MARKETING PRINCIPLES - MKT101 - SPRING 2024

GROUP ASSIGNMENT

MARKETING STRATEGY OF VIETNAM DAIRY

PRODUCTS JOINT STOCK COMPANY

Group Name:Wingless fairy

Group Slogan: Do it your way!
Member's Name
1.Nguyễn Thị Ngọc Anh -HS180096
2.Trần Thị Hồng -HS180892
3.Vũ Đức Khang -HS190740
4.Đinh Hải Anh -HS194154
5.Nguyễn Thị Ngọc Thùy -HS186399
Lecturer : Dr. Hoàng Thanh Tùng

Hanoi, March 2024

 CONTENTS
ABSTRACT ........................................................................................................ 3
I. GENERAL INTRODUCTION ABOUT VINAMILK ............................... 3
1. History of Vinamilk....................................................................................... 3
2. Mission and vision of Vinamilk .................................................................... 4
3. Strategic goals of Vinamilk ........................................................................... 5
II. TARGET MARKETING OF VINAMILK ................................................. 9
1. Vinamilk's target customers ........................................................................ 10
2. Demographic Segmentation ........................................................................ 11
3. Geographic Segmentation ........................................................................... 12
4. Psychographic Segmentation....................................................................... 13
5. Behavioral Segmentation............................................................................. 13
6. Product Segmentation.................................................................................. 14
III.DESCRIBE MARKETING 4PS STRATEGY OF THE COMPANY
(PRODUCT, PRICE, PLACE, PROMOTION) ............................................ 16
1.What products (or services) that company serves? ...................................... 16
2.What are the company's pricing strategies for main products/services? ...... 18
3. How company build distribution channels? ................................................ 19
4. What is the promotion mix strategy of companies? .................................... 21
2. Publich relations .......................................................................................... 23
3. Sale Promotion ............................................................................................ 24
IV. PROPOSE RECOMMENDATIONS/SUGGESTION TO IMPROVE
EFFICIENCY OF MARKETING STRATEGIES OF COMPANIES ........ 24
V. CONCLUSIONS .......................................................................................... 25
REFERENCES ................................................................................................. 27

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 ABSTRACT
Vinamilk's official name is Vietnam Dairy Products Joint Stock Company.
Vinamilk is a company that produces and sells milk and dairy products as well as
related machinery and equipment in Vietnam.According to Wikipedia, Vinamilk
is the leading enterprise in the milk processing industry in Vietnam, accounting
for more than 54.5% of the liquid milk market share, 40.6% of the powdered milk
market share, and 33.9% of the drinking yogurt market share 84.5% of the yogurt
market share and 79.7% of the condensed milk market share nationwide.
Vinamilk's main business activities include processing, producing and
trading fresh milk, canned milk, powdered milk, nutritional powder, yogurt,
condensed milk, soy milk, soft drinks and products from other milk.
I. GENERAL INTRODUCTION ABOUT VINAMILK
Vinamilk's products are also exported to a number of countries such as
Cambodia, Philippines, Australia and some Middle Eastern countries. Export
revenue accounts for 13% of the company's total revenue. In 2011, Vinamilk
expanded production, shifting to the fruit and vegetable segment. Not long after
the new product segment, the product line achieved success with 25% market
share in the supermarket retail channel. In February 2012, the company expanded
production to juice products for children.After more than 40 years of launching to
consumers, up to now Vinamilk has built 14 manufacturing factories, 2 logistics
factories, 3 sales office branches, a milk factory in Cambodia (Angkormilk) and
an office representative in Thailand.
In 2018, Vinamilk was one of the top 200 companies with revenue over $1
billion in Asia Pacific (Best over a billion).Besides being famous for its product
quality as well as providing diverse products, Vinamilk is also a popular brand
and attracts customers to know it through attractive and novel content in its
campaigns. Marketing campaigns promote products and brands successfully.To
achieve this success, Vinamilk has built appropriate marketing strategies when
implementing its marketing campaigns to help this brand effectively reach and
attract customers.

1. History of Vinamilk
Vinamilk is one of the leading companies in the production and business
of dairy products in Vietnam. Here is an overview of Vinamilk's formation and
development history
Stage 1: Establishment and early stage (1976-1995):
Vinamilk was established in 1976 under the name "Vietnam Milk
Company" with initial investment from the Vietnamese government and the

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Russian Ministry of Industry.In the early stage, Vinamilk focused on producing
fresh milk and powdered milk for the domestic market.
Stage 2: Opening up to foreign investment and expansion (1996-
2002):
In 1996, Vinamilk officially opened up to foreign investors and began the
process of reform and expansion of production.The company carried out
management reforms, invested in modern production technologies, and expanded
its production lines.Vinamilk expanded its distribution network and increased
brand promotion to enhance the visibility of its products in the market.
Stage 3: Brand consolidation and international expansion (2003-2010)
During this period, Vinamilk focused on building and consolidating its
brand in the domestic market.Vinamilk expanded its production and developed
new product lines, including yogurt, butter, sweetened condensed milk, juices,
and milk-based beverages.The company started to expand internationally by
exporting its products to markets such as China, the United States, Japan,
Singapore, and other countries in Southeast Asia.
Stage 4: Diversification and further international expansion (2011-
present):
Vinamilk diversified its business activities into related sectors such as
beverages, processed dairy products, functional foods, and fashion.The company
continued its international expansion through acquisitions of dairy companies and
expanding export markets. Vinamilk has established production plants in
Cambodia, the United States, New Zealand, and Australia. Today, Vinamilk has
become a leading dairy brand in Vietnam and has a presence in over 50 countries
worldwide.Vinamilk has achieved significant success in building its brand and
expanding internationally. The company continues to maintain its leading position
in the Vietnamese dairy market and makes a significant contribution to the
country's economy.

