GROUP ASSIGNMENT

MKT101
Lecture: Hoàng Thị Hồng Hạnh

GROUP INFORMATION
Group number 5 Class HM1604
GROUP MEMBERS
NO NAME ID PARTS MARK
1 Đỗ Quốc Khánh HS160438 Introduction, Conclusion 10

2 Phạm Thị Hằng HS163102 Strength, Place 10

Nga

3 Cao Thị Mai HS160734 Weakness, Promotion 10

4 Lê Công Chiến HS163200 Opportunities, Product, Slide 10

5 Hà Vũ Bích Trang HS160688 Threats, Price, 10

Recommendation, Word
 TABLE OF CONTENT
I. Introduction
1. Purpose of group assignment
2. Brief introduction of the company
II. Literature review and critical analysis
1. SWOT analysis of Vinamilk
I.1 Strength of Vinamilk
I.2 Weakness of Vinamilk
I.3 Opportunities of Vinamilk
I.4 Threats of Vinamilk
2. 4Ps of Vinamilk
2.1 Product
2.2 Price
2.3 Place
2.4 Promotion
3. Recommendation
III. Conclusion
IV. Reference
I. Introduction
1. Purpose of group assignment
Creating a successful marketing strategy it needs a lot of important
factors. It will decide whether the product that we sell it will be
successful or not. Vinamilk is a leading pasteurized milk producer
in Vietnam, with more than 40 years of fighting in the Vietnamese
market as well as in foreign markets. Create a lot of impressive
Marketing campaigns and create a strong foothold for their
products. Through the knowledge learned in MKT101, the team
applied knowledge and research efforts to analyze Vinamilk's
marketing campaign. To give everyone the most overview about
Vinamilk as well as Vinamlik's marketing campaign.
2. Brief introduction of the company
A. Introduction Vinamilk

 Vietnam Dairy Products Joint Stock Company (Vinamilk) is the largest private
enterprise in the country in Vietnam. mainly focus on the foodservice and
beverage industry, where consumers can put their trust in healthy products.
Vinamilk was included in the list of 50 top value brands in Vietnam by Forbes
Vietnam. select (Vinamilk 2020).
 
     Vinamilk is currently a market leader in the production of dairy products in
Vietnam. This brand's products account for the vast majority of market share in
the country, specifically as follows:
 54.5% domestic dairy market share,
 40.6% market share of powdered milk,
 33.9% market share of drinking yogurt;
 84.5% market share of edible yogurt
 79.7% market share of condensed milk
 
     Vinamilk products are distributed evenly across the country in 63 provinces
and cities, with 220,000 points of sale. Vinamilk Vietnam is also exported to 43
countries around the world, including the United States, France, Canada, Poland,
Germany, Japan, and the Middle East. After more than 40 years of establishment
and development, the company has built 14 manufacturing plants, 2 logistics
plants, 3 branch sales offices, 1 dairy factory in Cambodia (Angkormilk), and 1
representative office in Thailand.
B. Mission Statement
 
Vinamilk is committed to providing the community with top-class nutrition and
quality with its own respect, love and high responsibility for human life and
society.
 
C. Vision Statement
 
“Becoming the leading symbol of trust in Vietnam about nutrition and health
products serving human life”
 
D. Core Value
 
Vinamilk focuses on 5 values:  
 Integrity: Integrity and transparency in actions and transactions  
 Respect: To have self-respect, to respect colleagues. Respect the
Company and partners.  
 Ethics: Respect established ethical standards and act accordingly.
 Fairness: To be fair with employees, customers, suppliers, and other
parties. 
 Compliance: To comply with legal regulation, the Company Code of
Conduct, and the Company’s procedures and policies
E. The history of the company's foundation
    
     The company has a history of more than 40 years of establishment and
development, with constant changes. Despite being present in the Vietnamese
market for a long time, Vinamilk's position in our country's dairy industry has
not been defeated.
 
 In 1976, Vinamilk was founded. From the 1980s to 1990s,  Vinamilk was
honored to receive the Third-Class Labor Medal, the Second-Class Labor
Medal ,and the First-Class Labor Medal. 
 In the 2000s, Vinamilk was awarded the title "Labour Hero of the
Renovation Process” and received the Independence Medal III. The
company also inaugurated factories in many provinces throughout
Vietnam. Later, Vinamilk applied more innovative technology and was
rewarded with the Independence Medal II in the 2010s. 
 According to Vinamilk (2020), the firm expanded operations in ASEAN
and launched the first European 100% Organic Milk produced in Vietnam
in the mid-2020s. It was positioned in the Top 200 companies with the
best revenue of over 1 billion Asia Pacific (by Forbes Asia) during this
period (Vinamilk 2020)
 F. Organizational chart

Vinamilk's organizational chart is presented in a professional manner and

allocates departments in a scientific and reasonable manner, specifically
decentralizing the responsibilities of each member and department in the
company. The organizational chart helps us operate in the most effective way,
and helps departments work closely together to create a strong Vinamilk.
G. Main fields of activity and products
 
 Field of activity
 
     This company's primary business activities include the processing,
manufacturing, and trading of fresh milk, canned milk, powdered milk,
nutritional powder, yogurt, condensed milk, soy milk, beverage, and other
products. and other dairy products Vinamilk products are also exported to
Cambodia, the Philippines, Australia, and a few Middle Eastern countries.
Export revenue accounts for 13% of the total revenue for the company.
Vinamilk expanded production in 2011, shifting to the fruit and vegetable
segment. Shortly after the launch of the new product segment, the product line
achieved success with a 25% market share in the retail channel at supermarkets.
The company began producing children's juices in February 2012.
 
