HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES AND INFORMATION

TECHNOLOGY

MARKETING PLAN FOR

LOTHAMILK
Report
Instructor : Nguyn Ngc Hun

MEMBERS
Bi Ng Thin Giang
on Th Ngc Trm
Nguyn Th Nh Phng

Bi

Mc Lc
I.

INTRODUCTION.
1. LOTHAmilks Profile.
2. Reason to study.
3. Objective.
4. Outline.

II.

MARKET SEGMENTATION.
1. Market Overview.
2. The Macro Environment.
3. Overview of Consumption Market of LOTHAmilk.
4. Market Entry Strategy.

III.

CUSTOMER ANALYSIS

IV.

SWOT ANALYSIS
1. Strengh.
2. Weakness.
3. Opporturnities.
4. Treats.

V.

MARKETING MIX

VI.

CHALLENGES

VII.

CONCLUSION

VIII.

REFERENCES.

I. INTRODUCTION:
1. Lothamilk Companys Profile
Full name

Lothamilk Joint Stock Comany

abbreviations

Lothamik

Logo

Station

Route 51 Km 14 Tam Phc Bin Ha ng Nai

Phone number

0613.512667

Fax

0613.512201

Website

www.Bosualongthanh.com.vn

Email

bosualongthanh@hcm.vnn.vn

Vietnam Dairy Products Joint Stock Company is a dairy products manufacturer based in
ng Nai. Dong Nai Dairy established under License No. 01 / GP -SE by the People's
Committee of Dong Nai province August 12 , 1997. As of August 1, 2008 , Joint Venture
Company Limited Dong Nai dairy is converted into Lothamilk Joint Stock Company and
operates under investment certificate No. 471033000125 Dong Nai People's Committee
issued on 30/6/2008.
Lothamilk joint Stock Company have legal capital is $ 1.96 million ( previously Dairy Joint
Venture Company in Dong Nai ) . Great Water International Corporation Company Limited Taiwan ( by Mr. Wang Tai Shan representative ) contributes 70% in cash and equipment .
Dong Nai Dairy Joint Stock company contributes 30% by 48 hectares of land for a period of
35 years .

In 2008, this joint venture model transformation into a joint stock company. After conversion,
Dong Nai Dairy Joint Stock company accounts for 30 % of the charter capital ; Dofico
accounted for 22% , the company Great Water International Corporation Limited 48%.
It is investing in development of dairy farming ; animal food processing , manufacture of
dairy products , building display area , product introduction of the Company; support the
people and the economic organization Vietnam dairy development ; construction of
swimming pool water slide ; and business operations according to the above objectives. It
offers many dairy products such as pasteurized milk, fresh milk, yogurt, ect. with many
flavours for customers like chocolate, orange, sugar, sugar free, ect.

2. Reason to study
Milk is known as a complete food contain almost all elements of 1 meal balanced, milk also
has high nutritional value systems that help improve nutrition for the community, from
newborns to the elderly. Progressive society of material life, spirit and awareness is
advanced. Thus, the demand for milk storage and dairy products to improve mental health is
increasingly

focused

and

become

the

first

central

aspect

of

most

people.

Lothamilk is a dairy brand has been on the market for nearly 20 years .Now, Lothamilk has
become a brand specializes in producing pasteurized fresh milk with high quality pure
multiple trusted by many families. With the hope that pharmaceutical Lothamilk increasing
well known and developing more powerful , we decided to implement marketing plan for
Lothamilk .
3. Objective
This topic is carried out with the aim of building a marketing plan to promote and expand
Lothamilk business production . Besides that, we hope that we could create a new trend for
customers Vietnamese using Viet Nam quality brand
4. Outline
This paper includes 7 parts. Part 1 is an Introduction, including company profile, reason to
study, objective and outline. Part 2 points out analyzing Market Segmentation. Customer
analysis is offered in Part 3. The next is SWOT analysis which will be detailed in Part 4. Part
5 is Marketing mix for Lothamilk company which detailing each step to promote and more
focus on 4P model. Challenges which company have to face will be presented in Part 6. The
finally is Conclusion which is shortly wrapped in Part 7.

II. MARKET SEGMENTATION

1. Market Overview:

29% water milk items worth the whole industry with competition mainly of two business are
Vinamilk and Fries Campina Vietnam (FCV). According VPBS, Vinamilk accouting for 49%
liquid milk market share and FCV accounting for 26%. In addition, other businesses have
contributed as TH True milk, LOTHAMilk, etc

Ngun: Brandsvietnam.com

In 2010, each person (Vietnamese) consumes an average of 15 liters of milk per year.
Forecasts to 2020, this number will nearly double up to 28 liters of milk per year.
The development potential of the dairy sector is greater.