2. Mission and vision of Vinamilk

Vinamilk vision: Vinamilk's vision and mission are as follows: Vision:
Vinamilk aims to build a leading global dairy brand that contributes to improving
the quality of life and health of people.
Vinamilk mission: Vinamilk is committed to providing high-quality, safe,
and diverse dairy products and nutrition to meet the nutritional and health needs
of customers both domestically and internationally. The company is dedicated to
safeguarding the interests of suppliers, partners, and employees while contributing
to the sustainable development of the community and the country.Vinamilk
prioritizes the safety and quality of its products. The company adheres to strict
quality standards throughout the production process and controls the quality from

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raw materials to the final product. Additionally, Vinamilk focuses on research and
development to deliver modern dairy products and nutrition that meet the
increasing demands for nutrition and health.Moreover, Vinamilk plays a social
role in promoting sustainable development. The company implements social and
environmental programs to support the community, protect the environment, and
ensure the rights of workers.In summary, Vinamilk's mission is to provide high-
quality dairy products and nutrition, ensuring safety and bringing benefits to
customers, the community, and the country, while building a leading global dairy
brand.
Vinamilk is not just a simple dairy manufacturing and trading company,
but it also has important social activities and commitments:
1. Sustainable agriculture development: Vinamilk emphasizes
sustainable agricultural development and creating growth for the milk supply
source. The company supports farmers and milk cooperatives in improving
productivity and milk quality by providing high-quality cattle breeds, training
programs, and technical advice.
2. Childcare programs: Vinamilk implements various programs to care
for and support children across the country. The company sponsors the
construction and upgrading of educational infrastructure, provides free milk to
underprivileged children, and conducts nutrition programs for children.
3. Environmental protection: Vinamilk is committed to conducting
responsible production and business activities towards the environment. The
company invests in advanced technology and sustainable natural resource
management to minimize negative impacts on the environment.
4. Social and community programs: Vinamilk carries out numerous
social and community activities to support and contribute to the development of
the community. The company implements healthcare programs, builds
infrastructure, supports the elderly and people with disabilities, and participates
in charitable and social activities.
Overall, Vinamilk not only focuses on dairy business and production but
also integrates with social missions and commitments to the environment and the
community.

3. Strategic goals of Vinamilk

Vinamilk's strategic objectives include:
1. Domestic market expansion: Vinamilk aims to continue strengthening its
presence and increasing market share in the domestic milk market. The company

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aims to expand its distribution network and enhance brand promotion to reach a
growing number of customers and meet the diverse milk demands of the market.
2. International expansion: Vinamilk targets expanding its presence in the
international market and increasing product exports to countries worldwide. The
company has expanded production in countries such as Cambodia, the United
States, New Zealand, and Australia and continues to seek opportunities to expand
into new markets.
3. Investment in research and development: Vinamilk aims to invest in
research and development to deliver modern and diverse dairy and nutrition
products. The company focuses on developing advanced production technology
and improving product quality to meet the increasing demands for nutrition and
health of customers.
4. Brand building and value enhancement: Vinamilk aims to build and
enhance the value of its brand. The company focuses on building trusted customer
relationships, committing to product quality and safety, and strengthening
marketing activities and market penetration.
5. Strengthening production and management efficiency: Vinamilk aims to
enhance production and management efficiency to optimize production processes
and resources. The company invests in advanced technology, automation
processes, and employee training to ensure efficiency and reliability in production
and business operations.
Other strategic objectives of Vinamilk include:
6. Product diversification: Vinamilk aims to diversify its product portfolio
to meet the diverse needs of customers. The company focuses not only on milk
and related dairy products but also expands into other food sectors such as butter,
ice cream, yogurt, condensed milk, nutritional supplements, and other consumer
goods.
7. Enhancing competitive capabilities: Vinamilk aims to enhance its
competitive capabilities in the market. The company focuses on improving
product quality, enhancing research and development capabilities, innovating
production and management processes, and fostering innovation and creativity in
business activities.
8. Ensuring quality and safety: Vinamilk is committed to maintaining and
improving the quality and safety of its products. The company implements strict
quality standards in the production process and controls quality from raw
materials to the final products. Vinamilk also ensures compliance with food safety
regulations and meets international requirements for quality and safety.
9. Environmental protection: Vinamilk is committed to conducting
environmentally responsible production and business activities. The company
invests in green technology and implements environmental protection measures

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such as energy conservation, waste management, and natural resource
management. It also applies sustainable production and transportation methods.
10. Sustainable development: Vinamilk is committed to sustainable
development and contributing to the development of the community and society.
The company implements social programs such as childcare, education support,
sustainable agriculture development, and participates in charitable and social
activities.
In summary, Vinamilk aims to diversify its product range, enhance its
competitive capabilities, ensure quality and safety, protect the environment, and
promote sustainable development. These objectives guide the company in its
development and maintenance of a leading position in the dairy and nutrition
industry.
Vinamilk, as a leading dairy and nutritional products company in Vietnam,
upholds a set of core values and a business philosophy aimed at serving its
customers with integrity and excellence. This report explores Vinamilk's
commitment to these values and its business philosophy, emphasizing keys such
as integrity, ethics, respect, fairness, and compliance.