 
 
 Products of Vinamilk
Vinamilk offers more than 250 product categories with the following
main categories:

 Liquid milk: 100% fresh milk, pasteurized milk with added

micronutrients, pasteurized milk, organic milk, cocoa barley drink with
brands ADM GOLD, Flex, Super SuSu...

 Yoghurt: eating yogurt, drinking yogurt with brands of SuSu, Probi,

ProBeauty, Vinamilk Star, Love Yogurt, Greek, Yomilk…
 Powdered milk: infant formula Dielac, Alpha, Pedia, Grow Plus,
Optimum (Gold), nutritional powder Ridielac, adult milk powder such as
Diecerna special treatment for diabetes, SurePrevent, CalciumPro, Mama
Gold, Organic Gold, Yoko…

 Condensed milk: Southern Star, Ong Tho and Fortune…

 Ice cream and cheese: Subo yogurt ice cream, Delight ice cream, Twin
Cows, Kem Kid, Ozé Cream Kid, Cow Wear Cheese...

 Soy milk - beverage: Vfresh juice, Icy bottled water, GoldSoy soy milk...
 H.  Revenue
Vietnam Dairy Products Joint Stock Company ("Vinamilk",
"Company") has announced its financial statements for Q2/2021
with total consolidated revenue of VND 15,729 billion and
consolidated profit after tax of VND 2,862 billion. Accumulated in
the first 6 months, the total revenue and consolidated profit after tax
have completed 46.6% and 48.6% of the year plan, respectively.

II. Literature review and critical analysis

1. SWOT analysis of Vinamilk

1.1 Strength of Vinamilk

 SWOT stands for: strengths, weaknesses, opportunities, and threats.

To build a business strategy, every company starts with a SWOT
analysis. The SWOT model is a tool to help bring an overview for the
company to analyze in business planning, strategy formulation,
competitor assessment, marketing, product and service development,
etc. A SWOT analysis is a careful assessment of an organization's
internal strengths and weaknesses as well as its environmental
opportunities and threats. In a SWOT analysis, strategies need to meet
the following requirements: exploit the organization's opportunities
and strengths while neutralizing threats and avoid (or correct) the
organization's weaknesses.
An organization's strengths are its skills and capabilities to create and
implement its strategies. Strengths include: What the organization does
well; The qualities that make an organization stand out from the
competition such as a good working environment, unique selling ideas, a
unique reputation or brand, and well-established distribution channels.;
Internal resources such as professional skills, professional knowledge, the
mindset of the team and excellent leadership; Tangible assets such as
advanced machinery and equipment; intangible assets such as proprietary
techniques, patents, patents... Therefore, analyzing strengths helps
organizations make choices and implement strategies to exploit strengths
to create competitive advantages and achieve economic efficiency.
a. Strong brand
• Vinamilk, with more than 40 years of construction and strong
development, increasingly asserts its position as the number 1 fresh milk
brand in Vietnam and a familiar brand trusted by Vietnamese consumers.
Their products are not only trusted by domestic users but also exported to
the most demanding foreign markets.
• Vinamilk has the ability to set the selling price on the domestic market
because it is the largest dairy enterprise in Vietnam with a market share of
43.3% (by 2020). Vinamilk dominates the market by focusing on
advertising and marketing, constantly innovating products, and improving
quality.
• Vinamilk was voted by consumers as “Top 10 High-Quality Vietnamese
Goods” from 1995 to 2009.
 b. Product quality
• Vinamilk owns leading brands in Vietnam such as Ong Tho condensed
milk, Star, Dielac, Yogurt Vinamilk,...
• Compared with imported products of the same type, Vinamilk's products
have the same product quality and lower price, in addition, Vinamilk is a
dairy company with the largest market share in Vietnam.
• Vinamilk aims to serve a wide range of consumers, so the company's
products are always diverse, meeting the needs of all users and the prices
are suitable for consumers of each segment. . Especially, the "Ong Tho
and Star" condensed milk product line is a cheap product, suitable for the
needs and tastes of the majority of Vietnamese people today.
c. Marketing strategy
• Vinamilk has shown professionalism and thoroughness in its marketing
strategy by taking advantage of communication channels such as TV,
radio, billboard, fanpage, television, etc. to advertising, PR, and market its
products. . They invest a lot in advertising content to be able to provide
useful information about the product to customers. And to be able to
produce good and attractive content, Vinamilk has applied the 3H model:
Hero - Hub - Help (3H model is one of the effective assistants to help
businesses develop comprehensively in terms of strategy content with
Hero – bringing great influence to the brand, Hub – maintaining virality
and coverage, and Hygiene – leading and building trust in customers) in
their content strategy effectively results in order to achieve certain results.
• Vinamilk also invests in the School Milk programs, the Tall Vietnam
Dairy Fund, the “One million Vietnamese green trees” campaign… This
action shows humanity and touches the hearts of users.
• Besides, the company also focuses on researching the market and
understanding the tastes of users to be able to provide customers with
products that are suitable for their needs. They conduct research by
listening to consumer feedback from a variety of perspectives, partnering
with market research companies to understand sales trends and activities.
d. Distribution network
• Vinamilk's distribution network covers all 63 provinces and cities of
Vietnam and also exports to foreign markets, combining many modern
and traditional distribution channels. That is the factor that helps
Vinamilk achieve success because they can reach a large number of
customers, ensure the launch of new products and effective marketing
strategies nationwide.
• Vinamilk's products are displayed on store shelves in supermarkets and
shops. And today consumers can also easily order the company's products
online on websites or e-commerce sites.
 e. Equipment and technology applications
• Possessing advanced technology is also an outstanding strength of
Vinamilk.
• All production plants of Vinamilk are fully equipped with modern
equipment, meeting international standards and imported directly from
Europe such as Germany, Italy, Switzerland,... Vinamilk is fully equipped
from production lines, product packaging lines, sterilization equipment,
machinery systems using spray drying technology by Niro of Denmark.
• Despite possessing modern equipment, Vinamilk is always interested in
technological innovation, installing complete and modern production line
systems, catching up with new technologies with technical standards. and
the best food hygiene and safety.  

