Banking academy of Vietnam

MARKETING ESSENTIAL
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Student name & number: Assessor name: Roberto Ercole

(V): Hoang Phuong Nam (E):

F10 033

Issue date: Submission date: Submitted on:

2/02/2018 9/4/2018 http://itcc.hvnh.edu.vn/sites/vi/StudentMark.aspx

Programme: Pearson BTEC Level 5 Higher National Diploma in Business (Accounting)

Unit 2: Marketing Essentials

Assignment number and title: ME1: Marketing Concepts and Internal Relations (1 of 2)

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Table of content
 A. Introduction:
Vinamilk is a Vietnamese company that produces milk and other products from milk. The
organization was built up in 1976 as the state-claimed Southern Coffee-Dairy Company, to
nationalize and assume control over the operations of three beforehand private dairy processing
plants in South Vietnam: Thống Nhất (having a place with a Chinese organization), Trường Thọ
(in the past possessed by Friesland Foods, best known for its generation of dense drain that was
broadly circulated over the South) and Dielac (Nestlé). It was renamed United Enterprises of Milk
Coffee Cookies and Candies in 1978. It turned into the Vietnam Dairy Company, formally settled
in 1993. In 2003, after its IPO to the Ho Chi Minh Stock Exchange, the organization lawfully
changed its name to Vietnam Dairy Products Joint Stock Company (Vinamilk).

TH True Milk is also Commented [Office1]: ?

The marketing mix is a good place to start when you are thinking through your plans for a product
or service, and it helps you to avoid these kinds of mistakes.
 B. Discussion of findings:
1. Comparison between the way Vinamilk and TH True Milk applying marketing mix
into operations:
1.1. Simlilarities:

To begin with, both Vinamilk and TH True Milk are the biggest dairy companies in Viet Nam. In
comparision, both of them received major support from the customers, including loyal customers
and new ones. Overall, both companies are trying to improve their products in order to meet the
demand of customers and earn their reputation through sociala activities (Nguyen, 2017).

1.2. Differences:

On the other hand, there are some major differences between the two companies. According to
Nguyen (2017), Vinamilk is long known to have a wide range of products, with a long – standing
prestige, while TH True Milk has earn its reputation with the appearance also quality of the
products. Furthermore, two companies have a different price for their products and the range of Commented [Office2]: provide examples

products is also different from each other, Vinamilk is not only focus on producing fresh milk but
also other products related to milk while TH True Milk mainly focuses on fresh milk. However,
the quality of products of 2 companies can be the same as it depends on customers favor.
 7Ps Vinamilk TH True Milk

TH True Milk has a wide range of products

Vinamilk always bringing products with good
including cheese, fresh milk, and ice cream.
quality to customers in order to meet the
In order to stand out from other competitors,
demand of them. A wide range of products
TH True Milk has designed its packing and
Product include yogurt, ice cream, cheese, liquid milk.
divided it into 2 different packing named
Vinamilk has more than 200 products
Tetra Pack and Combibloc. This help them to
distributed to 30 nations with the consumption
draw customer attention with their simple
of 18.000 products each day (Vinamilk).
design and colors (Ngo, 2018).

Hoang (2018) said that prices are the most

imporant factor for customers to decide As soon as TH True Milk approach to the
whether to buy it or not. If the resources in the market, it has been a high – end product,
country are plentiful and qualitative, Vinamilk therefore, the price of TH True Milk is often
will reduce resources imported from foreign higher in supermarkets and retail stores in
Price countries and provide clients with discount order to ensure benefits for members of their
program in ceremony. For example, according distribution channel (Ngo, 2018). Differ from
to Dailyvietnam (n.d.), the average price for 4 Vinamilk, the price for 4 milk bottles with
milk bottles with 180ml of Vinamilk is about 180ml of TH True Milk is higher, with the
22.500 VND, which is lower than that of TH average of 26.500 VND (Dailyvietnam, n.d.).
True Milk.
 Vinamilk has more than 125000 stores in the TH True Milk has opened its retail store
country. It has widen its market through two chains called TH True Mart over the country.
Place
major channels are consumers and retail stores Up till now it has more than 200 stores selling
(Hoang, 2018) TH True Milk products (Ngo, 2018)

Both companies have promoted their products through social media such as the internet or TV.
Furthermore, they also try to advertise their products to customers through social activities such
as donation or charity.