Business philosophy
Continuously develop production, trade and service activities in business
areas to:
● Maximize benefits and enhance the value of the Company in
harmony with the interests of Shareholders.

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 ● Continuously improve the lives, income and working environment
of employees.
● Ensure the interests of other stakeholders towards sustainable and
responsible development.

Core Values: Integrity, Ethics, Respect, Fairness, Compliance

● Integrity:
Vinamilk operates with unwavering integrity, upholding honesty and
transparency in all its dealings. Integrity is the cornerstone of Vinamilk's
relationships with customers, stakeholders, and the community.
● Ethics:
Upholding ethical standards is paramount for Vinamilk. The company
conducts its business with the highest ethical principles, ensuring fairness,
honesty, and responsibility in all aspects of its operations.
● Respect:
Vinamilk values respect for individuals, communities, and the
environment. The company treats all stakeholders with dignity and respect,
fostering a culture of inclusivity and collaboration.

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 ● Fairness:
Fairness is ingrained in Vinamilk's practices, ensuring equitable treatment
for all stakeholders. The company believes in providing equal opportunities and
fair compensation, promoting social justice and economic prosperity.
● Compliance:
Vinamilk is committed to strict adherence to laws, regulations, and industry
standards. Compliance with legal and regulatory requirements is non-negotiable,
reflecting the company's commitment to ethical conduct and corporate
governance.
Quality Policy
Vinamilk is dedicated to satisfying customer requirements by continuously
diversifying its products and services, enhancing quality, ensuring food safety and
hygiene, maintaining competitive pricing, and adhering to ethical business
practices in accordance with legal regulations.
Leadership Behaviors
Leadership behaviors play a crucial role in Vinamilk's development. The
minimal deviation from exemplary leadership behaviors significantly influences
the formation of the company's corporate culture. Vinamilk's leaders are
committed to fostering a culture of integrity, ethics, and excellence, setting the
tone for the entire organization.
Conclusion: Vinamilk's commitment to its core values and business
philosophy underscores its dedication to excellence, integrity, and customer
satisfaction. By upholding principles such as integrity, ethics, respect, fairness,
and compliance, Vinamilk aims to remain a trusted and respected leader in the
dairy and nutritional products industry, both in Vietnam and globally.

II. TARGET MARKETING OF VINAMILK

Vinamilk, as a leading dairy and nutritional products company, aims to
effectively target specific market segments to maximize its marketing efforts. This
report provides a detailed analysis of Vinamilk's target marketing strategies,
focusing on specific demographic, geographic, psychographic, behavioral, and
product segments.

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1. Vinamilk's target customers
Vinamilk's product lines are focused on developing for children and
teenagers because this age group has a high demand for milk and the consumption
of dairy products is the largest.

- The Vinamilk brand divides target customers into two groups including
individual customers and organizational customers. Vinamilk always brings
customers the highest quality, most nutritious and delicious products for the health
of each family member. All ages and all subjects are suitable for Vinamilk
products.
- Individual customer group: are consumers who have a need to purchase
and are willing to pay to buy Dielac Alpha products, especially parents with
children from 0-6 years old. This group of customers has relatively diverse
product needs (good product quality, product nutritional value, reasonable price,

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eye-catching packaging design...) and accounts for a fairly high proportion of total
revenue.
- Organizational customer group: Are distributors, wholesalers, retailers,
stores, supermarkets... who need and are ready to distribute Dielac Alpha products
as well as other Vinamilk product lines. This is the group that has requirements
for discount rates, sales bonuses, timely ordering, etc. related to product
distribution strategy.

2. Demographic Segmentation
• Age segmentation
Vinamilk targets various age groups, including infants, children, adults, and
seniors, with different products tailored to their specific nutritional needs. For
infants, Vinamilk offers infant formula and baby cereals, while for adults, it
provides a range of milk and dairy products for daily consumption.

• Gender segmentation
While dairy consumption is not heavily gender-specific, Vinamilk may
tailor its marketing messages to appeal to gender preferences, such as
emphasizing bone health for women or muscle recovery for men in their
advertising campaigns.
• Income and Occupation segmentation

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 Vinamilk offers a wide range of products at different price points to cater
to consumers with varying income levels. Additionally, it may target working
professionals with convenient on-the-go dairy options or premium products for
higher-income segments.

