INDIVIDUAL

ASSIGNMENT
Consumer Behavior

Bùi Minh Tiến-HS163265

MKT 1618
Lecturer: Trần Tuyết Minh
 TABLE OF CONTENTS
I: Introduction
1.1: Short profile about Vinamilk
1.2: STP Strategy
1.3: Analyse the impact of culture on consumer
behaviour
II: Literature Review & Critical Analysis
2.1:Definition of culture and related factors
2.2: Definition of consumer behavior
2.3: Culture of the country
2.4: Consumer behaviour in purchasing
Vinamilk in VietNam
2.5: Analyse the impact of culture on consumer
behaviour in VietNam
III : Conclusion
IV:Reference
 I. Introduction
Overview of the Vinamilk

Vinamilk company established in 1976 as the

Southern Coffee-Dairy Company, then renamed to
United Enterprises of Milk Coffee Cookies and
Candies I in 1978 and finally
Vietnam Dairy Company was formally established in
1993. In 2003, follows its IPO to the Ho Chi Minh
Stock Exchange, the company legally changed its
name to Vietnam Dairy Products Joint Stock
Company (VINAMILK). The company is a state
owned enterprise in which the government owns
about 50.01 % of the shares and the rest of the
shares are currently active trading at the Ho Chi
Minh Stock Exchange.The principal activities of
Vinamilk are manufacturing and distributing
products derived from milk such as fresh-milk,
condensed milk, powdered milk, yogurts, ice-cream,
cheese and others drinks such as fruit juice and
soya milk.
 STP Strategy
Segmenting
- Age 0-4: This is the age that needs to be supplemented
with many nutrients, DHA for development, but the
digestive system is not really perfect, often using
specialized dairy products for this age group.
- Age 5-14: this is the age when young people enter the
development process, need a lot of nutrition for the body,
serving the learning and training process
- Age from 15-25: this age, consumers often more
autonomy in purchasing decisions, using product lines
suitable for dynamic and youthful features - Age over 25:
using calcium-fortified products for the body
 Targeting

percent organic has successfully occupied
Vinamilk 100
the high-income niche with a focused marketing campaign.
Vinamilk's main target market is children aged 5 to 14
years old (Vinamilk 2014). Vinamilk intends to boost
children's physical health and aims to cultivate young
talents as preschools who are regarded as the pillars of
the nation's future (Vinamilk 2016). The first reason
Vinamilk 100 percent organic chose this sector is that
youngsters make up approximately 23.2 percent of the
population (Statistic 2020). Second, the middle-class
population is growing, and they are beginning to prioritize
product value over price. As a result, 100 percent organic
Vinamilk will be able to attract more customers.
 Positioning

has the greatest price (43.5 VND / 4 boxes)
Meadow Fresh
and the highest calcium amount (125 mg) when compared
to other brands, while the Netherlands has the lowest
price (29.5 VND / 4 boxes).
Vinamilk, on the other hand, has a reasonably reasonable
pricing (31.5 VND / 4 boxes) that is adequate for the
majority of Vietnamese customers nowadays. Vinamilk is a
prominent and leading dairy brand in Vietnam, therefore
customers may find it in supermarkets, marketplaces,
grocery stores, and other retail outlets. Above all, Vinamilk
has established itself as the dominant player in Vietnam's
dairy business.
 As we all know, culture is a highly
essential component that has a
significant impact on client
purchasing behavior. Culture is the
primary factor that influences a
person's will and behavior.
Vietnamese people are always
influenced by cultural
characteristics of national identity
while purchasing items, which
Analyse the determine the values of choice.

impact of Because Vietnam does not have a

long history of milk production, the
culture on majority of people do not consume
milk. Furthermore, when compared
consumer to other commodities and the
income of the majority of
behaviour Vietnamese households,

particularly in rural regions, the
price of dairy products in Vietnam
remains fairly expensive, as it is in
many other low-income nations.
II: Literature
Review & Critical
Analysis
DEFINITION OF CULTURE AND RELATED
FACTORS