1.2 Weakness of Vinamilk

a. Not yet self-sufficient in raw materials

The source of raw materials is still dependent on foreign countries,

due to the increasing demand for fresh milk from users, domestic
raw materials only meet about 30% of production demand, and
 70% are imported from Vietnam. New Zealand, USA, EU, and
Japan.
 
b. The market share of powdered milk is not high

With increasingly stricter demands from users along with

competition from foreign milk brands, imported from the UK,
USA, Netherlands.... making Vinamilk milk no longer hold a
monopoly position in the dairy market. According to a report, in
the Vietnamese market, imported milk accounted for 65%,
Vinamilk accounted for 16% and Dutch Lady accounted for 20%.

c. Too many factors affect revenue

Vietnam is in a period of rapid urbanization with an annual growth
rate of 2.95%. The incomes of Vietnamese people are still mainly
in the lower middle class. So if there is a case where the economy
grows slowly, the risk of people restricting the consumption of
dairy products (which is not the main source of nutrition)
increases.
Low dairy productivity and the high price of raw milk in the world
also affect the profit of the Company.
The import of raw materials from abroad causes Vinamilk's
revenue to be significantly affected by the domestic and foreign
economies.
The worst-case scenario is when Vinamilk is affected by the global
economic crisis after the covid-19 pandemic, which causes the
price of raw materials to increase, and is affected by the high
inflation rate in Vietnam, which causes the profit margin to
decrease.
The fluctuations of the exchange rate will also greatly affect the
business activities of the company.
 In addition, Vinamilk also has a few weaknesses that can be
mentioned as Strong and continuous growth for many years puts
strong pressure on the Company and its human resource
management team. Many new products are researched but have not
yet entered the test phase to launch into the market.

1.3 Opportunities of Vinamilk

a. The supply of raw materials is being supported by the government,

imported materials have a reduced tax rate
In recent years, the Government has introduced many preferential
policies, reducing the burden on Vietnamese dairy enterprises in order
to promote the development of the domestic dairy market and support
Vietnamese dairy enterprises. Strengthen price competition with
imported goods. After Vietnam became a member of ASEAN and
WTO in 1995 and 2007. In July 2010, Vietnam's Ministry of Health
approved regulations requiring dairy products, especially baby milk,
to meet the requirements. certain standards. Specifically, from the
Prime Minister's Decision No. 10/2008/QD-TTg, setting targets for
the development of the dairy industry with the goal that by 2010,
Vietnam's dairy industry will have an output of 380 thousand tons, in
2015 it will reach 700,000 tons and 2020 is 1 million tons. Or the
budget for the development of the dairy industry is 2 billion VND by
2020, as well as approving the initiative program to increase the
average height for Vietnamese people.

Cur
rently, the Government is also supporting the supply of raw materials
and reducing import tax on raw materials, with this policy, the
problem of raw materials for the company is no longer a big burden,
helping the company control costs. production and input materials.
The above changes have had a great impact on Vinamilk and domestic
dairy companies, acting as both a challenge and an opportunity. With
 cooperation from the Government and relevant ministries, Vinamilk
can appear before consumers as an organization that implements
campaigns with many social responsibilities, helping to increase the
plus points of Vinamilk's brand. in the hearts of consumers.
b. The number of potential customers is high and there is a great demand
Vietnam is still a country with a high number of potential customers
and a large demand for milk that Vinamilk can take advantage of. The
total milk consumption in Vietnam is still very low compared to other
countries in the region and the world. Dairy products for special needs
are still not popular, while the cost of imported products is high. The
average consumption level of Vietnam is currently 14l/person/year,
which is lower. compared to Thailand (23l/person/year), China
(25l/person/year).
Vietnam has a young population structure (children make up 36% of
the population) and the population growth rate is over 1%/year, this is
a very attractive market.
Per capita income increased by over 6%/year.