3. Geographic Segmentation

Regarding geographical criteria, based on population density and product

consumption capacity, Vinamilk's target market is divided into two market
segments: urban and rural.
The urban population accounts for 29.6% of the country's total population
and this number is increasing. The high population density in urban areas makes
it easy for Vinamilk to distribute its products. Besides, urban people have higher
incomes and care more about health, so they often use milk for the whole family.
They are often loyal to their chosen dairy products, especially Vinamilk fresh
milk. The two big cities of Hanoi and Ho Chi Minh City are a lucrative cake for
many big players in the market.
The rural population accounts for a high proportion, up to 70.4% of the
country's population, but people's living standards are very low and they rarely

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give their children milk. The population density here is low compared to urban
areas. Normally, canned milk products will be more popular than powdered milk
when distributed in rural markets.
In terms of demographic criteria: Based on age, the market is divided into
different market segments: children, adults and the elderly. There are also
categories of milk for families and those for individuals.
Customer purchasing behavior criteria: Based on health status and benefits,
purchasing criteria segments are grouped into normal people, malnourished
people, and people with obesity and diabetes.

4. Psychographic Segmentation
• Lifestyle and Values:
Vinamilk targets health-conscious consumers who prioritize nutritious and
natural products. Marketing messages may emphasize the health benefits of dairy
consumption, such as strong bones and improved immune function, appealing to
consumers' desire for a healthier lifestyle.
• Interests and Hobbies:
Vinamilk may target fitness enthusiasts or athletes by highlighting the
protein content and muscle-building benefits of its dairy products. Partnerships
with sports organizations or sponsorship of fitness events can help reach this
segment effectively.

5. Behavioral Segmentation
• Usage Rate and Loyalty
Vinamilk may offer loyalty programs or promotions to frequent consumers
of its products to encourage repeat purchases. Additionally, it may target
occasional consumers with special promotions or introductory offers to increase
usage rates.
• Benefits Sought
Vinamilk caters to various consumer needs by offering products with
different benefits, such as probiotic yogurt for digestive health or calcium-
enriched milk for bone health. Marketing messages highlight these specific
benefits to attract relevant consumer segments.

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6. Product Segmentation
With more than 30 years of business experience in the dairy industry in the
Vietnamese market, the Vinamilk brand clearly understands consumer needs.
Through researching market nutrition trends and applying advanced knowledge
about dairy products from around the world, Vinamilk is currently one of the
leading brands when it comes to the dairy market in Vietnam. Male.
Some of the products that contribute to Vinamilk's reputation include:
Powdered milk: Foreign companies dominate consumer tastes in the
Vietnamese market, however, Vinamilk's powdered milk line is still trusted by
many customers.
Liquid milk: Vinamilk is currently competing directly with Campina
Vietnam.
Yogurt market: In Vietnam there are two types of yogurt: eating yogurt and
drinking yogurt. In 2013, Vinamilk continued to lead the yogurt market with 73%
market share, of which edible yogurt accounted for 95%. Domestic manufacturers
with long-standing names and aggressive advertising campaigns have won the
favor of consumers. Vinamilk's two competitors in this segment are Ba Vi yogurt
and TH Milk in the Northern market.
Condensed milk: Currently the condensed milk market is entering a
saturated phase with a series of familiar names such as: Ong Tho Milk, Southern
Star condensed milk...

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 Soy milk: Currently the market is growing rapidly but very few brands
focus on this product. Vietnamese consumers are shifting towards healthier
products, and lactose-free soy milk has helped promote the growth of soy milks.
However, there are only a few companies involved in soy milk production, while
major companies in the liquid milk and powdered milk segments are highly
competitive. According to a survey by AC Nielsen in February 2014, Quang Ngai
Vinasoy Sugar Factory is the largest soy milk producer in Vietnam in terms of
capacity and market share. The enterprise is known for the Fami and Vinasoy
brands, accounting for 81.5% of the market share, the remaining 18.5% of the
market share belongs to Vinamilk (Goldsoy soy milk brand) and Tan Hiep Phat
(Goldsoy brand) and part of Tan Hiep Phat with Soy Number One). Soy milk
production accounts for only 25% of total annual milk consumption, the
remaining 75% is home-cooked milk.

• Digital Marketing and Partnerships

Digital Channels:
Vinamilk utilizes digital marketing channels such as social media, search
engines, and email marketing to reach its target audience effectively. Personalized
content and targeted advertisements based on consumer preferences enhance
engagement and conversion rates.
Partnerships and Sponsorships:
Vinamilk collaborates with influencers, health professionals, and sports
organizations to reach its target audience and build credibility. Sponsorships of

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events or sports teams increase brand visibility and appeal to specific consumer
groups.
Conclusion: Vinamilk's target marketing strategies are designed to
effectively reach and engage specific market segments, driving sales and brand
loyalty. By understanding the demographics, psychographics, behaviors, and
preferences of its target audience, Vinamilk can tailor its marketing efforts to meet
their needs effectively, ultimately strengthening its market position and
profitability.

III.DESCRIBE MARKETING 4PS STRATEGY OF THE COMPANY

(PRODUCT, PRICE, PLACE, PROMOTION)

1.What products (or services) that company serves?

