TOPIC: DESIGN A MARKETING STRATEGY FOR TH TRUE MILK

GROUP 4 – Members

Nguyễn Lan Anh

Vũ Hoàng Anh
Nguyễn Thị Kim Chi
Bùi Hoàng Khánh Linh
Nguyễn Thị Khánh Linh
Nguyễn Thị Lâm Oanh
Trần Thu Phương
1. Introduction
Founded in 2010, TH True milk is one of three companies under the TH
group.
TH true milk is a dairy company based in Vietnam that specializes in
producing and distributing high- quality milk and dairy products. The
company operates a large- scale dairy farm in Nghe An province, Vietnam,
where it raises Holstein cows and uses advanced technology and sustainable
farming practices to ensure the quality of its milk.
TH True milk’s products include fresh milk, yogurt, cheese, butter, and
other dairy products that are marketed both domestically and internationally.
2. PESTLE analysis of TH True Milk Company
- Political:
+ The Vietnamese government has been supportive of the dairy industry,
with subsidies and tax incentives that promote the development of the
sector. As building roads, bridges, and other transportation systems that
make it easier to transport milk and dairy products to market. So it can be
upgrading and expanding dairy farms with high growth aiming to
dominate the domestic dairy market.
+ the company may face political risks related to changes in government
policies or regulations, such as changes in tariffs or trade barriers
- Economic:
+ TH true milk has benefited from growing class in VietNam that has
increased demand for high-quality dairy products
+ The company may face economic risks related to fluctuations in the
global dairy market or changes in exchange rates.
- Social:
 + There is a growing trend towards healthy and natural foods in Vietnam,
which has increased demand for organic and natural dairy products. TH
true milk responded to this trend by offering organic milk and natural
dairy products with the motto "clean milk", "all for public health".  The
dairy farm system is applied Israeli dairy farming technology with a large
scale
+The company has implemented various social initiatives to support local
communities, such as providing jobs and education opportunities.
- Technological:
+ TH True Milk has invested in advanced technology to improve the
efficiency and sustainability of its dairy farming operations, such as using
biogas and solar power to generate electricity.
+ The company may face technological risks related to disruptions in its
supply chain or cybersecurity threats
+ Modern production technology is constantly updated from Tetra Pak
Group
- Legal:
+ The company must comply with various laws and regulations related to
food safety, animal welfare, and environmental protection. For example,
such as regulations that require regular testing of milk for bacteria and
other contaminants.
+ The company may face legal risks related to lawsuits or regulatory
fines related to non-compliance with regulations.
- Environmental:
+ TH True Milk has implemented various environmental initiatives to
reduce its carbon footprint and promote sustainable farming practices,
 such as using waste as fertilizer and implementing a closed-loop waste
management system.
+ The company may face environmental risks related to climate change,
such as changes in weather patterns that could affect its farming
operations.
3. Competitor analysis:
3.1. Direct competitors
-The dairy market is one of the most competitive in Vietnam with many
famous domestic and imported brands such as Vinamilk, Nestle, Dutch Lady,
NutiFood... Despite participating in such a competitive environment, TH True
Milk still has certain tools. The 30% figure is proof of TH  True Milk's efforts.
- As the topic has been updated, the competition in the Vietnamese dairy
market is one of the official calculation systems in the future of TH True Milk.
In particular, any product or brand idea can be captured and sold at a cheaper
price.
Domestic  dairy   companies:   Nutifood, Vinasoy, etc.
- Strength: Understand   the consumer   culture,   quite   modern production  
technology,   high product quality, reasonable price.
- Weakness:   Haven't   created   a   strong   brand,   products   are   not
diversified,   lack   of   management   experience,   limited   vision,   not
enough raw material resources
Foreign dairy companies: Nestle, Abbott, etc.
- Strength:   strong   brand,   strong   product   quality,   large   capital,
diversified products, large distribution channels, modern production
technology, skilled workers
 - Weakness:   still   not   understand   well   the   new   market,   have   not
overcome the cultural and political barriers, the price is quite high and
have to be imported
Vinamilk: Vinamilk is the top of companies ranking in Vietnam about
manufacturing not merely milk but also many products from milk
- Strength:
 Manufacturing technology achieves international standards.
 Continuously developing advanced products.
 System of distribution and selling covers many areas.
 A familiar brand and trusted by Vietnamese consumers for more
than 34 years.
 Highly effective marketing
 Diversified product portfolio, largest market share in Vietnam Việt
