Marketing Plan TH True Milk

TH True Milk
Marketing Plan
Intructor: Phd Le Trung Thanh

Prepared by Milky Way Group

Table of Contents
1. External Environment 3
1.1. Market 3
1.1.1. Market 3
1.1.2. Customer’s Budget 4
1.1.3. Trends 4
1.1.4. Market Structure 4
1.2. Product 4
1.2.1. The benefit customers: The assurance of 100% pure fresh milk 4
1.2.2. Product categories 5
1.2.3. Name of product 5
1.2.4. Designing and packaging 5
1.2.5. Distribution Channels: 5
2. SWOT Analysis 6
2.1. Strengths 6
2.2. Weaknesses 6
2.3. Opportunities 6
2.4. Threats 7
3. Objectives and Goals 7
3.1. Short-run Objectives (in 2013) 7
3.2. Long-run Objectives (Next 5 years) 7
4. Target Market 8
4.1. Market Segmentation and Market Size 8
4.2. Target market 8
4.2.1. Image 8
4.2.2. Consumption 8
4.2.3. Customer Feedback 9
5. Competition 9
5.1. The strategy of Vinamilk 9
5.1.1. Strength points: 9
5.1.2. Weakness points: 9
5.2. Strategies of Dutch Lady 10
5.2.1. Strength points: 10
5.2.2. Weakness point: 10
6. Marketing Strategy: 10
6.1. Positioning Strategy 10
6.2. Branding Strategy: 11
7. Marketing Tactics 11
7.1. Products: 11
7.2. Pricing Strategy 13
7.3. Place - Distribution Channels: 13
7.4. Promotion 13
7.4.1. Communication Message 13
7.4.2. Marketing on TV 14
7.4.3. Marketing on Magazine 14
7.4.4. Advertising outside 15
8. Budget 15
8.1. Summarized Financial Information 15
8.2. Budget 16
9. Implementation and Control 16
9.1. Performance Standards 16
9.2. Report plan 16
9.3. Meeting plan 17

1. External Environment
1.1. Market
Although fresh milk of TH True Milk joins milk market, it makes customers impressed quickly. Products of TH True Milk are diversified and suitable with a lot of customers which are different tastes.
1.1.1. Market
Framework of marketing milk
Chart describes the average consuming milk products per person in Vietnam in the period from 1997 to 2009.

