Hanoi University

Faculty of Management and Tourism

Vinamilk
Marketing Plan

Lecturer: Mrs Le Minh Hang

Tutor : Mrs Vu Nguyet Minh

Tut 2 - Group 4
Group's member:
Nguyen Thuy Hien - 1904010033
Vu Thi Thuy Hue - 1904010041
Do Thuy Duong - 2104050012
Oyunchimec Anujin -18L4000001
CONTENTS

01.
Summary
Executive

19.
02.
Marketing
Objectives
Company
Introduction

20.
04. Marketing
Strategies
Current
Marketing

23.
Situation

14.
Action
Program
SWOT
analysis

28.
18.
References

Main Issues
SUMMARY EXECUTIVE
Vinamilk, with the mission "To deliver the most valuable nutrition to the
community" has become one of the leading companies in the dairy industry in
Vietnam. Vietnamese living standards tend to be higher because of the development
of Vietnam's economy, which means people take more consideration of their well-
being, demanding more nutrients apart from daily food. Hence, one kind of product is
believed to be ideal, complete, high-nutritious and safe, and suitable for all ages,
which is milk. Milk product lines with a potential market in Vietnam have brought
back great profit for Vinamilk and make it one of the majority proportions of
Vietnam's dairy market share. However, it is very inevitable that there are some
existing risks that the company does not still solve suitably.
Based on secondary research, this report discusses the marketing research one of the
VINAMILK's product line - milk. First of all, the research gives you information
about the current marketing situation (internal environment, micro one, and macro
one) of VNM. Second, a SWOT analysis will be presented clearly in the paper.
Following the SWOT analysis, we will state the important problems related to the
company. Third, marketing strategies and marketing objectives must be analyzed to
solve the mentioned issues and achieve these objectives. This report based on
gathered information from textbooks, journals, and online web pages relating to the
contents of the marketing mix 4Ps provides insight and appreciates the issues of
Vinamilk which have not been accessed and discussed to consider and improve their
product in the future. The last thing indispensable for this marketing research is to
propose an action program and illustrate products, posters, TVC, etc so that all staff
in the company can follow and run the whole plan to improve current major
problems.

1
 I.
INTRODUCTION
ABOUT
VINAMILK

Vietnam Dairy Products Joint Stock Company (Vinamilk), with over 200 dairy products, including fresh
milk, yogurt, condensed milk, soymilk, etc distributed in over 30 countries (Vinamilk 2021). The company
was established on August 20, 1976, by joining three milk brands in southern Vietnam including Dak Lak,
Truong Tho, and Thong Nhat (Vinamilk). Its main office is located in District 7, Ho Chi Minh city. When
mentioning the mission of the company, the Chief Executive officer of VNM named Mai Kieu Lien said
that: “To manufacture one of the leading products in the market, we must always be innovative. Innovation
is a vital element!”. It is the reason why VINAMILK has been consecutively holding the first position in
the dairy market in Vietnam in recent years.
It has been shown on the website viettrade.com
that the company includes 15 factories and 7
Global G.A.P certificate farms and manufactures
more than 250 products and services which are
mainly made of both buttery and milky,
consisting of Powdered Milk, Infant Cereal,
Milk Drink, Condensed Milk and value-added
ones as yogurt, soya drink, ice cream, etc.
Vinamilk has demonstrated development:
quality and innovation are always the most
important features; therefore, they achieved the
National Quality Award for 23 consecutive years (VNExpress 2019). According to Forbes Vietnam
rankings in 2019, Vinamilk is in first place among 50 companies that have the best price. The company’s
vision is to become a world-grade brand in the food and beverage industry, where people put all their trust
in nutrient and health products and their mission is to deliver valuable nutrition to the community. It is
noticeable that most of Vinamilk's products account for the highest market share in Vietnam’s dairy
market. Spoonable yogurt, which is discussed most in this report, often amounts to over 80% over many
years. Other products such as condensed milk, liquid milk, and powdered milk also comprise the highest
percentage of market share in Vietnam. In addition, the group bought Moc Chau company in the last
month of 2019.

2
 VISION
To become a world grade brand in food and beverage
industry, where people put all their trust in nutrient and
health products.

