THE MINISTRY OF FINANCE

UNIVERSITY OF FINANCE - MARKETING

FACULTY OF MARKETING
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GROUP DISCUSSION
Marketing Management

Teacher: Bảo Trung

Group 4

Ho Chi Minh City – March/2023

 VINAMILK 100% ORGANIC MILK
PRODUCT & SERVICES STRATEGIES
1. Product set size
- On the market today, Vinamilk 100% Organic fresh milk has only 2 main types:
o Vinamilk 100% Organic pasteurized fresh milk without sugar – Paper box 1
litter
o And Vinamilk 100% Organic pasteurized fresh milk without sugar - Lot of
4 boxes x180ml
- The Vinamilk company tends to keep on producing this type of product. Also,
they are aiming to widen the product set size to match customer’s needs.
2. Product brand

Packaging contributes to purchasing decisions, so the company has focused on

designing eye-catching packaging with necessary information on the label (composition,
instructions for use, expiry date) Besides, the capacity of each type of Product is also
diversified to easily meet different uses of consumers. In terms of the environment,
Vinamilk develops eco-friendly packaging using paper boxes provided by Tetra Pak for
all liquid milk products and beverages.

On each milking box, in addition to the "Organic" symbol, there is a separate series
of numbers to serve the traceability and quality management according to the 2 Organic
standards that Vinamilk owns. Thus, consumers can be assured of the standard organic
origin and quality of each milk carton.

Logo: a rectangular shape, including 12 white stars in the shape of a leaf on a green
background printed on the side of each Vinamilk Organic milk carton.

Certification: EU Organic Standard.

 According to Mr. Willy Sim, a distributor of Vinamilk's products in Singapore:
“Vinamilk's brand is becoming more and more popular, which is also a reason to make its
products more accessible to international consumers. You can see many brands of
imported fresh milk in Singapore, but if you pay attention, you won't find many brands
with 180ml small boxes like Vinamilk."

Explaining more about this, Mr. Willy Sim said that this is an attractive point for
Vinamilk's consumers because the product has a small packaging, so it is easier to use,
just enough for the needs of one drink.

Vinamilk Organic Farm is likened to beautiful Dutch countryside in miniature with

vast green meadows and hundreds of cows grazing next to a giant windmill all creating a
poetic scene. Beautiful dreams are only available at Vinamilk Organic Milk Farm.

With an existing foundation of dairy farms and domestic factories that have met
European Organic standards, Vinamilk quickly completed the addition of organic
certification to meet the requirements of the Chinese market.

3. Product characteristics

Fresh milk is a product that provides many essential nutrients for the growth of
children of all ages in general and children in particular. But in today's dairy market,
there are many products for consumers to choose from but they are still concerned about
preservatives in the product. Therefore, Organic fresh milk is a favorite product to meet
the current demand for milk quality. The difference between organic fresh milk and
regular milk is the production process export. Organic fresh milk is produced from cows
that have been selected according to standards own standards and raised with a natural
diet, and the breeding process says no to stimulant drugs and growth. Organic is a
product that is stamped with international standard product quality “3 no” is extremely
strict:

- The first is not to use growth hormones for cows. This means every cow is raised on
natural food, not using any drugs or food to stimulate artificial growth.
 - The second is no antibiotic residues. The cows are grazed naturally and have no
effect of any antibiotics.

- The third is not to use pesticides or chemical fertilizers. Food feed for cows must
also follow organic standards, no pesticides, no chemical fertilizers science, and
genetically modified substances. Soil fertilizer must be manure, green manure of natural
origin.

However, from the retailer's or consumer's position, the difference here is only simply
Organic fresh milk tastes better and is much more expensive than regular fresh milk
often. 100% Organic Vinamilk fresh milk is produced by Vietnam Dairy Products Joint
Stock Company

100% Organic Vinamilk fresh milk products are prioritized in the milk market is
refreshed by the nutritional value that this milk line brings:

- Vinamilk Organic fresh milk has many nutrients to help the body provide enough
nutrients and increases resistance. In particular, in children, it also helps to increase
height, weight and growth immature development.

- Organic Vinamilk fresh milk contains a large amount of Omega-3. This is an

essential fatty acid equipment for physical growth and improvement. Dairy products are
rich in antioxidants oxidation helps to slow down the aging process and improve
eyesight.

- According to the research scientists, the composition of Linoleic acid in milk

organic is up to 500% higher than milk from conventionally raised cows. In particular,
this acid has the ability to limit and prevent the growth of cancer cell messages.