 Strong financials
 Modern equipment and technology
 Continuously developing advanced products.
- Weakness:
 Meet difficulty in focusing the kind of natural milk
 Haven't mastered the source material yet
 The market share of powdered milk is not high and cannot compete
with competitors in the same industry
Dutch Lady: So far Dutch Lady Vietnam has a large market in whole Vietnam.
In there, Dutch Lady have many market segments following the age including
the small child, child, teenager and adult; following the kind of milk products
consisting on sterilized milk, condensed milk. Because Dutch Lady makes menu
segments, they set slogan for the natural milk which is called: “Ready for life!”
and for impressing their various products for all age which is called: “cùng bé
yêu khôn lớn” to distinguish with other IQ’s messages.
- Strength:
 Applying to the high technology.
 Constantly improve products.
 Distributing system covers many areas.
 Locating a power position of brand name.
 Strong brand, understand people's consumer culture
 High quality products
 Good customer care system, reasonable prices, diverse products
- Weakness:
 Not having the ability to self-control the source of raw materials
 The quality of raw materials cannot be managed, unstable
 Creating barriers for dairy farmers
 Not having a large market share in the powdered milk segment
3.2. Indirect competitors
- TH competes with competitors with substitute products such as soft drinks,
yogurt, nut milk,
ice cream, cheese, purified water,...
- Beverage market: Coca-Cola, Pepsi
- Yogurt market: Dutch Lady, Vinamilk, Nutifood
3.3. Potential competitors
- Technology - technique: Quality management technologies (KCS), complex
preparation technology, requirements on product packaging to ensure milk
quality.
- Finance: Requires a large amount of capital to invest in machinery, equipment,
factories, warehouses, etc.
- About the brand: In Vietnam today, many famous brands create trust with
customers such as Dutch Lady, Abbott, Vinamilk, etc. Building a brand name is
not easy, so this will be a big barrier for businesses wanting to enter the industry.
- About distribution channels: TH true milk has 2 channels: direct distribution
and indirect distribution.
- About customer loyalty: Vietnamese consumers tend to use products of big,
reputable brands that have been certified for safety.
- Specific resources: Enterprises now have a team of quality nutritionists, input
materials, especially ingredients imported from abroad.
4. Market segmentation,targeting and positioning
4.1.Market Segmentation
a. Market segmentation by geographical location :
•  Urban :
   With the characteristics of high population density, it is convenient for the
distribution and consumption of goods. The income of urban people is also
higher, so they care about their health and often use milk for the whole family.
 •   Rural
Population density is not high, it is difficult to distribute products. They are
often loyal to the traditional products that they have trusted and used and are
suitable for their income.
b. Market segmentation based on demographics
- Age 0-4: This is the age that needs to be supplemented with many
nutrients, DHA for development, but the digestive system is not yet
mature, often use specialized dairy products for ages.
 - 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 15-25: This is the age when consumers are more autonomous in
making decision, using product lines that are suitable for dynamism and
youthfulness.
Moreover, the purchase decision at this age depends on the quality of the
product and the reasonable price.
- Age over 25: Use calcium supplements for the body, provide enough
essential nutrients, rich in protein and minerals.
c. Market segmentation by consumer behavior
- Ordinary customers: make up a fairly high percentage, they have quite rich
consumer preferences and can access a wide variety of milks.
- Customers with health conditions: malnutrition, osteoporosis, diabetes,
etc. Customers are interested in clean products suitable for diet and health
protection, etc.
4.2. Target market
a. People living in urban areas:
 They have full media channels as well as the ability to access TH True Milk
quickly and effectively. With the average income of urban people, the level of
awareness of product quality and the healthcare needs of themselves and their
families, the fact that they have to spend more money on them, a “clean” dairy
product with a slightly higher price on the market is perfectly reasonable and
easy to understand.
b. Customers aged 5-14
 This is the customer segment that TH True Milk is particularly interested in.
Because this is a growing age, it is necessary to have a source of nutrients,
vitamins, DHA, and calcium to absorb. Therefore, the demand for milk at this
stage is higher than ever.
c. Customers aged 25 and over
 In this target group, TH aims to gain the trust and confidence of fathers and
mothers as they are the ones who directly make nutritional decisions for their
children.
4.3. Positioning
a. Price and quality positioning : 
 
