INS3042.Vinamilk International Marketing Plan

INTERNATIONAL MARKETING INS3042
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INTERNATIONAL MARKETING
INS3042 3
REPORT
Instructor: Mrs.Pham Thi Liên
Reporters:
Giang Thu Huyền ( Leader) - 17071083
Nguyễn Thùy Linh - 17071108
Phạm Tường Vi – 17071215
Đào Chí Công - 17071035
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TABLE OF CONTENT
INTRODUCTION ..................................................................................................................... 4
A: Preliminary analysis and screening .................................................................................... 5
I: Company review ........................................................................................................... 5
II: Mission, Vision, Core Value ......................................................................................... 6
III: Product porfolio ......................................................................................................... 7
IV: Macro economic ....................................................................................................... 11
3.1: Home country ....................................................................................................... 11
3.2: Host country (Thailand) ....................................................................................... 13
V: Micro economic .......................................................................................................... 14
VI: SWOT analysis ......................................................................................................... 16
VII: STP analysis of Vinamilk in ThaiLand ................................................................... 18
B: Marketing Mix ................................................................................................................. 20
I: Product........................................................................................................................ 20
II: Price ........................................................................................................................... 23
III: Promotion................................................................................................................. 24
IV: Place ......................................................................................................................... 26
C: Marketing Plan Development .......................................................................................... 27
I: Pre-analytical issues .................................................................................................... 27
II. Campain roadmap ..................................................................................................... 28
2.1: Phase 1. AWERENESS......................................................................................... 28
2.2: Phase 2. TRUST ................................................................................................... 29
2.3: Phase 3. ENGAGE ................................................................................................ 31
D: Implemention and control ............................................................................................... 33
CONCLUSION ....................................................................................................................... 35
REFERENCES ........................................................................................................................ 36
PRODUCTIVITY AND TEAMWORK ........................................................................................ 38
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INTRODUCTION
Vinamilk is the leading dairy brand in Vietnam, it is also the most chosen brand in
Vietnam in the dairy product industry in both urban and rural areas for 7 consecutive
years. Moreover, Vinamilk is rapidly expanding its markets overseas, especially in
Southeast Asia such as China, Myanmar, Cambodia, and the Philippines. We see
Thailand as a potential market because of many favorable factors for market penetration.
This report will analyze and develop a relevant marketing strategy for Vinamilk in the
Thailand market. The first parts are the study of external and internal factors that
influences the firm. The second parts are a marketing plan for one year of Vinamilk in
Thailand.
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A: Preliminary analysis and screening
I: Company review
 1976: Thong Nhat dairy factory, Truong Tho dairy factory, and Dialect powdered
milk factory was inaugurated and put into operation
 2003: Equitised and officially became a joint-stock company under the name of
Vietnam Dairy Products JSC.
 2006:
+ Vinamilk was officially listed on HOSE on 19/01/2006.
+ An Khang Clinic was opened in Ho Chi Minh City. This was the first clinic
managed information online in Vietnam.
+ In November, Vietnam Dairy Cow One-Member Ltd, was established.
 2010:
+ Vinamilk contributed USD 10 million, as equivalent to 19.3% of the associate’s
share capital. In 2015, Vinamilk raised its share capital in the subsidiary, Miraka
Holdings Ltd., to 22.81%.
+ Vietnam beverage factory was inaugurated and put into operation.
 2017:
+ Cu Chi Raw Milk Center came into operation.
+ Invested in the sugar industry by acquiring 65% share capital of Vietnam Sugar
JSC (formerly known as Khanh Hoa Sugar JSC)
+ Acquired 25% share capital of Asia Coconut Processing JSC.
 2018:
+ The first company in Vietnam to produce A2 milk.
+ Invested a 51% share of Lao-Jagro Development Xiengkhuoang Co., Ltd.
 2019:
+ Started construction Phase 1 of Laos’ 5,000-hectare Organic dairy farm with
24,000 head cows.
+ Doubled the capital at Driftwood Dairy Holding Corporation, from USD 10 million
to USD 20 million.
+ Completed the acquisition of 75% share capital of GTNFoods JSC, thus controlling
Moc Chau Milk JSC whose total head cows are 25,000 ones.
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II: Mission, Vision, Core Value
2.1: Mission
“Vinamilk commits to bring the communities the best-quality nutrition source that
conveys our respectability, love, and responsibilities for the people, life and society”.
2.2: Vision
“To become the leading Vietnamese trusted brand on nutrient and health products for
human life and to be positioned one of 50 biggest dairy companies over the world”.
2.3: Core value
 Integrity; transparency and morals can be found in whatever we do

 To think, to do, to take responsibilities and to overcome challenges to realize the
commitment targets.
 Appreciating the passion, unique discovery, and innovative solutions.
 Focus on added-values in all our works, investments and business activities.
 Self-respect, equality, and dedication to the growth of the company are what we
really appreciate at Vinamilk.
 Interests of Vinamilk are also the interests of its employees, partners, government
and society.
 Constructive and straight communication is the base for our team to become more
united and stronger.
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III: Product porfolio

3.1: Liquid milk
3.2: Powered milk for children and adults
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3.3: Baby cereal
3.4: Eating yogurt
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3.5: Drinking yougurt
3.6: Energy and bevarages
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3.7: Condensed milk and ice-cream
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IV: Macro economic
3.1: Home country

