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Final Exam Assignment Vinamilk'S Black Sugar Pearl Love Yoghurt Marketing Plan
Final Exam Assignment Vinamilk'S Black Sugar Pearl Love Yoghurt Marketing Plan
TABLE OF PICTURES
Picture 4.1: The perceptual map of yoghurt product line in Viet Nam market ................... 13
Picture 6.1: Marketing plan timeline for the Black sugar pearl Love Yoghurt of Vinamilk
.................................................................................................................................................. 16
1. EXECUTIVE SUMMARY
In this modern busy life, when people have to work continuously, they have to study to
prepare for the incoming event in their life, for their family, friends, etc. especially in the
recent Covid-19 pandemic, where the economic suffered greatly, living condition are getting
worse to every family, etc. But in the end, health are the only thing that matters the most in
every person’s life. If a person is not in a good condition, their immune systems are weak,
physical strength is not enough to move themselves, etc. then it is very dangerous for them
because of the variety of diseases, especially in these days, where Covid-19 could kill people.
For that reason, we must prepare ourselves a planned diet, we must choose our food carefully
and drink water daily to enhance our health. With that in mind, one the best food to improve
our health is yoghurt. A product made from milk, which was fermentated to create bacteria
that support the digestive systems, supplementing zinc and calcium for humans. This product
have been produce and used all over the world since a very long time ago, it has been created
under many kinds of styles, flavour, etc. from a large variety of dairy companies in this world.
And in Viet Nam, there is a company specializing in manufacturing and trading milk with
other dairy products as well as related equipment and machinery that existed for a long time
and was trusted by a large amount of people in Viet Nam. It’s the Vinamilk company.
Vinamilk has produced many types of yoghurt products over the years, and in those yoghurt
products we see a potential product that can greatly help Vinamilk grow in the future, which
is the Black sugar pearl Love Yoghurt. In this report, we will focus on providing: an overview
of the company, the mission statement of this marketing plan, specific objectives to
implement in the first year, then we will conduct a S.W.O.T with macro-environment
analysis, followed by an STP analysis, marketing mix, and a specific action plan with a clear
timeline and a financial forecast. The final section will be summarizing the whole plan and
discuss on the control plan for the first year.
2. INTRODUCTION
Vinamilk’s logo:
Vinamilk has business activities in processing, manufacturing and trading dairy products.
These products are not only sold domestically but also in some other countries in the world
market such as Cambodia, Philippines, etc.
3.1.1. Strengths
- Famous brand: Vinamilk is a company that has existed for 34 years in Vietnam
and is well known in Vietnam and many countries around the world.
- A wide diversity of products: There are 8 types of yogurt for people with different
interests: in addition to Vinamilk Yogurt, there are Ong Tho condensed milk,
Pasteurized drinking yogurt,...
- Low price but high quality products: Product price is cheaper than imported
products of the same type, but still retains high quality.
All Vinamilk's milk factories are imported from European countries such as
Germany, Switzerland, and Italy to be used in production lines.
The company has input materials that meet international standards and are safe. In
addition, the company also invests in building Organic dairy farms to support milk
production.
Vinamilk has a fairly safe capital structure and high financial autonomy. In 2020,
Vinamilk achieved a total revenue of VND 59,723 billion (the highest revenue in
the Vietnamese dairy market).
3.1.2. Weaknesses
- The source of raw materials still depends on foreign countries: domestic raw
materials only meet about 30% of production needs, while 70% are imported from
New Zealand, the US, the EU and Japan. Therefore, input costs increase and
product prices also increase.
3.1.3. Opportunities
- Support from the government: According to the policy of WTO, import tax on dairy
materials is reduced, this is an opportunity to reduce production costs while imported
milk powder sources account for 75%.
- High consumer demand: Along with economic development, consumers are more
interested in health, and dairy products are consumed more. The dairy industry is in a
growth phase, so Vinamilk has a lot of potential for development.
- High potential customer force: The trend of "Vietnamese people use Vietnamese
products" to help dairy products be promoted first has increased the competitiveness
of domestic dairy companies, including Vinamilk.
- Impact of the Covid-19 epidemic: With the Covid epidemic, people will buy a lot of
food such as noodles and milk for storage. This will be an opportunity for Vinamilk to
accelerate dairy products.
3.1.4. Threats
- Many Competitors in the market: The force of domestic competitors is increasing,
in addition, Vinamilk also has to compete with big brands in the world such as Nestle,
Dutch Lady,...
Strength: Weaknesses:
S1: Famous brand W1: The source of raw
S2: Marketing is highly materials still depends on
foreign countries
effective
S3: Great and experienced
S.W.O.T Analysis for
leadership and management
Vinamilk
S4: Leader in pricing
products in the market
S5: A wide diversity of
products
S6: Low price but high
quality products
S7: Nationwide distribution
network
S8: High production capacity
3.3.1.1. Opportunities:
The EVFTA Agreement will reduce the import tax on dairy products from Europe to 3.5%
- 0% within the next 3-5 years (effective from August 2020). This makes the dairy market
more competitive as milk from Europe benefits, but also pushes domestic dairy companies to
increase their capacity to provide better quality dairy products to the market.
