH True Ice Cream is made by the “clean milk” that is produced by modern technology proccess.
Especially, TH company use TOPKID recipe to make TH True Ice Crean have more nutrients values. Each
product is supplemented with vitamin and mineral such as vitamin B ( B1, B6, B12), C,K, Acid Folic and
Canxi. According the product introduction, using TH True Ice Cream will make immune system get better,
impulse the development of the brain and bones. A TH True Ice Cream has the same nutritional value
with a cup of milk. Therefore, TH True Ice Cream is known like a healthy product that attract consumer’s
attention.
In addition, compare with others Ice cream brand, TH True Ice Cream has a big advantage. While almost
others Ice Cream companies have problem about material supply, TH has their own milk production. As a
result, consumer will be more confident in the quality of TH True Ice Cream and all the nutritions that TH
company advertises.

b. Weakness

TH True Ice Cream is released in 2018. Comparing with their big competitors such as KDC, Vinamilk,
Kido...., TH is a young brand. Thus, TH lack of experience to deal with problems in the future.
Furthermore, although TH True Ice Cream is healthy, soft and delicious, the ice cream that is made by
“fresh milk” melt easier than the normal ice cream. For this reason, TH has to be really careful to find out
the best way to make perfect product.

c. Opportunities

In fact, Vietnam’s economy is developing so well, average income of Vietnamese people is increasing.
Moreover, Vietnam has a young population structure, this is so attractive market for TH True Ice Cream.
Beside, TH True Ice Cream is the first brand use “ fresh milk” to produce ice cream instead of milk
powder – the material that almost ice cream company use. So consumer will be curious about TH True
Ice Cream and want to try it. Especially, consumer care about healthy food more and more nowday. Thus
the healthy product like TH True Ice Cream will have more opportunities in the diversified ice cream
market.

d. Threats

According the Euromonitor’s report, the average money that Vietnamese people spend on ice cream is
35000VND/ person/ year ( In Malaysia this number is 122000dong, Singapore is 319000dong). So, we
can see Vietnamese people just spend a little money on ice cream compare with others countries. It will
become a challenge for TH True Ice Cream to attract the consumer, make them want to try TH True Ice
Cream and become the loyal customer.

III . Conclusion

In current environment, TH true ice-cream is facing with challenges and

opportunities. However, with strength points and the current strategies, TH-true
ice-cream will be success in the ice-cream market in Viet Nam. The strategies are
suitable to overcome threats in this situation. TH true ice-cream will make great
achievement in this area.
IV . Reference

1. http://www.thmilk.vn/common/home
2. http://www.thmilk.vn/th-true-ice-cream-kem-ngon-tu-sua-tuoi-nguyen-
chat.html
3. https://www.24h.com.vn/suc-khoe-doi-song/vi-sao-tap-doan-th-san-xuat-kem-
phai-la-hoan-toan-tu-sua-tuoi-nguyen-chat
4. http://baophapluat.vn/bao-ve-nguoi-tieu-dung/danh-thuc-khau-vi-tinh-te-
cua-nguoi-viet-voi-th-true-ice-cream
5. http://cafef.vn/tai-sao-kido-vuot-troi-o-nganh-kem-bo-xa-cac-dai-gia-unilever-
vinamilk-va-ca-cac-thuong-hieu-noi-tieng-trang-tien-thuy-ta-
20170920100619824.chn
6. http://congnghieptieudung.vn/suc-nong-cua-thi-truong-kem
7. http://www.kidofoods.vn/thi-phan-nganh-kem-2017-cuc-dien-thay-doi-nhu-
the-nao
8. http://soha.vn/khat-vong-mang-viet-nam-ra-the-gioi-cua-nguoi-kien-tao-cach-
mang-sua-tuoi
9. https://laodong.vn/kinh-te/ra-mat-th-true-ice-cream-tap-doan-th-tien-prong-
xu-huong-kem-lam-tu-sua-tuoi-nguyen-chat-va-nguyen-lieu-tu-nhien-
615490.ldo
10.