In general, milk market is various with many kinds of milk such as liquid milk, powdered milk, full cream milk, skim milk or yogurt, condensed milk which are finished product from natural milk, in there, natural milk holds the upper hand. Besides, other milk products fluctuate at the specific period depending on much to customer’s behavior for purchasing. The demand for fresh liquid milk is the highest in all kinds through periods.
Milk market share of Vietnam in 2010, foreign milk holds the upper hand including domestic milk makes up 15%, imported milk holds 20%, Dutch Lady makes up 23% and Vinamilk is 40%.
Nowadays, Vinamilk is holding the most of milk market share in market segments such as condensed milk (80% market share), yogurt (90% market share) and natural milk (50% market share).
3
4
4.1
4.1.1
1.1.2. Customer’s Budget
Life is developing day by day, income is increasing, and consumers are spending more and more budget for health-product like milk, especially to children. According to statistics from Viet Nam Milk Industry, 89% of urban children can drink milk every day. Follow the professions’ advice, drinking 3 boxes of milk each day that makes milk consumption a significant increase.
1.1.3. Trends
In 2008, the scandal of melamine-tainted milk from China make consumers paying more attentions at milk quality. The demand for fresh liquid milk is higher and higher ,whereas reconstituted milk is acccounting for over 70% of milk in this market. From the end of 2012 to the early of 2013, many requests for producers to publish exactly the name tag of milk whether it’s fresh milk or reconstituted milk.
1.1.4. Market Structure
In fresh milk market in 2012, Vinamilk and FrieslandCampina Vietnam (what is often known with name Dutch Lady) were accounting for almost two third of market share. TH True Milk is the second largest producer with 30% marketshare ( lower than Vinamilk who has 40%, and higher than FrieslandCampina Vietnam who has 25%). The rest, only 5%, is divided by 70 other competitors. The market size, what was about 7,000 billion VND in 2012, is forecasted expanding to 8,000 billion VND in 2013. And the market share is predicted to keep the dominance of 3 bigs Vinamilk, TH True Milk and FrieslandCampina Vietnam.
1.2. Product
1.2.1. The benefit customers: The assurance of 100% pure fresh milk
The secret of the clean fresh milk lies in its advanced technology and technique, imported Israel and other countries, in cow rearing and milk processing. TH has utilized Israeli expertise in technology management and training to ensure a smooth and correct application.
The most important element among many in clean, nutritious milk production is the ingredient input. We can only fully utilize the advances processing technology when we have a good and stable inflow of ingredients. All the production stages are technologically supported and supervised by 2 multinational companies, Afikim (Israel) in herd management and Totally Vets (New Zealand) in veterinary, which insures efficiency and professionalism throughout the process: Breed origin, Nutrition, Housing, Herd management, Milking, Processing factory, etc.
In detail, click the link: http://www.thmilk.vn/en/news_events/message-th-true-milk-consumers
1.2.2. Product categories
New product is launched milk prepared no more than 1%
The product includes 8 categories: whole milk, less sugar milk, sugar milk, chocolate milk, strawberry milk, additional milk Collagen, additional milk Phytosterol, additional milk Calcium.
1.2.3. Name of product
TH is stands for “True Happiness”. The company always wants to bring customers truely fresh and natural products.
A name associated with the characteristics of the product. The name is easy to remember, deeply impressed by the customer.
1.2.4. Designing and packaging
Tetra Pak – famous packaging technology from Sweden has been considered as a proof of clean, sterilized milk. Its recyclability is much suitable for Vietnamese routine use of the milk carton bottle.
Size: 180ml and 110ml box
Image: Blue sky, which symbolizes the nature, has been shown simply, clearly and prominently.
1.2.5. Distribution Channels: True Mart chain:
TH has chosen their own path in preserving natural goodness for each and every TH product, and this path has led to the establishment of TH true mart chain of stores. In the first few steps, the chain is mainly based in big cities such as Hanoi, Ho Chi Minh and Nghe An, and is developed throughout the whole country.
First, TH true mart will serve as a tool to raise awareness of TH. Second, this is a direct channel of distribution. And third, TH true mart is a modern and distinctive distribution channel of clean, safe, fresh and nutritious natural product to consumers. In the future, when the online shopping and home delivery is launched, the chain of stores will serve as offline representative for this channel.
TH true MILK has been launched and distributed in TH true mart since December, 2010. Currently, to broaden consumers’ choices of natural products, TH has introduced vegetable product called TH true VEG. The project is managed by May Forestry Joint Stock company, using a closed process production under strict technology management. System of retailers
Large supermarkets: Co.Opmart, BigC, Metro, etc....
Small retailers
2. SWOT Analysis
2.1. Strengths
Success in Preemtive Claim. TH True Milk is the first milk producer to gurantee definitely 100% pure fresh milk. By be qualified for many international healthy standard , verified by governmental agency and especially through marketing in time, TH True Milk have been clearly positioning the image of a large investor who desire to improve Vietnamese resident’s health by our own competence.
At present, TH True Milk has applied the most advanced foreign technology and management know-how in all processes which have innovated 5 years in advance of the age.
TH True milk’s process has been cycle line, which means to own privately supply sources and distribution channel. As a result,this independence of outputs’ price has made our price stable.
Truemart- chain stores has been unique and efficient distribution. They have also been creating professtional image of TH True Milk.
Be consulted & financial support from Bac A Bank
2.2. Weaknesses
Establised in late 2009, TH True Milk have been still a young brandname in fresh milk market. The products and brand have not approached to potential provinces such as: Nam Dinh, Ninh Binh, Bien Hoa, ....
Inspite of be accounted for approximately 33% northern market share, this index in southern market is only 7%.
High price is the most impotant barrier to approach lower-income customers
2.3. Opportunities
Vietnam has been at high increasing rate of demand 15-30% per year. State prior policies to Milk Industry: Lowering interest rate, encouraging policies to raise milk cow farms, etc.
Developing information technology make online-shooping more applicable.
2.4. Threats
Over 70 competitors & approximately 300 substitute goods.
Vinamilk, which has operated in this market for over 35 years, is the biggest competitors with over 40% market share.
Entering WTO brings high competition from foreign investors: lower cost of milk producing, reducing tax on schedule of be a member of AFTA, WTO.
3. Objectives and Goals
3.1. Short-run Objectives (in 2013)
The main objectives in 2013 is to grow revenue 1.5X, approximately 3500 - 3700 billion VND, which means be equivalent to about 35% of gross market share. This one is rationally reachable because in 2012, the gross revenue of TH true milk was 2000 billion VND which was accounted for 28% market of over 7000 billion VND. To succeed in this year’s objectives, following goals should be done:
Develop patrons: means that they will create 70% of revenue in 2012, which means to raise 20% in 2013.
Catch over 150.000 new-paying target customers.( At least 37.500/ quarter)
Reach high level of customers’ satisfaction: 95% target customers
Improve cost per customer by 20%.
Raise awareness of new products which will be launched in 1/2013.
Expand to southern market: 7%  15% market share.
3.2. Long-run Objectives (Next 5 years)
On schedule, 2013 will be still in developing stage of TH True Milk. At present, our market share has not appropriate with scale of production the company has been investing in. TH True milk has had 22.000 milk cows and by2017, will have reached 137.000 ones; got capacity of 500 million liters/year. This also means it will afford to supply for over 50% gross demand. As a result, by 2017, TH True Milk will have been the largest milk producers in domestic market.

