486 Asm2 Groupa

ASSIGNMENT 2 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 2. Marketing Essentials
Submission date Date Received 1st submission
Re-submission Date Date Received 2nd submission
Student names & codes Final scores Signatures
1. Luu Thi Thuy Hien-GBH200860
2. Duong Thien Minh- GDH200165

Group number:
3. Nguyen Thi Phuong Thanh- GBH200856
4. Pham Tuan Linh- GBH200838
5.Luong Binh Minh- GBH200239
Class GBH1005 Assessor name Tung Dang
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that making a false declaration is
a form of malpractice.
P3 P4 M3 M4 D2
OBSERVATION RECORD
Student 1 Luu Thi Thuy Hien
Description of activity undertaken
Situation Analysis: 3, Competition Analysis (product, price, place, people)
V, 2, Marketing Mix (people, price, product, place )
Assessment & grading criteria
How the activity meets the requirements of the criteria
Student
Date:
signature:
Assessor
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signature:
Assessor
name:
Student 2 Duong Thien Minh
Situation Analysis: 3, Competition Analysis; (process, promotion, physical evidence )
2, Marketing Mix (Promotion, process, physical evidence)
Action Program
Budget
Conclusion
Student
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signature:
Assessor
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signature:
Assessor
name:
Student 3 Nguyen Thi Phuong Thanh
Executive Summary
Situation Analysis
2, Marketplace Information
4, Consumer Analysis
Marketing Strategies:
1, Segmentation, targeting, positioning and differentiation:
Student
Date:
signature:
Assessor
Date:
signature:
Assessor
name:
Student 4 Pham Tuan Linh

III, Situation Strategies:
1, Marketing Environment and the impact on Business Activities:
Control
Student
Date:
signature:
Assessor
Date:
signature:
Assessor
name:
Student 5 Luong Binh Minh

5, Company’s internal capabilities (SWOT analysis and Competitive advantages):
Marketing Campaign Objectives and Issues:
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signature:
Assessor
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signature:
Assessor
name:
 Summative Feedback:  Resubmission Feedback:
Grade: Assessor Signature: Date:

Internal Verifier’s Comments:
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I, Executive Summary:
Vietnam Dairy Products (Vinamilk) is Vietnam's largest food processor and deals in a wide variety of dairy products, including milk
and yogurt. It is said to account for about 50% of Vietnam's dairy market. The company was founded in 1976 and went public on
the Hochiminh Stock Exchange in 2006. Headquarter: 10 Tan Trao Street, Tan Phu Ward, District 7, HCMC. Tel: (84-8) 54 155
555. Fax: (84-8) 54 161 226. Email: vinamilk@vinamilk.com.vn. Vinamilk is currently the leading nutrition company in Vietnam and
in the Top 50 largest dairy companies in the world in terms of revenue. Vinamilk's diversified and high-quality nutritional products
are always trusted by domestic and foreign consumers.
Currently, on the market there are many companies in this industry such as TH True Milk, Dutch Lady, Nutrifood, etc. However, the
innovations and diversity we bring are the difference that makes Vinamilk today. Due to the increasing demands of customers,
businesses always try to create a variety of products. With today’s marketplace, the dairy industry is very popular all around the
world and expected to increase to more than 1 thousand billion dollars by 2024. It facilitates business development and expansion.
The company’s main products are fresh milk, yogurt, juice, ice cream, powdered milk, and cheese. Each product has a separate
segment depending on the needs of consumers and the function of the product. As a Marketing team working for Vinamilk, after
researching the market and understanding the needs of the set objects, make a marketing plan, we have launched a new product
line called Vfresh+. The inspiration to create them is the love of fruits and their special taste. Besides, understand the needs of
customers for increasing nutrients for the body even for refreshment. Products with differences in both quality and service such as
production, raw materials, packaging, and quality.
Our target market is 5-14 years old because this age is in need of nutrients to grow and has a middle-income level to make our
products more accessible to consumers. High urban population density makes it easy to distribute products, and people with higher
income in the market tend to use more products for their families. Besides, this new product has a relatively low price because the
target customer segment is middle-income but the quality is not inferior to other products on the market. Not only that, Vinamilk’s
position is leading in many aspects. About the differentiation, business makes a difference from raw materials, quality,
taste, packaging, and even design. Furthermore, services are also a highlight for development.
Moreover, with specific objectives such as details about sales, interactions, visits, and market expansion along with issues
encountered, we plan to do a marketing campaign through direct selling and social media marketing as well as the "anti-epidemic"
message of Vinamilk, or collect milk cartons to exchange gifts with sales agents and then directly transfer to the company to collect
the sales proceeds to donate to the Covid-19 charity fund supporting the spirit of anti-epidemic with the government and society.
Our marketing budget for this project is about 60 billion allocated for direct marketing activities as well as on the online platform.
The marketing department has developed a marketing plan that will help quickly reach the key stakeholders of the dairy industry.
Specifically, the marketing system creates strategies from advertising and communication channels, combined with the difference
to help products get closer to consumers.
With missions “Vinamilk is committed to providing the community with top quality and high-quality nutrition with its own respect, love
and high responsibility for human life and society” (Vinamilk annual report, 2020). Businesses hope to have satisfaction according
to customer demands and expectations, which means understanding how users want. Thereby creating a trust for customers and
bringing profits to the company.
Contents
I, Executive Summary:.................................................................................................................................................................................................. 8
II, Situation Analysis:.................................................................................................................................................................................................................... 12
1, Marketing Environment and the impact on Business Activities:..........................................................................................................................................12
1.1, Micro Environment:...................................................................................................................................................................................................... 12
1.2. Macro environment:..................................................................................................................................................................................................... 15
2, Marketplace Information:.................................................................................................................................................................................................... 19
3, Competition Analysis:.......................................................................................................................................................................................................... 21
3.1, Product:........................................................................................................................................................................................................................ 21
3.2, Price:............................................................................................................................................................................................................................. 22
3.3, Place:............................................................................................................................................................................................................................ 22
3.4, People:.......................................................................................................................................................................................................................... 23
3.5, Promotion:.................................................................................................................................................................................................................... 23
3.6, Process:......................................................................................................................................................................................................................... 24
3.7, Physical evidence:......................................................................................................................................................................................................... 25
4, Consumer Analysis:.............................................................................................................................................................................................................. 25
4.1, Customer Segmentation:.............................................................................................................................................................................................. 25
4.2, Customer Trend:........................................................................................................................................................................................................... 26
5, Company’s internal capabilities (SWOT analysis and Competitive advantages):.................................................................................................................27
III, Marketing Campaign Objectives and Issues............................................................................................................................................................................ 33
1, Objectives:........................................................................................................................................................................................................................... 33
2, Issues:.................................................................................................................................................................................................................................. 36
V, Marketing Strategies:.............................................................................................................................................................................................................. 37
1, Segmentation, targeting, positioning (including a positioning map) and differentiation strategies of your company........................................................37
1.1, Segmentation:.............................................................................................................................................................................................................. 37
1.2, Targeting:.................................................................................................................................................................................................... 39
1.3, Positioning:................................................................................................................................................................................................................... 40
1.4, Differentiation:............................................................................................................................................................................................................. 44
2, Marketing mix of Vfresh+:................................................................................................................................................................................................... 45
2.1, Product:........................................................................................................................................................................................................................ 45
2.2, Price:............................................................................................................................................................................................................................. 46
2.3, Place:............................................................................................................................................................................................................................ 47
2.4, People:.......................................................................................................................................................................................................................... 48
2.5, Promotion:.................................................................................................................................................................................................................... 48
2.6, Process:......................................................................................................................................................................................................................... 49
2.7, Physical evidence:......................................................................................................................................................................................................... 50
V, Action Program:....................................................................................................................................................................................................................... 52
VI, Budget:................................................................................................................................................................................................................................... 54
VII, Control:.................................................................................................................................................................................................................................. 54
VIII, Conclusion:........................................................................................................................................................................................................................... 56
REFERENCE LIST:.......................................................................................................................................................................................................................... 56
II, Situation Analysis:
1, Marketing Environment and the impact on Business Activities:
1.1, Micro Environment:
1.1.1, Customers:
According to Vinamilk's annual report (2020), the company targets children under the age of 14 whose parents are from the middle
class. These children demand healthy products for their physical and intellectual development whereas today their parents place
their health at the forefront of their 3 concerns. Because all products are functional foods intended for the exceptional development
of children, height and weight are the most obvious expressions that Vinamilk wishes to bring. Targeting children under the age of
14 is a whole world strength of Vinamilk. It is a potential market with a very high consumption rate. In addition, their parents are
eager to get up, to become more precious when shopping. According to the development strategy that Vinamilk set itself from the
first steps, by 2020, it is really almost ready, especially in terms of quality to satisfy customers.
1.1.2, Company:
According to Vinamilk's annual report (2020), Vietnam Dairy Products Joint Stock Company will maintain its number one position in
the Vietnamese market. With more than 43 years of establishment and development, with the courage to innovate mechanisms,
embrace the application of new technologies, demonstrate bravery, promote the creativity and dynamism of the collective, Vinamilk
has risen and become a bright economic enterprise in Vietnam. WTO integration. Vinamilk has become one of the leading
companies in Vietnam in all aspects, making great contributions to the development of the country and Vietnamese people. In
recognition of her great contributions to the development of Vietnam's dairy industry as well as the country's economic
development, Ms. Mai Kieu Lien, President and CEO of Vinamilk was honoured to receive noble titles in the 50 influential
businesswomen of the Asia-Pacific region and in 2019 are the 50 most influential women in Vietnam. Under her leadership,
Vinamilk has gradually reached the outstanding success it is today. From the first days of its creation, Vinamilk has always strived
to provide optimal nutritional solutions, adapted to the health of Vietnamese. To meet the growing needs of consumers,
Vinamilk constantly improves product quality, improves designs, regularly introduces new products to the market that bring more
added value to consumers. Currently, Vinamilk's whole liquid milk industry continues to maintain its leading position in the domestic
market with over 50% market share (P, 2017).
The success of the company today cannot be ignored without mentioning Vinamilk's professional and experienced staff, which is an
important factor in helping the company develop sustainably throughout the process from its establishment to the present. Success
in producing quality products allows the company to offer more options to meet the growing needs of its customers. Significant
investment in this segment helps Vinamilk grow sales sustainably. Vinamilk has always been transparent about its business
operations and financial statements showing a stable financial position. These two factors help the company build long-term
relationships with investors (Vinamilk, 2020).
1.1.3, Supplier:
Developing dairy material areas for industrial production is a key strategy of Vinamilk. Recently, Vinamilk inaugurated the 12th farm
in Tay Ninh with the model of "resort" to raise dairy cows, pioneering the application of all 4.0 technology in management and
breeding. This dairy "resort" is also a member of the largest Vinamilk farm system certified to meet Global Good Agricultural
Practices (Global GAP) standards in Asia. Currently, the total herd of dairy cows Vinamilk is managing and exploiting is about
130,000 heads (including from 12 Vinamilk farms and farmers who have contracts to supply raw milk to Vinamilk under the
supervision of husbandry techniques and inspection milk quality according to Vinamilk's standards). With the above resources,
Vinamilk can produce an average of 9,501,000 tons of raw milk per day, equivalent to about 5.5 million cans of fresh milk per day
(180 ml cans). Vinamilk's 12 farms across the country are built to international agricultural standards, 10 of which are built to Global
GAP standards, with all cows imported from Australia, the United States and New Zealand. Zealand and 2 dairy farms according to
European organic standards. Globally recognized dairy farms enable the company to provide consumers with products that meet
international standards. Upon completion of the domestic raw materials area, Vinamilk will reduce dependence on international
sourcing, so that it is less sensitive to abnormally high fluctuations in exchange rates. Cows imported from abroad allow companies
to produce high-quality raw milk. These dairy farms allow the company to offer products at very competitive prices. In
addition, the domination of the national supply gives Vinamilk great pricing power, allowing the company to offer products at very
affordable prices. Indeed, Vinamilk is one of the milk brands with very good quality, reasonable price, suitable for most households
across the country (B, 2019).
1.1.4, Competitors:
Because Vinamilk is at location number 1 at the market in Vietnam and the process to the item becomes 1 in Top 30 Top of The
Big Milk In the world of revenue, competition is impossible and even fierce. Vinamilk is the leading brand in the Vietnamese dairy
industry with a market share of 43.3% (Mai, 2021). However, you are facing increasing competition with different competitors.
Although Vinamilk has a leading position in the field of milk powder, it faces many difficulties due to smaller competitors such as
Nutifood, Dutch Lady and TH true Milk, but VitaDairy has launched new products. Specifically, although it is Vinamilk in the milk
powder field, NutiFood and VitaDairy are gaining a good market share due to their unique and average price that is 10-15% lower
than their competitor’s Milk powder market. In addition, many smaller dairy companies such as Abbott, Friesland Campina, Mead
Johnson, Nestlé and other international dairy companies have good marketing, research and product development capabilities.
Therefore, these companies are always a threat to competition with Vinamilk. The fierce competition in the dairy industry is a huge
threat and may lead to serious deficiencies in Vinamilk. Due to the wide variety of dairy products, Vinamilk's income may decline. It
is also difficult for companies to maintain loyal customers. The increase in the number of foreign brands means that Vinamilk may
be robbed of market share by more competitors.
1.1.5, Marketing intermediaries:

According to Vinamilk’s annual report 2020, Vinamilk has a wide distribution network at home and abroad. There are 243
distributors, 212,000 retail outlets, present in 1,609 large and small supermarkets and more than 575 convenience stores
nationwide, appearing in over 40 countries, more than 18,000,000 Vinamilk products are consumed every day. The strong
distribution network is one of Vinamilk's strongest advantages compared to competitors. It helps businesses get products to end
consumers in a timely manner.
In addition, for its 100% fresh milk product, Vinamilk has joined with benefactors to carry out many donations and charity
campaigns to children in remote areas and difficult households in the situation of covid 19 happenings. Thereby, strengthening
Vinamilk's image to the public as a reliable healthy brand.
1.1.6, Public:
Not only is Vinamilk committed to its own sustainability, but Vinamilk is also dedicated to the sustainable development of society.
The company has organized strategic action programs for the people with the goal of socialization such as the "Vietnam Tall Mine"
Milk Fund, the Vinamilk Scholarship Fund, and the young Vietnamese talent germ. The 6-year journey of the Milk Fund has
contributed to giving hundreds of thousands of children the opportunity to use milk more often to improve their physical and mental
health, contributing to their health. to more than 310,000 children in difficult circumstances in Vietnam, up to now, nearly 23 million
glasses of milk, equivalent to about 84 billion VND In 2010, "Vietnam High Milk Fund" was honored to be voted as "one of the top
10" typical program of the Labour, Invalids and Social Affairs sector". The scholarship fund was established in 2003 and has helped
many young mountainous people with difficult circumstances to go to school and partly because of their family circumstances.
supporting themselves with the dream of going to school to change their schooling life. Thanks to such meaningful programs,
Vinamilk has built an emotional connection with the public. Indeed, Vinamilk has a reputation as a real business responsible to the
business and also has a great responsibility to the community (Vinamilk, 2021).
1.2. Macro environment:
1.2.1: Demographic environment:

According to the World bank 2021, Due to deep economic integration, the Vietnamese economy has been hit hard by the COVID-
19 pandemic but has also shown considerable resilience GDP growth is estimated at 2.9% in 2020. Vietnam is one of the few
countries in the world to have positive economic growth, but the pandemic has left lasting impacts on households. The income of
about 45% of households surveyed decreased in January 2021 compared to January 2020. The economy is expected to grow by
6.6% in 2021 if Vietnam controls the spread of the virus well. At the same time, export-oriented manufacturing industries performed
well and domestic demand recovered strongly. Vietnam is experiencing rapid changes in population and social structure. Vietnam's
population reached 96.5 million people in 2019 (up from about 60 million people in 1986) and is expected to grow to 120
million people by 2050. According to the results of the 2019 Vietnam census, 55.5 % of the population is under 35 years old with an
average life expectancy of almost 76 years, which is higher than in comparable income countries in the region. But the population is
ageing rapidly. The middle class is growing - it now represents 13% of the population and is expected to reach 26% by 2026. These
statistics are very important for dairy companies like Vinamilk. Because Vinamilk products hold a significant market share in this
division. Indeed, because young populations are more educated and more receptive to Western cultures, they tend to consume
more dairy products. According to "Thời báo ngân hàng": In 2018, the total turnover was estimated at 109 trillion VND, reaching a
growth rate of 9% compared to 2017. During the period 2010 - 2018, the average growth rate of Total dairy industry turnover
reached 12.7% per year, with the highest growth rate for food products of animal origin. As children are Vinamilk's most important
and potential audience, this helps us see more and more demand from the company's market. Although Vietnam's urban
population is small, this is not the company's limitation. Companies are promoting and distributing more products in rural and
remote areas to raise awareness of the health value of dairy products. Depending on how the brand is promoted as well as the
types of funds, the demand for milk in the countryside is actually increasing (Linh, 2019).
1.2.2: The economic environment:

The development of Vietnam over the past 30 years is remarkable. Economic and political reforms since 1986 have spurred
economic development, rapidly transforming Vietnam from one of the poorest countries in the world to a low-income country. From
2002 to 2018, GDP per capita increased 2.7 times, reaching over $ 2,700 in 2019, with more than 45 million people escaping
poverty. The poverty rate has fallen sharply from over 70% to less than 6% ($ 3.2/day at purchasing power parity). Most of the
remaining poor in Vietnam are ethnic minorities, accounting for 86% (Linh, 2019). This has greatly increased the purchasing power
of the Vietnamese people. A healthy market, higher incomes and increased consumer confidence are leading to significant
changes in consumption trends. Vinamilk's main product is liquid milk and ranks second in the group of nutritional products with the
fastest growth. With the increasing demand for high-quality milk, Vinamilk has also been certified by the British Retail Organization
for food safety standards and ranked in the top 10 high-quality Vietnam products, High-quality Vietnamese Goods
Association 1995 - 2020. Thanks to that, Vinamilk has excellent opportunities to increase sales and expand markets (Vinamilk,
2021).
1.2.3: The nature environment:

Because most of the territory is hilly areas located near the equator, so Vietnam is an ideal country to raise cows and grow a variety
of crops. Thanks to these favourable natural conditions. Vinamilk has been instrumental in the construction. Up to now, Vinamilk
has had 12 large-scale farms, with a total of over 150,000 dairy cows managed and operated, helping to supply the market. more
than 1000 whole milk per day. Sometimes there are still many uncertainties in livestock production, but thanks to the application of
technology and methodical investment, the energy and milk quality of Vinamilk dairy cows are increasingly improved. Well
developed technology. Covering application devices with developed countries in the world. Tay Ninh Dairy Farm (TTBS) is the
representative image of Vinamilk's consultant, helping to shape the TTBS model that meets international high-tech standards.
Locally, the hot and humid climate is not favourable. implement a range of responsible environmental measures. All product
packaging is used for recycling. The construction of beef cattle farms provides Vinamilk with cheap raw materials, thereby reducing
dependence on foreign supplies. In fact, Vinamilk is a pioneer in developing the raw material industry in Vietnam. Developing
material areas is a sustainable strategy of the Company. Vinamilk has been and continues to promote the company's brand.
Making companies more responsible for the environment and educating consumers (B, 2020).
1.2.4: The technology environment:

Because most of the territory is mountainous, plus the geographical position is located on the same equator, Vietnam is an ideal
country to raise cows and grow a variety of trees. Since then, Vinamilk has contributed to the construction, so far Vinamilk has
owned 12 large-scale farms, with a total herd of dairy cows managed and operated over 150,000 heads, helping to supply the
market more than 1000 whole milk per day. Sometimes there are many uncertainties in breeding, but thanks to the application of
technology and methodical investment, the energy and milk quality of Vinamilk's dairy herds have been improved. Well developed
technology. Covering application devices with developed countries in the world. Tay Ninh Dairy Farm (TTBS) is the representative
image of Vinamilk's consultation, helping to form the TTBS model of international high-tech standards. The locality has
unfavourable hot and humid climate conditions and takes a series of environmentally responsible actions. All product packaging is
made for recycling. The construction of beef cattle farms provides Vinamilk with cheap raw materials, reducing dependence on
foreign supplies. Indeed, Vinamilk is a pioneer in developing raw material areas in Vietnam. Developing raw material areas is a
sustainable strategy for the company. Vinamilk has always strengthened its brand image as an environmentally responsible
enterprise and increased consumer awareness (Ngoc, 2016).
1.2.5: The political environment:

According to Dairy Vietnam 2017, the political environment in Vietnam also contributes to a very important factor affecting Vinamilk.
After Vietnam's participation in ASEAN and the WTO, the needs and perception of Vietnamese people have had a big change in
imported goods. Making Vietnamese people think that they should integrate the habit of drinking milk because of criteria such as
supplementing nutrients, increasing height for countries whose average height is not as tall as their own. Thanks to this integration,
domestic and foreign milk production have been consumed in increasing quantities and constantly increasing in recent years. But
facing the integration trend has created important challenges important to Vinamilk. The fact that Vietnam has become a member of
world organizations and the removal of tax rates on foreign dairy products has created favourable conditions for foreign dairy
brands to enter the Vietnamese market. Therefore, Vinamilk will face stiffer competition and may lose market share to global
brands. However, when Vietnam becomes a member of WTO and ASEAN, Vinamilk can build processing facilities in neighbouring
countries, thereby reducing production costs companies in Vietnam experienced an economic decline because Vietnamese people
prefer to import goods, on July 31, 2009 the government propagated to increase the average height across the country, leading to
an increasing opinion that "Nguoi Viet Nam uu tien dung hang Viet Nam". This is a favourable condition for domestic enterprises
like Vinamilk to compete with foreign brands. For Vinamilk, this is also an opportunity to cooperate with government agencies to
carry out corporate social responsibility campaigns and strengthen the brand image as a responsible entity. It can be said that the
support of the Government has facilitated many projects of Vinamilk, including those related to businesses and the community (V,
2020).
1.2.6: Cultural environment:
In the cultural environment in Vietnam, there is a huge barrier for Vinamilk. Regarding the habit of drinking milk, Vietnamese people
still do not have the habit of drinking liquid milk as often as the West, only half of Thailand and 1/3 of Singapore. Milk consumption
in Vietnam is very low compared to other countries at only 15 litres per person per year, half of Thailand, a third of Singapore and
far below the consumption of 300 litres in Europe. This is probably because Vietnamese people think that liquid milk is a product
only for children. But facing the data that 25% of Vietnamese children under 5 years old are malnourished and stunted.
Micronutrient deficiencies (iron, zinc, vitamins A, D…) are common. The height of Vietnamese people is about 10cm lower than in
the world. The rate of malnutrition in inpatients is up to 30-50%. These models have some influence on Vinamilk. The fact that
Vietnamese adults do not drink milk regularly means that Vietnamese families are not familiar with the habit of drinking milk;
therefore, the milk consumption of Vietnamese children cannot be as high as that of children in other countries. Therefore, buyers'
confidence in dairy products cannot be as high as expected. Facing that view, Vinamilk has increasingly increased the quality of its
dairy products in order to enhance the nutrients contained in milk, suitable for potential customers who are children. In the field of
consumer psychology, the company has been building trust in trusted brands to compete with global competitors (San, 2016).
2, Marketplace Information:
According to Shahbandeh (2021), dairy products are now popular all around the world. When it comes to processing, fermenting,
and digesting dairy products, there has been an enormous amount of invention and innovation throughout the last several
millennia. The global dairy industry was valued at around 720 billion US dollars in 2019, and it is expected to increase to 1,032
billion dollars by 2024. To begin, consider the prospects for the milk market. The great majority of dairy products are manufactured
with cow's milk in terms of production. India has the most milk cows of any country, with 56.5 million cows, yet Europe is the world's
largest producer of cow milk, followed by the United States and India.
Besides, total milk production forecasts for 2020 have been rising, with some expecting more cows in the fourth quarter
and higher milk per head. USDA's ERS has estimated total milk output for 2020 at 222.5 billion pounds, up 0.2 billion pounds from
its October forecast (Olynk-Widmar, 2020).
Businesses are constantly investing in the renovation of equipment to improve productivity and enhance quality to meet domestic
demand. Many large enterprises like Vinamilk, TH True Milk and Nutrifood have set up large-scale milk processing plants. More
specifically, according to the latest Euromonitor data by the end of 2019, the per capita milk consumption in Vietnam reached 21.8
kg, 18% lower than the average 26.7 kg of certain neighbouring countries in Asia. The income gap between Vietnam and the
compared countries is the main cause of the disparity in milk consumption. Therefore, forecasts that Vietnam's economy will reach
a growth rate of 6.5-7.5%/year by 2030 (World Bank), along with the increasing awareness of consumers about the importance of
beneficial foods for health, will be a key foundation for the dairy industry to continue its growth in the medium and long term (annual
report, 2020).
About the total revenue and profit of the business: In 2020, Vietnam’s dairy industry had negative growth of -6% (AC Nielsen) as
32.1 million people nationwide were negatively affected by the Covid-19 pandemic and the average income of employees was
down 2.3% compared to 2019 (GSO). Vinamilk's business results in 2020 recorded growth in both revenue and profit, with
consolidated net revenue and net profit after tax reaching VND 59,723 billion and VND 11,235 billion respectively, increasing by 6%
and 6.5% respectively from the previous year (annual report, 2020). In short, according to a survey among Vietnamese consumers,
the majority of respondents chose Vinamilk as their top-of-mind company due to its price, quality and brand awareness. Vinamilk is
a leading dairy company in Vietnam and generated total revenue of approximately 52.63 trillion.
3, Competition Analysis:
In this industry, there are already many other competitors with a very high level of recognition in the consumer community. The
detailed analysis below will indicate the strengths and weaknesses of our competitors so that we can have a suitable strategy to
develop favourable products and compete with competitors.
3.1, Product:
The strongest rival to Vinamilk is the "domestic product" TH True Milk was born in 2008 and entered the market in 2010. The core
value of TH True Milk's products is completely natural and nutritious products (TH True Milk, 2021). In the product portfolio of TH
True Milk, dairy products are the main products of TH True Milk such as pasteurized fresh milk, nut milk, natural yoghurt, drinking
yoghurt, etc. In addition, there are other products made from milk such as butter and cheese to daily snack products such as soft
drinks or ice cream (TH True Milk, 2021). "TH's products always ensure the criteria of being fresh, clean, keeping the essence of
nature intact, meeting international quality standards, giving consumers the best experience with the product line. Premium quality
is not only delicious but also nutritious and has outstanding benefits for health” (T, 2020). Besides the decisive factor is the quality
of input materials, the application of modern production and packaging technology is also a factor that brings clean fresh milk cans
that not only protect the product inside but also help keep the milk fresh. Maximize the nutrients and natural flavors of the product.
All packages of TH True Milk are packed in 6-layer sterilized paper packaging to help prevent light and harmful bacteria from
entering, avoiding rapid deterioration of the product, so that the product arrives. from TH True Milk brand are stored at room
temperature for 6 months and do not use preservatives. Previously TH True Milk used the packaging of Tetra Pak Sweden.
However, with increasing consumer demand to ensure the supply of packaging for dairy factories to meet consumer demand. TH
True Milk has used additional packaging. Combibloc Germany is also one of the leading technology and packaging suppliers. TH
True Milk only focuses on producing pasteurized fresh milk, drinking water, and ice cream. With the core product of TH True Milk,
the actual product design is still faithful to the combination of white and light blue. Overall, famous companies could be successful
and have a huge impact on people with their brand logo and design.
3.2, Price:
For the Vietnamese market, when TH True Milk hit the market, Vinamilk's dairy products dominated. Therefore, TH True Milk's
pricing strategy is to price the product as high as possible. With this strategy, TH True Milk has positioned their brand as a high-end
product line, aimed at well-off families. This feature of the product aims to hit the consumer's psychology that "the higher the price,
the better the product quality". Therefore, TH True Milk's dairy products are priced higher than the average milk market. TH True
Milk's "skim" strategy has helped businesses not only ensure profits but also position high-priced but quality products in the minds
of customers. Contrary to TH True Milk's high price strategy, Vinamilk offers a reasonable price that is affordable for the majority of
consumers. Currently, because the Vietnamese market has too much competition in the dairy industry and Vietnam's per capita
income is still quite low compared to other countries, the company still chooses a low selling price strategy despite the quality of its
dairy products of Vinamilk being taken from international standard farms.
3.3, Place:
Milk is an FMCG item for consumers, so it is essential to ensure a ubiquitous presence that is easily accessible to consumers. The
distribution system of TH True Milk is the company's vertical distribution (Corporate VMS). The company is TH who is responsible
for doing everything related to their products. Enterprises design and manufacture products. These products are transferred to
specialized distribution companies owned by TH, which re-issue their own system of retail stores nationwide (TH True Mart). They
do not need to depend on anyone else to manufacture and distribute their products, but because of the large scale of the system,
they sometimes authorize a number of distributors outside of their system in the country-specific areas such as supermarkets or
retail systems.
The direct distribution channel of that business is the distribution store chain TH True Mart. Up to now, TH True Milk has had nearly
300 distribution stores stretching from North to South (TH True Milk, 2021). Each store has a system of modern equipment and
food preservation, beautifully decorated to help build a good image in the eyes of customers. In addition to the direct distribution
channel, TH True Milk also uses indirect distribution channels, which are supermarkets, retail stores, convenience stores, etc. In
addition, the company also distributes products through channels. online on the company's website to better reach users.
Home delivery service and payment after receiving the goods are applied nationwide.
3.4, People:
Currently, TH Group has about 6,500 employees nationwide and this number will increase as they grow in size in the future.
Besides, TH owns the leading modern and automated dairy farm in Asia with 45,000 cows, including about 22,000 dairy cows and
provides the market with 600 tons of fresh milk per day. Now, TH Group has expanded the project to countries such as Russia,
China, the US and Cambodia (T, 2018). The strategy for TH True Milk to have a quality human resource team as it is now is that
the company instead of manually managing human resources by timekeeping method like most other businesses, has invested in
the system. SAP SuccessFactors, a human resource management solution with integrated social networking and collaboration
tools. Along with the management and training system, accompanied by performance management, recruitment - training -
fostering of staff, human resource management and analysis of human resources indicators. It is thanks to SAP that TH True Milk
owns a high-quality human resources team (T, 2018).
3.5, Promotion:
In advertising strategy, TH True Milk has used sales promotions to attract customers' attention with great value rewards. To show
gratitude to customers who always trust in using products, TH Group launches the promotion program "Natural Energy - Win more
than 500,000 prizes" nationwide, offering the opportunity to win more than hundreds of thousands of prizes. (TH True Milk, 2021).
TH True milk also applies a summer promotion - Buy 1 get 1 free. Customers who buy 1 box of TH true NUT 1L nut milk will get 1
box of TH true NUT 180ml for free. When buying 2 boxes of TH true NUT 1L nut milk, you will receive any 180ml TH true NUT nut
milk boxes (TH True Milk, 2021). At that time, customers will accumulate a lot of valuable gifts. Thereby, it can be seen that TH
True Milk is a formidable competitor of Vinamilk when TH has many special incentives for consumers.TH Group always tries to
cooperate with reputable advertising agencies and uses public relations strategy to build impressive volunteer programs to build
good relationships with the public and promote values brand, image and product coverage of the company nationwide.
3.6, Process:
The cows are imported from New Zealand, the USA, Australia, Canada... with clear pedigree, ensuring top quality milk. TH is
completely autonomous in terms of feed ingredients to ensure top nutrition for dairy cows. TH Farm applies advanced technologies
in the world with modern agricultural machines to serve optimally in growing and harvesting all kinds of raw materials for cow feed
all year round: corn, American sorghum, Mombasa grass, Mulato grass…The formula for each cow group and the blending process
is done by an advanced software system. In addition to food, the cows also drink clean water that is treated with the latest Amiad
water purification technology to ensure safe and clean water for the cows. The farm applies the world's advanced livestock barn
standards and specifications. TH applies the Afifarm herd management technology of Afimilk (Israel) - A leading modern dairy farm
management system in the world. Cows are tagged and fitted with an Afitag electronic chip in their legs to monitor health status,
nutrition and milk production. All the information of each individual cow is analyzed and used by the farm managers to make
decisions about the management of the entire livestock cycle on the farm. The cows are free to move in shelters with roofs, cool
fans, and listen to music and cool baths every day to stimulate the cow's natural milk production. The Center for Veterinary
Medicine and International Standard Laboratory enables rapid diagnosis, prevention research and treatment for cattle. The fully
automatic milking system is controlled under strict procedures to ensure top hygiene and safety conditions (TH True Milk, 2021).
Clean fresh cow's milk is transferred by cold pipe system to the general tank at the farm and then transferred to the cold tank truck
to the factory, the coldness is always maintained at 2°C - 4°C. TH Fresh Milk Factory has modern technology and leading scale in
Asia, equipped with modern equipment imported from G7 countries and Europe. The entire operating system is implemented in
accordance with ISO 9001. The factory's products are manufactured and managed completely according to ISO 22000 standards
to meet strict food safety and hygiene standards. With the utmost desire to bring intact values from nature to consumers, TH Group
has invested and developed an international standard sales channel to introduce products, which is a chain of stores. fresh and
clean food branded TH true mart. At the store, TH products are kept in top-notch safety conditions. The Home Delivery service is
the result of constant concerns and efforts to shorten and eliminate the intermediary steps in the process of transportation and
distribution, providing consumers with products that keep their integrity. Natural, fresh, pure, and pure ingredients quickly
and with maximum convenience (TH True Milk, 2021).
3.7, Physical evidence:

TH True Milk is one of the leading brands in Vietnam. TH Group was established in 2008 with 13 years of development. TH has left
many impressions on consumers and achieved many achievements: Over the past time, TH Group has continuously launched new
product lines such as TH true Herbal drink, TH true NUT premium seed milk and TH true Malt fermented drink. On July 25 and 27,
at The Bizz Americas 2018 Awards Ceremony held in Miami Beach, Florida, USA, TH Food Chain Joint Stock Company (a
subsidiary of TH Group) was honoured to receive the Inspiring Enterprise award. Right after The Bizz award, TH Group continued
to receive information about the business award hat trick within the framework of the Stevie Award (USA). In which, Ms. Thai
Huong - Founder and investment consultant of TH Group - won the Gold Award in the category of Excellent Entrepreneur of the
Year for the food and beverage industry, the other two prizes were Bronze awards for products. TH true Nut premium nut milk and
TH's customer service. Most recently, on August 23, Forbes Vietnam held a ceremony to introduce and honour the List of 40 most
valuable Vietnamese brands and companies, including TH Group. In early August 2018, Forbes Vietnam made and announced this
list for the third time, with a total brand value of nearly $8.1 billion (My, 2018). TH Group is one of the few enterprises to be
honoured with the National Quality Gold Award at the National Quality Award Ceremony and Asia-Pacific International Quality
Award. The TH Group's clean fresh milk brand TH genuine Milk is praised for its high growth rate, as well as its brand identity,
which is linked to the criteria "for human health and public friendliness". (TH True Milk, 2021)
4, Consumer Analysis:
4.1, Customer Segmentation:
According to the Development Plan of Vietnam's milk processing industry to 2020, with a vision to 2025, the domestic production of
fresh milk is expected to reach 1 billion litres, meeting 38% of the demand by 2020 and 1. 4 billion litres, meeting 40% of demand in
2025. The consumer sample consisted of 78.7 per cent females and 21.3 percent males. These figures suggest that
despite the dramatic increase in the number of women in full-time employment, females remain the primary food shoppers. The age
range of respondents ranged from 16 to over 65 years old, with the highest percentage of respondents within either the 35-44 (22.5
percent) or 25-34 (22.3 percent) age brackets. Almost two-thirds of respondents (61.7 percent) were married or cohabiting.
Customer segmentation targets all users from young to old, male or female. However, each food has a separate segment
depending on the needs of consumers and the function of the product. To begin with, children and teenagers have the largest
amount of consumption. Liquid milk is the major dairy food and the demand for liquid milk products is rapidly surging with the rising
health consciousness and living standards of the consumers. Because they need a lot of nutrients to develop all aspects of the
body. So, dairy is highly recommended as a source of calcium and healthful fats and is regarded as a package of nutrients required
for the human body. The nutritional benefits of dairy products are a primary driving force behind the global dairy products market's
expansion. Milk is a vital diet for humans because of its high vitamin, mineral, and protein content.
Furthermore, products for the elderly are on the rise. Vitamin D lowers the risk of cancer, potassium lowers blood pressure and
enhances heart health, and fermented milk is a good source of probiotics for gut health. The growing supply of milk is also
supporting the growth in this segment.
Regarding geographic segmentation, according to the statistics of The Food and Agriculture Organization of the United Nations
(FAO), global milk production witnessed a growth of 58% in the last three decades and reached 828 million tons in 2017. Milk is
considered a major part of a healthy dietary protocol. Liquid milk accounts for over 90% of the demand for dairy products in rural
areas and over 85% of that in urban areas. However, large cities and provinces hold a larger market share due to higher living
standards and incomes. Therefore, the factor that brings the next large number of customers is health.
4.2, Customer Trend:

Until now, families often tend to give milk to their children. Since then, milk as an essential product directly affects the growth and
development of children. The health benefits linked with milk have been pushing people from all walks of life to consume dairy
products. Milk is a vital diet for humans because of its high vitamin, mineral, and protein content. As noted above, a large
number of customers care about their health and according to different ages they choose their own consumer products. Other
reasons driving the dairy market's expansion include rising consumer expenditure, population growth, and customer preference for
nutrient-dense foods. Knowing that businesses produce more products related to health care and bring convenience to consumers.
Liquid milk is the major dairy food and the demand for liquid milk products is rapidly surging with the rising health consciousness
and living standards of the consumers.
Moreover, the quality of the product plays an important role in building relationships and delighting users. Being in a small pox is
easy and convenient to take anywhere. Not only that, the product is suitable for use at any time of the day such as morning, after
lunch or even in the afternoon. Besides, a large number of people use it as a beverage. That leads to certain improvements in each
product created. For example, the company produces many flavours with more nutrients. Besides, creating convenience such as
using boxes of all sizes for each need. In short, enterprises understand the current market needs, so they have created products
suitable for a large number of customers. Thereby bringing profits to the company.
5, Company’s internal capabilities (SWOT analysis and Competitive advantages):