3.1.1: Political
VN has a stable social and political under the leadership of one party – VN communist
party. After 1986, VN implement “Doi Moi” policy and it brings a huge chance in doing
business for the country.
3.1.2: Economic
Viet Nam participated in ASEAN in 1995 and signed in ASEAN free trade area (AFTA)
in 1996.
In 2007, VN joined in world trade organization (WTO).
In 2015, the Trans-Pacific Trade Partnership Agreement are officially adopted.
In July 2020, Europe's Vietnam free trade agreement (EVFTA) officially takes effect.
From 2002 to 2008, GDP per capita increase 2.7 times, reached 2.700 USD in 2019. In
2020, Vietnam's GDP increase by 7.02%, exceeding the National Assembly's target from
6.6% to 6.8%. FDI in 2019 accounts for 38 billion USD.
The structure of the economy (2019): Agriculture, forestry, and fisheries account 13.96%;
Industry and construction account 34.49%; Service account 41.64%; Product taxes minus
product benefits account 9.91%
The rate of poor households decreases strongly from 70% to under 6%.
3.1.3: Social
The population in Viet Nam change rapidly about population structure and social (from
60 million in 1986 to 97 million in 2018) and expect to reach 120 million in 2050.
“70% population are under 35 years old with the average life expectancy nearly 76 years.
However, the population is aging fast. The middle class is taking shape - currently
accounting for 13% of the population and is expected to reach 26% by 2026.” (World
Bank, Vietnam Overview, 2020).
School education in Vietnam is relatively good. Vietnam achieved impressive results in
the 2012 International Student Assessment Program (PISA) in 2012 and 2015, whereby
the achievement of Vietnamese students far exceeds many OECD countries. (World
Bank, Vietnam Overview, 2020).
Health also made great progress when living standards improved. From 1993 to 2017, the
infant mortality rate decreased from 32.6 to 16.7 (per 1,000 births). The average life
expectancy increased from 70.5 to 76.3 years between 1990 and 2016. The universal
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health insurance coverage index was 73 - higher than regional and global averages - 87%
population with health insurance. However, the sex ratio at birth is still high and
increasing (115 in 2018), indicating that gender discrimination still exists. In addition,
Vietnam is one of the countries with the fastest population aging, forecasting that by
2050 the age group above 65 will increase by 2.5 times. (World Bank, Vietnam
Overview, 2020)
3.1.4: Technology
Thanks to the globalization and trade agreement Vietnam signed a variety of technology
achievement have been received from all over the world.
Vietnam has expanded and diversified its export sector structure, but the process
transforming structure to the export of complex and "high-tech" goods and services.
More and higher levels of knowledge are still taking place slowly. The stuck in low
value-added activities have limited the ability to learn technology and improve creative
capacity.
3.1.5: Ecological
Rapid growth and industrialization have led to many bad influences on the environment
and natural resources. Unsustainable exploitation natural resources such as sand, sea-
food, and wood may affect severely to long - term expected growth. Moreover, most of
Vietnamese and economics in Vietnam are easy to be hurt by before the impact of
climate change.
Urbanization, growth rate and population explosion happen strongly lead to challenges
about waste and pollution management.
However, the government is trying their best to reduce the effect of growth on the
environment and adapt to climate change. Many strategies and plans to boost green
growth and sustainable exploitation are applied.
3.1.6: Legal
The legal system in VietNam is stable.
“Economic development with favorable economic policies; right political way, human
personality orientation; Traditional beauty and positive innovation, cultural lifestyle
together with strict legal systems have enabled people to implement the law most
effectively. In general, the current society is relatively stable and has conditions for
socio-economic development; This is thanks to the fact that human law enforcement is
guaranteed, maintained, and sustained.” (Luatduonggia)
However, “due to the impact of international integration, the advancement of science and
technology, information has made state agencies confused in defining new policies and
laws to timely adjust. On the other hand, the level of a part of civil servants working in
law development is limited, there is no overall practical evaluation, etc”.
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3.2: Host country (Thailand)
3.2.1: Poticical
Thailand is a nominally constitutional monarchy. It is also a parliamentary democracy.

The hereditary monarch is the Head of State and is protected by lèse-majesté (to do
wrong to majesty) laws which allow any critics to be sentenced to jail for three to fifteen
years. However, the monarch has limited powers. The prime minister is the head of
government. It is worth noting that the country’s military seized power in a coup that
took place in 2014.
3.2.2: Economics
Thailand is the 25th largest economy in the world. Its nominal GDP for the year 2018
was $455.378 billion (Statistics Times, 2019). Industry accounts for 36.2%, agriculture:
8.2% and services: 55.6% of GDP. It has made great economic progress and moved from
a low-income to an upper-income country in a relative short time (World Bank, 2019). It
is widely known for its sustained and impressive poverty reduction efforts.
Thailand is one of the largest export economies in the world. Its main exports are
machinery including computers, electrical equipment, vehicles, mineral fuels,
broadcasting equipment, organic chemicals, and plastics. Its main imports are gold,
vehicle parts, crude petroleum, integrated circuits, and office machine parts.
Poverty declined substantially over the last 30 years from 65.2% in 1988 to 9.85% in
2018 (based on official national estimates). However, the growth of household incomes
and consumption growth both have stalled nationwide in recent years.
3.2.3: Social
The total population of Thailand, as of December 2019, is around 69 million. There is no

official state religion in the country; however, Buddhism is the most widely practiced
religion. Other major religions are Islam, Christianity, and Hinduism. Thai people are
very friendly and hospitable. But, If you step on money in Thailand, you are breaking the
law. The king is highly revered in Thailand, so the notes printed on the king are also
highly respected.
The life expectancy for men is 71 years, while 79 years for women. The major language
in Thailand is Thai. (Vietnam export)
The number of people who can read and know is 93.8%, male: 96%, female 91.6%. The
Thai state attaches importance to education and always invests in education. Elementary
education is compulsory and free for 6 years. University has not yet expanded, so college
entrance exams are strict "cross-disciplines".
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3.2.4: Technology
Thailand is gradually becoming a technologically advanced country. The government

offers a variety of incentives for organizations to adopt new technologies. The investment
of Thai companies in innovation and tech infrastructure is also noteworthy.
Consequently, the country is expected to see a rise in e-commerce and similar tech
activities in the coming years.
3.2.5: Ecological
Tourism is an important contributor to the country’s GDP and employs 6 million people.
A record of 38.27 million tourists visited Thailand in 2018, and the number of tourists is
set to rise in the coming years (Bangkok Post, 2019).
However, rapid economic development has taken a toll on natural resources. Loss of
biodiversity, air and water pollution, deforestation, water scarcity, and desertification are
some of the major environmental challenges facing Thailand today.
3.2.6: Legal
Thailand has a standard labor law to ensure the rights of people at work. It has some
strict rules in areas such as disrespect for the Royal Thai family, bribes, drug use,
drinking alcohol, gambling, indiscriminate littering, overdue domestic use, and smoking.
3.3: Comparation two countries
V: Micro economic
5.1: Threat of new entry