MISSION
To deliver the most valuable nutrition to community with
all respect, love and responsibility

CORE VALUE
To become a world grade brand in food and beverage industry,
where people put all their trust in nutrient and health products.

3
 II.
CURRENT
MARKETING
SITUATION
4
1. INTERNAL ENVIRONMENT

a. Marketing orientation

The marketing concept is a marketing management orientation that Vinamilk always

follows as it is clearly reflected in the company's vision: "To become a world grade
brand in food and beverage industry, where people put all their trust in nutrient and
health products." On the one hand, this concept brings to Vinamilk many
opportunities.
Firstly, the company conducts continuous marketing audits and marketing research,
which enables it to respond quickly to the change in buyer behavior. Consequently,
the decision-making process is no longer based on hunches but on reliable scientific
data and the proper interpretation of such data, which means more certainty in the
firm's profits.
Secondly, this concept directly benefits consumers by allowing them to buy products
at affordable prices, of better quality, and at convenient locations. Moreover, by
maintaining long-term relationships with customers through service and quality that
they can trust, customer retention, and new customers over time will be ensured.
However, as opposed to a selling concept which only focuses on sales and promotion,
businesses operate from a marketing concept that requires implementing a set of
marketing tools that are coordinated asynchronously and systematically to achieve
market goals. When an organization practices the marketing concept, all its activities
such as research and development, distribution, quality control, finance,
manufacturing, selling, etc., are all focused to satisfy the consumer needs and wants.
Because of this, it is more expensive to market a product following the marketing
concept than the selling concept.

5
b. Infrastructure

In Vinamilk's organizational structure, the departments are

Organizational

deliberately and sensibly separated, with particular tasks for

structures

each person and function in the firm. Thanks to this

organizational structure, the company operates effectively and
improves cooperation among departments, creating a cohesive
and strong Vinamilk. 01
From the initial three factories when established, up to now, Vinamilk
currently has 13 domestic factories that are invested in scale and apply
the world's leading technology. This factory system enables Vinamilk
to develop more than 250 types of dairy products in 13 product
categories, from condensed milk, liquid milk, powdered milk, yogurt,
Facilities

ice cream, and soft drinks. Not only stopping in the country, the
company also continuously expands investment abroad. In addition to
10 farms and 13 domestic factories, Vinamilk also has three factories in
the US, New Zealand, Cambodia, one subsidiary in Poland and is
promoting exports to new markets such as Thailand and Myanmar and
02 Africa.

By 2022, Vinamilk has over 10,000 people operating at 34 member

units around the country. Vinamilk has long advocated for
employee respect and equality in terms of gender, geography, and
Human resources

religion. Everyone, regardless of field or level, is free to express

their values and contribute to the company's success. According to
CareerBuilder Vietnam, Vinamilk is rated in the Top 3 of the 100
most favorite employers in 2020 and rose to the top of the Top 10
most favorite employers of the fast-moving consumer goods
(FMCG) industry. 03
6
c. Business performance
MARKET SHARE

According to Euromonitor, in 2021, Vinamilk

leads in market share of the whole industry,
accounting for 43.3% (excluding Moc Chau
Milk) with a strong distribution network
covering 64 provinces and cities in Vietnam.
In particular, in some segments Vinamilk
holds a very large market share such as
condensed milk (accounting for about 80%).

SALES

The Covid 19 epidemic hit the dairy sector in general in 2021, and
Vinamilk is no exception. However, Vinamilk finished 2021 by
achieving a new revenue record, reaching the VND 60,000 billion
mark for the first time. Notably, consolidated sales increased by
over 10% in the fourth quarter of 2021, the strongest quarterly rise
in nearly 5 years. This revenue record is the result of contributions
from all three segments: domestic, export, and overseas branches.

According to the newly published annual report of Vinamilk, the

company plans to raise its market share by 0.5% to 56% and
revenue by 5% to VND 64,070 billion in 2022-2026, which is
higher than the 2.2% rise in 2021. In addition, profit before tax for
the whole year is expected to reach VND 12,000 billion.