Vinamilk is one of the leading dairy brands from Vietnam because of its marketing strategies. This company aims towards on many
age customers, so it has several suitable campaigns to attract clients in every background. The principal activities of the Vinamilk
are to produce and distribute condensed milk, powdered milk, fresh milk, soya milk, yogurts, ice cream, cheese, fruit juice, coffee,
and other products derived from milk. What is more, Vinamilk has a strong brand name with the majority of people who can easily
recognize their brand logo. The brand image of Vinamilk has taken the top 50 brands in 2019, with its brand value exceeding 2.2
billion USD (VNA, 2019). Moreover, it has gained great customer satisfaction and understanding as well as the knowledge of the
local market. Vinamilk has a variety of consumers because products have reached a wide range of customers. For instance,
recently, Vinamilk has a new campaign to focus on the choices of consumers, they release low or zero sugar products due to
satisfy the demands of consumers who are concerned about their health issues. Therefore, the new products of Vinamilk
may achieve high success thanks to the support of loyal customers.
Another remarkable factor that has strengthened Vinamilk’s leading position is that it established a wide and deep distribution
system located nationwide and is being expanded over time. The distribution network is not only the essence of a long-term period
strategy but also the decisive factor for the success of a consumer goods producer. It allows Vinamilk to bring its core products to
consumers in a fast and effective way. To be more specific, today the company has more than 1500 distributors, over 90000 retail
outlets in the entire country.
Along with the solid distribution, to do well Vinamilk always pays attention to investing in modern equipment and factories. At the
present, a range of modern factories is located along with Viet Nam that helps to reduce transportation expenses and a system of
advanced equipment that helps to ensure the output products meeting the international standards.
One more aspect that should be highlighted in the strength of Vinamilk is that its loyal and cooperative relationships with both local
and overseas suppliers allow the company to have a stable material source at a reasonable price. Today, around 60% of all cow
milk produced in Viet Nam is consumed by Vinamilk (Vinamilk, 2021).
Last but not least, a professionally experienced management team in the dairy business and production, a transparent internal
management system, and tight and detailed management procedures.
Vinamilk is currently a leading enterprise in the dairy industry, accounting for more than 54.5% of the liquid milk market share,
40.6% of the powdered milk market share, 33.9% of the drinking yogurt market share, and 84.5% of the edible yogurt market share
and 79.7% market share of special milk nationwide. In addition to a strong domestic distribution company with a network of more
than 220,000 sales points covering 63 provinces and cities, Vinamilk products are also exported to 43 countries around the world
such as the US, France, Canada, Poland, Germany, and Japan Middle East, Southeast Asia, etc (Ngo, 2018).
About weaknesses: Dependence on imported raw materials is one of Vinamilk's weaknesses. When domestic raw
materials only meet about 30% of production demand, 70% of the supply and input material ratio depends on the milk supply-
demand relationship of the world. Vinamilk's main export markets include countries in Asia, especially Southeast Asia. Therefore,
there is still a long way for Vinamilk to penetrate the European or American market. Vietnam is in a period of rapid urbanization with
an annual growth rate of 2.95%. Currently, about 33.6% of the population lives in urban cities. While the proportion of urban
residents has increased in recent years, it is still far below 54% of the world average. In terms of income, Vietnamese people are
still mainly in the lower middle class. So if there is a case where the economy grows slowly, the risk of people restricting the
consumption of dairy products (which is not the main source of nutrition) increases. Low dairy productivity and the high price of raw
milk in the world also affect the profit of the Company. In addition, the import of raw materials from abroad causes Vinamilk's
revenue to be significantly affected by the domestic and foreign economies. The worst scenario is when Vinamilk is affected by the
global economic crisis, causing the price of raw materials to increase, and at the same time is affected by the high inflation rate in
Vietnam, which causes the profit margin to decrease. Not only that but changes in foreign exchange rates are also a factor affecting
Vinamilk's revenue when 50% of the Company's raw materials are imported and 30% of revenue comes from exports. If there is
any fluctuation in the exchange rate, it will affect the business activities of the company. In addition, Vinamilk also has a few
weaknesses that can be mentioned as: Strong and continuous growth for many years puts strong pressure on the Company and its
human resource management team. And many new products have been researched but have not yet entered the testing phase to
launch into the market. Finally, Viet Nam’s WTO accession will create conditions for a foreign company to take part in the domestic
market. It will increase competition among companies in the industry as a result.
About opportunities: Many demographic analysis articles in Vietnam have shown that Vietnam is still a fertile ground for dairy
companies, especially for Vinamilk. Vietnam's total milk consumption is still very low compared to other countries in the region and
the world. Dairy products for special needs are still not popular, while the cost of imported products is high. Therefore, Vinamilk still
has many long-term development opportunities. Not to mention, Vietnam has a high population density, the proportion of people
tending to urbanize in recent years has increased, the education level has increased, the income of the middle class has also
gradually improved...The above factors cause an amazing change in the shopping behaviour of customers who are
targeted by Vinamilk.
For example, with an increased level of education, Vietnamese young people have the opportunity to interact with Western
knowledge and cultures, better understand the effects of milk on the body, so they tend to consume dairy products. more dairy
products. The rapid urbanization of the population, the increase in the number of the middle class make the milk consumption rate
increase. This is the class that has income and is willing to spend on healthy necessities.
Not only that, but the nuclear family model (smaller households) also brings opportunities for Vinamilk when parents have the
opportunity to take care of their children, helping to increase Vinamilk's chances of winning when the company is growing. targeting
the children's market segment. In addition, the customer segment in rural areas is also not out of sight of Vinamilk when this class
accounts for 46% of the total consumption product of the consumer goods industry. Vinamilk is promoting and distributing more
products in rural areas to raise awareness about the health value of dairy products.
In recent years, the Government has had a great impact on the domestic dairy industry. Specifically, after Vietnam became a
member of ASEAN and WTO in 1995 and 2007. In July 2010, the Ministry of Health of Vietnam approved regulations requiring
dairy products, especially milk for children. must meet certain standards. Or the budget for the development of the dairy industry of
2 billion VND by 2020, as well as the approval of the initiative program to increase the average height for Vietnamese people, or the
policy of prioritizing domestic goods with the criterion "Vietnamese people use Vietnamese goods”, etc. The above changes have
had a great impact on Vinamilk, acting as both a challenge and an opportunity. With the cooperation from the Government, relevant
ministries, and agencies, Vinamilk can appear before consumers as an organization that carries out campaigns with many social
responsibilities, helping to increase the plus points of the Vinamilk brand in the mind of the user. Currently, Vinamilk's products
have been exported to more than 16 countries, contributing about 14% of total revenue. However, Vinamilk still has many
opportunities to expand export markets and conduct business abroad.
Vinamilk is planning to open more retail points and stores to introduce Vinamilk's products in the country. In addition,
Vinamilk also plans to develop the domestic supply of dairy cows, helping to reduce the financial burden of imported materials. As
of the second quarter of 2019, Vinamilk currently has more than 200 distributors with a total of 251,000 retail points. For
supermarket chains and convenience stores, this business is trying to cover the entire network in the country. The number of
banana milk Vietnamese dream shops also increased to 430 stores. Also in the second quarter of 2019, Vinamilk has 12 dairy
farms that meet Global G.A.P. standards. Two of the 10 farms are managed by Thong Nhat Thanh Hoa Dairy Company. The total
number of dairy cows currently raised by Vinamilk is 30,000. Vinamilk's dairy farm system still meets international standards, with
special care and nutritional diets.
Domestic dairy farms with international certification play a very important role for Vinamilk, helping the company reduce its
dependence on international supply, thus being less susceptible to fluctuations in exchange rates. Moreover, dominating domestic
supply gives Vinamilk great power in pricing, allowing the company to offer products at very affordable prices. Vinamilk is by far one
of the most affordable brands in Vietnam and this may explain why the company completely dominates the domestic dairy
market.Trends in product consumption towards health. As mentioned above, the increase in income of Vietnamese consumers,
especially the middle class, creates a great opportunity for Vinamilk. According to Nielsen's consumer report, today's consumers
are deeply concerned about their health and tend to buy health products. And when it comes to health supplements, most
consumers will mention milk, the second food in nutritional products.In the context of a rising consumer market, Vinamilk has been
recognized by the British Retail Consortium for food safety standards, contributing to the increase of advantages, sales growth, and
market expansion school. It is the belief in nutritious food, the development trend of the healthy, high-income food market that has
become the next factor for the development of Vinamilk.
About threats: Vinamilk is the leading brand in Vietnam's dairy industry, with a 48.7% market share. However, this brand is also
facing more and more different competitors from the domestic dairy market. The two biggest and direct competitors, Dutch Lady
and TH True Milk, hold 25.7% and 7.7% market share, respectively. Not to mention emerging competitors like Love In Farm and
foreign brands like Meadow Fresh or Table Cove.
The increase in the number of competing companies causes many potential risks for Vinamilk such as reducing the variety
of dairy products (competition in niche markets), difficulty in maintaining loyal customers, loss of market shares milk into the hands
of competitors, etc. Therefore, in the future, Vinamilk needs to have more correct visions and directions in the Vietnamese dairy
market.
Not only competing intensively with domestic dairy brands, but Vinamilk is also facing many challenges from increasingly fierce
competition in the dairy market, especially for famous dairy companies in the world. With Vietnam joining international trade
organizations such as ASEAN or WTO, reducing taxes on imported dairy products has created significant challenges for Vinamilk in
competing with international brands economics. Accordingly, Vinamilk will face stiffer competition or may lose market share to
global brands. However, along with the opening of integration, Vinamilk can build processing factories in neighbouring countries,
thereby helping to reduce production costs.
Currency exchange rate changes. As the weakness has also shown, the difference between foreign exchange rates between
countries is also a threat to Vinamilk in the future. With 50% of raw materials imported and 30% of the company's revenue from
exports, fluctuations in foreign exchange rates have a huge impact on the company's production. Compared to Western countries,
Vietnamese consumers still do not have the habit of drinking milk regularly and this is considered an important cultural pattern for
Vinamilk.
Milk consumption in Vietnam is still very low when compared to other countries. For example, the average Vietnamese person
consumes only 15 litres of milk per year on average while the Thai people consume 23 litres and the Chinese consume up to 25
litres (Ngo, 2018).
The reason for this may lie in the perception of Vietnamese consumers that milk is a product only for children, drinking milk is not
as good as rice.Thoughts ingrained in the subconscious of consumers are still needed. Vinamilk's ingenious advertising and
marketing campaigns try.
About competitive advantages: Firstly, we can see that Vinamilk is a strong and famous brand. Therefore, giving the
company a lot of advantages in bringing a new product to the market, customers, and consumers. This company always tries to
focus on every customers' status position; therefore, Vinamilk has a great relationship with its consumers and generates a big
loyalty client group across Vietnam.Secondly, Vinamilk has built a large distribution system. with more than 180 distributors and
80,000 retailers in its distribution channel system. A large distribution channel system will help the company's product consumption
activities, distribution of goods are guaranteed most favourable.Thirdly, the company has built manufacturing plants with 3 large
factories. Along with that, building a clean raw material area, meeting technical standards, the company has mastered the quality of
products to compete with other manufacturers in the market.Fourthly, Product diversification, with many products and product
categories distributed by the company to the market, is a great competitive advantage of the company over other competitors. With
many products, thanks to mastering the technology, and at the same time controlling the product quality along with controlling the
raw materials, production and consumption stages, the company's price is very competitive on the market.Fifthly, Vinamilk can
stand at the top valuable companies list in Viet Nam thanks to productive marketing campaigns. Almost all marketing strategies
could help this business to get closer to its customers and then heighten its position in the market. What is more, in Forbes’ list, the
current market capitalization of Vinamilk is 2.2 billion US dollars (VNA, 2019). Thus, financial strength plays an important role in the
competitive beverage market because it can help this enterprise to expand its range of activities, also conduct more useful research
to develop new products and release marketing strategies.
III, Marketing Campaign Objectives and Issues

