VIETNAMESE NATIONAL UNIVERSITY

UNIVERSITY OF ECONOMICS AND BUSINESS

-----------------------------------

PRINCIPLE OF MARKETING:
FINAL ASSIGNMENT

Professor: Hoàng Thị Bảo Thoa

Student: Trần Phương Dung
Student code: 20050186
D.O.B: 05/03/2000
Class: QH-2020E QTKD CLC 3
 Hanoi – 2022

Topic: Choose one service/product of a specific

business and then create marketing mix (4P) plan for
the service/product.
Table of Contents
I. Introduction...................................................................................4
1. Introduction about business and product.................................4
2. Mission and vision statement:.....................................................4
II. Factors related to marketing environment...............................4
1. SWOT analysis:...........................................................................4
2. PESTEL analysis:.......................................................................7
3. Five force analysis:......................................................................8
III. MARKET SEGMENTATION AND TARGETING
MARKET.............................................................................................8
1. Market segmentation:..................................................................8
2. Targeting......................................................................................9
IV. CUSTOMER BEHAVIOUR:....................................................9
V. MARKETING MIX STRATEGY FOR TH TRUE MILK
AND UHT FRESH MILK PRODUCT...........................................10
1. Product.......................................................................................10
2. Price............................................................................................10
3. Place...........................................................................................11
4. Promotion..................................................................................11
VI. REFERENCES:........................................................................13
I. Introduction
1. Introduction about business and product
The TH Milk Food Joint Stock Company, a unit of the TH Group that was founded with
the help of North Asia Commercial Joint Stock Bank's financial adviser, is a well-known
name in the Vietnamese dairy business. Their main industry is processing and ultra-high
temperature milk. The business is renowned for its cutting-edge management system and
integrated production processes that are timed to international standards, starting with the
planting of grass, construction of barns, processing of cattle feed, management of
veterinary control, processing and packaging, and ending with the distribution of goods to
customers. Only 12 years have passed since TH True Milk first made its remarkable
accomplishments. A plant producing clean, fresh milk with a 500,000-ton annual capacity
was opened by the firm in 2013. More than 45,000 carefully chosen dairy cows from New
Zealand, Australia, Canada, and other countries are reared in accordance with the highest
technological requirements. In the years that followed, TH attained various levels of
customer and local government affection and confidence. TH Group received several
awards.

