Docsity
Docsity

Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity


Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan


Guidelines and tips
Guidelines and tips

Vinamilk's Expansion Strategy: Capturing the Growing Yogurt Market in Vietnam, Exams of Marketing

A comprehensive analysis of vinamilk's expansion strategy in the vietnamese yogurt market. It delves into market analysis, customer insights, and competitive landscape, highlighting key factors driving growth and consumer preferences. The document also explores the external environment, including political, demographic, and technological factors influencing the dairy industry. It offers valuable insights into the yogurt market dynamics, consumer behavior, and competitive strategies, making it a useful resource for students studying marketing, business strategy, and the food industry.

Typology: Exams

2023/2024

Uploaded on 10/24/2024

hugger
hugger 🇺🇸

4.7

(11)

923 documents

1 / 16

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
Vinamilk's Expansion Strategy:
Capturing the Growing Yogurt
Market in Vietnam
Introduction to Marketing
Vinamilk Introduction
1.1 History of formation and development: - Vietnam Dairy Products JSC
(Vinamilk) is a Vietnam-based company mainly engaged in the production
and trading of dairy products. - The CEO is Mrs. Mai Kieu Loan, who has
been in charge of Vinamilk for over 25 years. - In 2020, Vinamilk was listed
in Vietnam's 50 top valuable brands by Forbes Vietnam. - Vinamilk has gone
through 3 main development stages: the establishment period from 1976 to
1986, the renovation period from 1986 to 2003, and the equitization period
from 2003 to the present. - Vinamilk has built 14 production factories, 2
logistics enterprises, 3 branches of sales offices, 1 dairy factory in
Cambodia, and 1 representative office in Thailand.
1.2 Business fields: - Vinamilk is a leading dairy enterprise in Vietnam,
distributing products to 63 cities across Vietnam and exporting to 54
countries around the world. - Vinamilk has provided more than 250 different
product types with main categories such as liquid milk, yogurt, milk powder,
condensed milk, ice cream and cheese, soy milk, and beverage.
Vinamilk's position in the Vietnam market: - According to SSI research in
2020, Vinamilk accounts for 43.3% of the dairy market share in Vietnam, far
ahead of other competitors such as TH True Milk (6.1%) and
Frieslandcampina (15.8%). - Vinamilk is the brand chosen by Vietnamese
consumers to buy the most for 8 consecutive years, indicating its leading
position in the Vietnamese market.
Introduction to the marketing plan:
The primary objective of the marketing team is to support Vinamilk's
growth by increasing market share and enhancing brand awareness in
the domestic market.
The Board of Directors has set a goal of launching a new product in
2023, and the marketing team has been assigned the task of conducting
comprehensive research on the competition, customers, and market
dynamics.
This report will delve into an analysis of the competitive landscape and
gain insights into target customers, enabling the development of a
marketing plan that meets the company's objectives and resonates with
the target audience.
pf3
pf4
pf5
pf8
pf9
pfa
pfd
pfe
pff

Partial preview of the text

Download Vinamilk's Expansion Strategy: Capturing the Growing Yogurt Market in Vietnam and more Exams Marketing in PDF only on Docsity!

Vinamilk's Expansion Strategy:

Capturing the Growing Yogurt

Market in Vietnam

Introduction to Marketing

Vinamilk Introduction

1.1 History of formation and development: - Vietnam Dairy Products JSC (Vinamilk) is a Vietnam-based company mainly engaged in the production and trading of dairy products. - The CEO is Mrs. Mai Kieu Loan, who has been in charge of Vinamilk for over 25 years. - In 2020, Vinamilk was listed in Vietnam's 50 top valuable brands by Forbes Vietnam. - Vinamilk has gone through 3 main development stages: the establishment period from 1976 to 1986, the renovation period from 1986 to 2003, and the equitization period from 2003 to the present. - Vinamilk has built 14 production factories, 2 logistics enterprises, 3 branches of sales offices, 1 dairy factory in Cambodia, and 1 representative office in Thailand.