-When it comes to Vinamilk products, from inception to development,
Vinamilk always makes great efforts to expand the product portfolio with the goal
of bringing clean, natural milk and meeting the expectations. diversity of
consumers, from children, adults to the elderly
-Vinamilk's dairy products always provide customers with nutritional
solutions and especially always ensure international quality. Dairy products are
very delicious, nutritious and good for health, so they are loved by many people.
At the same time, Vinamilk also provides a variety of dairy products to meet the
diverse needs of consumers, specifically:
Fresh milk: Vinamilk provides different types of fresh milk including
whole milk, low-fat milk and flavored milk. For example: Vinamilk Pure Fresh
Milk, Vinamilk Low-fat Milk, Vinamilk Flavored Milk.
Powdered milk: The company produces milk suitable for many different
ages, including infants, children and adults. For example: Vinamilk Infant
Formula, Vinamilk Junior Formula, Vinamilk Adult Formula
Yogurt: Vinamilk provides a variety of yogurt products, including natural
yogurt, fruit-flavored yogurt and probiotic yogurt. For example: Vinamilk Natural
Yogurt, Vinamilk Fruit Yogurt, Vinamilk Probiotic Yogurt
Condensed milk: Vinamilk's condensed milk products are popular for use
in cooking, baking and mixing drinks. For example: Vinamilk Sweetened
Condensed Milk, Vinamilk Unsweetened Condensed Milk
Nutritional supplements: In addition to traditional milk products,
Vinamilk also produces nutritional supplements such as calcium-fortified milk,
milkshakes, and calcium-fortified drinking milk. For example: Vinamilk Calcium
Fortified Milk, Vinamilk Milkshake.

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 Vinamilk's product strategy always focuses on innovation and adding new
types. In 2009, this brand developed and launched nearly 20 products with many
similar segments and industries in the market. market. One of them is Yoko's
powdered milk products, Organic powdered milk... and plans to diversify plant-
based products are also very important such as milk smoothies, nut milk, fruit
juices. tree,..In December 2016, the first EU standard 100% Organic fresh milk
product line was launched on the Vietnamese market. From November 9 to 11,
2021, Vinamilk participated in the FHC international food exhibition 2021 in
Shanghai city and promoted the Organic fresh milk product line with "double
standards" to international customers and partners during the event.

-In addition to focusing on expanding new products, Vinamilk also

focuses on improving product quality. In 1999, Vinamilk successfully applied the
quality management system according to international standards ISO 9002 and
currently is applying the Quality Management System according to international
standards 9001:2000. This has partly eliminated the quality gap compared to
imported milk and increased the envy and reputation of this brand in the market.
Following that, on March 13, 2017 in Da Lat, Lam Dong province, Vinamilk
officially inaugurated the first European standard Organic dairy farm in Vietnam.
The farm has a total investment of more than 200 billion VND in Lam Dong, with
an initial herd size of more than 500 cows and will continue to increase in the near
future. This is also the second farm Vinamilk has invested in Lam Dong province
after the first dairy farm in Lam Dong in 2019. 2012. Grasping the development
trend of high-end organic foods in the world, Vinamilk invested in developing an

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organic dairy farm in Da Lat that meets strict European organic standards. Right
from the evaluation For the first time, Vinamilk was honored to be certified by
the global organization Control Union (Netherlands): "The first European
standard Organic dairy farm in Vietnam". Not only that, on March 21, 2021,
Vinamilk imported a herd of dairy cows with more than 2,100 purebred HF cows
from the US. This herd of cows will join the herd at Quang Ngai farm. This is
Vinamilk's new farm with a scale of 4,000 cows, an area of over 100 hectares with
Total initial investment capital is up to 700 billion VND.
-With a diverse and healthy product portfolio as well as meeting the needs
of all ages and customers, the Vinamilk brand has always been remembered and
trusted by customers, making Vinamilk one of the The most famous Vietnamese
milk brands.

2.What are the company's pricing strategies for main products/services?

Vinamilk has developed a series of different product pricing strategies to
suit customer needs and vision,as well as compete in the Vietnamese dairy
market.Below are some specific strategies:
- Maximum pricing strategy (premium pricing): Vinamilk applies this
strategy to premium products such as UHT fresh milk and butter. The prices of
these products are often higher than similar products from competitors.
- Competitive pricing strategy (competitive pricing): To compete in the
powdered milk market,Vinamilk reduces product prices and creates promotional
programs to attract customers.
- Mid-range pricing strategy (mid-range pricing): Vinamlik sets prices at
an average level for products such as low-fat fresh milk and yogurt to meet the
monetary position of the majority of customers.
- Descending pricing strategy (skimming pricing): Vinamlik new products
often have higher prices in the early stages, then gradually decrease as they
become more popular.
- Low pricing strategy (penetration pricing): Vinamilk keeps prices lower
than compatible products on the market to compete and attract consumers.
- Bundle pricing strategy (bundle pricing): Products sold together are more
affordable than buying individually, attracting customers to buy more products.
- Flexible pricing strategy ( flexible pricing): Vinamilkadjusts product
prices depending on demand and market conditions in each different region.
Overall,Vinamilk has used a wide range of pricing strategies to suit
specific customers and markets, from the high-end to the mid-range and low-
priced segments.This allows them to stay competitive and meet the diverse needs
of the market.