Much big milk company doing business in Thailand: Nestle, Dutch Lady, Danone, etc.
They have large economies of scale in the industry. These companies gain a big network
effect from the customers.
Capital requirements to the industry especially the milk industries is low when the input
has already existed in the country. You only need to invest in manufacturing and
distribute the products to the customers.
Existing companies in the industry (Nestle, Dutch Lady) have cost advantages thanks to
possessing patents or exclusive partnerships with the best and cheapest suppliers,
favorable locations, etc.
The regulatory policies to enter the industry are open. “Under the tariff reduction
roadmap of the ASEAN Trade in Goods Agreement (ATIGA), the import tax of milk and
milk products of ASEAN countries, including Vietnam into Thailand market, will not be
subject to import tax quotas and enjoy 0% tax rate” (VnEconomy 2018).
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5.2: The bargaining power of suppliers:
There is a high demand for supplier products while there are many suppliers that can
provide input for the company. “In 2008, Thailand had about 489593 cows, of which the
North had 42918 cows (8.77%), the Northeast had 101942 cows (20.82%), the Central
had 339795 heads (69.40%) and the South had 4938 cows (8.6%)” (Dairyvienam)
Supplier depends heavily on the industry for a large portion of their revenue. And it is
easy for incumbent firms to switch among suppliers.
Suppliers offer similar products. And the threat of integrating forward into the company
industry is low because “dairy farming in Thailand is mainly concentrated on small farms
with a scale of fewer than 20 cows but raised in intensive farming.” (Dairy Vietnam). The
threat in bargaining power of suppiers is weak.
5.3: The bargaining power of buyers:
The number of buyers is large compared to the number of sellers in the industry.
Moreover demand from buyers is high” Domestic milk production in Thailand only
meets 30% of domestic demand for milk, this ratio is similar to Vietnam but this country
has a higher consumption of milk and per capita milk consumption than
Vietnam.” (Dairy Vietnam)
The industry‘s products are standardized commodities. However, buyers’ switching costs
to competing brands are relatively low causes there are many companies from outsides to
locals are competing in this growing industry. Buyers are well-informed about the
products while the threat of integrating back into the business of sellers is almost zero.
The threat in bargaining power of buyers is weak.
5.4: The threat of substitutes:
There are many substitute products, which are readily available at attractive prices or
good quality. Thailand is a tropical climate country and coconut is very familiar here. The
products about coconut especially coconut milk or coconut water are very famous.
Besides, Thailand is very famous for Thai milk tea which raises a new trend in the
beverage industry in Vietnam. Moreover, the switching cost is very low and the buyers
view these substitutes as better in terms of quality, design, cost, and so on. The threat of
substitutes is quite high.
5.5: The threat of rivals:
There are many firms in the industry and they are similar to each other in terms of size
and capability. This leads to the problem that the customers are easy to switch the
products (The switching cost is low).
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But the demand from buyers grows slowly due not only to the downturn of the Thai
economy in recent years but also the hit from the Covid-19 pandemic. These reasons
strike straight into the income of the customer. The threat of rivals is high.
VI: SWOT analysis
6.1: Strength
6.1.1: Trusted brand
Vinamilk is a familiar brand and trusted by most Vietnamese customers for over 34
years that is accounts for 39% of the dairy market in Vietnam (Vietnam dairy market,
2019). It continuously innovation in products to pursue the buyer's demand as well as
compete with other counterparts. Aiming to spread market to overseas, since 1998,
Vianamilk has distributed its products at 64 cities and provinces such as the USA,
.ustralia, China with a turnover of 649.1 million USD (trang thông tin nội bộ của công ty
cổ phần sữa Việt Nam). With a long journey of formatting and developing, they can
understand exactly what a certain segment needs and reach a goad more effectively,
especially, Extention distribution and sales networks in Thailand. Furthermore,
Thailand’s customers can trust this brand because Vinamilk was ranked in-ground as the
“Top 10 high-quality Vietnamese goods” from 1995 to now.
6.1.2: Diversity of product category
Currently, Vinamilk Company has more than 200 milk products with various flavors and
packages such as sweet milk, condensed milk, powder milk, etc.which helps Thailand’s
consumers have different options on product milk. Besides, the provision of diverse
products to customers with different packaging sizes insists on drinking and eating.
Nevertheless, the price of Vinamilk a bit higher than Thailand’s milk, the quality of the
product recognized and has the certification. All product lines are the application of
modern technology to production.
6.1.3: Effective strategy of promotion
Vinamilk has been implementing its effective strategy of promotion, advertising,

community development establishment that impressive image to consumers, providers as
well as the society as a whole. Moreover, the company has been implementing programs
of raising community awareness in the milk-drinking to children, warning the
malnutrition children in Vietnam that is one of the elements encouraging the demand for
milk. Based on its experience, for the Thailand market, Vinamilk will promote widely in
ads and mass media such as television, newspapers, etc. Providing information and image
of its product regularly and frequently.
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6.1.4: High knowledgeable human resources
With the development strategy of dairy nowadays, Vinamilk Company has defined that
the “human” element shall decide the success or failure of the enterprise. It recruited an
excellent graduate student in Vietnam studying abroad. Owing to these sound policies,
Vinamilk has trained a high-quality engineer force and a great leader to jump in the
Thailand dairy market whose skills demonstrated and win its consumers.
6.2: Weakness
6.2.1: The high cost
Due to importing material, Vinamilk still depends on the big demand (60%) that has to
seek prestigious providers such as New Zealand, Europe, and the USA-developed
countries exporting milk materials with international standards. additionally, it was
imposed on import tax and transport expense, stage, therefore, the high cost of yogurt
results in the high price in the Thailand market (about THB 17-19 per cup equivalent to
VND 10,000 – 12,000).
6.2.2: Competitive market