1.2 Business fields: - Vinamilk is a leading dairy enterprise in Vietnam, distributing products to 63 cities across Vietnam and exporting to 54 countries around the world. - Vinamilk has provided more than 250 different product types with main categories such as liquid milk, yogurt, milk powder, condensed milk, ice cream and cheese, soy milk, and beverage.

Vinamilk's position in the Vietnam market: - According to SSI research in 2020, Vinamilk accounts for 43.3% of the dairy market share in Vietnam, far ahead of other competitors such as TH True Milk (6.1%) and Frieslandcampina (15.8%). - Vinamilk is the brand chosen by Vietnamese consumers to buy the most for 8 consecutive years, indicating its leading position in the Vietnamese market.

Introduction to the marketing plan:

The primary objective of the marketing team is to support Vinamilk's growth by increasing market share and enhancing brand awareness in the domestic market. The Board of Directors has set a goal of launching a new product in 2023, and the marketing team has been assigned the task of conducting comprehensive research on the competition, customers, and market dynamics. This report will delve into an analysis of the competitive landscape and gain insights into target customers, enabling the development of a marketing plan that meets the company's objectives and resonates with the target audience.

The structure of this plan will encompass key components such as situational analysis, marketing strategy, marketing mix, and action plan.

Situation Analysis

Market Analysis

Overview of Dairy market:

Vietnam's dairy industry revenues nearly doubled from USD4.4 billion in 2017 to USD 8.4 billion in 2021. There are more than 200 dairy producers in Vietnam by the end of 2021, with major players such as Vinamilk, Nestle Vietnam, Nutifood, Frieslandcampina, and TH Group. Vietnam's fresh milk production reached 1.2 billion liters in 2021 and will rise to 2 billion liters by 2030, but it only meets 40-50% of domestic demand. Vietnam's dairy exports are growing rapidly, with a value exceeding USD 300 million, exporting to more than 40 countries. In terms of product segmentation, milk powder and liquid milk made up 3/4 of Vietnam's dairy market size, with the preferred form being UHT milk due to its longer shelf life. The fastest growing segment based on sales volume in 2021 is milk powder, followed by yogurt and liquid milk. Demand for cheese and butter is rising rapidly due to the growing influence of Western food in Vietnam, especially among the younger generation in urban areas.

Yogurt market:

The yogurt market in Vietnam has experienced significant growth in recent years, with revenue projected to reach approximately US$ million in 2023. The retail volume of yogurt in Vietnam increased from 89.5 million kilograms in 2016 to 282.5 million kilograms in 2022. Vietnam imported approximately $27 million worth of yogurt in 2020, with the major suppliers being Thailand, France, and the US. Vietnam's yogurt exports are relatively small, reaching around $3. million worth in 2020, with main export markets being Cambodia and China. The rising demand for yogurt products is driven by its versatility in cooking and snacking, as well as growing health awareness among Vietnamese consumers in aiding digestion and boosting the immune system.

Purpose of yogurt consumption:

92% of surveyed consumers prioritize health benefits when consuming yogurt, followed by using it as an ingredient for cooking and the taste. Nearly 2/3 of people in the survey used to consume yogurt mixed with grain or cereal for their main meal, indicating a preference for a healthy and convenient breakfast option.

Convenience as a key factor:

Consumers, especially those with busy lifestyles, are seeking convenient alternatives that can replace traditional breakfast options. There is a growing need for a product that offers convenience, taste, and fulfills nutritional requirements, providing a practical solution that combines the benefits of a healthy, hygienic, and nutrient-rich meal.