3.3.1.2. Threats:
- The management of market prices by state agencies is still lax. The process of enforcing
competition law against unfair competition acts is not really effective
- Milk inspection is still lax, only stopping at food safety inspection, but not controlling the
content of substances that cause difficulties for dairy businesses.
3.3.2.1. Opportunities
3.3.2.2. Threats:
- In 2020, the covid pandemic has stunted the growth of the dairy industry.
- GDP increased by 2.91% (the lowest increase in the period 2011-2020). Consumer
demand was negatively affected by the epidemic and the average income of workers
decreased by 2.3% (GSO). Accordingly, the FMCG industry recorded a decrease of 7% in
value, and the dairy industry alone decreased by 6%.
3.3.3. Social environment
3.3.3.1. Opportunities
- With a large population, a fast growth rate of -1.2%, in 2013, the trend of domestic
consumption increased => is a potential and developing market. According to the Ministry of
Industry and Trade, by 2015, the domestic market will consume about 1.3 billion liters of
liquid dairy products, equivalent to 15 liters/person/year.
- People's intellectual level is increasingly improving => towards refreshment and nutrition
products, health care, with beauty effects.
3.3.3.2. Threats
The psychology of consuming foreign goods and distrusting Vietnamese goods still exists.
3.3.4.1. Opportunities
It is possible to apply modern machinery systems, new management systems, and import
processes and raw materials that have contributed to improving milk quality.
3.3.4.2. Threats
According to Dairyvietnam.com, more than 95% of dairy cows in Vietnam are currently
scattered among smallholder farmers, with low professionalism, limited feed resources, and
80% of dairy cows must be imported. food, grass land), causing high cost pressure,
unsatisfactory milk quality, only 22-25% of raw material needs can be met, causing
difficulties for businesses (according to Mr. Sign Vietnam Dairy Association)
3.3.5.1. Opportunities
Vietnam's climate has hot and humid monsoon conditions, but there are temperate climates
such as Tuyen Quang, Lam Dong, Ba Vi, etc., which are especially suitable for growing grass
for high quality, raising dairy cows with productivity.
3.3.5.2. Threats
The climate is unfavorable for storage and processing which affects milk quality.
3.4. Competitors
- Yakult.
4. S.T.P ANALYSIS
4.1. Segmentation
Our team segments the market by the life cycle, buying decisions and mainly by age.
Ages from 5 to 14: this is the age when children enter the development stage, this age
needs a lot of food and drinks to supplement nutrition for the body, serving the process of
learning and playing.
Age 15-25: at this age, consumers will mostly be autonomous in their purchasing
decisions, they will choose the right product lines for themselves, usually vibrant and
youthful.
Age 25 and up: They will tend to use nutritional products, supplement calcium for the
body. In addition, they also use yogurt to improve the digestive system and take care of
beauty.
4.2. Targeting
According to the segmentation process, my team found that the suitable target market for
this product would be the 15 -25 year old segment.
We chose this segment because at this age, consumers will look for products with new
flavors and tastes, because they are aware of their buying behavior, autonomous in their
purchases, with a youthful personality. If they are active, they will tend to choose fresh,
delicious and strange products. On the other hand, according to the growing technology trend,
customers at this age will often watch food videos on social networking platforms such as
YouTube, TikTok, Facebook, Instagram, etc. of Key Opinion Leader (KOL) or Influencers to
find the food flavor or type of food that suits their own taste and from where customers will
not need to go through too many stages of searching to buy the product. In addition, some
customer groups will prefer to use yogurt products for health care and they are often very
active online on social media. Therefore, the demand for black sugar pearl yogurt products at
this age will be extremely appropriate compared to other ages.
4.3. Positioning
Now group will present the perceptual map of the yogurt line in the Vietnamese market.
The position of each brand is positioned through two dimensions: price and quality. The size
of each logo will be equivalent to the market share captured.
Picture 4.1: The perceptual map of yoghurt product line in Viet Nam market
With the above positioning map, it can be seen that Vinamilk brand holds the largest
market share in the Vietnamese yogurt market. Along with that, Vinamilk's yogurt products
are in the higher price segment compared to Yakult and TH True Yogurt and lower quality
than Acti-V of NultiMilk and Yakult. However, with Vinamilk's current position, users will
still trust the product thanks to its reputation and quality from past to present.
5. MARKETING MIX STRATEGIES
The Black sugar pearl Love Yogurt will provide customer with these outstanding features:
Yogurt brightens the skin, hydrates the skin to help it stay healthy.
With those amazing feature of the product and the characteristics of our targeted segment
ranging the age between 15 and 25, who love to explore new things and love to enjoy the
experiences, the Black sugar pearl Love Yoghurt will definitely provide the best experience to
the customer. Not only that, with the growing trend of teenagers consuming bubble milk tea
recently, this product will help diverse the scale of the milk with sugar pearls on the market.
However, after Vinamilk has introduced on the market for 2 months, it seems like not
many consumer come to take interest in this product. As this result in the low profit of the
product to the company. After doing some research discovered that the Black sugar pearl
Love yoghurt had some issue with the taste and quality not reaching the standards of the
customer. Specifically, in some reviews, customers have complaints about the unscented
scent, sharp sweetness and some products appear water separation, negatively affecting the
quality promised by the product. bring to consumers.