2.
-

Overview of consumption market of LOTHAmilk:

Nowaday, the dairy industry is thriving.
LOTHAmilk: 100% cow milk, variety of flavors and types.
Current market: Hochiminh city, Long An, Bien Hoa.
The competitive environment: Vinamilk, Dutch Lady, TH True Milk, Dalat Milk, etc..

3. The macro environment of the business:

The macro environment is the outside factors affect to operations and performance of the
business. These factors are difficult to control. However, there are predictable based on the
research in order to assess the opporturnities and challenges of the business.
1. Politics & Law:
Taxes on imported milk is high. In
the future, the cost will continue to
rise.
2. Special Deals:
Enterprise lead of breeding,
technical services and product
sales.

3. Decree in foreign trade:

Decree 33999/Q-BCT:
approving the development plan
dairy processing Vietnam industry
to 2020, vision to 2025.

4. The impact of the social

environment: the amount
of melanine exceeding the
permitted levels of other
companies, milk was
contamnnated, etc.. affect
to consumer sentiment.
5. Income

6. People:
Growing population is
increasing so the needs of
customers increase according
to age

7. Technology

OPPORTURNITIES
Increase the
competitiveness of
LOTHAmilk with an
imported milk.
Expand production, expand
the scale of farms.

CHALLENGES
Competitive with domestic
dairy market fiercely.

- The opponents also

ready to seize the similar
opportunities.
- Businesses supply
materials become
potential rivals.

Reduce material costs.

Expand the farm.
Create a large supply.
Increase competitiveness
and actively integrate into
the region.
- Create a competitive
advantage with foreign
products.
The motto True milk of
LOTHAmilk can easily
convince demanding
customers => pressuring
opponents.

Consumer should be
careful in buying products
=> Reducing sales.

Imcome increase with a

greater understanding of
the benefits of milk makes
the milk consumption
demand rising
- Develop more diversified
production.
- Expand the scale of
production and distribution
on the market.

Modern technology will

increase the yield and
quality of products.

There are many

competitors in the field of
milk for children and
adults. If LOTHAmilk does
not extend to this object,
LOTHA milk will lose a
market share to rivals.
Requires high investment.

4. Market Entry Strategy:

Price:

Target customer: good income.

Using fresh milk as leverage to sell yougurt products, etc..
Distribution Stategy that LOTHAmilk are using:

III. CUSTOMERS ANALYSIS:

Target Customers:
-

Group of age from 15 to 30 years old.

Main customers are children, housewises, tourists.

Result of the survey of customers who using LoThamilk:

30%
65%
5%

nghe ti v dng

Cha nghe bao gi

C nghe ti cha dng

Table 1. The popularity of the product

75

80

67

70
60
50
40
30
20

19

16

10
0
Social Media

Supermarket

Travel

Products are introduced by

others

Table 2. Interact with Customers

60

50

40

30

20

10

Di 500ml

500ml - di 1,8L

T 1,8L -3,5L

T 3,5L - 7L

Table 3. Consumption in liter.

T 7L tr ln

100
90
80
70
60
50

40
30
20
10
0
Siu th

i l phn phi

t hng Online

Table 4. Distribution.

Giao hng tn ni (qua

in thoi)

IV. SWOT ANALYSIS

1. Strengths

The product is certified by international organizations : IOS , Brands Vietnam

, Vietnam High Quality Goods

Technology Swiss production line

Lothamilk is a dairy brand trusted by customers.

Strong product provides a competitive edge for the company over its peers in
the industry.

2. Weakness

The product is not diversified , high prices

Narrow distribution network

Scale of the small producers

Repair the weak marketing, generate leads to less effective messages to

promote consumers to the company's strengths .

3. Opportunities

The dairy products market has been witnessing a growth in Viet Nam. Thus,
rising demand for dairy products may increase demand for the companys
products.

The government give some preferential policies for the dairy industry.

4. Treats

Opponents relatively avoiding strong and relentless for market share (

vinamilk , TH True Milk ... )

The Goverment can not control the price of milk on the market

The testing of fixes in Viet Nam is not really effective

Many new competitors entry.

The natural environment of our country are not favorable for dairy producers ,
this status affect to source materials for the production of Lothamilk .

V. MARKETING MIX
Before Lothamilk brand becomes popular, it just noticed as a break stop of tourism from
Saigon because it located on 51 High way, Tam Phuoc, Long Thanh, Dong Nai head straight
to Vungtau beach and vice versa. People stop by Long Thanh to have a break and visit,
shopping Long Thanh products as a travel gift from afar. However, the vision needs to be
changed which aim to higher objective of an influentially brand not only serve tourisms
satisfaction but also could change the habit of people to buy Long Thanh milk as a necessity
product for their daily life and daily needs.
We are planning to organize a campaign called Milk cows are coming to town. Supposing
one day, when you across the 51 High way to Vungtau but the break stop Long Thanh
disappears for no reason, just left an empty space whether you wondering what was going
on??? What we means here is the memory of customer
about Lotha brand, product, a position in their mind.
We do not want our customers to remember us just a
stopover, so we decided to bring 10 cows from the farm
to do an adventure head to Saigon and stay for 2 weeks
kind of Dairy Festival to promote stronger Lotha
brand and product.
4P Strategy
In specific, we will analyze clearly the plan bases on 4P model.