Objectives

(No conclusions or conclusions-related sections)

Marketing Strategy

Target Segment

(No information provided in the original text)

Positioning and differentiation strategy

(No information provided in the original text)

Marketing Mix (7Ps)

Product

(No information provided in the original text)

Price

(No information provided in the original text)

Place

(No information provided in the original text)

Promotion

(No information provided in the original text)

Physical Evidence

(No information provided in the original text)

Process

(No information provided in the original text)

People

(No information provided in the original text)

Action Plan

(No information provided in the original text)

Reference List

(No information provided in the original text)

Customer Insight

Based on the analysis, customers are seeking products that serve as an energy booster while prioritizing health and well-being. They desire a product made from high-quality ingredients that ensures food safety and hygiene standards at an affordable price. A compact and appealing design is also crucial in capturing customers' attention and enhancing the product experience.

Competition Analysis

TH True Milk

TH True Yogurt is a high-quality pasteurized drinking yogurt product of TH True Milk. In 2020, TH True Milk's market share is 8.5%, and TH True Yogurt has been known by more than 90% of consumers, making it the 2nd brand in the yogurt market.

Nutifood

Nutifood is currently one of the 3 leading dairy companies in Vietnam, with more than 160 product units distributed across the country. According to a report by Euromonitor International, Nutifood's market share is 3.6% in

Place

VNM Yogurt

VNM yogurt is available at supermarkets, convenience stores, local markets, and online platforms (Lazada, Shopee, VNM's website and app). VNM also has its own brand stores, "Giấc mơ sữa Việt," with more than 500 stores in Vietnam.

TH Yogurt

TH True Milk has widespread TH True Mart stores with 329 stores throughout Vietnam. Its yogurt products are also available at retail stores like CoopMart and Big C, as well as on its own online website.

Nutifood Yogurt

Nutifood's yogurt products are widely available in grocery stores, supermarkets, and retailers across Vietnam. Nutifood also sells its products online through its website, https://nutifoodshop.com/landing-page/sua-chua.

Promotion

VNM Yogurt

VNM uses multimedia advertising, such as TVCs on VTV3, VTV1, and VTV6, as well as news channels. VNM also engages in sales promotions, direct marketing, and public relations activities, such as sponsoring TV game shows, providing milk in schools, and participating in environmental events.

TH Yogurt

TH True Milk advertises its yogurt products through television commercials on VTV3, VTV1, and VTV6, as well as news channels. It also uses billboards and social media platforms, such as Facebook and YouTube, to interact with customers.

Nutifood Yogurt

Nutifood advertises its yogurt products through television commercials on VTV3, VTV1, and VTV6, as well as news channels. It also uses social media platforms, such as Facebook, Instagram, and YouTube, to reach customers.

Physical Evidence

VNM Yogurt

VNM yogurt is packaged in plastic cups or bottles with labels including the product name, brand logo, and nutritional information. The cups or bottles

are sold individually or in multi-packs, and the yogurt may be smooth or contain fruit pieces, nuts, or other additives.

TH Yogurt

TH True Milk's yogurt products have attractive, modern packaging with a light blue main color that conveys freshness and quality. The products are packaged in aseptic cartons that provide information about the ingredients, nutritional information, and expiration details.

Nutifood Yogurt

Nutifood's physical evidence includes their product packaging, website, and any other physical materials that display their brand and product information. Nutifood has embraced more sustainable and eco-friendly packaging solutions.

Process

VNM Yogurt

VNM yogurt undergoes a complex process to ensure its quality and taste, beginning from sourcing milk from farms, pasteurization, and cooling, followed by many rigorous steps. When showcased for sales, VNM yogurt is carefully preserved in the refrigerator under appropriate temperature.

TH Yogurt

TH True Milk has a well-defined production process to ensure consistent quality and safety. Milk is sourced from its own farms, equipped with advanced technologies to ensure the cows' well-being, and then processed in modern facilities that adhere to strict food safety standards. When a customer enters TH True Mart, staff will greet them, ask for their needs, and introduce new or suitable products.