   TH is the FIRST company to claim they are “clean milk” and they are one
step ahead of their veteran competitors in this. The word True "clean" -
"Standard" continues to affirm TH's position and make a revolution of clean milk
in the Vietnamese market.
       In addition, TH true MILK's dairy farm was certified by the World
Records Union as "The world's largest closed dairy and processing farm cluster"
in 2016-2020. With a special production process, the price of TH true milk is
higher than that of other brands.
b. Competition positioning :
The competitive advantage of TH True Milk is that the input materials are all
supplied from TH's most modern cow farm in Southeast Asia, while Vinamilk
uses imported raw materials and raw materials purchased from farming
households. cows farm cows in the country.
  Therefore, it is possible to ensure the absolute safety of TH's milk production
materials
c. User positioning: 
 Starting from the heart of a mother, Mrs. Huong - Founder of TH true milk
wants Vietnamese children to be nourished from a clean milk source, to develop
physically and mentally comprehensively.
The most typical is Miss. Thai Huong's initiative on school milk: "I want the
best milk for Vietnamese children '', "There is only one standard of milk used for
children in the school milk program. – and that is raw milk.”
To make each cup of milk "really natural", she chose the most arduous path
of investing in agriculture - growing grass, raising cows, and processing milk.
5. General strategy and competitive advantage
5.1.Marketing objectives and marketing strategies
The marketing objectives for TH true milk will focus on the key elements,
product, place, price and promotion which make up the marketing mix.
According to the Vietnam Brand Imprint 2022 report, TH true MILK has
surpassed many other names to enter the Top 2 brands of milk and dairy
products chosen by urban consumers the most.
TH true MILK is accounting for nearly 45% of the market share in the fresh milk
segment in the urban Vietnamese market. Financial objectives for 2016 will be
to exceed this total revenue by increasing the sales of products by 15%. These
objectives will be achieved by increasing nutritional value as well as focusing on
brand expansion and increasing company image through environmental aspects
and improvements and placement in new target markets.
5.2. Competitive advantage
The TH True Milk has created its own competitive advantage by having a
differentiation strategy that focus on quality, distribution channels and branding.
First, the brand emphasized on producing the product with the best quality.
The company owns a 37,000 hectares concentrated dairy farm of fertile Basalt
red soil, with natural water sources from Sao River located in Nghia Dan, Nghe
An. All the farm is fully equipped with the most innovative technology from
veterinary, laboratory and milking systems with annual expert supervision.
Moreover, with the slogan “100% pure milk”, the cows on TH farm are imported
from countries such as the US, New Zealand, Australia, etc, and also embedded
with chips to monitor their health and growth to make sure that they are healthy
and produce the best milk (THmilk, 2021) .
Second, regarding distribution channels, TH True Milk uses two types of
distribution: direct and indirect. First, with direct allocation of products, the
company owns the TH True Mart store chain to sell the product directly to
customers, specialized in providing the cleanest, safest and freshest dairy
products and including free shipping service within 48 hours. Next is the indirect
distribution channel, which can be divided into one level channel and two level
channel. Level 1 is the transfer process of goods from the producer to retail
stores including supermarkets, convenience stores, etc., and to the final
consumer. Level 2 is the process from the manufacturer of the company to the
dealer, then to the retail points where consumers can purchase the products
(TOGETHER PLANT OUR FUTURE, 2019). With this distribution strategy,
TH True Milk products are accessible to the majority of customers across the
country.
Third, the brand has successfully created an outstanding business image. TH
True Milk has the reputation for producing products made from high-quality
ingredients and standard manufacturing technique. Through the quality products
as well as their charity activities, TH True Milk is a national brand and the pride
of the country (THmilk, 2018)
6. Marketing mix for TH true milk
6.1. Place
 -  TH True Milk has built a wide TH True Mart chain as well as
cooperated with distribution systems such as large supermarkets,
convenience stores to help customers easily access TH True Milk's
products.
- Currently, with the need to expand the market and the development of
technology, TH's dairy products should be listed for sale on the e-
commerce platforms of Tiktok shop or Shopee and the company's 
website. Due to the expansion of business needs, the company has also
attracted a large number of busy customers who do not have much time
to go directly to the store to choose products. Instead, they can choose
the type of milk they want and order it to be delivered to their home
with many attractive vouchers, helping to stimulate consumers'
shopping.
6.2. Product
Classification: convenience product
Levels of product
a. Core Customer Value: supplementing the necessary nutrients 
b. Nutrition Information per 100ml
Energy: 60,1  kcal
Fat: 3,3 g
Protein: 3,0 g
Carbohydrate: 4,6 g
Calcium:        104 mg
c. Actual Product:
Packaging: Carton Pack - 4-pack block 180 ml
- Purely made with fresh milk from the TH Farm
- Closed and hygienic process from grass to glass
 - No preservatives
Augmented Product: online shopping: convenient payment, home delivery,
customer service.
6.3. Pricing
a. Customer value -based pricing
Right from the market launch, positioning the brand as a high-end product line,
TH chose to sell products at a high price as a ticket to ensure product quality,
hitting the consumer's mind with the success sentence. The saying "You get what
you pay for".
TH's milk price at TH true mart chain stores is the consumer-oriented price and
the selling price set by the company.
b. Valued – added pricing.
In terms of product quality, to meet the increasing demands of consumers, the
company has not hesitated to invest in modern technology lines. Dairy products
are produced with the most modern and hygienic production technology.
TH true Milk is completely from nature, giving users a really fresh and pure
milk line. Ensure factors such as taste, sweetness and purity…
TH true MILK is extremely proud to be granted the international certificate of
ISO 22000: 2005 on food hygiene and safety of BVQI organization and many
other prestigious certificates of product quality and brand.
Price list of TH true milk's pasteurized fresh milk:
Pure Pasteurized Fresh Milk                   36.300  VND/ pack of 4 boxes of
180ml
Low Sugar Pasteurized Fresh Milk            36.300 VND/ pack of 4 boxes of
180ml
Pasteurized Fresh Milk With Sugar            36.300 VND/ pack of 4 boxes of
180ml
TH true MILK Strawberry Flavored Fresh Milk 36.300 VND/ pack of 4 boxes of
180ml
TH true MILK Chocolate Sterilized Fresh Milk 36.300 VND/ pack of 4 boxes of
180ml
c. Market skimming pricing
TH has used the skimming price strategy as the first step for its brand. Creating a
"clean milk" brand is clearly defined through true stories and the production
process that creates products, hitting consumers' psychology in the relationship
between price and product quality.
In addition to ensuring profits, this strategy also strikes consumer trust with
images of a high-priced product that goes hand in hand with quality. Create
brand reputation and high-end products in the mind of customers right from the
new stage penetrate the market. Accordingly, on the common ground in the
Vietnamese dairy market, TH True Milk is ranked in the top of high-cost, safe,
reputable and quality milk.
There is no denying the effectiveness that this skimming strategy brings to
TH, but TH also does not abuse it because it is only really effective and should
be applied in the early stages of the product when it is launched on the market.
After the success of this strategy, TH is increasingly expanding its customer
base, exploring lower-income customer segments with the goal of becoming one
of the milk brands chosen by many people, from children to children. Even
adults, the elderly and those on a diet can also use it. It can be said that this is a
long-term calculated step of the marketing - mix strategists of TH True Milk.
d. Product mix pricing strategies
Product line pricing To attract diverse TH has 13 products line.
customers data For example, Nut milk
depending on income provides people who would
 like to care for about heart
Formula milk fit in the baby
and toddler
Product bundle pricing To sell and attract Programe receive one dalat
customers buy different butter when buying with
types of products receipt from 66.000 VND