4. Target Market
4.1. Market Segmentation and Market Size
Criteria
Features
Size
Geographic
Urban: advertising programs, sale, delivering of TH true milk takes place almost in cities: Ha Noi, Vinh, Ho Chi Minh city.....

Rural: TH true milk products are not used a lot and in fact, it has not left profound image in customers. It is potential market with big purchasing power and in the future, TH true milk can develop this market
Over 70% of the population
Demographic
Ages of 5-18: Be consumers because of growing stage. Nevertheless, they are not deciding people who will choose what brand of milk they drink.
24.931

Ages of 18- 40: Be consumers and deciding people.
22 million
Psychographic
Appreciate quality and safety of milk, rather than price. They strongly believe relationship between price & quality.

People who are sensitive about price. They consider price as a first factor to decide whether buy or not.

Behaviors
Buy small amount, regularly

Buy big amount, irregularly

4.2. Target market
4.2.1. Image
Ages: 18- 40
Sex: Female
Social Status: Housewife
Family size: 3-4 people
Income: > 3 million VND/person
Characteristics:
Require higher quality and be willing to pay more to get better products
Based on quality, not famous brand name as buying.
4.2.2. Consumption
Motivation for buying:
Take care of their children’s healthy growth: improve height, resistance, etc…
Desire to improve your beauty.
Be searching a nutritious drink as a substitution for water.
Buying through retailers systems or distribution channel – True Mart.
Amount of consumption: 1.5 barrel/month.
Means of communication: TV, internet, radio, newspapers
4.2.3. Customer Feedback
What customers prefer TH True Milk
What customers complain about
- Ensured quality
- Taste: more sweet-smelling, differently delicious, in comparison with others.
- Designing: Convenient; proper color that brings feeling of nature, purity.

- Much high concentration of sugar in sugar milk.
- High price.

5. Competition
Nowadays, Vietnam’s milk market has about 300 products of more than 70 milk companies such as: Vinamilk, Dutch Lady, Nutifood, Abbort, etc. In there, Vinamilk and Dutch Lady make up milk market mostly in Vietnam.
5.1. The strategy of Vinamilk
Vinamilk is the top of companies ranking in Vietnam about manufacturing not merely milk but also many products from milk. In 2011, Vinamilk gains the impressive business results including revenue reaching 1 billion US dollar (22,279 billion VND), increasing by 37%, delivery to the National treasury of 2,400 billion VND, increasing by 45% compared with 2010.
5.1.1. Strength points:
Manufacturing technology achieves international standards.
Holding 39% market share in whole Nation.
Continuously developing advanced products.
System of distribution and selling covers many areas.
5.1.2. Weakness points:
Because of diversifying kinds of products, Vinamilk controls by many segments of those kinds. It means that Vinamilk will meet difficulty in focusing the kind of natural milk.
5.2. Strategies of Dutch Lady
In 1924, Dutch Lady is imported into Vietnam. So far Dutch Lady Vietnam has a large market in whole Vietnam. In there, Dutch Lady have many market segments following the age including the small child, child, teenager and adult; following the kind of milk products consisting on sterilized milk, condensed milk.
Because Dutch Lady makes menu segments, they set slogan for the natural milk which is called: “Ready for life!” and for impressing their various products for all age which is called: “cung be yeu khon lon” to distinguish with other IQ’s messages.
5.2.1. Strength points:
Applying to the high technology.
Holding about 35% Vietnam’s market share.
Constantly improve products.
Distributing system covers many areas.
Locating a power position of brand name.
5.2.2. Weakness point:
Friesland Campina Corporation runs business not only natural milk but also condensed milk, so resources are divided for those segments.