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3. How company build distribution channels?
• Types of distribution channels
Vinamilk, as one of the leading companies in the production and
distribution of dairy products and functional foods in Vietnam, can utilize several
distribution channels:
- Distributors and agents: Vinamilk can leverage its network of distributors
and agents to reach stores, supermarkets, markets, and other retail points
nationwide.
- Supermarkets and large stores: Collaboration with major supermarket
chains and other retail stores to place their products on easily accessible shelves
for consumers.
- Online channels: Opening online stores or partnering with e-commerce
platforms to sell products online and reach consumers through the internet.
- Mobile sales: Utilizing mobile applications or SMS messages to provide
product information and promotional programs to potential customers.
- Advertising and promotions: Using advertising campaigns and
promotions to enhance brand recognition and stimulate demand.
- Export: Exporting their products to international markets to strengthen
global presence and reach overseas consumers.
It's worth noting that Vinamilk's distribution strategy may evolve over
time and depend on factors such as market conditions, industry trends, and the
company's business objectives. For specific and up-to-date information on
Vinamilk's distribution strategy, one should consult official sources such as the
company's website or financial reports.
• Current Distribution Channels of Vinamilk
Vinamilk's distribution system is well-organized. Vinamilk's distribution
channels have expanded to 23 provinces and cities in the North, with over 13,000
retail points and 46 distributors across the region.As of 2008, Vinamilk
demonstrated its strength with a relatively good business performance. In just the
first 10 months of 2008, Vinamilk achieved revenues of 7,076 billion VND and
post-tax profits of 1,192 billion VND, completing 86.3% and 99% of the
company's annual plan, respectively. Considering the global economic situation
with challenges and uncertainties, investors may consider selecting stocks of
companies with a 15% annual profit growth and a P/E ratio of 9 in 2009.
Vinamilk's stocks meet these criteria.Vinamilk has financial capacity and market
potential, relying on important factors such as market share, market capitalization,
and distribution network, which are its strengths.
Vinamilk currently has two distribution channels:

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 - Traditional distribution channel: Distributing over 80% of the company's
production through 220 independent distributors and over 140,000 retail points.
Additionally, Vinamilk has opened 14 showrooms in major cities like Hanoi, Da
Nang, Ho Chi Minh City, and Can Tho.
- Modern distribution channel: Utilizing modern channels such as
supermarkets and Metro stores through its widespread investment in dairy
factories across the country.Vinamilk applies various policies to manage and
incentivize its distributors, ensuring loyalty and adherence to product
commitments. It categorizes its distributor network into two groups: one for milk
products and another for dairy products like ice cream and yogurt.
• Advantages and Disadvantages of Vinamilk's Distribution Strategy:
Advantages:
- Effective management policies and incentives have led to the expansion
of the company's distributor network, covering most provinces in the North.
- The widespread distribution network allows Vinamilk to attract a large
customer base and introduce new products and strategies efficiently across the
country.
- Experienced sales teams assist distributors in serving retailers and
consumers better while promoting the company's products.
- The business development team supports distribution activities and fosters
relationships with new distributors and retailers.
- Vinamilk organizes various promotional activities to promote its products
and build the brand nationwide.
- Investment in refrigerators and freezers for sales is a barrier for
competitors entering the food and beverage market, requiring significant
investment.
Disadvantages:
- Weak marketing efforts hinder effective communication of the company's
strengths to consumers.
- Lack of differentiation between types of dairy products like fresh milk
and UHT milk affects consumer understanding.
- Challenges in transportation and storage impact product quality and
consumer trust, especially in remote areas.
- Limited resources for monitoring and supervising distributors,
particularly at the grassroots level, pose challenges for Vinamilk.
- Inadequate refrigeration facilities in retail stores and transportation
vehicles affect product quality and consumer confidence.

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• Future Strategies for Vinamilk's Distribution Channels:
- Vinamilk currently relies on its two main distribution channels but may
consider diversifying its distribution channels to adapt to changing consumer
needs.
- Despite the dominance of milk products, Vinamilk can expand its product
range to include health drinks to capture a larger market share.
- The company should strengthen its marketing strategies and
communication efforts to effectively convey its brand message and product
differentiation to consumers.
- Investing in advanced transportation and storage facilities to ensure
product quality and safety throughout the distribution process is essential.
- Enhancing monitoring and supervision capabilities to cover all
distribution levels, including grassroots retailers, will improve overall efficiency
and consumer satisfaction.
In conclusion, Vinamilk has built a successful distribution strategy, evident
from its annual revenue figures. With continuous adjustments and innovations,
the company can further enhance its distribution channels to support its growth
and development objectives.