2. Mission and vision statement:

a) Mission:
By supplying food items produced from nature that are pure, safe, fresh, delectable, and
nourishing, TH Group has made every effort to nitrify Vietnamese people on a physical
and spiritual level.
b) Vision:
The TH Group wants to be the top producer of clean, all-natural products in Vietnam. The
TH True Milk Company is committed to developing into a top-tier food brand that is
certainly everyone's favorite and a source of great pride for the country by making
significant, long-term investments and utilizing cutting-edge technologies.
II. Factors related to marketing environment
1. SWOT analysis:
 Strength:
 The founder has a sharp mind, a long-term vision and a kind heart:
Ms. Thai Huong is the founder and is currently the Chairman of the strategic board of TH
true milk group, she is the leader in bringing the clean fresh milk product brand TH true
MILK to the market in a poise, well-respected manner, highly appreciated by consumers.
Entrepreneur Thai Huong is the first woman to bring clean fresh milk production
technology to Vietnam: milk production in a closed chain from green pastures to clean
milk cups, applying high technology, creating fresh, nutritious milk.
 Professional and highly qualified staff, including:
+ Employees with high technical level, eager to learn and quickly absorb: Filling machine
operators, maintenance technicians, ... in charge of operating machines, extremely
modern technology platforms great that TH brought back.
+ Employees who are able to manage and operate: Sales supervisors, supermarket
channels, TH True Mart stores.
+ Employees who are able to find talent, manage human resources and evaluate
candidate: Recruitment and human resource development specialist.
+ Production staff: The company is employing about 900 local workers for all
departments. The staff are trained by experts and farmers in the knowledge of Israeli
dairy farming
 Financial advantage:
Many TH projects with investment advice from BAC A BANK have been started
construction in 2020, such as: Dairy cow raising and high-tech milk processing project in
Hoa Thuan border town, Quang Hoa district.
 Advantages of modern facilities:
In 2020, TH Group's dairy farms invested by BAC A BANK continued to import
thousands of Holstein Friesian (HF) purebred high-quality dairy cows imported from the
US to Vietnam to increase the size of the herd. The Group's milk production is expected
to reach 70,000 by the end of 2021. The TH dairy farm system is applying Israeli dairy
technology, using electronic foot-worn chips (Pedometer) to manage cows, estrus
detection, automation of milking system control and milk quality, early mastitis
detection, disease control… help to manage quality accurately and efficiently.
The farm treats water with Israel's state-of-the-art Amiad water purification technology to
ensure clean, pure and safe water for cows. Fully automatic milking system is controlled
under strict procedures to ensure top hygiene and safety conditions. Clean fresh cow's
milk is transferred by cold pipe system to the general tank at the farm and then
transferred to the cold tank truck. Factory, cold temperature is always maintained at 2-
4oC. TH clean fresh milk factory has modern technology and leading scale in Asia,
equipped with modern equipment imported from G7 countries and Europe. The entire
operating system complies with ISO 9001. The factory's products are manufactured and
managed completely according to ISO 22000 standards to meet strict food safety and
hygiene standards.
 Advantage of clean milk brand:
According to a report by an international market research company in the dairy industry,
the top mind awareness index of TH true MILK (Top of Mind - TOM brand awareness)
is 27%, overall brand awareness is 85% and loyalty index is 29%. These indicators can be
understood that in 10 respondents, when it comes to milk, the image of TH true MILK
will appear first in the minds of 3 people, 8-9 people are aware of the brand and 3 people
say they are customers. loyal, loving and willing to associate with the brand. (Information
from the online newspaper Communist Party of Vietnam) In 2020, TH Group has 4
product groups awarded the national brand title including TH true fresh milk. MILK, TH
true MILK pasteurized fresh milk with TOPKID formula, TH school MILK fresh milk;
TH true YOGURT yogurt. These four product groups are all key product lines, produced
from clean fresh milk of TH farm. During more than 10 years of operation since 2009,