There are many rivals that Vinamilk has faced both domestic and international brands in
Thailand, especially, this is a new market. The weakness of Vinamilk is, nevertheless
having good products, even the strong trademark, the weak marketing resulting in the
ineffective message for the promotion to customers on the strength of the company.
Dealing with strong domestic milk, and high-standard international milk, Vinamik shall
promptly re-organize the marketing division, short-term and long-term marketing strategy
with particular criteria, and setting up the strong trademark in Thailand.
6.3: Opportunities
6.3.1: Positive trend of customer toward milk and yogurt usage
The development of the economy leads people to take more care of the health of family
members. Not only provides nutrients but also additional factors such as vitamin C, D,
ADM, calcium, Thailand’s consumer too. When they recognize the benefits and qualities
that Vinamilk provides, people will tend to use it more. The average usage of Vietnamese
is 14l per year that is lower than in Thailand (23l/person/year).
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6.3.2: The rival is weakening due to the product quality

China is one of the big competitors of Vinamilk in the Thailand market. However, after
the findings of its products with high melamine and incorrect nutrition to publish on the
product packaging, consumers tend to use a high-quality product with a prestige brand.
This is a big opportunity for Vinamilk to bring its high standard yogurt into Thailand.
6.4: Threat
6.4.1: Many big rivals
There is a competitive market in Thailand with a big milk company such as Dutchlady,
About, Nestle, etc. Because Vinamilk’s campaign should have an effective strategy to
win this market
6.4.2: Tax
Mrs.Mai Kieu Lien, Chief Executive of Vinamilk said that the company has to pay 40%
tax when it exports the milk product to Thailand, on the other side, Thailand one has to
pay 1%. This is a big threat that Vinamilk has to face with the Thailand market.
VII: STP analysis of Vinamilk in ThaiLand

7.1: Segmentation
7.1.1: Demographic segmentation
In 2020, the population of Thailand is 69,799,978 people (ranked 20th in the world), and
increases by 0.25% per year. There are 50.5% of the Thailand people are from urban (35,
132,892 people in 2019). Forecast information indicates that the number of young
population will decline in the coming years. These statistics are calculated on statista.com
about the percentage of the population by age in Thailand as follows.
 0 – 14 years old: 17.09%
 15 – 64 years old: 71.01%
 Over 65 years old: 11.9%
The data above illustrate that the majority of the population in Thailand is between the
ages of 15 and 64 years old, those who are high school students and labor forces. This is
also a potential customer segment of milk products. Students often use milk to supply
more nutrition for body development. Workers can use milk for breakfast and dairy
dishes. There are 17.09% of the population are children, this is the group of people who
need to use more fresh milk products.
The average income is 14238. 13 THB per month (equal to $447.57). The monetary
values of Thailand and Vietnam have little difference. Therefore, Vinamilk product
prices will have little change in the Thailand market to respond to the purchase demand
of citizens.
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7.1.2: Geographic segmentation
Thailand has a tropical climate, the temperature is around 30 degrees. With the summer
weather, the demand for drinks is also greater, the dishes are processed with milk.
Thailand has many large and small islands, beaches on the south side, and big cities
where the development of popular tourist and resort services attracts many western
tourists. Therefore, Vinamilk products can penetrate the Thailand market. Besides, Thai
culinary culture is diverse, they have street food made from condensed milk and fresh
milk such as famous fruit donuts, ice cream, and Thai milk tea.
7.1.3: Psychographic segmentation

Adults always want their children to increase height and have enough nutrients for the
body to develop well. Therefore, milk products will be an essential commodity for the
needs of the citizen. 71.01% of the population is adolescent and middle-aged, they
usually use milk for breakfast and milk drinks. Recently, many people tend to use less
sugar and healthy drinks, so Vinamilk can offer unsweetened milk and nutritious seed
milk products.
7.1.4: Behavioral segmentation
Thailand people have a habit of using milk for breakfast, and they also prefer to use it
with other foods like ice cream and scones. Cafes and restaurants also need to buy milk to
serve foreign tourists, who are used to drinking milk. The intensity of consumption is
high for this market. The loyalty of the product chain will be high.
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7.2: Targeting Customers
As the data collected above, Vinamilk should target customers from 18 to 40 years old.
The main object is the labor force, who have a certain income and need to use milk every
day. The income of workers and office workers is from 10000 THB to 14238.13 THB
(around 7,000,000vnd - 10,000,000vnd) per month. They are more likely to pay for this
item than the lower income group. Moreover, Vinamilk can increase the marketing of its
products to business customers such as restaurants, hotels and street eateries to sell
products in larger quantities. There are 17.09% of Thailand's population aged 0 to 14, this
is a group of customers who consume a lot of fresh milk, so this is also an object to be
targeted. 11.9% of the population is elderly, the group of customers prefer seed milk and
nutritious milk products, so Vinamilk can offer products that are suitable for this
customer segment.
7.3: Positioning
After 40 years as a leading nutrition corporation in Vietnam and 18 years of export
experience in the world, Vinamilk is not only responses to the increasing demand of
domestic customers, but they also expand their operation to an international market.
Currently, Vinamilk has a milk powder factory located in New Zealand - one of the
biggest milk supplying countries in the world. In the US, Vinamilk acquisition Driftwood
Dairy to sell "Made in Vietnam" products in the most demanding market in the world.
The ongoing efforts of Vinamilk are shown by presence in 40 countries. In Asia, the
demand for using milk products in Myanmar and Thailand are climbing, where Vinamilk
considers as the potential market in the company strategy.
B: Marketing Mix
I: Product
1.1: Cataloge and features

