THE CONCEPT AND PROCESS OF MARKETING

VINAMILK UHT MILK SUPPLEMENT VI SUBSTANCES ADM+

Ho Thi Thanh Van
GH12073
7/10/2014






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SUMMARRY
In the current market economy, marketing becomes more important than ever. If as before, a
business could easily succeed and dominate the market when achieving good basic standards
in terms of product quality, price, but now with the current market economy, it is never enough.
According to "MBA in hand", it was estimated in 2002, in the USA, for every hour worked over
more than 1,000 new companies came into existence and also dozens of companies went
bankrupt. So we can see the competition is over ever fiercer and we clearly see the importance
of marketing for the business of the company.
Vinamilk Company was established on Aug. 20 in 1976 on the basis of taking over 3 dairies of
the old regime to leave. After many years of efforts and attempts, with the business strategy
and the right marketing, Vinamilk have developed from a small retail company into a strong
company. The company is top milk product in Vietnam in terms of revenue.

It not only is the basic for developing and the success of Vinamilk company, but it also always
keeps a criteria and important in structuring Vinamilk products.
This report is to deliver an analysis on the overall marketing orientation of Vinamilk UHT milk
supplemented micronutrients ADM+: find out about the quality, pricing, distribution channels,...
Thereby giving some reviews, evaluation and the recommendations of the strategy in line with
the practice in order to improve, more advanced the effectiveness of marketing performance
marketing for fresh dairy products company.
Now, let come the report with some main ideas:
The marketing process.
Step 1: Understanding the marketplace and customer needs.
Step 2: Designing a Customer-Driven Marketing Strategy
Step 3: Preparing an Integrated Marketing Plan and Program
Step 4: Building Customer Relationship.
Step 5: Capturing Value from Customers.
The marketing process


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TABLE OF CONTENTS

I. INTRODUCTION ........................................................................................................................................ 4
1. Overview of Vinamilk company and Vinamilk UHT milk supplement vi substances
ADM+ ............................................................................................................................... 4
2. The concept of marketing. ............................................................................................. 4
II. ANALYSIS ............................................................................................................................................ 5
Task 1: The marketing process. ....................................................................................................... 5
Step 1: Understanding the marketplace and customer needs. ................................................... 5
Step 2: Designing a Customer-Driven Marketing Strategy ......................................................... 6
Step 3: Preparing an Integrated Marketing Plan and Program. .................................................. 6
Step 4: Building Customer Relationship. ................................................................................... 7
Step 5: Capturing Value from Customers. .................................................................................. 7
Task 2: The marketing process ......................................................................................................... 8
Creative thinking for Vinamilk UHT milk supplemented micronutrients ADM+ product ............... 14
II. CONCLUSION .......................................................................................................................................... 14
REFERENCES ............................................................................................................................................... 15




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I. INTRODUCTION.
1. Overview of Vinamilk company and Vinamilk UHT milk supplemented
micronutrients ADM+
Vietnam Dairy Products Joint Stock Company It is referred to as Vinamilk. According one
website (CNG TY C PHN SA VI nm nm hnh hnh ph in ,
measured by sales, Vinamilk UHT milk supplemented micronutrients ADM+ is top of milk market in
Vietnam. In 2010, the company is the first and only business in the Vietnam was in the 200
companies with revenue under $ 1 billion. Operations of the company are most effective in
Asia and it was in the list of Top 10 most popular branding in Vietnam (Vinamilk hnh ch ni
b.
The milk market is large; it has been helpful not less for the process reached the success of the
company as right now. Vinamilk UHT milk supplemented micronutrients ADM+ product occupy
a important position for revenue of the company.
(Long, 2010)
2. The concept of marketing.
According Principles of Marketing book (Philip Kotler, 2012), the simplest definition of
marketing is managing profitable customer relationships. akeing ceaes value for
customers and building strong customer relationships to capture value from customers in
eun.
For example, Vinamilk UHT milk supplemented micronutrients ADM+ has used marketing to
promote revenue, and take notice and satisfy of customer:
- Advertising on television, on the internet.
- Advertising the benefits of using milk or modern technology equipment which vinamilk is
using to create this product really guaranteed hygiene, etc.
- Marketing; planning and implementing the policy of the promotion or find out about
clients, building relationships with them, etc.