Promotion
Vinamilk has promoted their products through
TV, magazines, internet and poster. They With the slogan: “ TH True Milk – Truly
always change the content, new ways to natural” in every promoting program and
promote their products in order to draw advertisement, TH True Milk has delievered
customers attention. They also have some its messeage about the freshness in their
discount programs for clients. Furthermore, products. TH True Milk always promote their
they also have some product trial program in products on TV in channels VTV3, VTV1 and
public places for customers such as focus on women audience. (Ngo, 2018)
supermarkets or schools (Nguyen, 2017).
 Vinamilk also invests in human resource
development for long term development.
Employees are also trained to develop their
knowledge and skills in order to deal with
People difficulties and challenges. Vinamilk has
appropriate remuneration policy, and salary in
order to encourage employees to perform
their best (Nguyen, 2017).
According to TH True Milk (n.d.), human is
a precious resource that decides the
development of society and country.
Therefore, the company always provide the
employees with professional working
environment, with experts inside and outside
the country to guide the employees.

The product after being checked will be moved In order to maintain the good quality of
to cold tank. Next, the product will be product, the production process of Vinamilk
experienced through several steps such as must through eleven steps. The company must
pasteurisation or refrigerated. After that the choose the cow breed, with appropriate food
Process
product will be transfered to a machine called and water sources to improve their health
UHT to get rid of bacteria from the product and before transfering the milk to the factory.
then come to the packing process (Tuoitre, After that the milk is transfered to retail stores
2016). for consumption (Thtruemilk, n.d.).
As the biggest dairy company in Vietnam, TH True Milk has modern water purification
Vinamilk has a wide range of modern technology to provide the cattle with fresh
Physical equipment such as cold storage tanks, filling water, with standard farm to raise cattle and
evidence system, UHT sterilization system, inclduing modern breeding infrastructure (TH True
ware houses in order to bring to best quality Milk, n.d.).
products to customers (Vinamilk, n.d.).
 2. Provide basic marketing plan:

In order to have a successful marketing campaign, business should cover all 7Ps marketing mix in
order to achieve its goals and objectives. Below is an example of basic marketing plan:

2.1.Executive Summary:

This basic marketing plan will help Vinamilk to gain its profit and reputation on the market.
Furthermore, it also helps the company to surpass their competitors in order to become the biggest
dairy company in Vietnam for a long period of time.

2.2.Situational Analysis:
2.2.1. Market analysis:
Market demographic: Vinamilk needs to know the population, sex, age, etc. Commented [Office3]: describe the demography of
Vietnam.
Market needs: Vinamilk need to find out the need of the market in order to offer the
Commented [Office4]: Describe the needs of Vietnamese
suitable products. people for milk

Market trends: in order to carry out a successful marketing campaign, Vinamilk needs Commented [Office5]: What is the trend of the market?

to keep up with the trend, hot topics in the market in order to provide suitable products
for clients.
Market growth: Vinamilk need to see the development of market and how it affects to Commented [Office6]: What is the growth of the market
for milk
the marketing campaign
Marco environment:
 Econnomy: inflation, interest rate, unemployment rate. These factors can affect
the marketing campaign of Vinamilk
 Social: trends, interest
 Laws: government legislation, protection laws
2.2.2. Competitors analysis:

Vinamilk needs to investigate their competitors, their products, strengths, weaknesses and their
position on the market. Especially the big ones, which are on their way to catch up with the
development of Vinamilk. Commented [Office7]: You need to describe the
competitors for instance THmilk

2.2.3. Company analysis:

After researching the competitors, Vinamilk need to identify the core objectives of the
company such as gaining profit or survival. Using SWOT analysis is recommended Commented [Office8]: Needs to be specific, more accurate

 Strength: the advantage of the company in comparision with competitors such as brand,
budget or reputation. What makes the company better than competitors
 Weaknesses: the difficulties the company have to deal with and how to solve the
problems in order to become more competitive Commented [Office9]: Which problems

 Opportunities: Vinamilk should carry out some research in order to understand the
potential market and customers
 Threat: Vinamilk must have some back up plans in order to deal with the risks such as
political or weather.
2.3. Marketing objectives:
Vinamilk needs to come up with specific objectives and goals such as increasing its market
share and expand its brand all over the world to become more familiar with foreign
consumers.
2.4. Marketing strategy:
2.4.1. Marketing segmentation and targeting:

Vinamilk needs to divide the market into sections and choosing from one to two sections that
are considered to be potential market. For each section, Vinamilk must need to describe and
cover all factors such as customers’ demands, percent of sales, the price and how clients
consume the product. Commented [Office10]: What is the target market of
vinamilk?