The
refore, Vinamilk still has many long-term development opportunities.
Vietnam has a high population density, the proportion of people
tending to urbanize in recent years has increased, the education level
has increased, and the income of the middle class has gradually
improved… In addition, Vietnam Nam is in a period of golden
population, so the demand for milk is very large. Vinamilk is currently
the No. 1 fresh milk brand in Vietnam, so there will be many
opportunities to grow and expand its market share. These are all
opportunities that Vinamilk needs to seize.
With an increased level of education, Vietnamese young people have
the opportunity to have access to knowledge and cultures in the West,
better understand the effects of milk on the body, so they tend to
consume dairy products. more milk.
 Besides, when parents are more and more concerned about their
children and pay attention to their children's nutrition, Vinamilk's
dairy products are also very beneficial to the development of children,
thereby attracting customers. The customers are parents and children.
In addition, the customer segment in rural areas is also not out of sight
of Vinamilk when this class accounts for 46% of the total
consumption products of the consumer goods industry. Vinamilk is
promoting and distributing more products in rural areas to raise
awareness of the health value of dairy products.
c. Vietnamese people's demand for milk is increasing
Most Vietnamese people have a need to use dairy products. Besides
nutritional supplements, many people also use dairy products for
beauty or cooking. Therefore, this is a great opportunity and potential
for Vinamilk to continue to grow stronger in the dairy industry
d. Expanding export network

Cur
rently, Vinamilk's products have been exported to more than 16
countries, contributing about 14% of Vinamilk's total revenue.
However, Vinamilk still has many opportunities to expand export
markets and conduct business abroad.
e. Diversify supply and domestic distribution network
 Vi
namilk is planning to expand the system of retail points, stores
introducing Vinamilk's products in the country. In addition, Vinamilk
also plans to build and develop the domestic supply of dairy cows,
helping to reduce the cost burden of imported materials.
As of the second quarter of 2019, Vinamilk had more than 200
distributors with a total of 251,000 retail points. This business is trying
to spread dairy products to the entire network of convenience stores
and in the country. The number of banana milk Vietnamese dream
shops also increased to 430 stores.
Also in the second quarter of 2019, Vinamilk has 12 dairy farms that
meet Global G.A.P. standards. Two of the 10 farms are managed by
Thong Nhat Thanh Hoa Dairy Company. The total number of dairy
cows currently raised by Vinamilk is 30,000. Vinamilk's dairy farm
system is still up to international standards, with special care and
nutritional diets.
Domestic dairy farms with international certification play a very
important role for Vinamilk, helping the company reduce its
dependence on international supply, thus being less susceptible to
fluctuations in exchange rates. Furthermore, dominating domestic
supply gives Vinamilk great power in pricing, allowing the company to
offer products at very affordable prices. Vinamilk is by far one of the
most affordable brands in Vietnam and this may explain why the
company completely dominates the domestic dairy market.
f. Trends of product consumption towards health
As mentioned above, the fact that Vietnamese consumers, especially
the middle class can increase imports creates a great opportunity for
Vinamilk. According to Nielsen's consumption report, today's
customers tend to be more deeply interested in health and tend to buy
health products. And when it comes to health supplements, the
majority of consumers will refer to dairy as an important food in
nutritional products.
 The trend of consumers consuming healthy products has created great
opportunities for Vinamilk to develop. Vinamilk has been recognized
by the British Retail Consortium for food safety standards,
contributing to increasing advantages, increasing sales, and expanding
markets. It is the belief in nutritious food, the development trend of the
healthy, high-income food market that has become the next factor for
the development of Vinamilk.
g. Competitors are gradually weakening and Vietnamese people's
thinking about using milk is gradually changing

The user's "foreign student" mentality is an unchangeable factor. In

addition, the problems of food safety and poor quality products are also
rampant in the mass media, especially after a series of discoveries about
melamine-contaminated milk products in China. Using domestic products,
products that ensure the quality of Vietnamese people also fluctuate more
or less. That is why consumers return to using imported portable milk
brands or famous domestic fresh milk brands like Vinamilk. The
campaigns "Vietnamese people use Vietnamese goods" contributes to
promoting the competition of domestic brands, including Vinamilk. This
is a good opportunity for Vinamilk to accelerate its breakthrough and
affirm the number 1 brand of fresh milk in Vietnam. This is also an
opportunity for Vinamilk to speak up to users about its safety. Vinamilk
continuously launches pure Organic products. This problem hits the user's
psychology, helping them to have a positive view of Vietnamese products.
Besides, imported milk is often quite expensive, so it is not suitable for all
classes of users. Meanwhile, Vinamilk's milk still maintains a mid-range
and stable price. This also creates a new opportunity for the brand to
confirm that its products meet all three criteria: "delicious - nutritious -
cheap".