- Bring absolute safety to the health of users.

- Especially, this is an environmentally friendly natural product. The use of the

product protects the environmental protection part

4. Product packaging design

 The design of Vinamilk is considered a high-class product image with eye-
catching colors, eye-catching and luxurious attracts the attention of viewers.

- Front: Visual design with eye-catching colors, prominent colors, product brand
products, the Vinamilk logo is clear, easy to read, and understand on a black background,
placed on the top very float and attractive. Fascinating illustrations, stock pack
illustration book. The meat is more flavorful and the main ingredient of the potato
noodles is illustrated very easily understand.
- Back side: Company name, usage, ingredients, nutritional value, address
production, bar code, storage time...

->The packaging can show enough information about the nutritional content that users
need to care about

5. Product assistant service

- Nutrition consulting: Support and best respond to customer’s requirements quickly

when there are questions, nutritional advice, or complaints about product quality.
Meeting the legitimate needs of consumers is to seek the advice of experts in nutrition, in
order to have the most appropriate diet, bring health and happiness to the family, and
contribute to improving the quality of life.

- For liquid milk products, Vinamilk regularly provides additional services such as:

 Free online nutrition counseling for parents on the forum of the website
vinamilk.com.vn. In addition, this website regularly updates articles on children's
nutrition, and reasonable meals for parents to consult and take care of their children's
nutrition in the most comprehensive way.
 There are private nutrition clinics in provinces and cities across the country.
 Organize mini-shows at parks, kindergartens, primary schools, and amusement
parks,... to sample when introducing new products. This is a trial form when buying
goods of Vietnamese consumers very successful because of such a mentality
 6. Product development

Choosing the goal of sustainable development and "green" consumption which are
popular trends in the world, thereby positioning the brand's products.

Launching a product line possessing "double standards" is considered a great competitive

strength compared to other brands in the market.

Besides, factors such as packaging, and product design are invested by Vinamilk to meet
individual tastes but still ensure product quality during transportation and distribution in
the market. On each box of milk, in addition to the "Organic" symbol, there is a separate
serial number to serve the traceability and quality control according to the 2 Organic
standards that Vinamilk owns. Focus on the standard organic origin and quality of each
milk carton.

Promoting export to international markets is also one of the goals 2022 of this new
product.

Launching dual-standard organic fresh milk at FHC 2021, where the business is expected
to be a potential market for strong growth.

7. Life cycle

Vinamilk organic fresh milk, launched in Ho Chi Minh City on June 15, 2016, is the first
100% organic pioneer milk line in Vietnam and quickly impresses consumers. marked a
turning point of Vinamilk on the journey of integration with the world dairy market with
careful investment in the health and safety tastes of consumers. Vinamilk has invested
carefully as the product must meet the standards of organic food production according to
a strict process with absolutely no interference from chemicals, growth hormones,... Strict
investment in quality and process Product production scale with 500 organic dairy cows,
certified by Control Union - the Netherlands to meet European standards, to the selection
of cow breeds or the organization of farm operations are also strictly handled by the
enterprise and are also invested in television and media advertising. Thanks to that, this
milk line can be widely accessible in the Vietnamese market, then it is also widely
developed in the world such as Singapore, China and Southeast Asian countries, further
promoting the whole market. For domestic and export markets, the product began to
appear many competitors after 1 year of launch such as TH true milk's organic sabr,
frieslandCampina silently introduced into the distribution system of organic fresh milk
products or NutriFood's first joint venture. invest and launch organic dairy products,... in
2021, with the contribution of organic dairy products, Vinamilk ranked 36th in the
world's top 50 dairy companies with a valuation of 2.4 billion USD, among the top The 5
strongest food brands in the world and is also rated as one of the 3 most potential dairy
brands according to Brand Finance's food and beverage industry report. Currently, 100%
organic Vinamilk products always have a strong place in the minds of customers with the
proof that Vinamilk still tops the liquid milk rankings according to Younet Media in the
brand rankings, followed by Dutch Lady in turn. , MIlo and Thtrue Milk. Currently,
organic products are no longer strange to consumers because there are many choices from
domestic and foreign brands. The price of the product also fluctuates from 30,000VND to
45,000VND per liter. During this period, the enterprise no longer incurs many investment
costs compared to the previous period. Net sales are expected to grow 2% in 2023, a
decrease in sales compared to previous years despite increased sales. With this situation,
the product line is at saturation level.
According to VNDirect.