TH has steadfastly pursued the core value of "For the health of the community", in order
to produce clean, fresh milk with natural flavors, along with which the Group has
participated in many projects with the meaning of contributing to the benefit of the
community such as establishing dairy farms and factories to help create more jobs for
local people and improve agricultural land efficiency, donating millions Annual glass of
milk sponsored for poor areas, established teams to organize propaganda to emphasize
nutrition assurance for Vietnamese children...
 Weakness
 TH True Milk farm currently has 3 main pollution problems for people in
Nghia Lam commune, Nghia Dan district, Nghe An province:
+ Air pollution: stench from the cow farm, food processing area cows and waste
treatment area from the farm. Besides, there is air pollution due to dust, dust from
factories, from trucks and waste.
+ Noise pollution: during the day, noise is caused by vehicles running on National
Highway 48E and trucks carrying waste water for irrigation and transportation. dumps,
trucks carrying raw materials and products to and from. At night, the noise comes from
the truck carrying grass, importing grass, buying products along with the noise from the
food processing factory in the central area.
+ Water pollution: In Dong Lam hamlet, groundwater in the area is being polluted,
which is definitely an impact from TH's dairy farm. the water is yellow, where the water
is drilled and black water is often bubbly, cloudy, and has a fishy odor. Waste water is
dug pits and then sucked to irrigate grass and trees. Wastewater including floor washing
water, fecal water, cow urine, milk of sick cows is discharged and when it rains and
winds it flows everywhere, the stench is always strong.
 High operating cost of dairy farming system
Operating costs in dairy farming can be a major weakness in TH True MILK's SWOT
matrix. In order to produce the best batch of dairy products, TH True Milk has spent a
"super" expense to use modern technology and machinery in the dairy farm. In addition,
purebred HF dairy cows are imported from abroad. Estimated operating costs for TH
True Milk's production activities are up to thousands of billions of dong per year.
 Price:
Right from the start, the product price of TH True MILK was much higher than that of
other dairy brands. This will create a weakness for TH True MILK in competing in the
domestic dairy market with other big brands such as Vinamilk, Moc Chau… Besides,
the slightly higher price also reduces the ability to reach the target audience. in the file
of low- and middle-income customers in Vietnam.
 Opportunities
 Global development opportunities, market access:
TH True MILK's opportunity in the Vietnamese market is to have access to the majority
of the consumer market and own a stable loyal customer base. The enterprise is
recognized for both its brand and product quality. That has brought a lot of
opportunities for the development and expansion of the domestic or international
market.
In the international market, TH true MILK products have been continuously honored at
dozens of domestic and international awards. It can be seen that TH True MILK not
only does well in the domestic market but also reaches out to international markets.
such as Russia, China or Japan.
 Threats:
 Competitors are more and more powerful:
In addition to familiar domestic competitive brands such as VinaMilk, Nutifood, etc.,
there are now "dairy giants" from the US, UK, France and Japan on the market.
 Competition from substitute products:
Alternative products for TH true MILK's fresh milk products can be powdered soy milk,
oat milk, etc. with other drinks such as Japanese oolong green tea, Korean green tea,
fruit juices, etc. Vfresh, and in today's teen age is the appearance of milk tea
 Challenges in properly implementing TH's commitments in the future:
Faced with strong price competition from imported and domestic milk brands, can TH
True Milk maintain and improve the quality of the brand's milk lines while keeping the
benefits and advantages of the brand intact? community contribution campaign? Right
from the early days of establishment, Chairman Thai Huong did not hesitate to declare a
"mission" of TH Group: "I am determined to follow this path of clean fresh milk not for
the highest profit, but for represent the country, for the sake of Vietnam" but allegations
of pollution around TH True Milk's factories and farms, affecting the lives of local
people in Nghe An are raising concerns which challenges in properly implementing the
commitments from the corporation.