STRATEGIC BUSINESS UNITS

Vinamilk products have mostly fallen into the star stage,

which consists of milk product line. Milk is one of the
potential products that Vinamilk should expand and develop
strongly. It accounts for high market share (over 80%, data
from Nielsen) in the milk consumption market in Vietnam.
Beside that, according to Euromonitor, Vietnam's dairy
market in 2020 increased by more than 8% compared to
2019, thanks to the rapid growth of yogurt and drinking
milk products. In which, the yogurt industry has the highest
growth with 12%. As a result, it is clear that Vinamilk
products faces high competition in the Vietnamese market
as well as the international market (high business growth
rate). Therefore, Vinamilk's products are considered a star
stage.

7
 d. 4Ps review
Products
Product line

Quality standard
The most advanced, world-class dairy plants network
for top-quality products. The activities related to
studying ingredients composition, improvement and
standardization of testing methods are regularly
implemented by the Research and Development
Center, Food Safety Assurance Department and
Production Department. Moreover, Vinamilk also
coordinates with the National Institute of Nutrition
and testing centers to develop and complete processes
and methods for testing and controlling food safety
Branding
Vinamilk is obviously a well-known milk brand in our and hygiene. Vinamilk's laboratories meet the
nation. It is not difficult to understand what the Vinamilk requirements of ISO / IEC 17025: 2005. In addition
brand represents because it is both striking and to the quality standards, Vinamilk also applies other
memorable. VINA is the abbreviation for the Vietnamese advanced management systems in the field of energy
ethnic name. MILK would want to underline that and environment.
Vinamilk's goods are derived from milk when translating
the English word as Milk. VINAMILK is Vietnamese
milk, Vietnamese nutrition, and it helps Vietnamese
youngsters replenish their nutritional resources.
Additionally, VI is also VICTORY in English which
means victory, representing the fierce spirit, always
overcoming all challenges and difficulties to reach the
top of glory.
Logo
Within the Vinamilk milk emblem is the symbolic term
Product support
VNM, which is linked to the Cube Icon for perfection,
Phone number for customer service:
the circle of perfection product samples. Vinamilk's
1900 636 979
logo's cylindrical block has a deeper significance,
Email: vinamilk@vinamilk.com.vn
signifying protection.

Packaging
Main color gamut: Blue, white, green
Materials: international standard quality such as plastic,
carton, metal,... depending on the different type of
product. Specifically, samples of Vinamilk's yogurt jars
have been certified for safety by the Technical Center for
Standards, Measurement and Quality for users since
April 2009.
8
 Price
Competition in the industry affects a lot of the selling
products of Vinamilk. Therefore, Vinamilk has
adopted competitive-based pricing methods. The
quality of Vinamilk's products is up to international
standards, but the price is much cheaper. Or in other
words, Vinamilk focuses on creating high-quality
foods while maintaining reasonable pricing. As a
result, Vinamilk's pricing strategies purchase profit as
well as retain consumer ability. The company
possesses dairy plants with large capacity, innovative
technology, and completely autonomous cans, which
lower costs considerably while ensuring product
quality. Besides, the company's long experience in the
industry contributes to cheap material costs and leads
to competitive prices for the products.

Place
1. Domestic market
+ Direct channel
Online channel: website Giacmosuaviet.vn
Offline channel: directly distribute to their business partners who use Vinamilk's products as raw materials for their
products.
+ Indirect channel
Traditional distribution channel: the majority of Vinamilk’s total revenue comes from selling through this channel.
Vinamilk estimated that there were about 208 distributors with a system of retail points of up to 250,000 points.
Modern distribution system: Big C, Bach Hoa Xanh, Aeon Mall, Winmart, Circle K... Beside that, the company
cooperated with companies that manage selling websites to bring Vinamilk’s goods available on Shopee, Lazada, Sendo,
2. International market
Up to now, Vinamilk's products have been exported to more than 40 countries around the world, including Southeast
Asia, the Middle East, Africa and other countries.