Vinamilk provides 10 different group of product lines insistes of tons of product with
many flovors and packaging sizes for customers to choose from including liquid milk,
powered milk, baby cereal, eating yoghurt,etc. (Vinamilk anually report 2019). Besides,
due to the product line cycle patterns and possibility of mishap with product, the
requirement of creating more types of product is apparent. They also contains essential
nutrients supplement of ADM, vitamin, purest of nature to maintian the beauty and well-
being daily. However, after demonstrates the Thailand market where the hot weather is
the main feature. Eating yogurt and drinking yogurt is the main product that is going to
Thailand's markets. Based on many benefits of yogurt such as vitamin B12, 49% calcium,
protein, etc ( Healthline, 7 impressive health benefits of Yogurt), are suitable for Thailand
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1.2: Pakaging and labeling

In Vinamilk marketing, pakaging is not simply holding and protecting the product, but it
also help attracting buyers and creating consumer recorgnition immediatly. Additionally,
avoiding damage during shipment is also another distribution processes of packaging.
Recently, come together with the development of green marketing concept (Glossary) the
enviromental concerns have become dominant in packaging desision of Vinamilk.
Likewise packaging, labeling plays the role of complementing the looks of Vinamlik
product. Labeling not only suports capturing the eyes of buyers but additionally provdies
consumers the mandatory information regarding the products such as the manufacture of
the merchandise, exprire, instruction,etc. The products with innovative packing and
labeling, moreover as adapted in green marketing concepts can give the corporate rival
advantages in Thailand.
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1.3: Brand name

Maintaning the No.1 position in the Vietnamese market and aiming to reach the Top 30
World’s Lagest Dairy Companies in term of revenue, Vinamilk has identified a
development statagy with three main pillar for excution including: leading in highly
appicable innovations, consolidating the leading position in Vietnam’s dairy industry and
becoming the most valuable dairy comapny in the Southeast Asia ( Vinamilk anually
report, 2019). Choosing brand for product helps both Vinamlik’s customers and its
company identification in segmnet makets. According to Vianmilk’s annual report 2010,
the company is the first and the only company in Vietnam presents in the list of “200 best
enterprises in Asia Pacific in 2010” voted by Forbes magazine. This is the opportunity for
Vianamilk to adapted Thailand’s buyer to believe in the brand name.
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1.4: Quality
To meet the increasing demands of consumers, Vinamilk has constantly renewed
technology, improved product quality management. In 1999, Vinamilk successfully
applied the standard management system per international standards ISO 9002; and
currently the corporate has applied the standard management system ISO 9001-2000.
This application has shortened the standard distance between imported and domestic
milk, increased the boldness and prestige of Vinamilk in competitive market.
Furthermore, Vinamilk is running more campains to enhance the quality of their product
which is coporrate to National Nutrition Institution. Hence, Vinamlik’s product quality
will be guaranteed reputation. Due to the fact that, the trust of customer will increased.
1.5: Research and develoment

In order to increase hightly profitable, Vinamilk has launched some new Fresh milk
products which must include Vinamlik 100% milk can satisfy the necessity of the
foremost difficult and wise customers. They have invested in modern technilogical
system in termed Pasterization technology. Bacterial ans spores are faraway from milk by
using the world class Bactofuge, thus keeping the simplest nutritional element such as
vitamins and minerals from pure cow milk. Vinamilk is that the first dairy company in
Vietnam applied this advanced technology in production world. Specifically, in 2019,
Vinamilk has extended the Organic standard for seven factories and registered the Halal
standard for new products in a number of categories including powdered milk and soft
drinks (Vinamlik report, 2019).
II: Price
The average income of Thailand people is not too different from that of Vietnamese
people, so the price is nearly equal in each product. Vinamilk: Price at 52.91baht
(39,000vnd)/ 1 liter Milk. In Vietnam, a box 1 liter is 27,000 VND (40.97 bath).
Vinamilk products are expected to be sold in Thailand in the near future. This is the price
of each product in Vietnam Dong.
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III: Promotion
After planning and developing a decent product, setting an appropriate product price and
making it avaible to customers, Vinamilk communicates their value proposition to
customers. This lead to increasing the customer’s awreness in terms of their product and
aim to rise in sale, creating brand loyalty. The specific blend of promotion tools that
Vinamilk use to persuasively communication buyers value and build customer
relationships insises of advertising, public relationship, direct marketing, sale promotion,
digital marketing,etc
3.1: Advertising
In order to effeciency send Viamilk messages, they has used all means of advertising
which is appeared mostly through mass media includig television, newspapars,
wedpages, brochures,etc. This tool allows Vinamilk communicating with a huge
number of customer concurrently. The main image of the cows in the green grassland
are considered as the core of evert clip ads as a company specializing in
manufacturing dairy products. The cow has left a memorable impression winthin the
audience when they are singing, dancing, funny. It represents of Vietnameses’farmers,
hardworking, a fresh strong physical, therefore, bringing fun, happiness to customers;
and that is deliver value of Vinamlik’s products.
24
3.2: Public relation

