Current marketing stuation I. Environmental analysis 1.

Economic analysis In the recent year, inflation always is the first matter of concern in Vietnam economy. In particular, in 2011, although the government used many methods to reduce the increase of inflation it still remains in the top highest rate of inflation in the world, 1!."!#. $owever, Vietnams %&' still rises to ".!(# that is higher than other regional countries )'hilippines *.+#, ,ingapore ".-#, and .alaysia ".2#/ thought the economy is e0periencing in the period of recession. )http122en.wikipedia.org/ 3oth the economy in Vietnam and in the world closely related to the operating activities of 4$ 4rue .ilk. 4he effect of the glo5al recession and the high rate of inflation are two serious pro5lems 4$ 4rue .ilk facing. 6n other hand, the real income in Vietnam is high. $ence, 4$ 4rue .ilk should focus on developing domestic market, which has less trou5les and 5etter condition than foreign countries. 2. 'olicy analysis Vietnam has only one party 7 Communist 'art of Vietnam holding the most powerful position in all respects of the country )including policy, economy, and society/. In addition, there are not severe armed conflicts. 4herefore, government sta5ility has 5een a constant in Vietnam while neigh5ors including 4hailand continue to remain mind in internal strife. In other words, Vietnam is a peaceful country and it is a safe condition for 4$ 4rue .ilk to develop. In front of happening of a list of food poisoning particularly .ilk contains melamine, the government issued regulations a5out 8ood ,afety 9aw. )http122vfa.gov.vn/. 4he re:uirements of 8ood ,afety and $ygiene will increase the cost of firm 5ut it also 5uild up the trust of customers if 4$ 4rue .ilk has cleaner milk production process and following the 9aw on ;uality of 'roducts and %oods. -. &emographic analysis Vietnamese population, which is more than (0 million people, ranks the -rd in ,outh East <sia and the 1-th in the world. 4he total num5er of Vietnamese less than 1" years represented 2".2# and those 5etween 1" and =* years included a5out =(.-#, only "."# people over =* years. Especially, Vietnam has high rate of growth, 1.1# per year. 6therwise, each year, 1 5illion children are 5orn. 4herefore, Vietnam is a potential market for milk. .oreover, Vietnam population is highly concentrated in 5ig cities, and ur5an centers, mainly, $anoi and $o Chi .inh City. 8or this situation, 4$ 4rue .ilk should choose effective way to segment Vietnamese market and appropriate distri5ution channels. )http122www.inde0mundi.com/ *. Cultural and ,ocial In Vietnam, there are still a large num5er of children under the age of " years underweight, a5out 20.2# in 200!, following CI< world fact5ook. 6ther report also presents that more than -2.= percent of children in Vietnam are malnourished, stunted

and underweight, making the country one of the world>s 20 worst performers in child nutrition. )http122www.asiaone.com/. 4he facts prove that the society have paid litter attention on Children $ealth. ?evertheless, the life of Vietnamese children today is much 5etter than it is in 2 decade ago. 4he data shows the 5ad situation 5ut the fact that the %overnment, the society and parents are caring for children more and more should 5e admitted. ?ational Institute of ?utrition director ?guyen Cong @han said Vietnam had made fast and sustaina5le progress in reducing the malnutrition rate in recent years. < children o5Aect is one of the targets customers of 4$ 4rue .lik, so the company should participate to the revolution of improving the Children $ealth in order to 5uild up the trust in customer and e0pand the market. Culture is a challenge for 4$ 4rue .ilk. In fact, most Vietnamese people do not have the ha5it of drinking milk daily. ". ?atural analysis Vietnam is long and narrow country, lying in the tropical Bone. 4he country is influenced 5y a monsoon climate, with four distinct seasons and high humidity. 4his weather is suita5le for grasses and dairy castles grow fast, 5ut for insects, 5atteries and viruses to e0pand easily. 8or this case, 4$ 4rue .ilk should fa5ricate the rigorous monitoring and evaluation system, and apply technology in the production process to reduce disease of cows and produce clean milk with high :uality. =. 4echnological environment 4oday, the science and technology are 5ecoming increasingly important, and have many applications in the life and production. ?ow, 4$ 4rue .ilk owns the most modern production lines in Vietnam which ensure the :uality and hygiene. ,o 4$ 4rue .ilk should keep and develop these competitive advantages. II. C6.'E4I4IVE <?<9C,I, Dhen conducting 5usiness in dairy product market, 4$ 4rue .ilk aware of several competitors 5oth directly and indirectly. Vietnam market consists of many milk 5rand names, such as Vinamilk, 8rieslandCampina, ?utifood, 4$ milk, International &airy 'roduct company, etc, which are the producers of doBens fresh milk products. 3esides that, customers could choose other types of drink and nutrient goods in replace of milk, for e0ample, Auice, tea. 4he dairy market in Vietnam is large a two horse race. 4he market is dominated 5y national Vinamilk and &utch 9ady 3rand from 8rieslandCampina. <ccording to a report of ?6E&IC industries development in 2011, together these companies have nearly +0# market share in fresh milk product. Imports and minor producers account for only -0# of the market. $owever, with the new enter of 4$ 4rue .ilk and more aggressive promotion strategies of other companies, the Vietnam li:uid milk market tends to e0perience a greater competition in the near future. 4herefore, this paper will analyBe the 2 main competitors of 4$ 4rue .ilk fresh milk, &utch 9ady and Vinamilk in the light of finding competitive advantage of 4$ 4rue .ilk over the two rivals.