Promotion Sales promotion: programs to encourage customers

Promotion mix to buy more: lucky draw when buying, discounts and
Advertising: TV, social networking site, Youtube (nearly incentives on events.
2 million subscribers). Vinamilk has a lot of advertising Personal selling: Training sales staff with
on its personal YouTube channel regarding product lines professional competence, solid understanding of the
in general and milk product line in particular with the company's products and customer psychology.
message: Drink Vinamilk's milk for children Professional working style, communication ability,
comprehensive development, healthy absorption, strong enthusiasm at work and ready to answer customer's
resistance... questions.
Public relations: promote sustainable values in
society and the community. As a result, many
valuable and social activities: Vinamilk fund:
“Vuon cao Viet Nam”, Scholarship Fund” "One
million trees for Vietnam Fund" (2016), campaign
“Vinamilk - Trieu buoc di, day lui Cô-vi” (2020),
Direct and digital marketing: Facebook fanpage,
email, official online websites
(https://www.vinamilk.com.vn ), and mobile call.
9
2. MICRO ENVIRONMENT
2.1 CUSTOMER ANALYSIS

Segmentation

Targeting

Vinamilk uses differentiated targeting marketing strategy, mostly youngsters aged 5-14 years old
with middle-income parents. Instead of providing a single type of product to all customers, Vinamilk
provides a range of product line with varied tastes, purposes, and promotions for each user group.
Vinamilk's targeted segmentation has not altered; they continue to target this market for the
following reasons.
Vinamilk's first target market in the milk product line is children aged 5 to 14. Firstly, this is a
developmental stage, therefore they require a variety of nutrients such as vitamins, DHA, calcium,
and so on to assist balance the body and lay the groundwork for future development. Secondly,
parents always pay special attention to their children at this age, thereby the demand for milk is
larger than at other periods.
Nextly, Vinamilk choose to target middle-class children since Vietnam may be a lower middle-
income nation ($1,006-$3,975), which suggests that middle-class involves the biggest extent of
populace.

10
 Positioning

Positioning map 1: Quality vs price

This map depicts two characteristics: quality and pricing, which reflect Vinamilk's position in Vietnam's
yogurt market. We can plainly tell that Vinamilk focuses on creating high-quality products while
maintaining reasonable pricing. In addition, Vinamilk's quality is regarded to be on par with other foreign
brands such as Abbott, Friso but at a reduced price. According to the online publication Vietnamnet (2021),
Vietnam is still classified as a low-middle-income country; so, this classification is appropriate.

Higher quality

Affordable Premium

Lower quality

Positioning map 2: Number of Distributors and Country of Origin

Vinamilk is believed to have the most extensive distribution network in the dairy sector, with 268 distributors
and numerous supermarkets and showrooms. This advantage enables enterprises to efficiently deliver
products to customers. In terms of milk provenance, Vinamilk sources 25% of its raw materials from its dairy
farms in Vietnam and imports the remaining 50%. (Sacombank 2012; Vinamilk 2014). Its main competition
is TH True Milk, which raises the most dairy cattle in the country and provides 100% milk input (Nguyen &
Tran 2014).
High accessible

Domestic Imported

Low accessible

11
2. 2 Company 2.6 Marketing intermediaries
Vinamilk has been exerting to utilize a
The organizational structure of VNM
variety of marketing intermediaries
has made a significant contribution to
guaranteeing the company operates to bring as many products as possible
systematically and efficiently. The to final buyers. To do that, Vinamilk
structure includes Shareholders Meeting, Board of cooperates with distribution channels.
Directors, CEO, Internal Control and Risk Vinamilk has made its products widely available to
Management Director, Internal Audit Director, and consumers. This includes 251 retail branches across
Executive Directors. By this corporate governance, the country mentioned in the annual report 2019.
the departments in Vinamilk are partitioned logically
Moreover, Vinamilk also opens a chain of nearly 100
with a hierarchy of responsibilities that is conducive
to collaboration among departments. online stores called "Giac Mo Sua Viet" allowing
customers to buy goods via the internet platform,
helping to increase product accessibility.
2. 3 Customers
With the milk product line, Vinamilk 2.7 Publics
targets consumer markets like children, Vinamilk succeeded in growing sustainability and
became the famous brand chosen by most
teenagers and adults in Vietnam. Beside
Vietnamese consumers for 8 consecutive years.
that reseller markets buy products to resell for profit, Moreover, they have reached more than 80% of
and Vinamilk also exported milk products to households thanks to their advertising and media
international markets with over 40 countries such as activities emphasizing the nutritional value as well as
Thailand, Laos or developed countries: America, innovating their products (Thu Trang, 2020).
Australia, etc. Therefore, they have been able to build strong
connections with the public and become prestigious
businesses in consumers’ minds. On the other hand,
2. 4 Suppliers Vinamilk’s plan mainly focuses on the Southern
market, so that the North will be their missing marke.
As of 2019, Vinamilk's herd of dairy
cows is up to 1300 heads while the
company also owns 12 farms qualified
GLOBAL G.A.P which are in operation.
This effort helps import inputs and reduce
dependence on imported sources from abroad.
Specifically, yeast for the production of Vinamilk
yogurt is imported from Denmark, a country
specializing in producing yeast. Each litter of yeast is
guaranteed to be disposable only once to ensure the
product quality is stable.