Building good relations with the company's various publics is the main task of public
relations. This is often done by obtaining favorable publicity, build up an honest
corporate image, and handling or avoiding unfavorable rumors, stories, and events. As
the best 50 brands of 2019 ( Forbes Vietnam, 2019), Vinamilk has a much successful
community, education, humanities activities, etc.
Regarding education, Vinamilk scholarship fund for Vietnamese young talents: This is
one of the programs that Vinamilk devotes its great dedication. During 7 consecutive
years, the company has funded over 650,000 USD with a total of 25,040 scholarships
nationwide (Vinamilk Annual report 2010). Since its foundation, “ Stand Tall Vietnam”
Fund has untaken a benevolent mission, “ for every kid to drink milk every day”,
following the conviction that the future generations of Vietnamese will have better
chances of both intellectual and physical development. Schoolchildren could also engage
in various games and activities, exclusively designed by the Stand Tall Vietnam Fund for
the events, in a fun, interactive, and creative manner, such as mini-basketball or ring-
throwing, etc.
Touching on the environment, 2019 marked the eighth year of ‘A Million Trees for
Vietnam’ Fund’s extensive journey to make Vietnam greener and fresher from north to
south, more than 171 thousand trees were planted in Ho Chi Minh City and Binh Dinh.
As of now, the program has plant over 851 thousand trees, equivalent to a total of VND
11 billion, in 41 locations of 18 provinces (Vietnam breaking News, 2019).
25
Vinamilk strategy will a more regular and friendly approach to the Thailand’s customer.
It will continuously have more community-oriented, education, environment program,
through other public relations such as sale person, direct marketing, etc... in this Market
which the company good at in Vietnam.
IV: Place
The products of Vinamilk are being distributed by Top Most Enterprise (TME) - a Thai
company distributing products in milk market with the 60 billion baht (1.7 billion dollar).
As a result. Vinamilk yogurt has been present at some modern retail chains in Thailand
such as Lawson convenience store system, The Mall and Foodland supermarket. Beside,
Vinamilk will develop the sale of products to customers directly by distributing products
to supermarket and convenience stores such as 7-Eleven, Circle K, and grocery stores on
the streets of Thailand. These locations often have many customers coming to buy fast
food or packaged foods, so this will be the most effective customer approach when
Vinamilk enters the Thailand market. Products will also be distributed to businesses in
the service industry such as hotels, restaurants in cities and tourist destinations
26
C: Marketing Plan Development
I: Pre-analytical issues
Situation analysis: Vinamilk has high-quality product and average cosumption of

Thailand is higher 2.23 times than Vietnamese ( equal 35l)
Objective d goals: Win the Thailand market and developping plan to gain the ASEAN
market of milk product.
Strategy and tactics: There are two important issues that firstly need to be decided to the
marketing strategy planning process: the scope of the plan and the time limit of the plan.
Planning marketing strategies focus on product line development and based on the
market and firm analyzes above. In the new market, company would define a strategy for
the product in order to meet the needs of the target market segments. Besides, company
have to obtain brand positioning strategy so that customers will be aware of trademarks in
the market.
In order to implement the strategy effectively, it is necessary to clearly define the

personnel, responsibilities and time to perform the work. Products are delivered to major
distributors who are important partners of Vinamilk. This is an advantage because the
distributor in the host country has had a close relationship with retailers. Second, the
company needs to have a specific plan for each sales department in supermarkets and
points of sale in the city.
Selecting models of entry: When penetrating into foreign markets, the company can apply
the mode of penetration is to produce under contracts. Milk is a agricultural product and
Vinamilk has had stability in Vietnam market. They has high requirements on product
quality and needs coordination in the value chain. With this model, the amount of milk
that will be exported to Thailand will retain the inherent quality and increase domestic
production. Milk is delivered to distributors in Thailand in accordance with the contracts
for sale of goods
Budgets: According to the near income statement,Vinamilk announces net sales of 56

300 billion dong in 2019 in Vietnam. When giving an effective budget for each business
activity, we capture the revenue of the business as the largest number. The budget for a
particular activity must be smaller than the revenue and less than the total cost. Net
income is 10 581 billion dong, therefor, the total cost of 45 719 billion dong. Therefore,
in new market, Vinamilk should estimates intended budget of 2 billion dong (86.120
USD)
27
Activities Cost
Television Commercials 500 million dong
Phase 1 Advertising on social 100 million dong
networks
Public relations 60 million
Offering product at the 70 million dong
Phase 2 scheduled location
Product Trial 55 million dong
Marketing and gift products 100 million dong
Distributed to business 200 million dong

locations
Phase 3
Event 500 million dong
Direct marketing 300 million dong
Total Budget 1,88 billion dong
II. Campain roadmap
Big idea : “ Drink cool, be cool ”

2.1: Phase 1. AWERENESS
2.1.1: Time
Time duration: 4 months ( from January,2022 to April,2022)
2.1.2: Objective
Awareness is the first step in the customer journey. The goal of this step is for
customers to know your brand and product. Or even provide information to make
customers aware of their problems.
2.1.3: Tactic ( Mass media)
 Using communication tools, Marketing helps you reach and customers

will know your products and services such as advertise on TV/radio,
online, etc.
 Get influencers to display your product.
28
Inviting influencers to promote Vinamilk's products is a great way to

increase brand awareness and hopefully boost sales. When established
influencers know and trust them, once they mention the product and
discuss the brand in their content, those mentions will expand the scope of
the company and Increase product awareness for potential customers.
To choose a celebrity to advertise my product in Thailand, I will focus on
actors, child models with gentle, pure, beautiful and lovely appearance.
 In addition to using celebrities to advertise our brands, we will maximize

Vinamilk's appearance in the media with promotional clips with the Thai
actors. Use banners, hashtags, and automated ads on Facebook or
Instagram.
2.2: Phase 2. TRUST
2.2.1: Time
Time duration: 4 months (from May, 2022 to August, 2022 )
2.2.2: Objective
The slogan "Drink cool, be cool". At this stage, the company promotes its
advertising network with several tactics, aimed at reaching customers and gaining
trust from them.
Today, milk is widely used around the globe with an extremely important role in
the addition of nutrients, energy to a reasonable daily diet as well as to enhance
health. The main product the company wants to bring to Thailand is liquid milk,
canned fresh cow's milk, which is available for a drink and ready to process.
On average, cow's milk contains about 4-5% lactose; 3.2% protein; 3-4% fat;
0.8% of minerals, and 0.1% of vitamins of all kinds, the remaining of about 87%
29
is water. (Ingredients and features in 100g of cow milk (source of

vinamilk.com.vn).
All countries in the world recommend adding milk in the daily diet, at least about
250ml, and at most about 750ml milk (United States) depending on age,
nutritional status, and economic situation family.
2.2.3: Tactics (Personal Selling)