e. Price adjustment strategies

Pricing strategies Why using strategies for Promotional forms have been
the companies? applied in practice
Discount and allowance To sell more products in Provide discount 30% when
pricing quatitives buying 1 can
Psychological pricing Attract customers in the Put TH true milk next to the
supermarket TH true milk organic so that
customers find TH true milk
cheaper
Promotional pricing Inventory handling, In special events like Lazada
boost sales. On special birthday discount 20%, sale
occasions such as Tet, off at the end of months on
holidays, customer website; flashsale 20% off
demand is higher, need when order online on grab
to buy products in larger food, shopee food
quantities

6.4. Promotion
a. Public relations (PR) - Basic PR tool
1. Organize events to give clean milk to primary schools in the area (events)
2.  Meetings with a nutritionist to talk about the difference between fresh milk 
TH true milk and milk lines of other brands (networking)
3.  Inviting KOLs  has influenced with consumer such as BabyKopo Home, 
Cam cam family,... experience the new – launched products (going viral)
4. TH true milk creates TH true happiness, an online project giving consumers
and fledgling designers a chance to create the next style of TH true  milk shell.
Working with its PR agency, TH will create a microsite that asks customers to
create videos of themselves and their milk shell designs. The brand is going to
mix traditional PR media, along with paid ads on FB and other platforms,
allowing the public to comment and vote on the submitted designs. The first
prize winner will receive 50 millions VND (pr channel)
5. organize events on the occasion of press day, participate in activities to
promote relations of dairy markets in foreign countries. ( networking, new
released)
b. Consumer promotions
Free samples: use the accompanying products when buying many milk batches,
experience new products such as ice cream, butter,....
Rebates: when buyer purchase  more about 1 milk crates, customer will receive
amount of money  
In -store display : Place shelves to display products with a unique design like the
image of a cow representing the clean milk brand 
% discount: Buy 4 packs get 10% off
c. Sponsor event: In element school and secondary school
- Competition: create/design milk cartons, winner will be given 1 carton of th-
truemilk 180ml with winning packaging design and school supplies or t-shirt
with TH logo and personal design