3rand &utch 9ady

Vinamilk

,trengths F <n international 5rand name F Early enter in the market F Intensive promotion and distri5ution network. F 9ong history and strong foundation F It esta5lished wide and distri5ution system located nationwide and 5eing e0panded over time. F Investing in modern e:uipment and factories. F its loyal and cooperative relationships with 5oth local and oversee suppliers allow the company to have a sta5le material sources at the reasona5le price. F 'rofessional e0perienced management team.

Deaknesses &utch 9ady G$4 @id has 5een priced higher than others G$4 milk in the market due to higher cost of production. F 9owFincome maAority rural population is the first weakness having influence on the operation of Vinamilk. F Viet ?amHs D46 accession will create conditions for foreign company to take part in the domestic market

<s indicated in the ta5le, Vinamilk and &utch 9ady with their longFlasting 5usiness development possess a good position in customerHs mind of wellFknown 5rand name, good :uality, mass promotion and distri5ution. 4$ 4rue .ilk even though the new entrant in the milk market, achieve considera5le attention and a small market share in a very intense competition. It has launched a new promotion campaign of persuading customers a5out its IpurelyJ milk :uality. Dith the simple design, whiteFfilling package, the advertisements emphasiBe rising and neutral cows naturally 4$ 4rue .ilk is increasingly proving this uni:ue competitive advantage. $owever, 4$ is Aust newly esta5lished firm and not yet widelyFrecogniBed 5usiness name and has Aust 20 store distri5utors in Vietnam. In addition, the product price of 4$ 4rue .ilk is a litter 5it higher than that of 5oth Vinamilk and &utch 9ady )V?&2+, 0002* 1!0Fml can in compared with V?&2", "00and V?&2*, 000 of similar type of Vinamilk and &utch 9ady respectively/. 4hese can make some customers more hesitate to 5uy this new type of milk. III. CG,46.EE <?<9C,I, Customers have differences wants, needs, 5uying attitudes...etc. 4herefore, it is essential to marketers in 4$ 4rue .ilk design a separate marketing program for each 5uyer. <nd one of the successes of 4$ 4rue .ilk comes from target segmentation the marketers tried a lot of segmentation varia5les, alone and in com5ination. 4he ta5le 5elow listed some varia5les which marketers used in order to analyBe and identify the market structure.

3ase %eographic

,egmentation F * main 5ranches1 $o Chi .inh, Can 4ho, &a ?ang and $a ?oi city F Children 1 F ?o income F .edium usage rate and F .edium loyalty status F 3enefits sought F %ender