2. 5 Competitors
In the dairy industry, Vinamilk faces
many competitors such as Dalat Milk,
TH True Milk, Nuti Food, Milo, Ba Vi
Farm, etc, and foreign competitors: Abbott from
America, Friso from Holland, Love’s Farm from
Australia (IDP), etc... Since this is a consumable
product, substitute products are very diverse,
increasing the competitiveness of enterprises.

12
 3.1 Technological force 3. MACRO ENVIRONMENT
Vinamilk dairy factory is equipped
with modern fresh milk production lines applied
state-of-the-art production technology, assembly
high-automated process, operated with completely
closed processes from raw material input to finished
product output. Each step in the manufacturing
sectors inextricably follows the International Quality
Management System ISO 9001:2015 and FSSC
22000 standard. They also combine advanced
technology such as UHT Sterilization and aseptic
fillings, helping to keep natural flavor, nutrients,
vitamins,...and remain fresh taste during 6 months.
3.4 Demographic force
(vinamilk.com.vn). Having been evaluated as a potential market in
consuming food, particularly products
3.2 Economic force made from milk, Vienam is a
During the past three years, the outbreak of Covid 19 populous country, with a young
pandemic profoundly struck the global economy, many age structure of population and
companies suffered the hardest hit as there was a a highly growing population
dramatic drop in income and expenditure of the whole about 1,2%/year. (danso.org.vn)
population meanwhile input materials ' price still rose In the case of Vinamilk - they have become one of the
endlessly. Vinamilk also unexpectedly experienced its biggest dairy producers of optimal nutrition for health
negative effects as its output quantity consumed in the development of the Vietnamese generation since their
market declined. However, remarkably, the company’s major consuming market segmentation is children and
net revenue has recorded positive increasing results in Q1 juvenile.
and Q2 2021 thanks to flexibility in business strategy .
such as not only boosting local operation but fostering
3.5 Political force
export activities as well (diendandoanhnghiep.com). Vietnam has drifted toward an open economy;
Moreover, since Vietnam officially joined WTO in 2007, therefore, the Communist Party and the State have
the economy has increasingly integrated literally generated import-export laws and policies
with the region and the world, promoting that can facilitate the development of domestic
international merchandise trade. businesses. Over the past decade, Vietnam has
Currently, Vinamilk has successfully become one of the most prominent regions attracting
exported their main product lines FDI (Foreign Direct Investment) that appeals to a
such as condensed milk, fresh milk & nutritious milk, variety of funds from foreign investors flowing into
beverage,... to more than 40 countries all over the world. Vietnam companies generally; beside that, bringing
sustainable development to Vinamilk.
3.3 Cultural force 3.6 Natural force
People currently, specifically parents who have children, .
Vietnam is in a tropical monsoon climate area so
prioritize products that are rich in nutritional elements to conserving milk and growing dairy cattle requires a
enhance physical and intellectual health development. So, complicated process as well as high cost of product
they usually go for line products highly recommended by preservation. Vinamilk owns 12 dairy farms all over
nutritionists such as organic milk, yogurt, cheese… the country; however, yearly there are various tropical
Vinamilk is thriving with their mission of promoting a low pressure series, going with incessant rain for
healthy lifestyle and bringing positive energy to the many days and high level of moisture in atmosphere,
community - “ A healthy you for the healthy Vietnam”. causing the THI indicator in raising cows soaring that
13 can affect production output in the whole period.
.
 VINAMILK