4. What is the promotion mix strategy of companies?

● Vinamilk Marketing Mix Strategy
Vinamilk's marketing strategy includes the 4Ps: Product, Price, Place, and
Promotion.
Product:
- Vinamilk has five main product categories, including dairy products
(fresh milk, sweetened condensed milk, powdered milk, etc.), dairy-based
products (ice cream, cheese, yogurt, etc.), tea, coffee, and fruit juice.
- Vinamilk is committed to providing the best products to consumers. The
company has innovated its technology to produce healthier products, continuously
improving quality to meet consumer demands.
- By producing a diverse range of products including low-sugar Vinamilk,
low-fat Vinamilk fresh milk for dieters, adding fragrance, and creating Vinamilk
100% Organic for high-end customers, Vinamilk has maintained its position as
the leading brand in the diverse fresh milk market (Vinamilk 2020).
Price:
- Vinamilk offers a variety of products, but we will focus on the pricing
strategy for powdered milk.

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 - Despite the profit race among foreign milk companies, Vinamilk has
maintained its pricing since 2008. Many believe that foreign milk is of higher
quality than domestic milk, but most of Vietnam's milk ingredients are imported.
Therefore, many families choose domestic milk for their children, and Vinamilk
is one of the best brands in terms of both quality and price.
- Additionally, Vinamilk has improved some products to enhance quality
and affordability. For example, Dielac - Dielac Alpha, Dumex - Dumex Gold,
Friso - Friso Gold.
Distribution
Vinamilk's marketing strategy focuses on building an extensive network to
ensure the fastest delivery of products to consumers. Vinamilk's dairy products
have become popular and easy to find across Vietnam through the use of three
main distribution channels. The first channel is the supermarket system, ranging
from large supermarkets like Coopmart, Big C to small supermarkets like
Vinmart, Family mart, B's Mart.
- The second distribution channel is key accounts such as schools, hotels,
restaurants, and the final distribution channel is through agents with over 220,000
stores in 63 provinces and cities of Vietnam (ISAAC 2019). These channels and
distributors nationwide have brought Vinamilk's products to every corner of
Vietnam with consistent quality.
- Due to the development of e-commerce, Vinamilk has also developed
online stores through its website and sells its products through online platforms
such as Shopee, Lazada, etc.
- Additionally, Vinamilk is always seeking opportunities to expand its
export market. Many of Vinamilk's nutritional products have been consumed in
over 54 countries and territories.
Promotion:
- Vinamilk's multimedia marketing communication strategy focuses on the
message "100% pure fresh milk", conveying both the product's competitive
advantage and increasing consumer confidence.
Advertising - Vinamilk's Digital Marketing Campaign
One of the key factors contributing to the success of Vinamilk's marketing
strategy is the diversified use of media channels such as TVC, Video, Radio,
Online Marketing, etc.
- TVC: Short advertising films combining images, motion, and sound. This
form of advertising can appear anywhere, such as on HTV7, VTV1, VTV3, with
a duration of less than 35 seconds.

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 - Video: Short but impactful advertisements that impress consumers
through images, sound, and attractiveness. At the same time, it must reflect the
product's image as pure, fresh, and adorable milk. With a priority on Video
Marketing strategy, Vinamilk has become the first packaged consumer goods
brand in Southeast Asia to reach one million subscribers on YouTube.
- Radio: 50-second audio clips must demonstrate the benefits of fresh milk.
For example: + Develop height, strong body, high resistance, beautiful skin, etc.
- Online Marketing: Online selling has become an effective form. Vinamilk
opened online sales channels for consumers to place orders and have them
delivered to their homes. In addition, Vinamilk also advertises on websites in
Vietnam such as www.vnexpress.com with forms such as banners, clips,
especially using website optimization tools (SEO).
In its advertising strategies, Vinamilk emphasizes unlimited creativity. As
a company specializing in dairy product manufacturing, the image of the little cow
often appears in Vinamilk's advertisements, especially fun images that attract
children like dancing cows, singing cows, etc.
Vinamilk has successfully built brand awareness through marketing
campaigns and loud advertising mainly focused on Vietnamese families (HBR
Business School 2019).
In the campaign called ''Vinamilk 40 years - Elevating Vietnam'' in 2016,
Vinamilk aimed at the happy lives of Vietnamese children and nurtured young
talent with pure fresh milk. Vinamilk successfully conveyed the message that
Vietnamese children will grow up happy and healthy thanks to high-quality
products (Vinamilk 2016).
In the advertisement named ''Vinamilk Organic Fresh Milk - Pure goodness
from Châu u-standard farms on the highland plateau of Dalat'' in 2020, Vinamilk
introduced the image of a high-quality product meeting European standards,
promising to bring nutrition to Vietnamese families (Vinamilk 2020). Besides
bringing health benefits to the people, Vinamilk also enhances brand recognition
by focusing entirely on environmental and social responsibility issues.

2. Publich relations
Vinamilk's marketing strategy is known for many public interest activities
such as the ''6 million glasses of milk for poor children'' strategy. With the noble
ideal of improving the race, this program has a significant impact and receives
support from the media and people nationwide. In addition, Vinamilk also
contributes to many other community activities.
In the campaign ''1 million trees for Vietnam'' launched in 2012, Vinamilk
has planted nearly 1 million trees in Vietnam, not only raising people's awareness
of the environment but also helping to combat pollution and global warming.