1.4 Threats of Vinamilk

Threats are external factors that can adversely affect the success of a
company. These include the competitive advantage of competitors,
uncontrollable influences like natural disasters, government policies…

a. Rising competitors

Vinamilk is the leading brand in Vietnam's dairy industry, and it is

estimated that by the end of 2020, Vinamilk's market share will
account for about 45%( including Moc Chau Milk) of the market
share. However, this brand is also facing more and more different
competitors from the dairy market. The two biggest and direct
competitors, Dutch Lady and TH True Milk, hold 25.7% and 7.7%
market share, respectively. Not to mention emerging competitors like
Love In Farm and foreign brands like Meadow Fresh or Table Cove.
With Vietnam's accession to international trade organizations such as
ASEAN or the WTO, reducing taxes on imported dairy products
reduces taxes on powdered milk from 20% to 18%, condensed milk
from 30% to 25%... creating significant challenges for Vinamilk in
competing with international brands
The increase in the number of competing companies causes many
potential risks for Vinamilk such as a decrease in the variety of dairy
products, difficulty in maintaining loyal customers, and the loss of
dairy market shares to competitors.

b. Milk consumption habits of users

 The tendency of Vietnamese people to prefer foreign milk is a big
challenge for Vinamilk. For health-related products, customers tend
to prefer foreign products. They believe that the nutritional content
and safety of portable products is higher than that of domestic
products.

c. Unstable source of raw materials

Another challenge facing Vinamilk is the unstable source of input
materials.
Although owning international standard dairy farms, Vinamilk's raw
materials still depend on imports. In addition, because the profit from
livestock production is not high, farmers tend to switch jobs. This has
created great pressure on Vinamilk, requiring the brand to focus on
developing domestic raw materials, avoiding dependence on imported
materials from abroad.
2. 4Ps of Vinamilks

2.1 Product
In marketing, a product is anything that can be offered to a market that
might satisfy a want or need. In retail, products are called merchandise. In
manufacturing, products are purchased as raw materials and sold as
finished goods.
List of products of Vinamilk:
Organic Nutrition Vinamilk yogurt
Milk Milk powder
Energy drink Weaning powder
Soymilk Cheese
Condensed milk Beverage
Nutritional products for Ice cream
adults Instant coffee

Vinamilk constantly tries to develop its product portfolio to meet the

diverse needs of consumers. Meet the full range of vitamins and minerals
necessary for the health and development of the whole family, from
infants, children, adolescents to the middle-aged, the elderly, and even
groups with disabilities. With special physiological needs, Vinamilk has
enough products with diverse functions to meet these subjects.
Developing the Vinamilk brand into the most reputable and reliable
nutrition brand for all Vietnamese people through the strategy of applying
scientific research on the specific nutritional needs of Vietnamese people
to develop the most optimal product lines for Vietnamese consumers.
Vinamilk's products have many flavors and packaging sizes for consumers
to choose from, including added sugar, chocolate or strawberry flavor,
calcium- or low-fat milk, etc. To meet the increasing demands of
consumers. In terms of consumption, Vinamilk's marketing strategy
focuses on improving product quality management, constantly innovating
technology, shortening the quality gap between imported milk and
domestic milk, improving trust and prestige. Vinamilk's credibility in the
competitive market. Vinamilk has invested in a modern pasteurization
technology system, which helps to keep the best nutritional ingredients
such as vitamins and minerals from pure cow's milk while still keeping
the taste. fully meet the requirements of ISO/IEC 17025:2005. The quality
management system is according to international standard ISO 9002 and
currently applying the quality management system according to
international standard 9001:2000.

In addition to quality standards, Vinamilk also applies other advanced

management systems for the environment and energy. targeting a large
number of consumers, increasing consumer confidence to meet the
requirements of the most demanding consumers.
At the same time, expanding into value-added products such as
VVinamilk condensed milk, yogurt (eating yogurt and drinking yogurt),
cream cheese, fruit juice to improve the overall profit margin for the
whole company.
In addition to the launch of new products. Vinamilk also has a strategy to
focus on strengthening its strong "brand" product lines, typically 100%
Vinamilk Fresh Milk by innovating packaging, diversifying flavors,
launching new product lines. Health products such as low-sugar, low-fat,
pasteurized fresh milk containing bird's nest, Organic fresh milk, or
recently Vinamilk Green Farm fresh milk meet the needs of customers.
Vinamilk expands production and business investment, encroaching on
the healthy beverage market with the main brand being VFresh. This
strategy is to respond to the rapidly increasing consumption trend of
natural beverage products that are beneficial to the human health of
Vietnamese consumers. Vinamilk always ensures the purity of nature in
 its products. products so that good things come to consumers every day
simply and easily.

Invest in expanding production and business through the healthy beverage

market with the main brand being VFresh in order to meet the rapidly
increasing consumption trend for beverage products derived from nature
and beneficial to human health.
Not only that, Vinamilk has shown the ability of the leader in the market
to take the initiative in raw milk raw materials by expanding the scale of
dairy cows in parallel with increasing production and quality of raw
materials with competitive and reliable prices.
In general, the successful marketing strategies of Vinamilk's products are
based on understanding the actual needs of consumers, with a variety of
product lines and many flavors and sizes; suitable for many ages and easy
for consumers to choose. Large investment costs for researching new
technologies are also part of Vinamilk's 4P marketing campaign, creating
advantages for prestige and brand building.