With that in mind, our team decided to propose about the the decision of improve product
quality by using advanced machine technologies to overcome the above-mentioned product
conditions.
Black sugar pearl Love yoghurt products are currently sold at prices ranging from VND
33.000 - VND 35.000, but now the product is not bought much compared to similar products,
showing that this price is not suitable, need to be adjusted.
For that reason, the group will propose to adjust the product price of VND 34.000 and
organize a short-term price discount of VND 30,000 per pack for about half a month,
specifically on the last 2 weeks of September 2021 and the first 2 weeks of May 2022.
Currently, Vinamilk only distributes at Vinamilk's own agents and large supermarket Aeon
centers. With this makes it difficult for consumers to reach to buy the product
- Further distribution to retail stores such as: convenience stores, green department stores,
local retail stores, wholesalers, etc.
- Cooperate with a number of distributors so that they can sell their products to customers
faster, saving time for the company and for customers.
-Sign contracts with familiar distributors to sell products and pay commissions when they
reach sales in the month and year.
Currently, Vinamilk does not focus too much on communication for products, which
leads to a lack of information and product identification to consumers.
For that reason, the team would like to propose measures based on the pull strategy as
follows:
We will organize an event of “Buying 2 packs, get 1 free box of the Black sugar pearl
Love yoghurt” in November of 2021 and January of 2022.
6. ACTION PLAN
The time to initiate this marketing plan is from 24th June, 2021 to 24th June, 2022. We
decided to initiate monthy.
6th - 8th
24th – 29th 1st – 5th Aug Aug 2021, 1st – 14th Dec 2021, 1st - 14th
Jun 2021, 18th – 31st 2021,Provide conduct brainstorm ideas May 2022,
the Jul 2021, new distribution and release Launch the
marketing Vinamilk information activities to trending mvs on promotional
department will about the retailers social media using discount
will discuss improved and sign images of black
develop again
and product on contracts sugar pearl yogurt
the
complete social media with major products.
improved 19th – 30th
the plan product distributors Sep, launch
promotional
discount
June July August September - October November December January February - April May June
Picture 6.1: Marketing plan timeline for the Black sugar pearl Love Yoghurt of
Vinamilk
7. CONCLUSION
New-product development
Customer satisfaction
With this marketing plan, we hope to able to use as the reference for the later plan of the
company.
8. LIST OF REFERENCES & ORGINALITY
Supermarket, B. hoa xanh. (2021). Siêu thị Bách hoá XANH - Mua bán thực phẩm, sản
phẩm gia đình. https://www.bachhoaxanh.com/
Trang, B., Anh, D., Hao, N., Nguyen, N., Ngoc, P., & Hoang, V. (2008). Marketing Plan.
Concise Encyclopedia of Professional Services Marketing, 82–83.
https://doi.org/10.4324/9780203884713.ch47
Vinamilk. (2020). Báo cáo tài chính hợp nhất giữa niên độ cho giai đoạn ba tháng kết thúc
ngày 31 tháng 3 năm 2020. https://www.vinamilk.com.vn/static/uploads/article/1588158638-
cd1de8c833fdbb9a8672fce4ab532270612e2256dce449ef583d53c939d5e58a.pdf
Vinamilk. (2021b). Sữa chua VINAMILK LOVE YOGURT TRÂN CHÂU ĐƯỜNG ĐEN
MỚI! Ngon mê hoặc - YouTube. https://www.youtube.com/watch?v=f5NvkFhuG9o
This section will offer the financial overview of Vinamilk related to marketing activities.
Vinamilk will address financial stats, the expense budget, and indicate how these activities
link to the marketing strategy.
9.1. Financial
Total first-year sales revenue for the black sugar pearl Love yoghurt of Vinamilk is
projected at 203.000.000.000VND, with an average per-unit revenue is 30.000VND and
average per-unit variable cost is 4.000VND for unit sales volume of 5.970.588. We
anticipated a first-year loss of up to 40.600.000.000VND. Break-even analysis calculations
indicate that the black sugar pearl yoghurt - Love Yogurt Vinamilk will be profitable after the
sales volume exceeds 4.846.322 during the product’s second year. Our break-even analysis
assumes average per-unit revenue of 30.000VND, variable cost of 4.000VND per unit, and
estimated first-year fixed cost of 19.385.288.000VND. With these assumptions, the break-
calculation is:
Break-Even Analysis:
Monthly Units Break-Even 403.860
Monthly Sales Break-Even 13.731.240.000 VND
Assumptions:
Average Per-Unit Revenue 30.000 VND
Average Per-Unit Variable Cost 4.000 VND
Estimated Monthly Fixed Cost 1.615.440.667 VND
9.2. Expense budget
(Currency: VND)
2) Introduction: Mai.
8) Conclusion: Hiếu.
We carry out the assignment by organized multiple meetings on Teams and discussed
further thanks to help of our lecturer Ms. Ngô Minh Trang throughout the course.