The company will open product sales counters in major shopping centers,
supermarkets, and sky-train and subway stations. Places that can reach customers
quickly and directly. At this stage, the company will sell for a lower price than the
product that is distributed to retailers. The campaign mainly wants to give
customers a realistic view of the product.
30
In addition, the company's sales points will offer bonus items with Vinamilk’s
logo such as handheld fans, stickers, plastic water bottles (if customers buy 2 or
more milk blisters), baloons for children,etc.all with Vinamilk brandname.
The counters in the mall can offer trial products to customers who are walking
there. As a result, customers will have practical experiences about products and
trust in Vinamilk products in the next time.
Besides advertising via mass media, the company also needs to bring actual
products to customers. At small stall, sales staffs will provide additional flyers
with information about the company's products and retails address. After the
product trial, customers can go to the addresses provided and purchase. This
phase is an important step to encourage people to believe and use Vinamilk's new
products.
2.3: Phase 3. ENGAGE
2.3.1: Time and Place

Time: 4 months ( from September, 2021 to December, 2021)
Place: Some inquality school in Thailand, especialy in remote areas in where has
not enough accommidations. Futhermore, main centers or parks are also chosen
for the events such as Sathorn, Lumphini Park,etc.
31
2.3.2: Objectives:
Spreading the brand name of Vinamilk Vietnam to a huge number of children and
moms in Thailand and the value of company given.
Encouraging to a new trend drink milk.
2.3.3: Tactics: ( Direct Marketing)
 “ School milk”- community development (September and Octerber)

 Following the main mission of Vinamilk in Vietnam that makes the future
genderations will have better chances of physical and intellgence
development, it is continue to spead it in Thailand. The selected all remote
and improverished areas, in milk donatio events, besides delicious milk for
the kid’s enjoyement, there will free health check-up and nutritional
consulting services. Thailand’s children could also engage in different
games and activities which are impulse interative, creative, fun,etc.
 Moreover, Vinamilk will provied hundred of millions of yogust milk cans
for primary school childrents. Then, it will coporate to those school to sell
and supply milk for them.
32
 ‘Vinamilk day” (November and December)

 From Facebook, Instagram, ect...of Thailand’s celebrities whose post
inform the day event at main centers and parks with the hashtag “ drink
cool be cool”. Trial example and Gift voucher free milk will given when
people join the event.
 Inviting the famous singer, MC, in Thailand will perform at Vinamilk’s
gala night: Palmy,Poldee, etc
D: Implemention and control
Taking a jump to the Thailand market is playing an essential role in Vinamilk's

company’s plan. Regarding this campaign “drink cool be cool”, it aims to spread the
brand name to ASEAN and the world and slowly to win the market. It may gain a lot of
benefits:
 Spreading the brand name of Vinamilk to ASEAN customers and the world
 Creating a better image in the customer’s mind about Vietnam product
 Emphasizes the importance of milk product to our health
 Promoting a large amount of consumption.
However, this campaign has some drawbacks
 The budget expenses of this campaign are high (advertising, events, etc.)
 New entry market: nevertheless, Thailand is our neighborhood and we are
developing our strength, its consumer's habits are different from the home
country.
 Vinamilk is a company that is top of the bottom in the Vietnamese market. This
campaign helps Vinamlik maintain that position and reach out to new customers.
33
Because of the focus on customers in a new market of Thailand, Vinamilk will

probably attract a lot of customers from other areas
34
CONCLUSION
Vinamilk is the leading milk brand in Vietnam and has a position in many foreign
markets. This is consumer staples that necessary for everyone but Vinamilk still affirms
its competitive advantage in the market. Thailand is a country with a geographic, culture
and social factors quite similar to Vietnam so this is a potential market for business. The
strategy we present in the report is based on the underlying environmental factors of
Thailand market in order to meet the essential needs of the people. The one-year
marketing plan will help Vinamilk brand to be spread in Thailand, then the company will
gain more market share. Along with the high quality of its products, Vinamilk is able to
achieve its goal of being one of the most popular milk brands in Thailand.
35
REFERENCES
Agrinews.vn, June 19, 2019 “Vinamilk duy trì vị trí dẫn đầu thị trường sữa Việt Nam”
available from: <https://agrinews.vn/vinamilk-duy-tri-vi-tri-dan-dau-thi-truong-sua-
viet-nam/ >
Brandsvietnam, January 28, 2019, “Vinamilk và tham vọng 'đánh chiếm' các thị trường
nước ngoài”. Available from: <https://www.brandsvietnam.com/17629-Vinamilk-va-
tham-vong-danh-chiem-cac-thi-truong-nuoc-ngoai >
Statista Research Department, Apr 27, 2020, Demographics in Thailand - Statistics &
Facts. Available from: < https://www.statista.com/topics/5722/demographics-in-
thailand/#dossierSummary__chapter2 >
Wikipedia, “Geography of Thailand”. Available from :

<https://en.wikipedia.org/wiki/Geography_of_Thailand >
Vinamilk official website, July 04 2018, “Món quà sức khoẻ tuyệt vời từ thiên nhiên”.
Available from: < https://vinamilk.com.vn/sua-tuoi-vinamilk/vi/dinh-duong/mon-qua-
suc-khoe-tuyet-voi-tu-thien-nhien/ >
“Thailand Environment Monitor 2006, Executive Summary: Blue Waters in Peril” (PDF).
World Bank.
“Chapter 1 Overview of Environmental Issues and Environmental Conservation Practices
in Thailand”. Overseas Environmental Measures of Japanese Companies (Thailand)
(PDF). Ministry of the Environment, Government of Japan. March 1999. “Government
Policies Pertaining to the Manufacturing Sector”. Thailand Gateway.
Bangkok Post 2019, Corruption rises in Thailand, global watchdog says. Available
from:https://www.bangkokpost.com/thailand/general/1619930/corruption-rises-in-thailand-
global-watchdog-says
World Bank 2020, Thailand Overview. Available from:

<https://www.worldbank.org/en/country/thailand/overview >
World Bank 2020, Vienam Overview. Available from:

<https://www.worldbank.org/vi/country/vietnam/overview >
VnEconomy 2019, Nền chính trị phức tạp của Thái Lan qua những con số. Available
from: <http://vneconomy.vn/nen-chinh-tri-phuc-tap-cua-thai-lan-qua-nhung-con-so-
20190318123107936.htm >
Howandwhat 2019, PESTEL analysis of Thailand. Available from:<

https://www.howandwhat.net/pestel-analysis-thailand/ >
Wikipedia, “Kinh tế Thái Lan”. Available from:

<https://vi.wikipedia.org/wiki/Kinh_t%E1%BA%BF_Th%C3%A1i_Lan>
36
Dairyvietnam, Chăn nuôi bò sữa tại Thái Lan. Available from:

<https://www.dairyvietnam.com/vn/Giai-phap-cho-ho-nong-dan/Chan-nuoi-bo-sua-thai-lan-
932.html >
Vneconomy, Đẩy mạnh xuất khẩu sữa Việt sang Thái Lan khi thuế về 0%. Available
from: <http://vneconomy.vn/day-manh-xuat-khau-sua-viet-sang-thai-lan-khi-thue-ve-0-
20180419133058101.htm >
NDH, January 31, 2020, “Vinamilk báo lãi 2019 đạt 10.554 tỷ đồng, hoàn thành kế hoạch năm”
Available from < https://ndh.vn/ket-qua-kinh-doanh/vinamilk-bao-lai-2019-dat-10-554-ty-
dong-hoan-thanh-ke-hoach-nam-
1262398.html#:~:text=C%C3%B4ng%20ty%20s%E1%BB%AFa%20Vi%E1%BB%87t%20Nam,10%2
5%20l%C3%AAn%2014.239%20t%E1%BB%B7%20%C4%91%E1%BB%93ng.&text=C%E1%BA%A3
%20n%C4%83m%2C%20Vinamilk%20%C4%91%E1%BA%A1t%2056.318,l%E1%BB%A3i%20nhu%
E1%BA%ADn%20n%C4%83m%20%C4%91%E1%BB%81%20ra.>
37
PRODUCTIVITY AND TEAMWORK
GROUP MEMBERS CRITERIA PRODUCTIVITY NOTE AND COMMENTS

(100% per
member)
-SWOT analysis -Delegate tasks and set deadlines
-Marketing mix -Actively take part in in all
-Pre-demonstrates meeting
Giang Thu Huyền 100% -Had suppoting ideas
(Leader) marketing plan
-Actively take part in in all
17071083 -Implementation
meeting
and control
-Report
-Company review
Nguyễn Thị Linh -Mission, vission, 100% -Responsible for competing the
17071108 core value assiged part.
-Product porfolio
-Good suporting ideas
-Good organizing the report.
Phạm Tường Vi -STP analysis 100% -Actively paticipate in group’s
17071215 -Marketing mix meeting
-Report -Had suppoting ideas.
-Take key task note
-Have responsibility for her own
Đào Chí Công -Micro and Macro part.
17071035 analysis 90% -Good supporting ideas.
-However, sometimes, late group
meeting and deadline.
38

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INS3042.Vinamilk International Marketing Plan

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INTERNATIONAL MARKETING INS3042

Instructor: Mrs.Pham Thi Liên

Giang Thu Huyền ( Leader) - 17071083

Nguyễn Thùy Linh - 17071108

Phạm Tường Vi – 17071215

Đào Chí Công - 17071035

A: Preliminary analysis and screening

II: Mission, Vision, Core Value

2.3: Core value

 Integrity; transparency and morals can be found in whatever we do

III: Product porfolio

3.2: Powered milk for children and adults

3.3: Baby cereal

3.4: Eating yogurt

3.5: Drinking yougurt

3.6: Energy and bevarages

3.7: Condensed milk and ice-cream

IV: Macro economic

3.1: Home country

3.2: Host country (Thailand)

Thailand is a nominally constitutional monarchy. It is also a parliamentary democracy.

The total population of Thailand, as of December 2019, is around 69 million. There is no

Thailand is gradually becoming a technologically advanced country. The government

5.1: Threat of new entry

5.2: The bargaining power of suppliers:

5.3: The bargaining power of buyers:

5.4: The threat of substitutes:

5.5: The threat of rivals:

6.1.2: Diversity of product category

6.1.3: Effective strategy of promotion

Vinamilk has been implementing its effective strategy of promotion, advertising,

6.1.4: High knowledgeable human resources

6.2.2: Competitive market

6.3.1: Positive trend of customer toward milk and yogurt usage

6.3.2: The rival is weakening due to the product quality

VII: STP analysis of Vinamilk in ThaiLand

7.1.1: Demographic segmentation

7.1.2: Geographic segmentation

7.1.3: Psychographic segmentation

7.1.4: Behavioral segmentation

7.2: Targeting Customers

1.1: Cataloge and features

1.2: Pakaging and labeling

1.3: Brand name

1.5: Research and develoment

3.2: Public relation

C: Marketing Plan Development

Situation analysis: Vinamilk has high-quality product and average cosumption of

In order to implement the strategy effectively, it is necessary to clearly define the

Budgets: According to the near income statement,Vinamilk announces net sales of 56

Distributed to business 200 million dong

Direct marketing 300 million dong

Total Budget 1,88 billion dong

II. Campain roadmap

Big idea : “ Drink cool, be cool ”

 Using communication tools, Marketing helps you reach and customers

Inviting influencers to promote Vinamilk's products is a great way to

 In addition to using celebrities to advertise our brands, we will maximize

2.2: Phase 2. TRUST

is water. (Ingredients and features in 100g of cow milk (source of

2.2.3: Tactics (Personal Selling)

2.3: Phase 3. ENGAGE

2.3.1: Time and Place