Understanding consumer behavior requires an

understanding of culture. An individual's
behavior is determined by his or her culture.
Cultural influences comprise the fundamental
values, needs, wants, preferences, perceptions,
and behaviors that a consumer observes and
learns from close family members and other key
individuals in their lives. The culture of a person
has a significant impact on their mental
processes and behaviors. Because it has such a
strong influence on how people view the world
around them, their place in it, and how they
make decisions, it has a significant impact on
how and why we purchase products and
services. Nationalities, religion, racial groups,
and geographic faiths are all subcultures within
a society.
 Definition of
consumer
behaviour
The study of how individual customers, groups, or
organizations pick, buy, use, and dispose of ideas,
commodities, and services to meet their needs and desires
is known as consumer behavior. It relates to consumer
behavior in the marketplace and the underlying
motivations for that behavior. The human actions that
influence purchasing decisions are referred to as
consumer behavior. In truth, buying behavior is the result
of a lengthy process of client decision making. Every
consumer has a distinct thought process and attitude
toward purchasing a particular item. When consumers
make decisions, they engage in problem-solving talks to
meet their wants and preferences. In reality, everyone on
Earth is a customer. We buy and consume a wide variety
of goods and services every day.
 Vietnam boasts one of Southeast Asia's
most diverse civilizations. The teachings
of Confucius are responsible for the most
important components of Vietnamese
culture. The importance of the family and
its structure cannot be overstated.
Households frequently have three or
more generations living under the same
roof. The man is the family's leader,
making the majority of crucial choices.
The woman's primary responsibility is to
manage the home and raise the children,
ensuring that they are secure, well-fed,
and nurtured. Many Vietnamese women
labor in markets, family-owned
enterprises, or have employment; they
are frequently the family's principal
breadwinner. Children are expected to
care for their parents as they age.

Culture of the country

– VietNam
Consumer
behaviour in
purchasing
Vinamilk in
VietNam
Diversify your products to prepare for a new adventure.
Vinamilk milk is increasingly asserting its brand by
delivering a diverse range of goods ranging from
powdered milk to fresh milk to yogurt, among others.
Each variety is appropriate for each age group to ensure
nutrition and human health at reasonable pricing for
consumers. Vinamilk is expanding and diversifying its
product line. Vinamilk, for example, has recently
launched an effective and safe weight loss milk product
with a scientific formula and treatment plan for
individuals who are unfortunate enough to be
overweight. With a more than ten-year reputation,
Vinamilk milk has acquired consumer trust not only in
price but also in product quality with the present human
development trend.

Vinamilk milk is purchased by people from all walks of life.

They chose Vinamilk since it is the top dairy firm in Vietnam
and offers good quality at a reasonable price. Vinamilk dairy
products are available in all supermarkets, grocery stores,
and other outlets throughout Vietnam to satisfy the demands
of consumers. Our organization questioned a lot of people
after conducting surveys in recent areas, and they stated
that "they select Vinamilk milk because of its reasonable
pricing, low fat, and great quality."
Analyse the impact of culture
on consumer behaviour in
VietNam
Many people love Vinamilk because it is a brand that is always
attached to Vietnamese children with the community and the
country. decision in buying fresh milk, including: (1) product
quality, (2) fair price, (3) product promotion and customer
services, (4) product convenience, and (5) reference group's
attitude to the brand. In addition, it is also found that product
brand has a direct and positive impact on the student decision.
The finding in this study is quite different from other existing
literatures in terms of the importance level of the determinants
of the student decision in buying fresh milk; specifically, in
deciding to buy their fresh milk, students are often interested in
the promotion and customer service, the product convenience,
and the reference group for the purchase, more than in the
quality and price of the product. Many people enjoy Vinamilk
because it is a brand that is always associated with Vietnamese
children, the community, and the country. decision to purchase
fresh milk, including: (1) product quality, (2) fair price, (3)
product promotion and customer service, (4) product
convenience, and (5) reference group attitude toward the brand.
Furthermore, it has been discovered that product brand has a
direct and beneficial impact on student decision.In terms of the
importance level of the determinants of the student decision in
buying fresh milk, the findings in this study are quite different
from other existing literatures; specifically, when deciding to
buy their fresh milk, students are often interested in the
promotion and customer service, the product convenience, and
the reference group for the purchase, rather than the quality
and price of the product.
 Conclusion
UNDERSTANDING CONSUMER BEHAVIOR IS A CRITICAL COMPONENT OF A
PRODUCT'S SUCCESS. AS A RESULT, VINAMILK ALWAYS INCLUDES SOME
PRODUCTS SUITED TO THE VIETNAMESE MARKET. VINAMILK
CONSISTENTLY ADHERES TO VIETNAMESE CUSTOMS. FURTHERMORE,
VIETNAMESE VALUES AND CONSUMER PURCHASING BEHAVIOR
INFLUENCE PRODUCT PLACEMENT. UNDERSTANDING LOCAL CONSUMER
BEHAVIOR, ON THE OTHER HAND, ALLOWS VIETNAM TO BETTER TARGET
THE PROPER CUSTOMERS. FURTHERMORE, ONE OF THE MOST ESSENTIAL
ISSUES FOR EVERY COMPANY WHEN ENTERING A NEW FOREIGN MARKET
AND GAINING AS MUCH MARKET SHARE AS POSSIBLE IS THE IMPACT OF
CULTURE.

Reference
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