2.2 Price

The sum of all the values that consumers give up in order to gain the
benefits of having or using a product or service. Price is considered an
important competitive factor in attracting customers of all businesses.
Therefore, having an appropriate price policy is especially important,
helping Vinamilk have an effective business strategy
a. Influential factors
 Business goals
Vinamilk's main objective is to maximize shareholder value and
pursue a business development strategy. Then the selling price will be
calculated so that maximum revenue and profit can be increased. To
 achieve the goal of becoming a dairy and healthy food company with
the fastest and most sustainable growth in the Vietnamese market with
product lines with long-term competitive advantages, Vinamilk
accepted to lower the selling price. as far as possible to achieve the
largest market size.
Vinamilk focuses on making products of international quality, always
aiming for the most perfect response to consumers, always satisfying
and responsible to customers by diversifying products and services,
ensuring ensure quality, food safety and hygiene with competitive
prices, respecting business ethics and complying with the law. In this
case, Vinamilk often sets a high price, besides trying to influence
consumer psychology in the interaction relationship between price and
quality.
 Production and business costs
- Investment in technology and production lines.
Vinamilk has used many types of modern and advanced technologies
in the world, with high investment costs and high costs. These
technologies are mostly imported from famous dairy equipment
suppliers in the world. The equipment lines are synchronous, belong
to the new and modern generation.
Vinamilk also focuses on investing heavily in Information
Technology.
- Cost of Input Materials
The cost of raw materials (mainly powdered milk and fresh milk) used
for production accounts for a large proportion of Vinamilk's total cost
of goods sold (about 89% of production costs). Currently, about 60-
70% of Vinamilk's raw materials are imported (milk powder
ingredients are converted into different dairy products after
processing), the rest is fresh milk purchased domestically.
- The ability to dominate raw milk prices
Vinamilk is currently purchasing about 44.5% of domestic fresh milk
production (equivalent to 30-40% of raw materials used in
production). Due to the advantage of network and purchasing policy,
Vinamilk has a certain advantage in price regulation when purchasing
fresh milk.
- Cost of sales
Selling expense is the second-largest expense in milk price, from 5%
to 27% of COGS. Meanwhile, advertising and promotion costs are
from 1% to 19.2%. Vinamilk has advertising costs at a higher level
than the control level (as a rule of 10%) which is also likely to push up
milk prices.
  Reputation and product quality
Products with high quality, assurance, and trust enable Vinamilk to set
high selling prices without causing negative reactions from
consumers.
 Demand, consumer psychology of dairy products
More and more people are interested in taking care of their health, so
dairy products are preferred. (especially powdered milk, liquid milk
and yogurt). The tendency to buy the most expensive type
(psychological association between the selling price and quality) also
contributes to the increase in milk prices.
 Competitor's price
The general psychology of consumers often compares the prices of
companies with the same product to make purchasing decisions.
Therefore, Vinamilk conducts research on costs, prices and selling
prices, product quality of competitors. prime minister
Example of a research of TH truemilk – a major competitor of
Vinamilk
Thương hiệu Sữa tươi tiệt Sữa chua có Sữa có đường
trùng không đường 4 hộp nguyên chất
đường 1L 100g 220ml( 10
bịch)
Vinamilk 33.000 25.000 68.000

TH truemilk 36.500 26.500 80.000

b. Price strategies
Dòng sản phẩm Số lượng Giá dao động
Sữa đặc 12 16.000-107.000
Sữa tươi 43 16.000-350.000
Sữa cho mẹ mang thai và bé 5 136.000-550.000
Kem 39 10.000-48.000
Sữa chua 39 23.000-195.000
Sữa thực vật 8 4.000-165.000
Phô mai 1 30.000
Sữa cho người cao tuổi 4 21.600-315.000
Nước giải khát 27 3.500-240.000

Companies may use a variety of pricing strategies, depending on their

own unique marketing goals and objectives and Vinamilk is no
 exception. For each target in different circumstances and periods,
Vinamilk will apply different pricing policies.
Over the years, the company has built a reputable brand name for its
major products. Its highly- popular brand, “Vinamilk”, is viewed by
many domestic consumers as the most trusted trademark for
nutritional dairy products thanks to its international quality, security
of food safety and hygiene, and diversity of products and services
with long-term competitive strategies.
To express their outstanding products, Vinamilk applies the premium
pricing strategy which is the practice of keeping the price higher than
the competitors so as to encourage favorable perceptions among
buyers. This method is intended to exploit the tendency for buyers to
assume that expensive items enjoy an exceptional reputation, are
more reliable or desirable, or present exceptional quality. When it
comes to another goal, in order to attract customers and capture
market share, a penetration pricing strategy is designed by entering
with lower prices as compared with the competitors. Thanks to this
idea, the business will be able to raise awareness and get people to try
the product, generate word-of-mouth, and make a crowded market
category as a result.
In terms of maintaining profit in difficult times while prices of many
raw materials strongly increased, Vinamilk has been following a
policy of controlling and tightening costs and expenses. To be more
specific, all monthly cost items were well planned in detail at the end
of the previous year. At the end of each month, the actual cost was
compared with the approved cost to understand the causes of
divergence and to fix the problem immediately.
In conclusion, Vinamilk’s pricing is quite reasonable. Outstanding
competitive advantage as compared with the same products is an
absolute advantage in meeting most of the needs of consumers
everywhere, the entire world, and all walks.