Focusing on in fresh milk, there are 100 kinds of milk from 70 companies, this picture shows you know that just only 2 years, TH milk have a big achievement. There are 2000 billion in market 7000 billion following until quarter 4 in 2012, it means that holds 30 % in there. However, TH need try more to compete with Vinamilk- a most big competitor and keep watch Dutch Lady.
6. Marketing Strategy:
6.1. Positioning Strategy
TH True milk has succeeded in preemptive claim tactic (gain the pioneer’s advantages) which called Law of Mind in Al Ries’s theory. According to this theory, TH True Milk is the first one to claim that our products have been 100% pure fresh milk which is verified by state government and international health organizations. Asserting perceived quality, we have preceded all others in positioning two words “pure” and “clean” in customers’ mind.
TH True Milk has been also the first one to have own distribution channel - True Mart which impress our professional image on customers.
6.2. Branding Strategy:
Raising awareness of brand by meaning of logo:
TH is the acronym of True Happiness. That is, in the end, what we want to bring to consumers, the true happiness from truly natural products. “True” is the one principle we always adhere to, true in the natural ingredient, in advanced technology production. This is our genuine commitment to the true value in life, to the true happiness.
TH true MILK is made up of 3 attributes: Earnest, Proud, and Honest. Proud to be the first to lay down the foundation for the milk industry in Vietnam, TH has made a breakthrough in applying high technology in agriculture, maximizing the rich soil heritage, and turning it into a commercially beneficial strength. TH is aware that it all comes down to serving the consumers. A country is strengthened when its citizens are physically and mentally healthy. This development hinges not only on the essential nutrients found in food and dairy products, but also in a healthy lifestyle. People are those who build a nation hence doing our job of serving the consumers is doing out duty to the nation. To us, we fulfill our job by producing clean, safe and natural products. Be a smart consumer who chooses truly natural products, and be a follower of TH because we will make you proud.
3.
4.
5.
6.
7.

7. Marketing Tactics
7.1. Products:
Strategy of diversity of products: TH True Milk have launched produced with new additives

TH True MILK UHT Pure Fresh Milk

100% fresh cow milk so you can enjoy the natural goodness in every drop. Taste the difference of fresh, pure milk from a farm with international standards
180ml &110ml
TH True MILK UHT Less Sugar Fresh Milk

The first fresh milk product in the market with reduced sugar content. Less sugar, but all the nutritional value for your complete development. Feel the difference in every drop of reduced sugar milk, which meets your nutritional needs.
180ml &110ml
TH True MILK UHT Sweetened Fresh Milk

Delicious and nutritious, your perfect choice. Feel the difference in every drop of naturally sweet and healthy milk.
180ml &110ml
TH True MILK UHT Strawberry Fresh Milk

Pure, delicious milk flavored with fresh strawberries gives you a unique, mouth-watering taste. Feel the difference in every drop of healthy and delicious strawberry-flavored milk
180ml &110ml
TH True MILK UHT Pure Fresh Chocolate Milk

The best-selected ingredients have come together in the new delicious and nutritious product. Let every drops of milk leaves you wanting for more of that tasty chocolate and sweetness of pure, fresh milk
180ml &110ml
TH True MILK - UHT Fresh Milk Added Calcium

Calcium and Synergy help strengthen bone structure. containing the natural Calcium and Synergy 1, derived from Chicory root from Belgium. Synergy 1 is scientifically proved to increase Calcium absorption.
180ml &110ml
TH True MILK - UHT Fresh Milk Added Phytosterol