&emographic K 3ehavioral

'sychographic

Charateristics 8ocus on developing in Vietnam dairy market and concentrate on large cities. )in which people tend to drink more milk/ F &o not have a5ility to work yet no income F <lmost all children like milk and loyal one type of milk they like 5ut they also can change so :uickly when they drink new one and children really depends on their parents. F 3enefit sought1 sweet, delicious F %ender1 9ittle girls like milk than little 5oys 4eenFage 1 F ?o income, less income or low F 9ess income income unsta5le income )partF F .edium usage rate and time Ao5L/ F .edium loyalty status F &epends on their income, people F 3enefits sought have low income drink less F %ender medium usage rate, and this age group is affected 5y their friends and other factors change easily medium loyalty F 3enefits sought1 sweet, delicious, 5eautiful package F %ender1 girls like milk than 5oys <ldult1 F <5ility to work sta5le income F $ave income F $a5its, and when they choose F $igh usage rate, some are one type of milk or 5rand they completely loyal, some are not. tend to 5e loyal if that product is F 3enefits sought good and suita5le for them.=210 F %ender people are asked 5elieve using 4$ 4rue .ilk. F 3enefits sought1 healthy, 5eautiful, delicious F %ender1 women tend to drink more than man 9ifestyle 9owFfat milk reflect a healthy lifestyle

4he first one is geographic segmentation1 Vinamilk has * main 5ranches $o Chi .inh City, Can 4ho City, &a ?ang City and $a ?oi City with the head:uarter locates in $o

Chi .inh City. Gp to &ecem5er -1, 200(, the products are sold through 2*0 distri5utors with more than 1*0,000 retailers in =* provinces. 3eside, Vinamilk also e0port a huge num5er of products to 1= nations. $owever, Vinamilk still focus on developing the products in Vietnam market and concentrating on large cities such as $a ?oi, &a ?ang, and $o Chi .inh City where there e0ists a high population density. )Vinamilk.com/ 4he second com5ination is demographic and 5ehavioral segmentation, as we can see very clearly from the ta5le a5ove there are differences 5etween - age groups, the factors affecting strategies of 4$ 4rue .ilk and reflect the different tastes of customer for instance1 Income, usage rate, age, loyalty status, genderL etc. 8rom the 5eginning, 4$ 4rue .ilk had great success with kid milk products on the demographic segmentation for children from =F12 years old. 4hese products 5rought the most profita5le to 4$ 4rue .ilk Company. 4he third segmentation is psychographic, 4$ 4rue .ilk understands the tastes of customers and introduce many products to meet customer needs for e0ample 100# fresh milk is a product like that it aims to reflect a healthy lifestyle. 4he decision type )e0tent of pro5lem solving/ for the product1 limited pro5lem solving1 F some information sought usually a preference for 5rand or store. <t present times, milk market is coping with a lot of difficulties 5ecause of the degree of to0ic in milk and the customers are afraid of the :uality of milk. $ence, to some people those who drink one type of milk a long time and nothing happens, they tend to use and 5elieve that 5rand, others, might seek the information a5out the new 5rand and they will spend more time to search a5out the degree of safety in milk product. 4hat s why we should take action in order to make customer 5elieve that 4$ 4rue .ilk is totally safe and healthy maintain potential customer and attract new ones 5y showing the method which 4$ 4rue .ilk used to produce milk and the com5ination of elements in milk IV. 4he current marketing strategy using the framework *'s Esta5lished in 200(, 4$ 4rue .ilk has * years e0perience in manufacturing convenience product. 4$ 4rue .ilk is also among the ten leading producer of dairy products in Vietnam 5ased on sales volume and revenue. Its products range from core dairy products such as li:uid milk, to valueFadded dairy products such as yogurt. 4he marketing mi0 or the * 's of .arketing are 'roduct, 'rice, 'lace )distri5ution/ and 'romotion. *'s of 4$ 4rue .ilk are the following1 Product 4$ 4rue .ilk offers a variety of li:uid milk, all of which are current in the topF selling product categories they have similar packaging, features. TH true MILK UHT Pure Fresh Milk (1Liter/180ml/110ml)

?o additives. 100# fresh cow milk so you can enAoy the natural goodness in every drop. 4aste the difference of fresh, pure milk from a farm with international standards. TH true MILK UHT Less Sugar Fresh Milk (1Liter/180ml/110ml)

?o additives. 4he first fresh milk product in the market with reduced sugar content. 9ess sugar, 5ut all the nutritional value for your complete development. 8eel the difference in every drop of reduced sugar milk, which meets your nutritional needs. TH true MILK UHT Sweetene Fresh Milk (1Liter/180ml/110ml)

?o additives. &elicious and nutritious, your perfect choice. 8eel the difference in every drop of naturally sweet and healthy milk. TH true MILK ! UHT Fresh Milk " e #$llagen (180ml)