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Marketing is really necessary for any company. It not only helps company have a better
orientation for the product, it is also a bridge between the company and the customer.
II. THE CONCEPT AND PROCESS OF MARKETING
Task 1: The marketing process
There are five-step basic model of marketing process:

Principles of marketing book ( Philip Kotler, Armstrong and Gary, 2012) (page 34)
Step 1: Understanding the marketplace and
customer needs.
Understanding Customer needs, wants and demands is very necessary. When a company wants to
product something, they have to research the market closely and determine what the customer
need, want. If the company does not understand and not know what their production is, they
cannot be sold because nobody wants it. And maybe the company will be bankruptcy.
According (Philip Kotler, Armstrong and Gary, 2012) (page 35) "human needs are states of the
felt deprivation". They include three basic: physical needs, social needs and individual needs.
Physical needs are something indispensable as food, clothing, warmth, and safety (rice, meet,
water, humbugger, cotton blanket, etc). "Social needs for belonging and affection": They
conclude love, friendships, connections between family members, etc. And "individual needs for
knowledge and self expression" (for example, human go to school to study). Many years ago,
maybe human often only noticed in physical, but nowadays, human need more than that. Social
needs and individual needs are more necessary than ever. We need love and also knowledge
to be survival and successful.
Wants and demands are the next step of needs. They are shaped by culture and individual
personality. For example, in Vietnam, when an elder feel hungry, they want rice, meat (the
traditional foods in Vietnam). But for a young man, recently they tend to be variable and they
seem to like fast food, because they are convenient and delicious. Needs, wants and demands
are different. When we feel need something to eat, but there are a lot of goods for our choice:
rice, fried chicken KFC or ice cream.

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Our choice depends on many factors such as how much money we have and how much money
they are. And then we will demand different product types in the item.
Market Offerings helps companies attract, impress and satisfy the customer for their products.
Market offering conclude products, services, and experiences. They are not limited to physical
products.
The market place is make is he se of acual and poenial buyes of a poduc o seice (
Philip Kotler, Armstrong and Gary, 2012). All of suppliers, company/competitors, intermediaries
also are stage of trading and marketing. Company used marketing to find the suppliers solid,
stable, reasonable price and also to create the marketing strategy for the product to coming to
customers most effectively.

( Philip Kotler, Armstrong and Gary, 2012)
Step 2: Designing a Customer-Driven
Marketing Strategy.
To selecting customers to serve, the first we need do driving market which customers segments
we will focus and follow. And then, determine and design what is the next segment to go after. It
is selecting customer to serve. For example, choosing segment customer on different criterion
such as age, gender, profession, salary, etc and review and find out what the segment like,
want, demand to create products that satisfy them.
Choosing a Value Proposition is determining and creating proposition that company will
promise and set to customer. To compete others, it is necessary to make a value proposition to
segment market and create something different from competitors.
Step 3: Preparing an Integrated Marketing
Plan and Program.

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The next, the marketer prepares and designs an integrated marketing plan and program to
deliver the intended value to target customers.
The marketing mix is very important. Company uses the marketing mix to implement its
marketing strategy. he majo makeing mix ools ae classified ino fou boad goups called
he fou Ps of makeing: poduc pice place and pomoion ( Philip Kotler, Armstrong and
Gary, 2012).
When design Vinamilk UHT milk supplemented micronutrients ADM+ product, it was demanded that
selected which Vinamilk will produce (product). Based on the supply price, the cost of
production, etc, products price was configured in this step (price) and decided how these
products will be distributed and sold: in the grocery store, retail store, etc (place). Finally, the
company has used numerous promotional strategy to communicate with customer and
convince them to buy the product to it is consumed fastest (promotion).
I ntegrated marketing program is comprehensive plan that conclude create value customer,
promotion, communicate and deliver. Company must blend; combine the elements of the
marketing mix to create a strategy, a perfect marketing program.
Step 4: Building Customer Relationship.
In here, we will come to clarify two important elements:
The first, Customer Relationship Management (CRM) is "The overall process of building and
maintaining profitable customer relationships by delivering superior customer value and
satisfaction" (Nguyen, 2014). It means that Customer is absolutely important to any company,
they direct affect to company profit. And to get and keep them, it is necessary to deliver
superior customer value and satisfy them.
The second, Relationship Building Blocks: Customer-perceived value: There are many
differences between total customer value and total customer cost. With the Vinamilk UHT milk
supplemented micronutrients ADM+ product, the company also must categorize customers:
strangers, butterflies, true friends, and barnacles. Loyalty and profitability of strangers is not
high; and true friends, barnacles, then vice versa. But the Butterflies are different, they are not
loyal, but profit from them that companies can achieve is high. They contribute to affect the
consumer loyalty and true friends and barnacles. This group often is attracted by the quality of
products, prices, and services, etc. And superior customer value and satisfaction is so
important to marketing. It is crucial to keep customers loyal to the company.
Step 5: Capturing Value from Customers.