- Using public transport which is bus to convey

- Focus on promote and sell pasteurized milk

information of event before 1 month. (bus

product with diversity flavors and similar

number 30, 27, 65, 35, 8, 94, 13)

products yogurts.

- Hanging banners.
- Distribution retail stores or stalls

- Linked to Lavie company for drinks.

- Making a short video follow the every step of

- Linked to Vissan company for fast foods,

snacks.

the herb journey via social networks

(Youtube, Facebook, Instagram,)

- Linked to Ao thun teen.vn for gifts,

accessories,

- Making Lotha tee as a promotion gift for

tourism when buy more products.
PROMOTION

PRODUCT

PLACE

PRICE

- Dairy Festival will be held at Gia Dinh

park:

- -

- Keeping price stability: 11.000vnd

+ Making different stands: games, cooking,

for milk box 250ml, 19.000vnd for milk box
cows-milking contest, selling Lotha product
booth

500ml, 10.000vnd for milk bottle 190ml,

19.000vnd for milk bottle 490ml.

+ Making a backdrop or photo booth to take

- Hot price 40.000vnd for a milk kit of 4 boxes
picture with hashtag #lothamilk
250ml, 35.000vnd for a milk kit of 4 bottles
#milkcowsarecomingtotown #dairyfestival
190ml.
- Bus routes are running routes within the city
- Bonus gifts or loyalty cards for bill over
center: bus number 30, 27, 35, 65, 8, 13, 94.
200.000vnd.
- Banners are hanged on crossroad, one-way
- Linked to other company to attract more
road, nearby schools, hospitals.
investment.
- Stalls are placed at crowded people such as
bus stations, markets, apartments, hospitals

Picture 1: Gia Dinh Park

Source: www.google.com

V. CHALLENGES
3. Components
The dairy industry in general is becoming potential and attracting a lot of attentions. A
number of companies raise up and strongly invest to achieve more ambition of operating
scale and compete wildly each other in market share. Lothamilk comes to business activity
also hardly to avoid the fierce competition from rivals such as Dalatmilk, Vinamilk, Dutch
Lady, TH True Milk, Ba Vi, etc.
Until now, the biggest components of Lothamilk is Vinamilk and Dutch Lady because they
have equivalent products are pasteurized milk, fresh milk, yogurt which extracted from nature
milk cow.
Table 1: Competitor analysis

Rivals
Vinamilk
and

Dutch

Lady

Strength

Weakness

- Biggest brand which accounted - Not self-sufficient supply of raw

about 56% market share in the

materials.

Vietnam dairy market. (Vinamilk - The quality of products are still

38%, Dutch Lady 28%)
- Becoming

the

habit

not be ensured.
of

milk - Customer care is not satisfactory

purchasing behavior of consumers.

when the risk happens.

- Have diversity of products.

- High of reputation and influential.
- Have modern production technology
and equipment.
- Have a wide system distribution.
- Suitable price.
TH

True - Well-known reputation.

- Not self-sufficient supply of raw

Milk,

- Good quality of products.

Dalatmilk,

- Suitable price.

Ba Vi

- Attract consumers attention by

beautiful

package

materials.
- Have

design

not

create

strong

reputation and position yet.

and - The scale of operation still limits.

advertises.

- Lack of experience of managing.

- The system distribution still small.
- Products are not diversity.

Foreign

- High reputation and influential.

dairy

- High quality and diversity of - Difficult to join new market.

company:
Nestle

products.
- Strong investment.
- Big scale of distribution.
- Modern technology and equipment.

- High cost of product.

- Not

capture

the

markets

attention.
- All products have to import.

Source: Author
3.2 Budget
Due to lack of experiences, information and analysis skills, the analyzing budget
implementation for the plan will be no mention minimalist under permission of lecture to
ensure the feasibility of the plan.
3.3 Back up plan

VII. CONCLUSION
Along with the development and innovation of the country, Lothamilk also had a certain
place on the current dairy market.
The maketing strategies above is only for reference though. But hope that it will help
Lothamilk have more options for sustainable development of its brand. Hopefully, Lothamilk
will grow further and offer our customers the best products.

REFERENCES:
www.slideshare.net
www.bizlive.vn
www.15s.vn