Phytosterol helps effectively decrease cholesterol level.
It is scientifically proved to effectively decrease cholesterol level, balance blood pressure, and reduce the risk of heart disease.
180ml &110ml
TH True MILK – UHT Fresh Milk Added Collagen
Collagen helps retain the skin elasticity. contains purified collagen, helps to maintain the moisture and elasticity of skin, the luster and strength of hair.
180ml &110ml
7.2. Pricing Strategy
TH True Milk: 28.000 VND/ Block/ 4 items
Setting highest price make relationship between quality and price.
Sale promotion:
Program
Content
Budget
Offer gifts to children
Buy 2 blocks, give 1 glass or superman picture.
2 billion VND
Sale off for patrons
Buy more 5 can, take membership cards to discount 10%
500 million VND
Be grateful to customers
Organizing festivals of buying milk at cheap price.
3 billion VND
7.3. Place - Distribution Channels:
Continue to use 2 channels: True Mart and system of retailers
Open new True Marts in cities:
In Northern area: 5 outlet chains in Nam Dinh, Hai Phong, Thai Binh
In Middle: 3 outlet chains in Hue, Da Nang, Quang Nam
In Southern area: 10 oulet chains on Binh Duong, Ba Ria- Vung Tau, Bien Hoa, Dong Nai, Ben Tre, Can Tho, Bac Lieu, .
7.4. Promotion
7.4.1. Communication Message
Main message: Natural essences are completely kept in each fresh milk drop.
Besides that, milk drops which are filtered from natural and over closed process bring nutritional source for human body. Moreover, it helps protect and improve stature, attract other people.
In order to give impression for consumers, TH True Milk always try to popularize, build imagine from design carefully logo, short and meaning slogan, do special advertising, build trade name through really actions and care environment, save energy. These strategy always effect in marketing artist.
TH True milk is doing Preemptive Claim Strategy the same as The Law of Mind follow Al Ries opinion. Follow that, TH proclaim a normal feature of milk product. TH is the first company proclaims that its product is ‘Fresh milk’, and TH had done before their competitors. TH True Milk built strategy ‘Perceived Quality’. When having True ‘fresh’ in consumers, TH milk is developing leading in milk market.
7.4.2. Marketing on TV
Marketing on channels: HTV7, SCTV2, Star Movies, TVC, etc…
The duration is 30s and decreases to 15s
Idea: Beginning with a big natural picture
Context: the journey of a drop of milk which is personified falls through stages of producing process. From that, people see images of nature, quality cows and advance technology.
Feeling: energy, balance and relax on mood. And the slogan will appear at the end of clip: TH True Milk Really Natural.
The Table of plan marketing on TV:
Month
1st
2nd
3rd
4th
5th
6th
Details
VTV3: 9h,19h45,22h15
VTV1: 20h
HTV7: 21h
HN1: 21h
Duration: 45s
Like 1st month
Duration: 30s
VTV3: 19h, 19h45,22h15
VTV1: 20h
Duration: 30s 7.4.3. Marketing on Magazine
Focus on woman and businessman.
The Table of plan marketing on magazine:
Month
1st
2nd
3rd
4th
5th
6th
Details
Youth: page 10th, colorful and daily newspapers
Woman: page 3rd, colorful and daily newspapers
Saigon Marketing, Da Nang, Hanoi New…
Marketing on weekly newspapers 7.4.4. Advertising outside
Advertising at bus station, high school, university, office …
Time: 15/1 – 30/6
Image express:
Character: Ốc Thanh Vân – young, active, smiling – express full of energy, her hand lift a bottle of TH true milk.
Space: Picture of blue sky
Slogan: “Thực sự thiên nhiên” (Really National)
Communicate at sale places:
At the retail shop, using the blue and white to decorate, LCD shows continuously TVC to advertise products. Retailer wears uniform like worker milk in farm.
At the supermarket:
Next to Vinamilk aisle or Dutch Lady aisle, TH True Milk aisle is always striking and attractive.
At the small shop: TH support poster advertising to them and help them to display products.
For advertising, in Vietnam, TH true milk’s advertise is always expressive to customers. Except promotional video, TH true milk finances social actions such as: giving scholarship (cost 500 million VND), supporting charity program “Integrate Love Together” (cost 150 million VND), organizing program “Little painter TH” (cost 500 million VND), etc… Besides, TH true milk organizes other programs like: “TH true milk with women beauty”, “TH True Milk accompany girl’s health and beauty” and “New School Year celebration”.
To sum up, Marketing –Mix (4Ps) of TH have applied in Vietnam that respond demand of customer effectively with reasonable price and make benefit for customers.
8. Budget
8.1. Summarized Financial Information
Predicted Revenue next year is around 3,500 to 3,700 billion VND that would be accounting for 40% market share of fresh milk market. The market share in southern market will be expanded from 7% to 15%.
For long time, TH True Milk has planned to become leader in the milk market in 2015, and has ability to export milk at that year.
8.2. Budget
The budget will be spent for tasks with the calculation following: Marketing Budget
9. Implementation and Control
9.1. Performance Standards
The degree of success of the campaign will be measured by these standards:
Consumers’ Behaviors:
The number of accessing web, call, and order
The number of complaints
Costs:
The rate of people doing special behaviors
Cost per customer, ROI rate
Variables in brand name:
Satisfaction level of customers
Impression about productions
Awareness level for brand name
9.2. Report plan
Employees have to make report about revenue, standards per day. At the end of week, there is a detailed report to Accounting Department and Marketing Department. These two departments take responsibility for making monthly report to board of directors.
9.3. Meeting plan
At the end of each month, board of directors is given information from synthetic reports to review and monitor marketing process. Based on that, board of directors might reevaluate the campaign, consider and supplement, or even reevaluate the budget.