14
III.
 STRENGTHS
A high brand awareness along with a
number of loyal customers in the domestic
market. As Kantar Worldpanel wrote in
their report “Most chosen FMCG brands in
Vietnam's urban areas in 2021, by
penetration rate”, published on July 21st
2022, “Vinamilk preserves position as the
brand owner being picked up the most in
Urban 4 key cities for the 9th consecutive
year”. Vinamilk accounts for a sizable
portion of the Vietnamese dairy product
market. Yogurt, which received the greatest
attention in the survey, has a market share
of 84.7%.

Vinamilk has a diverse product portfolio which

can satisfy the demand of different types of
customers. Currently, the company has a wide
range of products, consisting of 15 product lines
such as: liquid milk, yogurt, condensed milk, ice
cream, beverages, etc. with some well known
brands like Ong Tho condensed milk, Vinamilk
yogurt, Vinamilk fresh milk.

Vinamilk employs effective and successful

marketing strategies. Vinamilk spent lots of
money and time on marketing and partnered
with numerous social and government groups to
carry out important community activities and
campaigns such as "Sua hoc duong," "Share
hanh phuc, doi yeu thuong," and "Quy mot trieu
cay xanh Vietnam."

The company has a strong R & D technology. All of

the Vinamilk factories were built with modern and
high-quality equipment imported from European
countries such as Germany and Italy. The fact that
Vinamilk is the only company in Vietnam with Niro
technology stands out (Denmark). As a result,
VNM's products are of high quality, and the
company has several farms that have received Global
G.A.P certification.

15
 Vietnam is a potential market with an increase in dairy
products’ demand. According to Vietnam’s General Statistics
Office, “The average population of Vietnam in 2022 (up to
November, 2022 was 98.17 million people…, equivalent to an
increase of 1.09% comparison with that in 2021.” This
population has made Vietnam become the 15th most populous
country in the world and our population growth rate is greater
OPPORTUNITIES
than the average of the world - 1% in 2021. Beside that, GDP
per capita of Vietnam is $4.075 USD in 2022 (https://cafef.vn)
while the target is set around 3,900 USD. As living standards
are rising, Vietnamese people have a tendency to spend more
money on health, their “want” as well as the nutrition comes
from dairy products. With the variety in products range,
Vinamilk can offer consumers of all ages and with all purposes,
making this a huge growth opportunity.

The second chance is the supply of materials. The government

has given Vinamilk's support. Additionally, tax rates on
imported goods have decreased (2-5%) by Ministry of
Finance. With the above approach, the company's material
problem is no longer a big obstacle, helping to control costs
and input materials. Since import duties on dairy products are
lower than required by WTO agreements, there is an
opportunity to reduce production costs.

Vietnamese consumers' perceptions of Vietnamese goods

are being addressed. Following a succession of findings of
melamine-contaminated dairy goods in China and adjacent
countries, as well as the fact that some finished milk powder
products have a substantially lower protein content than
stated on the box, they are still being distributed. This
contributed to promote the trend of consumers switching to
purchase reputed brand products. This is an excellent
opportunity for Vinamilk to demonstrate the high quality of
its goods. Furthermore, the first dairy product promotion,
"Vietnamese people use Vietnamese goods," has
strengthened the competitiveness of domestic dairy
enterprises, particularly Vinamilk.

16
The presence of many powerful
competitors both in domestic and abroad,
particularly significant dairy firms from
around the world such as Nestle,
Dutchlady, Abbott, Enfa, Anlene, Mead
Johnson, and others. Furthermore, as part

THREATS
of its WTO membership, Vietnam agreed
to cut the tariff on dairy products such as
butter and yogurt from 10% to 3% or 7%.
This is an opportunity for Vinamilk's
competitors to gain a foothold in the
Vietnamese market.

The suppliers of input raw materials

are unstable. Despite investing in many
dairy farms in accordance with
international standards, the company's
primary raw materials must still be
imported from abroad. The farmer is
being pressed by raw milk collectors,
reducing the domestic source of raw
milk dramatically. The reason for this
issue is that the current dairy sector in
Vietnam is primarily households (95%),
and the entire output of fresh milk only
fulfills 20-25% of total milk
consumption.