1, Objectives:
In this campaign, the company expects that they can expand their customer segment and get more consumers at a younger age.
The SMART principle stands for five main parts: specific, measurable, achievable, relevant, and time-bound.
With the current content and popularity, we will strive to increase the number of followers on the company's Youtube
channel to 100,000 in order to increase customer awareness about the company and products. The goal should be completed by
November 30, 2021. Moreover, target to increase sales: With the current resources and market, the business wants to increase
sales to 200 billion VND per month to balance the company's revenue and expenditure, right from the moment the product is
launched in December 2020 through advertising through online platforms, bringing a lot of value in products. Additionally, thanks to
current resources and market, the business wants to develop a business to grow 5% in size over the same period last year, by
December 31, 2021, in order to expand market penetration. Although Vinamilk's coverage is quite wide, it is mainly concentrated in
big cities and provinces. Therefore, the company wants to expand more businesses in smaller provinces through research. This is
quite a difficult goal, but we want to work towards it.
Firstly, specific is the detailed view of the goals that had been set in the products. The target customers participate to accomplish
goals are people the age of 5-14. In the context of the epidemic is still complicated and customers will need nutritional supplements
such as milk at an affordable price. The corresponding period of time for the promotion campaign will be fixed on the Tet holiday or
in other words, these beverage products and packaging will have images closely related to the Tet holidays of Vietnam as well as
this version limited to the Tet holiday. Comprehended the Vietnamese traditions, Vinamilk wants this new product to be used in the
normal days of Tet as well as in Tet parties, or as a gift for family, relatives, and friends. The milk boxes with extremely new and
wonderful flavours of Vinamilk will be like the best and most sincere wishes for those who still believe in the company. Along with
wishes for a happy, prosperous and healthy new year as well as wishing the best to customers. Overall, this is a way to promote
Vietnamese traditional Tet to international citizens. Overall, this is a path to promote the traditional Vietnamese Tet holiday to
international citizens.
Secondly, measurable is important in making the goals more tangible and substantial which is used to measure the progress of the
project or work. This is the campaign that will be commenced from the end of the year. In detail, in December, Along with the
outstanding development of technology, Vinamilk will promote advertising on social networks such as Tik Tok, YouTube, Facebook,
Instagram, leaflets, banners at shopping centres, retail stores, and supermarkets of the city to attract people's attention about the
company's new product. On this occasion, many families go shopping for Tet goods, so the company should arrange
several stalls selling products at supermarkets and megamalls, which will be the place where the company will decorate the booth
in the style of the old New Year tradition of Vietnam so that when customers approach Vinamilk's booths, they will feel very familiar
and comfortable. In addition, marketers will implement promotional plans, if consumers buy these products, they will receive Tet
cards and when they accumulate enough, customers can exchange for extremely gifts. values and meaning of the company. From
these approaches, the company hopes to receive 10,000 feedbacks from customers on many aspects of the product such as taste,
packaging, advertising, and experience.
Thirdly, attainable focus on the importance of the product's objective goals to be achieved and requires marketers to develop and
improve their products. The three marketing messages that Vinamilk wants to achieve in its process include attracting young
customers, and Vinamilk wants people to know that the company has not only milk or other common products but also nutritional
supplements at prices that are affordable to the vast majority of Vietnamese people and have product feedback. After announcing a
new product, the company will draw on the experience of drinks and consumer experiences through those feedbacks, thereby
perfecting its next product with a process of advertising, expanding add some newer flavours. Regarding the promotion channel,
the company may consider developing product packaging, combining the online form on social networks and the offline form with
leaflets, banners, and promotional videos on some megamalls. The goal is to increase the number of people who like the product
page by running Facebook ads by 15%. The increase in the number of people who like the fan page about the product contributes
to promoting the company's image and brand. With a higher budget to pay for Facebook ads, it is possible to increase the number
of people who like fan pages by 15% in October 2021. To conclude, when the next products are released, the company expects
product sales to increase by 20% through these communication methods.
Moreover, relevant to indicate actual achievable campaign results, based on the realistic resources. The purpose of the company is
to introduce a new type of milk - Vfresh+ with flavours of peach, banana, melon, avocado; Vinamilk focuses on expanding the
company's customer segment for products. In addition to profiting from the original drink suitable for children and young people,
Vinamilk also wants to make more profit from the group of older consumers. This middle-aged group is about 20-50 years old, who
have jobs with stable incomes and heavy workloads. They can buy Vfresh+ as an alternative to functional food drugs to
take regularly because of the affordable price of the product. Vinamilk manufacturers will distribute Vfresh+ to all agents such as
retailers, supermarkets, minimarts, convenience stores and so on.
Lastly, time-bound helps the company to illustrate the tasks to do in a specific time. During 4 months of advertising and launching
new products, Vinamilk assumes that it will sell more than 1 million products and more than 200,000 researches and feedback on
consumer preferences during the Tet holiday through social networks. Apart from increasing sales from original flavoured products,
Vfresh+ will reach about 20% of sales. In the first month of this promotional plan, the company will set 10 thousand booths for the
customer to try Vfresh+ taste and receive some feedback from them.
2, Issues:
From Vinamilk's history of 45 years, the company has always been known as one of the leading dairy brands from Vietnam with
many products that have always been aimed at the safety and health benefits of Vinamilk consumers both physically and mentally.
Due to the global impact of the COVID-19 epidemic, the epidemic has caused unprecedented difficulties for the dairy industry and
Vinamilk is no exception. After that, the epidemic began to osmotic into the economy. Almost all input costs related to key
ingredients such as milk powder and sugar have increased significantly and affected Vinamilk's business results. The company
also had to increase production costs to ensure profitability. While milk demand in urban markets seems to be saturated,
consumption in rural markets fluctuates greatly due to increased dependence on agricultural commodity prices, depending on the
level of disposable income in this market spending on Vinamilk products. Vinamilk's nutritional products all face stiff competition
from rival companies such as milk. Vinamilk has to compete with other well-known competitors in Vietnam such as TH True Milk,
Duck Lady, or other food products that must compete with imported foods. Vietnamese people always have the slogan of trusting
Vietnamese products, but in recent years, many Vietnamese consumers still prefer foreign products. In Vietnam, Vinamilk's current
competitor in the beverage industry is TH true MILK. Vinamilk and TH true MILK has the different promotional method, publications
in Vietnam marketplaces. Their advertising has attracted attention from young people. Vinamilk will have to discover a solution to
achieve more attention from their target customers. For the new product concept, Vfresh+ is a milk drink. The strength of these
drinks is that the company officially has diverse flavours for customers to choose from, which can satisfy the preferences
of their consumers. The last issue and also important as others before is the opposite between regions within the country. In the
country regions of Vietnam, there are a lot of children who lack nutrition but work and play outside for a while, and on the other
hand, the children in cities that in richer families have adequate nutritional supplies but don’t have time or space to play outside or
do exercise. That makes Vinamilk need to balance nutrition in the product, take the responsibility to propagate, and educate the
young generation of Vietnam with the government to have a healthy life for them.
V, Marketing Strategies:
1, Segmentation, targeting, positioning (including a positioning map) and differentiation strategies of your company.
1.1, Segmentation:
The company based on geographic, demographic, psychographic and behaviour to devise its marketing plan. Concentrated
marketing strategies are useful for the company to get the best results for its product.
The first is about geographic segmentation. The company’s new products are distributed all over Vietnam from big cities to even
small rustic areas. However, the urban population accounts for 29,6% of the country’s population and tends to increase. High urban
population density makes it easy to distribute products, and people with higher income in the market tend to use more products for
their families. They are often loyal to the products they choose, especially Vinamilk fruit milk which is a popular product in Hanoi
and Ho Chi Minh City consumes 80% of the milk. Besides, rural people account for a high proportion, but people’s living standards
are quite low, they sometimes give milk to their children. This results in relatively low consumption. However, this number is
increasing due to the improvement of people’s quality of life.
The second factor is demographic segmentation that divides the market into groups based on variables. Vinamilk always
brings the best quality, delicious and nutritious products for your health... In addition to calcium, milk and dairy products contain
many other nutrients such as riboflavin (B2), phosphorus, potassium, vitamins A, D3 and protein. Moreover, the new creation has
added substances from fresh fruits such as avocados, bananas, melons, and peaches to bring not only nutrients but also the best
taste for everyone. These vitamins and minerals are not just for kids, customers will not have to worry about all Vinamilk products
because it is suitable for almost all customers. Vinamilk chooses to segment the market by age. Under 14 years old, this is the age
of children, teenagers. This is the age of development, it is necessary to supplement many necessary nutrients from milk to develop
height, brain, and have many nutrients for the body to serve the process of development, learning, and training. This age has no
income and depends on parents. About education, they study in Kindergarten, Primary School or Secondary School. Next is the
age from 15 to 25 – the age of youth. This is the last stage of development, still we need to add nutrients but less. However, they
are quite autonomous in their purchasing decisions because they may already have income. Finally, over the age of 25, adults use
calcium supplements for the body. About gender, the product is suitable for all genders. However, females often tend to take care
of their bodies and families more, so consumption is also significantly higher.
Additionally, psychological segmentation is also an important factor. As mentioned above, the child’s psyche needs to drink milk to
develop. With today’s lifestyle, they often use milk to meet that, especially young children, parents are very concerned about the
development of their children. Since then, milk consumption has also increased significantly. Moreover, the flavours of avocado,
banana, peach, melon are very popular and novel flavours compared to the previous traditional flavours. Therefore, taste also
greatly affects the purchase decision of customers.
Last but not least, the final influencing factor is segmentation behaviour. For benefit segmentation, the company had a
breakthrough to create fresh fruit milk products with 4 unique flavours different from traditional flavours. This attracts customers in
terms of design, packaging, and product quality, especially taste. One pack has 4 boxes with 4 different flavours and brings a new
experience to consumers. In addition, the company also added vitamins and calcium due to understanding people’s increasing
health care. The company uses paper straws instead of plastic straws to protect the environment. For customers who care about
environmental protection, the business wants to reduce the amount of plastic waste. Besides, Vinamilk also transmits
many positive energies such as using solar energy, organic farming, planting improved crops and protecting biodiversity.
Furthermore, with missions “Vinamilk is committed to providing the community with top-class nutrition and quality with its own
respect, love and high responsibility for human life and society” (annual report, 2021), they keep regular users under the age of 15
by improving health by providing nutrients and retain ex-users by offering many strategies. For example, each pack of milk has
additional products such as stickers or promotional discounts.
1.2, Targeting:
Based on the above 4 segmentation criteria as well as a product review, it can be seen that the target market for fruit milk products
is a concentrated strategy. The market for children aged 4 to 15 years old. There are a few different reasons to choose this
segment. First, as mentioned, children need a lot of nutrients to develop height, intelligence helps the development process of
children. This age is very important for the development of children. At this age children need a number of nutrients, vitamins, DHA,
calcium to help the body develop in balance, creating a premise for later development. Based on that, this product gives the best
quality with many nutrients such as calcium, vitamins, protein, B2 or phosphorus, etc. Milk's calcium content, for example, aids in
the development of healthy bones and teeth in early childhood, making it an important aspect of baby nutrition. Infants are the
major promoters of the milk market in the form of infant formula and baby milk.
Moreover, parents with children in this segment have a great demand in using milk with the desire to improve their children's
physical health so the demand for milk at this stage is much higher than in the rest periods, etc. Moreover, an important factor is
that middle-income households tend to care more about quality than price and we have met this demand with top quality.
Businesses that focus on improving products on a daily basis attract a large number of customers and generate profits. Besides,
customers in big city centres are also a targeted segment. Maybe also because it is aimed at middle-income households. With a
higher standard of living, they invest more in growth and become loyal customers of the product. Furthermore, avocados, bananas,
melons and peaches milk products are a new item that attracts consumers’ curiosity. In the market, this is a unique product, so this
is a potential item of enterprise to be able to compete with competitors in the same market segment. In general, the age
group from 5-14 has a middle income and in big cities, centres are a potential object for businesses to exploit.
1.3, Positioning:
POISITIONING MAP 1
The chart discusses the price and the quality of some businesses in the dairy industry. To begin with, enterprises have a
larger market share in the domestic market than imported ones. The price of the product is low so that customers can have more
access to the item. Despite the low price, the quality is not inferior to other products on the market. Not only that, the product is
always the first choice for mothers. Quality creates a brand, and at the same time with a mid-range price, customers will not have
too much hesitation when using the product. This can be considered the success of the business.
Furthermore, the business is still improving and expanding both domestic and foreign markets. Milk is pasteurized using modern
UHT technology, then cooled quickly. This process has destroyed all harmful bacteria, moulds, and yeasts, while also retaining the
maximum amount of nutrients needed by the body. Vinamilk fresh milk is completely clean, does not contain preservatives, has a
natural taste, so it is suitable for many people's taste.
POSIYIONING MAP 2
The positioning map above discusses the value position of Vinamilk in terms of nutrients, especially the amount of calcium
and the brand of the business. Looking at the chart, it can be seen that Vinamilk is leading in many aspects such as accessibility.
With 240000 points of sale conventional channels, 5400 points of sale supermarkets, 2400 points of sale convenience stories, this
provides favourable conditions for products to come closer to consumers. Most people have easy access to the brand anywhere
such as supermarkets, distribution stores, retailers, grocery stores, etc. Moreover, This is the first organic dairy farm in Vietnam to
achieve the European Organic Standards by Control Union. The farm meets the strict rule of Three Nos: No chemicals - No
genetically modified ingredients - No growth hormones (annual report, 2020). This builds trust and builds relationships and delight
with customers. That is also the reason why Vinamilk always holds the largest market share and is the company with the leading
brand in the dairy industry.
Besides, we can see that the calcium content of Vinamilk is low because as mentioned, the target customer is targeting middle-
income households. Since then, the enterprise creates products that are suitable for users, affordable but still ensure enough
nutrients, safety and high quality. Therefore, with the position of a big brand with 45 years of development since 1976 (Vinamilk,
2021), the company affirms its position in the dairy industry in Vietnam.
In short, the dairy business is predicted to develop in the next few years, as the population grows, people's income rises, resulting
in more spending, and Vietnamese people's interest in health care products grows. maintain the current rate of expansion The dairy
industry in Vietnam has a lot of potential for growth, and both domestic and foreign investors are interested in it.
1.4, Differentiation:
Vinamilk always brings differentiation in both product quality as well as customer service quality. Just like in visions mentioned, “To
become a world-class brand in the food and beverage industry with nutritional and health products that are trusted by everyone"
(Vina annual report, 2021), aiming to bring the best for customers.
Product differentiation strategy: According to the annual report (2021), “If you want to have a leading product in the market, you
must always be innovative. Creativity is a vital factor.” Vinamilk is aware of the task of maintaining food security, which requires
quality products, providing healthy and practical nutrition; value chains must be flexible, efficient and sustainable, and
must integrate initiatives in various aspects from quality to nutrition, from finance to technology, from environmental protection to
adaptation and mitigation of climate change. Climate change, especially information connectivity, inherits nutrition practices among
leading nutrition corporations. More specifically, the company launched a fruit milk product line with 100% fresh ingredients through
a process of censorship and selection. Besides, there are improvements in flavour such as avocado, banana, peach, and melon.
These are new flavours that bring excitement and an impression to customers. Not only that, the milk packs have all 4 flavours so
that consumers can try them all. In addition to product quality, the packaging is produced firmly, convenient for users. In particular,
the manufacturer wanted to limit environmental pollution, so he used paper straws and maximized the packaging of the items.
Differentiation in customer service quality: About the image, Vinamilk always is the company with the leading brand in the dairy
industry, this is a product that people trust and consume for 45 years since it first appeared in this industry. Also thanks to the
development of our own brand, distribution also becomes easier. Nearly everyone in the internal market has easy access to the
product. They can be purchased anywhere. As mentioned above with the chain systems from production to wholesalers and
retailers, especially shopping channels. In short, Vinamilk's coverage is very wide.
Promotions and discounts are aimed at almost every user. For example, for young children, businesses include stickers with
pictures of fruits or print funny messages and shapes that make a strong impression on children. Furthermore, for adults or parents,
the company often offers incentives such as a small box of milk or discounts on certain occasions. This shows concern and
understanding of customer psychology. The company also builds more differences from customer care services by implementing
nutrition consulting activities for consumers.
2, Marketing mix of Vfresh+:

2.1, Product:
This is a form of production distribution and the manufacturer sells and distributes the product in order to attract the target market.
Vinamilk Group has developed a product line with the brand name VFresh+ with 100% limited edition fruit quality for Tet. The core
value of the product is to supplement natural vitamins and minerals necessary for everyone during Tet holidays around
meat and Chung cake. Features of this Tet limited edition product will have 4 choices: avocado, banana, melon and peach. And
these 4 milk flavours will be placed in the same milk block. VFresh+ is a blend of real milk - taken from a Vinamilk dairy farm that
meets European standards and real fruit - meets the standard 3 No "No Color - No Preservative - No GMO", guaranteed to give
customers confidence in fruit products but no "fruit". Vinamilk's criterion is always "Environmentally friendly", so all milk straws will
be used 4-way paper straws to create a sense of enjoyment when consuming. The packaging of VFresh+ is refreshed. The design
remains faithful to the light blue lid and dark blue bottom of the box, but the background will be changed, instead of white as before,
this time it will be printed in red with signs of Tet such as fireworks, and then printed. fruit shape-holding red envelopes in the
respective positions. Red symbolizes luck, the product becomes VFresh+'s wish to customers for a happy and prosperous new
year.
2.2, Price:
Product cost should be comprehensively assessed through performance, production cost, packaging design and brand. Prices
should be carefully established through research from customer preferences, income, spending habits, competitor companies and
market prices. VFresh+ is an upgraded product in the 100% VFresh juice collection. Since VFresh+ is similar in concept to many
other fruit drinks on the market, the entry price of VFresh+ must be equal to or lower than the existing product price. Businesses
need to pay attention to the listed price of the product. If the price is too low, the customer will doubt the quality of the product. If the
price is too high, consumers will not choose. The pricing strategy department has considered the "low cost" strategy - one of
Vinamilk's pricing strategies. Because the revenue of Vietnamese people is still low, it cannot be compared with other countries in
the world, so the Marketing department has to be very careful when setting product prices. Moreover, Vinamilk's price is really
competitive with the dairy market when there are more than 40 brands and hundreds of other brands competing. Our Marketing
department offers the price of the product is 8,000 VND/box and 29,000 VND/4 boxes of 180ml. During product testing, the
company will launch promotional campaigns for the new product.
2.3, Place:
Vinamilk's distribution channel has 2 main channels. The first channel is supermarkets. The enterprise will be divided into large
supermarkets such as BigC, Vincom, ... and small supermarkets such as Intimex, ... In this distribution channel, besides products
officially distributed to supermarkets, Enterprises will put test products at supermarkets for consumers to taste because during Tet,
households will go shopping for Tet, the number of customers coming to the supermarket is also much higher than usual. This will
be the most appropriate place to promote the product to consumers. The remaining distribution channel of Vinamilk is considered a
traditional distribution channel strategy. The essence of this channel is the VMS channel in which Vinamilk is the manager of the
distributors through signing a contract on the rights and duties between the two parties. Therefore, the distributors here are
Vinamilk's chain of Vietnamese Dairy Dream stores nationwide. Each region has a different number of distributors based on
customer size and geographical location. Each distributor operates in its own region and distributes goods to the respective dealers
and retailers in that region. Therefore, the new product VFresh+ will also be sold at distribution stores. In addition, products will be
put on electronic sales websites for the convenience of buyers directly ordering and home delivery. Businesses will also promote
advertising campaigns on electronic platforms
2.4, People:
Vfresh+ desperately needs high-quality employees directly involved in the project to launch and deliver a successful campaign. Will
launched new dairy products before Tet 2022. This event has three main divisions participating and developing: Finance,
production, research and marketing.
Regarding the research and marketing team, it is necessary to investigate the lifestyle, needs, and market trends of the age that the
product is aimed at, and listen to feedback from customers through surveys to adjust the product. And appropriate and attractive
strategy planning of the new drink. Market researchers will have reviews from different age groups about the product but will focus
more on the 5-14 age group. Marketers then rely on the reports to come up with unique ideas for new products.
Tet holiday is a huge holiday, everyone wants to go to pray for good luck or bless their loved ones, but in the context of a stressful
epidemic, it is essential to stay at home to limit contact. Therefore, Vinamilk's production team has launched a pasteurized fruit milk
that combines nutritious milk and fruit with great taste. Each production cycle will be scrutinized as to the quality of the milk, the
fermentation concentration of the fruit on the farm or the nutrients that the researchers have added to every process that requires
careful scrutiny and measurement to each component. Vinamilk's product development strategy is always towards safety and
benefits for consumers' health both physically and mentally. Therefore, the production team is at an extremely meticulous stage:
from formulating the product, deciding on the source of raw materials to designing, sanding and packaging the product to ensure
maximum safety for people. In addition, Vinamilk absolutely does not use ingredients that can adversely affect consumers. 'health
as a preservative for all current and future Vinamilk products. The company's finished product operations primarily include sales
and distribution that are either company-owned or - controlled by retailer networks. In the process of distribution and sale to the
market, there will be more special promotions to thank the people who are united at home.
As a special version, it will probably take three months of trials before the official release. As expected, the initial quantity
sold is about 300,000 to 600,000 boxes with an estimated price of 8,000 VND. Then the finance department will complete the
procedures to estimate the costs for the marketing department to go into operation to call for investment capital from sponsors and
the limitations and benefits of investing in the product. Help the finance department learn the details of the new campaign and the
costs incurred for a big campaign along with the desire to join consumers in fighting the epidemic during the holiday season and
family reunion with good health.
2.5, Promotion:
Once the product has been distributed, the company uses two forms of communication: offline and online. Online communication
methods include TVC advertising, internet sites, articles on social networks. The business will build a good relationship with the
public of the company through favourable advertising, good corporate image and effective handling of adverse news. A multi-media
campaign will help consumers understand the benefits of "fresh, pure from nature". Vinamilk, the company with the highest brand
value in Vietnam, will partner with celebrities to market new products to the public. This will be a highly effective way to get media
attention. With the launch of this new product, the company is expected to change the external appearance such as using paper
straws instead of ordinary plastic straws to aim for the message of "a green world". Furthermore, each batch of milk will have a
"fruit war" version of the gift card bursting with it, each of which will feature comic pages of anti-epidemic role models inspired by
real-life stories; If you accumulate enough cards, you can exchange them for valuable prizes such as Vinamilk logo bags, Vinamilk
helmets. You can go to the dealers you bought there to receive incentives when redeeming. In particular, encourage the children to
try to collect as many milk cartons as possible to bring to agents and brands in exchange for small miracles. Paper boxes will be
collected from the company's branches to raise funds for the anti-COVID-19 campaign in Vietnam.
2.6, Process:
Vinamilk's system also produces many types of milk such as organic nutritional milk, liquid milk, powdered milk, fruit milk
with flavours from its subsidiary Vfresh and especially four new milk flavours. As a result, the company's main income activities
increased with a wide range of products. The production cycle will be from natural fruit materials grown at Vinamilk's factories and
workshops. Vinamilk's 100% immune-supporting fresh milk products are all used fresh milk as the main raw material of
cow farms.
To assure food safety and hygiene, they are carefully selected and monitored. Vinamilk obtains its imported raw materials from
trustworthy sources in the United States, Australia, New Zealand, France, and other countries. To ensure the excellent quality of
products, Vinamilk constantly researches and invests in modern equipment and technology and is proud that we own the leading
advanced production lines, catching up with the latest leading dairy production technology in the world. Vinamilk has always placed
a premium on product quality management and control. Vinamilk uses modern management systems such as BRC and ISO 17025
to strictly and comprehensively control all stages of production from before, during, and after production. In addition, a system of
product tracing methods is used to ensure that faulty products are recalled and handled to minimise the damage on consumers and
society. Vinamilk is dedicated to providing accurate and thorough information about its products, such as ingredients, nutritional
values, and storage recommendations, in order to assist consumers in selecting and using Vinamilk's products optimally,
effectively, and satisfied. (Vinamilk,2021). The production of this new flavoured milk and fruit combination will create a wonderful
aftertaste for new consumers. Produces waterproof paper box packaging with a fresh colour design; on the design package is fruit
and fruit according to each flavour of fruit milk. Especially new production with paper straws made from 100% kraft paper and
organic glue. Most of this waste is single-use plastic, typically still straws. Meanwhile, plastic straws need several hundred or even
1000 years to completely decompose, while paper straws take only a few months to decompose easily in nature, being
environmentally friendly. This will be a new step for Vinamilk in environmental protection for "a green world". To raise children's
awareness of environmental protection from an early age.
2.7, Physical evidence:

With the growth and success of Vinamilk during the past 45 years. Officially started operating in 1976 with the head office in Ho Chi
Minh City. Up to now, Vinamilk has developed three other main production branches: Hanoi, Da Nang and Can Tho. Vinamilk is
Vietnam's leading brand in the production and trading of milk and natural dairy products. With the current development, it is not
difficult to see a series of advertising posts, media or announcements of Vinamilk and many campaigns such as "Responding to the
World School Milk Day" Thanks to the implementation of the image. In the form of socialisation, the state and businesses
share the cost of drinking milk, and parents only have to contribute a part; Vietnam’s "The School milk" program has helped reduce
the economic burden for families while still ensuring adequate and safe nutrition from milk for children. “The School milk" program
has been implemented by 68 countries worldwide, including developed countries such as the US, UK, Canada, Germany and is
especially popular in Asian countries such as Japan, Korea, China... In addition, Vinamilk cooperates to develop Vinamilk's system,
including Vinamilk's head office and production cooperation with 43 foreign units and 220,000 large and small retail points in
Vietnam - grocery stores, supermarkets, and convenience stores and factories in Southeast Asian countries. The certification body
for Vinamilk's Organic dairy farm is Control Union (Netherlands) - a global organization specializing in independent testing and
evaluation worldwide. This is the first time this organization has "approved" the first Organic dairy farm in Vietnam to meet
European standards (according to EU Organic EC 834/2007 and 889/2008 standards). This honour belongs to Vinamilk with the
Organic dairy farm invested and built-in Lam Dong with an initial scale of 500 organic dairy cows(Vinamilk, 2017). After 43 years of
establishment and development, with the courage to boldly innovate mechanisms, take the lead in applying new technologies,
breakthrough bravery, and promote the creativity and dynamism of the collective, Vinamilk has risen to become one of the leading
brands in the world. Becoming an economic bright spot in the period of Vietnam's WTO integration. Vinamilk has become one of
Vietnam's leading enterprises in all aspects, making many contributions to the development of the country and Vietnamese people.
With those outstanding achievements, the Company was honoured to receive noble titles: Independence Medal class II in 2010 and
2016, Top 50 most valuable brands in Vietnam in 2016 - 2020 as voted by Forbes magazine choose; National Brand awarded by
the Ministry of Industry and Trade 2012-2020; Top 10 high-quality Vietnamese goods awarded by Vietnam High-Quality Goods
Association 1995-2020, many other prestigious awards. Vinamilk has also achieved many outstanding achievements on
international forums: On November 28, 2019, in Singapore, Vietnam Dairy Products Joint Stock Company (Vinamilk) is a
Vietnamese dairy enterprise that received the Asian Export Enterprise Award 2019 (The Asian Export Awards 2019), in the list of
enterprises huge (Tuong, 2019); In 2020, Vinamilk has surpassed other domestic and foreign brands to lead the Top 10 Vietnam's
Strongest Brands - Vietnam's Strongest Local Brands and is part of the Asia Top 1000 Brands Ranking. The Top 10 ranking is
jointly implemented by Campaign Asia-Pacific magazine and global research company Nielsen, asking respondents to choose the
top brands that have operations in Vietnam, have the best reputation and cause the greatest resonance with the
Vietnamese people (Vinamilk, 2020), etc. Vinamilk is increasingly asserting the position and brand of Vietnamese people not only
for the trust of domestic consumers but also for friends around the world, as evidenced by these great practical achievements.
V, Action Program:
In this project, Vfresh under Vinamilk's system will launch a special product "Vfresh+" aimed at children from 5-14 years old who
need nutrients and especially to increase their resistance. for children of this age during the complicated epidemic period.
Customers can use it as a drink every day to recharge themselves, when going to school, light food, easy to hold and carry every
time they need to replenish nutrients for a day. Especially fruit juice is also very good for the digestive system of young children.
People's desire for products and services is rising as the economy improves. In the food business, new items from food firms are
being developed at an increasing rate to suit this demand. For Vinamilk, the product launch is especially meaningful with gratitude
to customers at the end of the year, in addition to meeting the product needs of customers and creating a competitive advantage
with other businesses in the market to attract profits for the company. Vinamilk will come up with an action plan including press
releases, product advertisements on media units, sales and increase sales.
Firstly, a press conference will be held to launch a new product "Launch Vfresh+ pure fresh milk with vegetables and fruits", given
the difficult situation of Covid-19 in Vietnam and response to Tet 2022. On the occasion of the 2022 Lunar New Year in Vietnam
Vinamilk's main office, Vfresh+ will launch a special edition fruit milk product called "anti-epidemic fruit". The event takes place in
December 2021, with the meeting of famous newspapers of the countries. Media articles must be constantly updated about new
products. With this Vfresh+ announcement on all newspapers, product coverage on websites, blogs, social networks as well as the
"anti-epidemic" message of Vinamilk buyers will surely notice and shop more. on official online sales sites: Shoppe mall, Lazada,
Sen do, etc. Due to the stressful epidemic situation, the product will always be continuously updated from the warehouse to the
suppliers. Products will be advertised on major system platforms such as Tiktok - today's leading social network. Each clip is about
30 seconds to 1 minute long with key information about products, Facebook interaction on the main page needs to reach
5,000 thousand visits and interaction frequency of 2 advertising posts per week. For the Youtube channel, there will be a separate
video posted at Vinamilk's main YouTube channel with a duration of 2 minutes and 30 seconds of advertising in the channels of
YouTubers (this PC will be negotiated with YouTubers). Next, booths in supermarket systems nationwide will be officially opened
for sale right after the product announcement with the design of Tet Nham Dan 2022, bringing comfort to customers and the
system. In Vinamilk's stores, new products will always be placed in the most visible view for customers to promote the product. In
charge of this marketing and advertising division are the company's pre-event and media departments.
Secondly, test the market to offer new items to customers and find out what they think about the test product. Within 4 months,
Vfresh+ conducted a trial run in the form of product testing. Because the product is a campaign starting in the second half of 2021,
the 2022 Tet milestone will be used for the first 4 months of revenue to accurately predict profit and revenue. In response to the
nationwide anti-epidemic campaign, Vfresh + will deploy this special product in limited quantities. Vfresh+ will extend the promotion
until the end of the first quarter if it receives positive feedback from customers. In the first 4 months of the year, Vinamilk wishes to
receive 10,000 feedbacks from customers of all ages to experience food together and hope that the product will be loved. The
market research department will be in charge of this work. If the product is recognized and receives great love from customers,
production will continue in the second quarter of 2022 to thank customers for loving the product.
Finally, because this is a limited edition during the 2022 Tet epidemic, the promotional goal is also accelerated, mentioned with
promotions such as collecting "anti-fruit epidemic" stickers to redeem gifts. Stickers and gifts will come with the product. When
exchanging gifts, there will always be company staff to support both sales agents and customers so that customers can receive
their gifts. In particular, customers are encouraged to get milk boxes to exchange gifts with sales agents, then transfer directly to
the company collecting sales to donate to the Covid-19 charity fund to support the spirit of joining hands against the epidemic
government and society.
VI, Budget:
Vinamilk set an estimated revenue of 800 billion VND in 4 months of testing. Within every month of the testing, revenue is expected
to be 200 billion VND with an average price of 8,000 VND/box of milk and 29,000 VND/pack of milk with the price of 1 million boxes
of milk sold to the market and produced nationwide with a distribution. Distribution of various products with 220,000 points of sale.
Marketing expenses include: cost of staff to inspect and survey the market 500 million VND, the cost of organizing promotional
events 3 billion VND, launching press conference at big branches 5 billion VND, running advertising 30 billion, opening product trial
counters of 500 nationwide at large and small supermarkets with a cost of 2 billion VND and marketing products at branches
nationwide is 4 billion VND, estimated to be more than 44 billion VND.
Estimated more than 20 billion for production costs including: 100,000 kg / 2 billion VND milk carton, eye-catching color printed
outer shell design 100 million VND, ingredients 10 billion VND. The salary payment for employees is also estimated at 10 billion
VND, including the basic salary of 4-5 million VND and the bonus salary of 1-2 million VND. Due to the complicated epidemic
situation, this is the first month's budget and there will be adjustments in the process of the upcoming business strategy.
VII, Control:
According to Vinamilk's goals, the company's KPIs will be as follows: Each branch of the company produces 20% more thoroughly
than previous times, the salary of that branch's employees will be considered. for inclusion in the KPI bonus category than the set
target or higher than the fixed daily rate and maintained for a long time, all employees in that branch will be rewarded with 1 million
VND each and the best employee (who is within the working hours). hard work, good working attitude and marketing of the most
sold goods) will be 2 million VND. During the Covid epidemic, the number of people at home monitoring the network will be more
than usual.So each branch will have its own optional platform to help the company increase the target brand awareness of 100000
people and the first 3 branches with the most number of likes and followers will be rewarded according to the level VND 10 million
for the first branch , 8 million for the second and 5 million for the third . The target of the business for 4 months is nearly
800 billion VND, equivalent to about 200 billion VND per month, the production and sales branches that contribute the most to
achieve the set spending or more will be rewarded with 2 million each copper .
Vinamilk is a successful and influential company in the country, so it is understandable to aim for high achievements and positions.
On marketing control work by checking sales, data analysis, market share, marketing spends and other additional activities.
Therefore, the R&D planning process must also meet the objectives of quality, time and cost. Marketing control not only controls
the company from the external environment but also from the inside as well. Therefore, the company is required to have a full range
of steps to check the working progress as well as the process, to install a full range of equipment such as surveillance cameras at
the workplace to be able to ensure the quality of each product. There was an error because, in addition to the company's revenue
and profit assessments, Vinamilk also had extremely fierce competitors such as Dutch Lady, TH True milk. Must constantly launch
new products with dramatic changes that increase sales and consumer preference for the product.
Towards the development and increase of the company's sales, the company's budget inventory must be very strict to avoid errors
that lead to budget loss, capital shortage and easily lead to debt cases. Bad debts and outstanding debts will lead to the inability to
pay employees' salaries on time, which will lead to strikes or slow down the work progress of the business. Towards the level of
awareness and increasing the number of consumers, marketing on many different platforms is extremely necessary, which can be
through popular platforms on social networks such as Facebook, Instagram, TV, youtube and the community. Collaborate with
influencers. And the most important thing to mention is to always put the customer's opinion first because the product we make is
for them, they are the ones who know best about the important product change.
VIII, Conclusion:
In short, a product needs a lot of resources coming together to contribute with jobs and functions that assist each other in order to
produce a product for a corporation. Particularly, the Marketing department's strategic planning plan must pay close attention to the
process of creating a plan and closely monitor the estimations and stages in order to deliver success to the firm as well as the
company's safety and quality for consumers.
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ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 2. Marketing Essentials

Submission date Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student names & codes Final scores Signatures

1. Luu Thi Thuy Hien-GBH200860

2. Duong Thien Minh- GDH200165

4. Pham Tuan Linh- GBH200838

5.Luong Binh Minh- GBH200239

Class GBH1005 Assessor name Tung Dang

Description of activity undertaken

Situation Analysis: 3, Competition Analysis (product, price, place, people)

V, 2, Marketing Mix (people, price, product, place )

Assessment & grading criteria

How the activity meets the requirements of the criteria

Description of activity undertaken

Situation Analysis: 3, Competition Analysis; (process, promotion, physical evidence )

2, Marketing Mix (Promotion, process, physical evidence)

Assessment & grading criteria

How the activity meets the requirements of the criteria

Description of activity undertaken

1, Segmentation, targeting, positioning and differentiation:

Assessment & grading criteria

How the activity meets the requirements of the criteria

Student 4 Pham Tuan Linh

III, Situation Strategies:

1, Marketing Environment and the impact on Business Activities:

Assessment & grading criteria

How the activity meets the requirements of the criteria

Student 5 Luong Binh Minh

5, Company’s internal capabilities (SWOT analysis and Competitive advantages):

Marketing Campaign Objectives and Issues:

Assessment & grading criteria

How the activity meets the requirements of the criteria

Grade: Assessor Signature: Date:

Signature & Date:

1.1.5, Marketing intermediaries:

1.2. Macro environment:

1.2.1: Demographic environment:

1.2.2: The economic environment:

1.2.3: The nature environment:

1.2.4: The technology environment:

1.2.5: The political environment:

3.7, Physical evidence:

4.2, Customer Trend:

5, Company’s internal capabilities (SWOT analysis and Competitive advantages):

III, Marketing Campaign Objectives and Issues

2, Marketing mix of Vfresh+:

2.7, Physical evidence:

https://www.thmilk.vn/he-thong-cua-hang/ (Accessed: 15 August 2021).

https://www.thmilk.vn/quy-trinh/ (Accessed: 15 August 2021).

https://www.thmilk.vn/san-pham/ (Accessed: 15 August 2021).

https://www.vinamilk.com.vn/vi/mobile/phat-trien-ben-vung (Accessed: 15 August 2021).

Ngo, H. B. T. (2018), ‘POTENTIAL DAIRY INDUSTRY IN VIETNAM’ [Online]. Available at:

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