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 In the campaign ''Vinamilk - Million steps, pushing back Covid'' in 2020,
Vinamilk donated 60,000 medical masks, 6,000 boxes of hand sanitizer, and over
86,000 boxes of milk to more than 6,000 disadvantaged children across Vietnam
during the Covid-19 pandemic

3. Sale Promotion
Vinamilk's marketing strategy includes organizing prize draw promotions.
Customers buying a box of Vinamilk 100% pure fresh milk will be eligible for a
prize draw with attractive prizes such as:
● Free use of fresh milk for 1 year
● Gift boxes of milk
● Free English courses

IV. PROPOSE RECOMMENDATIONS/SUGGESTION TO IMPROVE

EFFICIENCY OF MARKETING STRATEGIES OF COMPANIES
- Segmentation and Targeting: Segment the market based on demographics,
psychographics, and purchasing behavior. Develop tailored marketing messages
and campaigns for each segment to maximize relevance and effectiveness.
- Digital Marketing Optimization: Invest in digital marketing channels such
as social media, search engine optimization (SEO), and content marketing to reach
a wider audience and engage with customers more effectively. Utilize data
analytics to measure the performance of digital marketing efforts and optimize
campaigns accordingly.
- Product Innovation and Diversification: Continuously innovate and
diversify Vinamilk's product offerings to meet evolving consumer preferences
and market trends. Conduct market research to identify opportunities for new
product development and expansion into new product categories.
- Sustainability and Corporate Social Responsibility (CSR): Emphasize
Vinamilk's commitment to sustainability and CSR initiatives in marketing
campaigns to appeal to environmentally and socially conscious consumers.
Highlight efforts such as sustainable sourcing practices, eco-friendly packaging,
and community engagement programs.
- Customer Engagement and Loyalty Programs: Implement customer
engagement initiatives and loyalty programs to incentivize repeat purchases and
foster brand loyalty. Offer rewards, discounts, or exclusive perks to loyal
customers to encourage ongoing engagement with the brand.
- Data-driven Decision Making: Utilize data analytics and marketing
automation tools to gather insights into customer behavior, preferences, and

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market trends. Use this data to make informed decisions and optimize marketing
strategies for better results.
- Investment in Training and Development: Provide training and
development opportunities for marketing teams to enhance their skills and stay
updated on the latest marketing trends and technologies. Encourage creativity and
innovation in marketing campaigns to differentiate Vinamilk from competitors.
- Continuous Monitoring and Evaluation: Regularly monitor the
performance of marketing strategies and campaigns through key performance
indicators (KPIs) such as sales growth, customer acquisition cost, and return on
investment (ROI). Evaluate the effectiveness of marketing efforts and make
adjustments as needed to improve efficiency and achieve business objectives.
- Leverage Emerging Technologies: Explore innovative technologies such
as augmented reality (AR), virtual reality (VR), or artificial intelligence (AI) to
create immersive brand experiences and differentiate Vinamilk from competitors.

V. CONCLUSIONS
In conclusion, Vinamilk stands as a paragon of success in the Vietnamese
dairy industry, with a rich history, a clear mission, and strategic goals firmly
rooted in delivering quality products to its diverse consumer base. Through its
relentless commitment to excellence and innovation, Vinamilk has established
itself as a market leader, leveraging its core values of quality, nutrition, and
sustainability to resonate with consumers across various demographics.
Vinamilk's marketing strategy, encompassing the 4Ps - Product, Price,
Place, and Promotion - reflects its dedication to meeting consumer needs while
ensuring profitability and sustainable growth. The company's diverse product
portfolio caters to a wide range of consumer preferences, from dairy staples to
specialized nutrition products, ensuring that it remains relevant in a rapidly
evolving market. With a focus on affordability and value, Vinamilk implements
competitive pricing strategies that balance accessibility for consumers with
profitability for the company.
In terms of distribution, Vinamilk has developed an extensive network of
channels, encompassing both traditional retail outlets and modern distribution
channels, ensuring widespread availability of its products across Vietnam. This
strategic approach to distribution enables Vinamilk to maintain its market
dominance and effectively reach its target audience.
Vinamilk's promotion mix strategy, characterized by a blend of traditional
advertising, digital marketing, sponsorships, and community engagement
initiatives, effectively communicates its brand message and reinforces its position
as a trusted household name. By leveraging both offline and online channels,

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Vinamilk maximizes its reach and engagement with consumers, driving brand
awareness and loyalty.
Looking ahead, there are several recommendations to further enhance
Vinamilk's marketing strategies and efficiency. Firstly, the company should
continue to invest in research and development to innovate its product offerings
and stay ahead of evolving consumer preferences. Additionally, leveraging data
analytics and technology can provide valuable insights into consumer behavior,
enabling more targeted marketing campaigns and personalized experiences.
Furthermore, fostering strategic partnerships and collaborations can expand
Vinamilk's reach and open up new growth opportunities both domestically and
internationally.
In essence, Vinamilk's unwavering commitment to excellence, coupled
with its strategic marketing initiatives, positions it for continued success and
leadership in the Vietnamese dairy market. By staying agile, innovative, and
consumer-centric, Vinamilk is well-equipped to navigate the challenges and
capitalize on the opportunities that lie ahead, driving sustainable growth and
delivering value to its stakeholders for years to come.

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REFERENCES

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