17
 IV. MAIN ISSUES

Issue comes from the product in the existing 4Ps part

The general public's perception of Vinamilk goods. Vinamilk has spent too much
money and time on marketing to establish its brand image. Customers, on the
other hand, do not always believe in the source of raw materials used in VNM's
goods. It has a detrimental impact on the company's brand image, which is
important in customers' purchasing decisions.
Vinamilk must be aware of its competition and improve product quality more
and more. In a harsh environment, customers are increasingly looking forward to
new and more perfect products. Therefore, to maintain its position in the
industry, the company must regularly focus on developing new products,
diversifying products, researching new products such as low-calorie weight loss
products for children and adults are obese.

Issue comes from the place in the existing 4Ps part

Currently, people tend to shop online, especially after the epidemic,
making online purchases is extremely necessary. Meanwhile, Vinamilk
still gives priority to selling through traditional distribution systems such
as supermarkets, wholesalers, and retailers. Although Vinamilk's official
channel is available on Shopee, and Lazada; the distribution, and shipping
through Shopee and Lazada will partly affect the company's costs. In
addition, there are many unofficial channels on Shopee, Lazada also sells
Vinamilk's products, thus affecting the quality and reputation of
Vinamilk's product brand.

18
 V.
MARKETING OBJECTIVES

Increasing 10% in revenue over the same period last year

Business
Reduce the cost of imported goods to raise profit, lower
objectives the price that everyone at all social classes can reach

Increasing 5% in market share

Marketing Attract new clients by focusing on the quality of the
objectives product
Increasing user loyalty to Vinamilk brand

Become the first recognized brand in consumers’ mind in

dairy market
Open more websites, online forums, etc so that individual
customers can easily cultivate and contribute ideas to
Communication
understand more about the product
objectives Vinamilk can use software to exploit customer data such
as Google Trends, Google Keyword Planner, etc, and
combine it with historical data in the process of business
contact with customers.

19
 Products
Vinamilk's milk products are currently in their mature
stage. Although there are prominent competitors in the
yogurt market, such as TH True Milk, Da Lat Milk…
Vinamilk has brought numerous high-quality items to
customers and attracted a large number of loyal
customers after more than 40 years of operation. By
reason, getting the brand out of this stage is
challenging. In this situation, the manufacturers can
provide fresh flavors, colors, ingredients, or packaging
to re-energize consumer purchasing. Moreover, as
customers' awareness of environmental issues is
increasing, Vinamilk should use environmentally
friendly and easily recycled materials for packaging.

Price
In the policy for new products, Vinamilk can pursue the following basic
goals: maximizing profits, increasing market share, and leading in quality.

Vinamilk should use market-penetration pricing when releasing the new

products to attract more and more buyers, leading to a high market share.
Moreover, product bundle pricing could be used to combine several products
of Vinamilk and sell at a reduced price as customers are always confused
between many selections, they could go for the one which provides them all
benefits but at a lower purchasing price.

Place
As a result of technological advancements and the increasing expansion of
direct and online marketing, new types of resellers are displacing old
intermediaries.

The company needs to organize distribution channels to create favorable

conditions for the distribution of products in a more convenient and faster
way to promote product consumption in the market to keep it at a low level
of the company's inventory in the following years. In addition, according to
statistics, most rural consumers have the habit of shopping through
traditional channels. Therefore, to successfully penetrate the rural market,
the building of a distribution system must focus on wholesale stores in
markets and agents in key residential areas.

VI.
MARKETING
STRATEGIES
20
 There are many different methods of advertising; the appropriate type of
Promotion advertising will be decided based on the product, market segment, and financial
situation of the organization. To best fit the customer group company is
targeting, our group shall select the following types for Vinamilk’s products
range.