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The most amazing thing that a company achieves is Creating Customer Loyalty and Retention.
Even from the first time using product, the customer has formed for the different reviews about
product. In one research, it was pointed out that there is a big difference between disloyal
customers and loyal customer who feel satisfied about product. And the loyal customers
typically bring in revenue for the company not less. "Thus, the aim of customer relationship
management is to create not only customer satisfaction but also customer delight".
Growing Share of Customer "is the portion of the customer's purchasing that a company gets
in its product categories". When the first clients satisfy the product, they can share with other
people who are around them like family, relatives, and friends, etc. The next person will do the
same for the company's products if they also satisfy. And the result is very a lot of people know
about the product. Share of customer give many benefit for the company because customer
feel more believably for the sharing of their relatives and it maybe is more effective than
advertising. That is the benefit of the growing Share of Customer.
Customer equity is the total combined customer lifetime value of all of he companys
cusomes ( Philip Kotler, Armstrong and Gary, 2012).


( Philip Kotler, Armstrong and Gary, 2012)


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Task 2: Marketing orientations.
Marketing orientations are orientations that company chooses to make different thing and way
plan to compete to others. They are production, product, selling, marketing, and societal
marketing concepts:
Production concept is idea that they tend to improve product and effective distribution to
product is cheaper and achieve more profit.
Product Concept "is the idea that consumers will favor products that offer the most quality,
performance, and features". It is believe that quality and feature are elements to satisfy
customer and they can make increase amount of customers. So that, many companies have
never stopped focusing on improving product.
Selling Concept: Customer tends to be stimulated buying lots of discounts. And it is element to
create selling and promotion to increase customer and revenue.
Marketing Concept is the idea that product success come from marketing strategy, knowing
the needs, wants customers and competing with others by our strength and gives more
customers satisfies.
Societal Marketing Concept "is the idea that a company should make good marketing
decisions by consideing consumes wants, the company's requirements, consumer's long-
term interests, and society's long-run interests" (Nguyen, 2014).
Nowadays there are more people tend to want to do good something for the environment or
social activities. And therefore company also more attends to the societal marketing concept.
Societal marketing can bring profit for business or not. When doing it, businesses need to
consider the charges and planned to spend to make this social network marketing and business
will gain many benefits from customer for it. Make it dependent on many elements, brand and
condition of the company.

( Philip Kotler, Armstrong and Gary, 2012)


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THE MARKETING CONCEPT AND PROCESS OF UHT MILK
SUPPLEMENT MICRONUTRIIENTS ADM+ PRODUCT OF VINAMILK
COMPANY
They Understand Market Place and consumer needs and wants
In a lot of years before in Vietnam, Milk markets are very small. Most people did not use milk.
But nowadays, beyond physical need are clothes, foot, etc, more and more Vietnamese have
higher salary, and they tend to want and demand more good things, specially, milk. Nowadays
everyone likes and wants milk, especially children. Find out that, they began to produce milk
and become a strongest milk company in Vietnam. Because they know who are their customer
and what they need and want. So that they are successful although there are a lot of
competitors:

(Thy, 2013)
They Identify Customer-Driven Marketing Strategy

With the economic market, the market trends to become to be smaller segment. Vinamilk
Company determined what customers they will sever.

The company determines customers of Vinamilk UHT milk supplemented micronutrients ADM+
product are children. And with this customer segment groups, when advertising, Vinamilk use
marketing to refer which segments should be gone after: They focus on promoting the quality of
milk: The milk is rich calcium and additional ADM, Vitamin A, Vitamin D3, magnesium,
Manganese and Zinc. And it is very useful to promote children develop, have height weight,
intelligence and bright eyes.

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With the right segment, Vinamilk Company has achieved many benefits from that. They can
determine their product closet and more satisfy their consumer. From that, they can determine
the things they need to achieve and what they must create something different for Vinamilk
UHT milk supplemented micronutrients ADM+ to have effective competition with competitors.
After completing the stage of selecting customers to serve, every company also chooses a
value proposition for themselves. Vinamilk chose a value proposition for their milk product as
UHT, supplemented micronutrients ADM+ and be manufactured with the technology of UHT.
They promise with he name: Vinamilk UH milk supplemened miconuiens D+.
They know that it is necessary to promise something which is able to perform. Because if the
company cannot achieve something they promise, customer will disappoint about it and their
satisfying will not be met. The product will cannot be consumed. So that, we can see that value
proposition is so important. And we can see that they did it very well and got customer trust.
They use marketing mix (4Ps) effectively
Absolutely, success of Vinamilk UHT milk supplemented micronutrients ADM+ product is not
suddenly appearing. One source of this success is they using marketing mix effectively:
product, price, place and promotion. We can see that they have strength in all of this. Vinamilk
UHT milk supplemented micronutrients ADM+ product has good quality, value, feature and
competitive price because they found stable suppliers, and produce huge amount of products,
etc. And in Vietnam, we can find and buy this product very easy: even on small streets, villages,
small market or big supermarket, etc. It is not denied that their distribution and promotion are
very good. The great advertising program is an element that effect lots of attention and trust of
cusome. nd when achieing cusomes us i means the product and company are
developing and successful. And Vinamilk Company have done and achieved it for their product:
Vinamilk UHT milk supplemented micronutrients ADM+.
So that, to achieve better product with more competitive price, Vinamilk Company has invested
system, machinery to produce milk and purchased dairy farm:

(Vinamilk, Nhng bc t ph ca Vinamilk nm

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(Giang, 2013)
"Vinamilk factory has a total area 20 hectares located at My Phuoc industrial zone (Binh
Duong). The investment of project is about 2,400 billion. It can produce 1.2 million liters of milk
per day; stage II raised 2.4 million litres of milk per day (800 million liters of milk per year)" (H,
2013).
This development strategy of Vinamilk is appreciated because it not only reduces the cost of
raw materials to make product is cheaper; it also contributes to make brand for Vinamilk
Company. Besides, the company also took full advantage of that opportunity to promote, create
greater brand for products. It helps the company ges cusomes us by hinking ha Vinamilk
Company is a huge and strong company. We can see the company has reached the highest
market share makes up the milk market in Vietnam and is a company that has developed
around the world.
Vinamilk has determined their customers are children. And they know that children are
sometimes very stubborn and like new things. Even if they do not like to drink milk, but they like
the 3d jigsaw pieces promotion which are accompanied with the milk, they also suggest their
parents to buy it. And the pieces are a collection of 40 pieces Jigsaw, so it requires patience to
buy many new milk cartons can collect enough. It is an innovative idea.

(Chng nh khuyn mi 'Th gii sa Vinamilk ca em, 2014)


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MARKETING ORIENTATION OF Vinamilk UHT milk supplemented
micronutrients ADM +
In my opinion, Vinamilk Company follow societal marketing concept. With the economy growing
in Vietnam, the increasing differentiation is more deeply. And more and more people also want
to do social work, helping the poor. Understanding it, Vinamilk do societal market tactics. And it
was really successful when they took trust of customers from this. The evidence is they have
done very much philanthropy to improve their image:
- Vinamilk has awarded free 114,150 Vinamilk UHT milk supplemented micronutrients
ADM+ products for needy children are elementary school students Cao van Ngoc in Con
DAO, BA RIA, and Vung Tau in Vietnam within three months (Mai, 2010).
- They supported people who are living in the region of 1.3 billion dong Vietnam
hurricanes, etc (Vinamilk, Vinamilk h tr ng bo min Trung b bo lt 1.3 t ng,
2013)
- Or they give 1 million trees for Hanoi city in Vietnam in 22/10/2012 (Vinamilk pht ng
Qu 1 triu cy xanh cho Vit Nam ti H Ni, 2012)

(Vinamilk pht ng Qu 1 triu cy xanh cho Vit Nam ti H Ni, 2012)
Cost of this community plan is not small but they also achieved many other benefits.

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Costs benefits
- Waste a lot of money for it
- If they had not do it, they would have
been had ability to invest in other
projects and expand markets, etc. And
it could bring a lot of money for them.



- increase revenue: Instead of buying the
same product reviews, customers tend
to prefer buying Vinamilk UHT milk
supplement vi substances ADM+
product more because it give them
feeling that they are also helping some
part to impoverished people there.
- Build company image and promote
brand: People tend to think that just
big companies could afford to make this
society. Because it wastes a lot costs.
Customer usually assured of quality,
service or product safety in large
companies. Vinamilk has done all this.
And values, trust of customers is
extremely important for any company.
- Moreover, this activity helps the
company affirmed their humanitarian
spirit.

I think it is good choose for Vinamilk Company. It not helps to increase sales, customers trust,
it also makes good brand.
Creative thinking for Vinamilk UHT milk supplemented micronutrients
ADM+ product
Vinamilk is a big company, and has achieved a huge market in milk market. But it seems that
they most focus on marketing mix (4Ps) (product, place, price, promotion), social marketing,
etc, but building customer relationship is less. I suggest that it will be great if Vinamilk design
and perform a TV show or club for Vinamilk UHT milk supplemented micronutrients ADM+
product about sharing good behaviors for children or way to avoid bad something and prevent
children from something bad and how to teach them become a good person, etc. It will waste a
lot of money and time to design, perform at first time but I think it will give many long-term
pofis fo company. I will be moe known and eceied cusomes us. Fo example when
woman has babies, they like to watch any good TV show that shares helpful information for
their baby. And Vinamilk show is it. They will watch it each week, and gradually the company
will eally ge all of cusomes us. hen hey like buying he poduc moe.
I is no gie Vinamilk Company pofi fom incease sales cusomes us band bu hey can
get profit also form this TV show. I think it is worth to be done.

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III. CONCLUSION.
Vinamilk UHT milk supplement vi substances ADM+ products gain believing and satisfy customer
because of the proper marketing strategy. We can draw the lessons of real value from the
development strategy for this company's products.



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