?atural goodness for naturally young skin. Collagen helps retain the skin elasticity. 4$ true .I9@, which perfectly maintains natural goodness in each drop of milk, provides essential nutrients for your immunity and physical health every day. .oreover, in respond to the demand for supple skin and silky hair, 4$ true .I9@ launches the new product1 G$4 8resh .ilk <dded Collagen, which contains purified collagen, helps to maintain the moisture and elasticity of skin, the luster and strength of hair. EnAoy more natural nutrients to keep your 5eauty forever. TH true MILK % UHT Fresh Milk " e Ph&t$ster$l (180ml)

?atural goodness for naturally healthy heart. 'hytosterol helps effectively decrease cholesterol level. 4$ true .I9@, which perfectly maintains natural goodness in each drop of milk, provides essential nutrients for your immunity and physical health every day. .oreover, in respond to the demand for a healthy heart, 4$ true .I9@ launches the new product1 G$4 8resh .ilk <dded 'hytosterol, which is scientifically proved to effectively decrease cholesterol level, 5alance 5lood pressure, and reduce the risk of heart disease. EnAoy more natural nutrients, enAoy more of life TH true MILK % UHT Fresh Milk " e #al'ium (180ml)

?atural goodness for naturally strong 5one. Calcium and ,ynergy 1 help strengthen 5one structure. 4$ true .I9@, which perfectly maintains natural goodness in each drop of milk, provides essential nutrients for your immunity and physical health every day. .oreover, in respond to the demand for 5one protection and enhancement, 4$ true .I9@ launches the new product1 G$4 8resh .ilk added Calcium containing the natural

Calcium and ,ynergy 1, derived from Chicory root from 3elgium. ,ynergy 1 is scientifically proved to increase Calcium a5sorption. EnAoy more natural nutrients for you to 5e always strong in life. TH true MILK UHT Pure Fresh #h$'$late Milk (180ml)

?atural flavoring and coloring. 4he 5estFselected ingredients have come together in the new delicious and nutritious product. 9et every drops of milk leaves you wanting for more of that tasty chocolate and sweetness of pure, fresh milk. TH true MILK UHT Straw(err& Fresh Milk (180ml)

?atural flavoring, natural straw5erry. 'ure, delicious milk flavored with fresh straw5erries gives you a uni:ue, mouthFwatering taste. 8eel the difference in every drop of healthy and delicious straw5erryFflavored milk. Price 'rice is considered to 5e among the most importance competitive factors for all enterprises. 4he price of 4$ 4rue .ilk products in 4$ 4rue .art is not similar to those sold in supermarket or retailers. In details1 K In 4$ 4rue .art1 * items21 package1 22.!"0 V?& K In supermarkets1 * items21 package1 2-."!" V?& K In retail stores1 * items2 1 package1 2=."00 V?& &epending on each distri5ution channels, there will 5e different kind of discount2sale events. In the race with other domestic 5rands, 4$ 4rue .ilk always remain the price :uite sta5le )have some adAustments in line with the market price/. Currently, the price of 4$ 4rue .ilk e:ual 12- the price of foreign milk. In addition, for the fresh milk, 4$ 4rue .ilk has the marketing campaign to raise the core value in customer s mind with the reasona5le priceL..

Placement 4$ 4rue .ilkHs distri5ution network is a significant competitive advantage in the Vietnam marketplace that is difficult for competitor to match. 4he company owns its own retail and wholesales distri5ution system across the country in some certain provinces. 4$ 4rue .ilk also sells directly to supermarkets, offices, factories, and its nutrition consultancies. 4he company plans to increase marketing campaigns in parallel with developing more outlets to increase sales . Promotion Instead of specific promotion, 4$ 4rue .ilk focuses on advertising and 'E. 4he messages that 4$ 4rue .ilk wants to convey through its promotion campaign are1 Eeaffirming the position ?o.1 of trademark Esta5lishing the 5rand as the proud of Vietnamese Esta5lishing the emotional value1 4$ 4rue .ilk F the sym5ol of Ia healthier lifeJ. In terms of advertising, media, internet, press, outdoor activities are the effective tools that 4$ 4rue .ilk utiliBes to achieve their goals of creating the core value in customers mind. In addition, the content of advertisements is also the important factors which make 4$ 4rue .ilk so popular. Especially, 5oth children and aldutls love and remem5er much a5out 4$ 4rue .ilk products. In term of 'E, there is a lot of news written a5out the :uality, the dominant advantages, and the new advanced processed milk technology.