2.3 Place
a. With the era of internet development, access to customers is a challenge
for businesses. Place is the representative of the places, the market
where a product can be bought and this is the place to display and
promote the product so that the product is easily accessible to
consumers. It has distribution channels including physical stores and
virtual stores on the internet.
b. Vinamilk has built a distribution network covering 63 provinces and
cities in Vietnam to ensure their products can reach consumers quickly.
Vinamilk's products quickly became popular and easy to find because
 the Vinamilk company built its distribution system into 3 main
distribution channels.
 The first distribution channel is the supermarket system, they link
from big supermarkets like Coopmart, Big C to small
supermarkets like Vinmart, Family mart, B's Mart.
 The second distribution channel is that they have linked with
schools, restaurants, hotels, companies
 The final distribution channel is through agents with more than
251,000 stores in 63 provinces and cities in Vietnam
c. These channels and distributors have helped Vinamilk bring its products
to all parts of Vietnam with the same quality. In addition, with the
development of the internet, Vinamilk has developed online stores
through its website and online sales sites such as shopee, lazada, etc.
Not only that, Vinamilk is always looking for opportunities to expand
export markets. Vinamilk's exports and products have been sold in more
than 54 countries and territories.

2.4 Promotion

The product lines of Vinamilk are developed for children and

teenagers because this age group has a great demand for milk and
consumption of dairy products is the largest.
The most popular forms of advertising
- TVC: 

TVC means short commercial video. With the combination of

image, motion, sound. Show on the screen anywhere.
Vinamilk's TVCs are advertised on HTV7, VTV1, VTV2, VTV3
with a duration of fewer than 35 seconds. Vinamilk's short
promotional videos make a strong impression on consumers through
attractive images, sounds, and images. At the same time, reflecting
the image of the product is dairy, playful, and lovely. Some TVCs
are famous and deeply imprinted in the subconscious of Vietnamese
consumers such as Vinamilk 100% fresh milk,  Who has glasses,
who has padded shoes? Vinamilk 40 years - Tall Vietnam, SuSu
Yogurt - eyes brilliant light,...

Vinamilk's TVCs always show the image of funny dairy cows

combined with vibrant and unique music and always leave an
indelible impression in the hearts of each audience. Besides,
Vinamilk also inserts advertising slogans affirming the brand such
as: "100% pure fresh milk", "fresh, pure and direct from nature",
"Standard 3 no", ...
- Social activities
 Vinamilk spent more than 17 billion VND for charity activities in
2011. Nearly 25 billion VND in 2012 and 2013. Launched the
charity program “3 million glasses of milk for poor children
program worth 10 billion VND. ". Building a scholarship fund
"Vinamilk nurtures young talents".
Provide free milk for poor children in Vietnam. Create conditions
for poor children across the country to enjoy nutritious milk.

Build a house.
Account to the gratitude fund, for poverty, young talent. Support
people affected by floods and labor accidents.
- Online marketing
 Today with the information technology revolution, Internet users
are increasingly popular. Selling online becomes an effective form.
Vinamilk has opened an online sales channel for consumers to get
the number 3 on a one-time purchase of milk cartons. Buyers will
receive a code to order and have it delivered to their homes.
In addition, Vinamilk also advertises on websites in Vietnam such
as www.mp3.zing.vn, www.vnexpress.com. With forms such as
banners, clips, especially using website optimization (SEO) tools.
 Promotions

Vinamilk will hold a lucky draw. When customers buy a carton of

100% pure Vinamilk fresh milk, they will be entered into a lucky
draw with attractive prizes such as:
Free use of fresh milk for 1 year.
Free milk box.
Free English courses.
Customers accumulate points by getting box shots stamped to
exchange for gifts.
Discount according to the program on holidays, Christmas, and
New Year.
3. Recommendation
3.1 Product
a. Product diversification: Vinamilk offers over 200 goods in many
categories, such as condensed milk, powdered milk, nutritious
powder, fresh milk, ice cream, yogurt, cheese, beverage, sugar,
and soymilk. Therefore, Vinamilk should discontinue unpopular
goods, focus on quality products, and improve product quality, such
as fresh milk, yogurt, condensed milk, and powdered milk.
b. Preservation: With the exception of expired items, transportation,
preservation, weather, temperature, sunlight, and so on are all
elements that have a significant influence on the product.
Therefore, it is important to overcome this disadvantage by
sterilized packaging produced from food-safe materials in
conjunction with sterilization technologies, carefully managing the
transportation process while traveling long distances, etc.- Product
packaging and display: Currently, Vinamilk has a very large
distribution network, making it very easy for consumers to find
products, but they themselves wish to reach a higher degree of the
eye-catching display, packaging variances amongst dairy products.
c. New product: Producing high-end quality products that specialized
in some features of people. For example, powdered milk for
obese kids, high-quality nutritional products for osteoporosis
elderly. The difference in these products is their prices are not
following competitive-based pricing but value-based pricing. The
aim is to compete with high-end dairy products of foreign brands.
Proposed to change from plastic straws to rice or paper straws with
fast decomposition time, bringing innovation in line with a green
lifestyle, protecting the environment.
3.2 Price