Nutifood Yogurt

Nutifood's yogurt production process includes sourcing high-quality milk from trusted suppliers, adding live cultures or probiotics to the milk to start the fermentation process, incubating the mixture at a specific temperature to encourage the growth of beneficial bacteria and produce yogurt, cooling the yogurt, and transferring it to aseptic cartons for packaging. Nutifood also adds natural flavors and sweeteners to the yogurt during the production process for flavored yogurt products.

Opportunities

Rapid Urbanization: Rising life quality and economic development in Vietnam will increase the demand for dairy products. Government Policies: Vinamilk can use Vietnamese government schemes to boost its market. Expanding in Sports Nutrition: Vinamilk can expand its branches to the sports nutrition industry in Vietnam, as milk plays a major role in the industry.

Threats

Price Instability: Vinamilk must provide a reasonable cost while maintaining quality. The cost of products exported must be on par with global competitors. Vinamilk is facing competition from foreign and domestic milk brands in Vietnam.

Objectives

Specific

Increase brand awareness and market penetration of our dried cereal yogurt

  • Diyo among health-conscious individuals aged 25-40 in urban areas, by producing a fresh series of material (videos and blog articles). Additionally, we use digital marketing tools like Facebook, Twitter, Instagram, TikTok or cooperate with famed KOLs currently active in food reviews.

Measurable

Achieve a 30% increase in market share within the target demographic over the next 2 months, as measured by sales volume and customer surveys.

Attainable

Boosting distribution channels such as retailers or online platforms to expand availability and accessibility.

Relevant

Enhance the reputation as a nutritious and convenient snack option by promoting the unique combination of high-quality yogurt and wholesome cereal, aligning with the growing demand for healthy and portable food choices.

Timebound

Increase sales revenue by 20% within the next year through the marketing campaign, using monthly sales tracking and analysis to evaluate progress.

Marketing Strategy

4.1. Target Segment

Demographic

Age: Target people of a certain age group or life stage, from children to adults from 7-50, both males and females. Income: Consumers with incomes from 7 million VND to 15 million VND can use the product.

Geographic

Urban and Suburban Areas: Due to higher population densities, these areas facilitate accessibility and a larger customer base. Vinamilk has huge distribution capabilities, and the target segment focuses on domestic regions (3 big cities: Hanoi, Da Nang, Ho Chi Minh).

Psychographic

Health-Conscious Individuals: Those who prioritize healthy eating, nutrition, and wellness as part of their lifestyle choices. On-the-Go Lifestyles: Individuals with busy schedules or active lifestyles seeking convenient and portable snack options. Snack Enthusiasts: People who enjoy indulging in snacks and are open to trying new and innovative products.

Customer Behavior

Interest in Nutritious Snacks: Target customers who actively seek nutritious snack alternatives that provide a balance between taste and health benefits. Repeat Purchasers: Building a loyal customer base by targeting individuals who are likely to repurchase dried cereal yogurt regularly. Impulse Buyers: Attracting customers who make spontaneous snack purchases, aiming to capture their attention through appealing packaging and promotions.

4.2. Positioning and Differentiation Strategy

Value Proposition

Our dried cereal yogurt sets it apart from traditional yogurts and meets the diverse needs of our customers. Unlike regular yogurt, our product combines the goodness of yogurt with the addition of cereals, making it a versatile option that can be enjoyed as a snack or as a convenient breakfast choice. The inclusion of cereal provides an added nutritional benefit and enhances the taste and texture of the yogurt. By offering a ready-to-eat solution, our dried cereal yogurt reduces the time-consuming task of

advantages from its vast distribution network help maintain the price of its products on the market. The pricing of Diyo yogurt is on par with other dried yogurt. Additionally, Diyo yogurt can be seen as a premium, high- quality snack option, reflecting the nutritional value and convenience it offers. The high health consciousness of consumers nowadays justifies the comparative higher pricing of Diyo compared to other Vinamilk yogurt lines, due to the cost of production, including sourcing high-quality ingredients and the manufacturing process, while still meeting customer affordability.