Television advertising: using music in

marketing campaigns because of the many
benefits. TVC producers can advertise through
music to deliver poetic emotions or practical,
logical appeals through speech and writing.
When the product and the song content
combine together, the image of your product
will be easier for consumers to remember,
especially the melodies that are easy to
remember and easy to sing. Therefore, music
can become a bridge between listeners and the
content that TVC advertising wants to convey.
This bridge gives advertising aesthetic values,
making TVC more interesting, thereby
attracting more customers.
Disadvantages: high cost, transient exposure, low
object selectivity.
Digital and social media (Youtube, Facebook,
Instagram, Tiktok…)
Short clips (about 15-30 seconds) related to the
year's major events. Events such as Hello
Summer, Hello New school year, Vietnamese
Women's Day, Christmas, Tet holiday... The
average cost of these social media shows so that
our clips receive a lot of views, specific likes, and
are not too expensive, is around 50 million VND.

Sales promotion: the "golden week" or "gold

shopping" programs to encourage customers to buy
more in the last months of the year: free gifts,
discounts on first-time purchases, discounts when
customers refer acquaintances to purchase,
discounts based on quantity or value of products,
discounts based on like, follow or share on social
networks, exclusive social discounts or discount to
loyalty customers.

Public relation programs: planning a campaign “Shaping a healthy lifestyle with Vinamilk”. .

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Timeline: June, 1, 2023 to June, 21, 2023
Message: “Start journey of shaping a healthy lifestyle with Vinamilk”-”
Hành trình hình thành một lối sống lành mạnh cùng với Vinamilk”.
Format: Running advertisements, kick-starting challenge of sharing daily
healthy diets with Vinamilk products, giving gifts to children living in
highlands.
Budget: Total spend on charity is 150,000,000 VND. Expenses for other
events is VND 495,000,000.

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VII.
ACTION PROGRAM

23
1. PROGRAM FRAMEWORK

2. ACTION PROGRAM
Stage 1: Campaign preparation

Objective: Informing people about Vinamilk’s new campaign: “Shaping a

healthy lifestyle with Vinamilk”
Methods: Making a survey about how people choose different types of
nutrient food to maintain a healthy lifestyle
Online survey
+ Channels: Facebook Fanpage, E-Magazine, Youtube channel
Target customers: people in aged group from 15 above
Specific activities:
+ Creating a social post along stunk the survey link on Facebook or Instagram
fanpage with the content about how products made by milk play an important
role in improving people’s health.
+ Running short video ads with the main content of how people follow a
healthy lifestyle
=> Running short video ads on facebook or youtube stuck the survey link
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Stage 2: Campaign running

Objective:
+ Stimulating the purchase of consumer
+ Increasing people’s acknowledgement of products that is good for health
Activities
+ TVC advertising with the message “Shaping a healthy lifestyle with
Vinamilk”
Running TVC ads on VTV1 VTV3,..
Posting video ads on youtube channel, facebook, instagram accounts
+ Challenge kick-starting
Stimulating people to start sharing their daily diets, tips for keep a
healthy body,... by using Vinamilk’s no sugar products like milk,
yogurt, nuts milk,... along with hashtag
“ShapingahealthylifestylewithVinamilk”. Each participant who joins
the challenge will present one gift for a disavantaged children belongs
to the charity framework of Vinamilk
Booking some KOLs participating challenge: Tun Pham, Ngoc Khanh,
Tri Phan
+ Charity planning: giving gifts, specific milk products to children who are
living in locations having harsh weather conditions.
+ Making banners to promote campaign

Stage 3: After campaign

Challenge results:
High number of challenge participants
An increase in interaction amount in social accounts and Vinamilk
website views number.
An increase in the number of ordering products such as no sugar
yogurt, milk, nut milk,...

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Từ 1/6/2023 - 21/6/2023

26
 VIII.
CONCLUSIONS
In conclusion, we hope that this report can bring a deep-insight into the marketing environment as well as
the marketing strategies of the Vinamilk company. Generally, as we mentioned before, Vinamilk has built
effective marketing strategies that help expand their products market, focused on the most preferential
products, and also develop other product lines appropriate with current food-consuming trends. Beside that,
there are still some crucial aspects that Vinamilk should pay more attention to, specifically, allocating more
of their products to other locations such as the Northern area which is a potential consuming market if they
want to win a vantage position over other competitors.

Our group made an action programs and marketing plan for new campaign: “Shaping a healthy lifestyle
with Vinamilk” through this link:

Timeline Campaign Plan

27
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