2.4.2. Marketing positioning and differentiation: Commented [Office11]: What is the position in the
market? Be specific

Vinmilk needs to define its position in their customers’ mind. To do that, Vinamilk must show
the unique feature of the products, the advantages customers can gain from the products, how
often they use the product and compare their product to competitors products in customers’
mind.

In order to come up with special products, Vinamilk needs to distinguish their service betweeen
other competitors, their images in order to draw customers ‘ attemtion. Vinamilk must take
advantage of its facilities in order to bring the best quality product to clients, which makes
them stand out from other dairy companies.
 2.5.Marketing tatics:

Many businesses find it easy to apply the 7Ps marketing mix in their plan. After finishing research
current trend and marketing strategy, businesses have to focus on these tatics in order to achieve Commented [Office12]: Use more images providing
examples
its goals:

 Product: businesses should know what their products are, the quality also quantity, can they
meet the demand of customers or not. By researching for this, business can guarantee about
their products’ quality so that they can gain trust from clients. Vinamilk always bringing
products with good quality to customers in order to meet the demand of them. A wide range
of products include yogurt, ice cream, cheese, liquid milk. Vinamilk has more than 200
products distributed to 30 nations with the consumption of 18.000 products each day
(Vinamilk).
 Pricing: this a very important tatic. In order to come up with a suitable price for your
products, businesses should understand the consumption tendency of clients, some of them
will buy products with low price due to their budgets and some of them consider that low
price products go along with poor quality. Therefore, the company should know when to
rise and lower the price. For example, according to Dailyvietnam (n.d.), the average price
for 4 milk bottles with 180ml of Vinamilk is about 22.500 VND, which is lower than that
of TH True Milk.
 Place: after researching the market, the company should decide wherre to conduct Commented [Office13]: Distribution, develop it better

marketing campaign and selling. Places that have potential customers and can bring profits
for the company.Vinamilk has always focused on the remote areas, which are known to be
the areas that are hardly familiar with Vinamilk, therefore, Vinamilk has organised many
charity events in order to promote their products to customers from remote areas.
 Promotion: businesses can use many tools for promotion. For example social media,
advertising, sending emails or discount programs. For example, Vinamilk offers customers
with some discount programs, if their bills are higher or equal 300.000 VND, they will
receive a free sugar bag (Giacmosuaviet, n.d.).
 People: this step requires company to train their employess carefully so that they can
perform at their best, they should decide who is going to carry out a particular task. In
Vinamilk, Employees are also trained to develop their knowledge and skills in order to deal
with difficulties and challenges. Vinamilk has appropriate remuneration policy, and salary
in order to encourage employees to perform their best (Nguyen, 2017).
 Process: the company should also need to have a smooth process that the service of the
company will be performed smoothly in order to meet the need of clients. In order to have
the best quality, the products of Vinamilk has to be gone through a lot of step such as
pasteurisation or refrigerated in order to be consumed by customers (Tuoitre, 2016).
 Physical evidence: the appearance of employees can affect customers first impression
about the company, including the form of invoice. Therefore, the company should focus
on their employees appearance and make them different from other competitors.

(Baomoi, 2016)
 It can be seen that the retailers of Vinamilk are equiped with many modern facilities such as
freezer, the light, beautiful store with decoration, which makes the appearance become more
attractive to customers, with a wide range of products inside and with slogan and symbol of
company on the wall.

Implementaion of marketing plan:

In order to take the plan into practice, company should have supervisor responsible for the pace of
the plan and review it regularly to see if the company is following the plan or not.
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https://www.vinamilk.com.vn/en/nhan-hieu

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vien-phat-trien-va-dat-duoc-muc-tieu-nghe-nghiep

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