5.3. Place

Diyo will be sold through various distribution channels, comprising wholesalers, retailers, Vinamilk stores, and online sales.

Major Supermarkets (Go, Vincom, Lotte Mart, Coop Mart), Convenience Stores (Winmart, Circle K, etc.), and Grocery Stores: Ensure widespread availability of Diyo yogurt and rapidly capture customer attention in urban and suburban areas. Health Food Stores: Collaborate with specialty health food stores that cater to health-conscious consumers, providing access to the target market seeking nutritious snack options. Vinamilk Stores "Giấc mơ sữa Việt": Vinamilk's recently expanded network of over 500 stores in Vietnam facilitates customer purchases. Online Platforms: Diyo yogurt is distributed on e-commerce platforms (Shopee, Lazada, etc.) and the Vinamilk online website, catching up with the trend of online buying during the digital technology advancement.

5.4. Promotion

Key Communication Message

The slogan suggests that Diyo Yogurt has a crunchy texture that provides satisfaction with every bite, implying that the yogurt is not the typical creamy and smooth texture commonly associated with traditional yogurt. Instead, it has a unique texture and provides a different eating experience. The slogan also emphasizes the satisfaction that consumers will get from eating the dry yogurt, suggesting that the yogurt is not only tasty but also fulfilling because of its unique texture.

Promotion Mix

Advertising

Online: Use online advertising to target health-conscious consumers interested in nutritious snacks. Utilize display ads on health websites and social media ads on platforms (Facebook, Instagram, TikTok, YouTube), which have functions (short film reels, long videos, etc.), allowing us to inform Diyo yogurt with eye-catching images and convey the story and message.

Broadcast: Via television, strategic sponsorships, and a mass marketing plan to reach a wide audience on cooking shows, fitness programs, and short videos introducing the launch of Diyo yogurt.

Sales Promotions

Offer a 20% discount for 3 packages and give 1 package when buying 4 packages of Diyo yogurt. Display Diyo yogurt in retail locations and offer a free sample of Diyo yogurt to encourage trial.

Public Relations

Organize a 'launch event' attended by influencers, KOLs, and KOCs who can spread the word about Diyo yogurt. The event's purpose is to introduce Diyo Yogurt to the public and showcase its unique features and benefits through posters and banners. Offer samples for attendees to experience the product. After the event, there will be feedback and reviews from attendees, as well as online engagement, efficiently increasing awareness and generating interest in Diyo Yogurt.

Direct & Digital Marketing

Point-of-Sale (POS) Promotion: Collaborate with retail partners to set up eye-catching displays, attractive signage, shelf talkers, or samples to grab customers' attention and encourage them to give Diyo yogurt a try. Leverage social media platforms to create visual content featuring Diyo yogurt. Collaborate with influencers in the food and health space to promote Diyo yogurt, allowing them to share their using experiences, efficiently generating product awareness and driving sales.

Diyo Yogurt: Introducing a Healthy and

Delicious Dairy Delight

Product Introduction

Vinamilk, a renowned dairy brand in Vietnam, has launched a new product line called Diyo yogurt. Diyo yogurt is a dried yogurt with cereal, offering a unique and nutritious alternative to traditional yogurt. This product aims to cater to the growing demand for healthy and convenient food options among Vietnamese consumers.

Collaboration with Influencer

To promote Diyo yogurt, Vinamilk has collaborated with Nguyen Thuc Thuy Tien, the Miss Grand International 2021 titleholder. As a celebrity with a significant social media presence, Tien's endorsement can help reach and influence a wide audience, particularly younger consumers who are conscious about their health and diet.

marketing and customer service strategies, Vinamilk aims to position Diyo yogurt as a leading dried cereal yogurt product that provides both nutritional benefits and a delightful taste experience for its customers.