Vinamilk should focus all of its resources on developing products with

long-term competitive advantages in efforts to realize its aim of
accepting as low a price as feasible in order to reach huge market size.
Boost the number of dairy farms, support cow raising to increase
domestic raw materials, and minimize reliance on imported raw
materials, from that pricing to be adjusted in line with consumer
earnings. A price support strategy may be helpful in the short term, but
it will have a long-term impact on finance.
3.3 Place

a. Urban: Residents have convenient, time-saving habits and require a

high level of safety, so distribution on credible supermarkets and
distribution channels, especially genuine online websites (for With
 the current situation of the COVID-19 epidemic, this place will
consume very high products).
b. Rural: According to surveys, the majority of individuals in this
area prefer to buy through traditional methods. As a result, to
successfully reach the rural market, a distribution system at
wholesale marketplaces or agents in important residential regions is
required
3.4 Promotion
Promote marketing campaigns even further or come up with fresh
creative ideas to sell items and leave a lasting impact on customers.
With the complex condition of the COVID-19 epidemic, for example,
"buying online" has become a popular trend. As a result, Vinamilk
needs to push the campaign for consumers to buy milk online,
emphasizing on health concerns, the danger of disease transmission,
and time savings, particularly social distance.
Implementingpreferential policies such as purchasing big quantities of
items, purchasing goods with presents, using promotion codes.

III. Conclusion
Looking back at the journey of more than 30 years of bringing
Vietnamese dairy products to the world, it can be seen that the "golden
key" to Vinamilk's success is: Products of international standards,
understanding of the market, and consumers. ... And another factor that is
said to have created Vinamilk's solid development in international
business activities is prestige.

However, competition in the market is getting fiercer and fiercer, along

with the constant improvement and transformation of businesses. Besides,
the requirements and needs of consumers are increasing and changing
continuously. Marketing strategies were born to help businesses promote
their brands and meet the needs of consumers.

Over the years, Vinamilk has implemented marketing strategies at the

right time and has had certain successes, however, there are still some
difficulties. That poses challenges for businesses to constantly change and
improve reasonable marketing strategies to develop and enhance their
position, not only in the domestic market but also reach out to the market.
international.
V. Reference

1. Introduction Vinamilk
- https://www.vinamilk.com.vn/vi
- https://vi.wikipedia.org/wiki/Vinamilk
- https://news.timviec.com.vn/vinamilk-qua-trinh-hinh-thanh-va-
phat-trien-thuong-hieu-sua-viet-ty-do-64484.html
2. Strength
- Philip Kotler, Gary Armstrong, Principles of Marketing
(14th.Edition)
- https://marketingai.vn/ma-tran-swot-cua-vinamilk/ 
- https://amis.misa.vn/28324/phan-tich-swot-cua-vinamilk/
- https://vietnambiz.vn/ssi-research-canh-tranh-nganh-sua-tang-
nhiet-nho-masan-loi-nhuan-vinamilk-uoc-tang-74-nam-2021-
2021011316174481.htm
3. Weakness
- https://marketingai.vn/ma-tran-swot-cua-vinamilk/
- Philip Kotler, Gary Armstrong,Principles of Marketing
(14th.Edition)
4. Opportunities
- https://amis.misa.vn/28324/phan-tich-swot-cua-vinamilk/
- https://luanvanviet.com/phan-tich-mo-hinh-swot-cua-vinamilk/
5. Threats
- Philip Kotler, Gary Armstrong, Principles of Marketing
(14th.Edition)
- https://vietnambiz.vn/ssi-research-canh-tranh-nganh-sua-tang-
nhiet-nho-masan-loi-nhuan-vinamilk-uoc-tang-74-nam-2021-
2021011316174481.htm
- https://thanhnien.vn/thue-nhap-khau-giam-gia-sua-dung-yen-
post745771.html
6. Product
- https://www.vinamilk.com.vn/vi/cai-tien-doi-moi/chung-nhan-ve-
chat-luong-va-cac-he-thong-quan-ly-khac
- https://www.ukessays.com/essays/essays/marketing/vinamilk-
dairy-product-catalog-and-features-marketing-essay.php

7. Price
- Philip Kotler,Gary Armstrong,Principles of Marketing
(14th.Edition)
- https://www.vinamilk.com.vn/cong-bo-san-pham/?line=2
- https://cafef.vn/
8. Place
- https://oriagency.vn/chien-luoc-marketing-cua-vinamilk
9. Promotion
- https://marketingai.vn/chien-luoc-marketing-4p-cua-vinamilk/