2. PESTEL analysis:
 Political:
- Vietnam is a nation without racism, conflict, or terrorism, and it has a stable
governmental system. The government constantly promotes business development by
establishing favourable conditions and supporting regulations.
- Vietnam has a mixed economy, therefore the government still dominates the
market.
- In particular, the government has more tax policies to assist the milk sector and has
lowered foreign trade barriers to draw in more foreign investment.
 Economic:
Macro-economical factors:
- High inflation rate, the value of VND continue to fall slightly => the cost of
production will surge.
- The Vietnam's GDP trend has increased recently, it is a great opportunities for
the development of the company.
- Vietnam is member of WTO so that the company will have the chance to attract
more investment from abroad, however, this is a big pressure for local business
to compete with foreign competitors.
Micro-economical factors:
- The income of people and life quality go up means that the demand to spend
money in milk products is high, especially organic products.
- The domestic milk market is seeing an explosion in the range of products
offered by manufacturers in their attempt to appeal to customers who are paying
more and more attention to the content of their milk.
- Despite recent drops in wholesale prices for milk in Vietnam by 5-20 percent,
retail prices are still lagging at a relatively high level due to the added costs of
transportation, advertising and promotion.
 Social-cultural:
- Vietnam is a young population country; it will lead the consumption of milk
product in market. Therefore, they are the important customer that company
should focus on. They will buy product not only for them but also for their
children. The demand for improving the health and beauty increased so they
need a product that can meet their satisfaction such as fresh milk and organic
milk.
- Vietnamese consumers nowadays need a product that they can trust on in terms
of health, quality, source, etc.
 Technology
- TH True Milk Group bought all the know-how and technology of dairy farming
in Israel and the world's leading processors from developed countries to create
clean and fresh milk products.
 - The dairy cows on the TH farm are eating herbicide silage, listening to music
every day, and are beamed with Afitap on their feet to monitor their health daily
to ensure the integrity of milk throughout the process.
- TH True milk is fast growing with organic and consumer-friendly products such
as low-sugar, sugar-free, fermented beverages, fruit juices and yogurt.
3. Five force analysis:
 Competition from rival sellers:
Vietnam's milk market share recently is approximately 3 million with the well-known milk
label such as: Vinamilk, Ba Vi Milk, etc. The largest market share is Vinamilk with the
highest market segments. However, the suppliers of Vinamilk only meet 25% of
production (from cattle farms to purchasing of households). Vinamilk is still trying to
maintain and increase their market share.
 Competition from potential new entrants:
Investing in the dairy industry requires a lot of money for breeding animals, cooling
systems, breeding facilities, milking systems and automatic milk processing. While TH
True Milk wants to reach consumers with dairy products raised and care for in Vietnam,
the higher the capital requirement.
 Substitute products:
Although clearly defined market segments, TH True Milk also need to be careful before
these products can substitute for their product line, such as:
● Drinking yogurt
● Cheese
● Soy milk
● Butter and cream
● Other nutritional foods
 Supplier bargaining power:
For the dairy market in Vietnam, the input source of materials mainly depends on imported
raw materials from foreign capital accounted for more than 70% of input materials for the
dairy industry (as reported of Habubank 2010). However, the current trend scale dairy
farming is gradually shifted to the farm model for businesses to begin backwards vertical
integration. Thus, TH True Milk with supply mainly from investment projects worth 1.2
billion U.S dollar on dairy farming system in Nghe An province.
 Customer bargaining power:
The direct consumers potentially could cause a huge pressure for the company's product
quality. Currently dairy products are various and can be substituted for each other.
Companies must compete with each other in quality and diversity of products and powerful
brand and then compete on price.
III. MARKET SEGMENTATION AND TARGETING MARKET
1. Market segmentation:
Urban: Advertising programs, sale, delivering of TH true milk takes place almost in cities:
Ha Noi, Vinh, Ho Chi Minh city, etc.
Rural: TH true milk product aren't used a great deal and if truth be told, it's not left
profound image in customers. This is a potential market with huge buying power and
within the future, TH true can develop this market over 70% of the population.
a) Demographic:
- Age: 3-18: consumers at growing stage. 18-40: consumers and people who
decide which brand of milk to choose from
- Gender: All gender
 - Occupation: housewife, student, bartender, baker, beauty blogger, etc
- Education level: Kindergarten, Primary School, Secondary School, High
school or University/College, Postgraduate
- Income: Financial autonomy (low, medium and good income), some
groups of customers depend on their families (eg: children, students, etc).
- Family size: family of 3-4, single, etc
b) Psychographic:
- Lifestyle: Health considerate, openness to trying new brands and products
- Personality: active, care for their family and their own health, love natural
products, price sensitive, etc.
- Young children: Need a product that provides nutrition for studying,
socializing, still depends on their parents but they can have influence on
what product the family should buy.
- Teenagers and College students: Need a product that can provide energy
for a very active lifestyle. This group decides what to buy themselves as
they now have the financial ability to pay for what they want.
- Adults: Need a product that can provide calcium for their body. This group
is less price sensitive and rather focus more on the quality.
- Families: Need a high-quality product to provide nutrition for their children
- Cafe shops and Restaurants: Usually need a large amount of high quality
product.
c) Behavioral:
- Occasion: buy to consume, new release event, sale event, etc.
- Usage rate: daily/heavy users, regular user, medium or light users
- Loyalty status: regular users, potential users, first time users
2. Targeting
In order to meet consumer demands for "Clean" milk, natural milk, high quality, affordable
milk, and customer age group: 3-35 years old, the true milk market primarily concentrates
on these consumers. For this era of physical growth (5–14 years old), humans require a lot
of nourishment and consume a lot of milk. As a consequence, TH True Milk will make
enormous profits by marketing to children since Vietnamese parents of children between
the ages of five and fourteen have a disproportionate need for nutritious products to
support their children's physical growth.
IV. CUSTOMER BEHAVIOUR:
- Motivation for buying:
o Take care of their children's healthy growth: improve height, resistance,
etc...
o Desire to improve your beauty.
o Be searching a nutritious drink as a substitution for water.
o Buying through retailers’ systems or distribution channel - True Mart.
o Amount of consumption: 1.5 barrel/month.
o Means of communication: TV, internet, radio, newspapers.
- Customer’s feedback:
o Ensured quality
o Taste: more sweet-smelling, differently delicious, in comparison with
others
o Designing: Convenient; proper color that brings feeling of nature,
purity.
 o High price
o Much high concentration of sugar in sugar milk.
V. MARKETING MIX STRATEGY FOR TH TRUE MILK AND UHT FRESH
MILK PRODUCT
Different categories demand various marketing strategies and instruments. I'll take a look
at demographic segmentation for the Vietnam market. This section of the report will pay
particular attention to two groups of Vietnamese consumers, specifically women between
the ages of 18 and 30 and women above the age of 30. I selected these customer types
because experts claim that they are the most successful and beauty-conscious. However,
the needs and traits of women from these two eras differ in terms of attractiveness. More
specifically, young women choose to utilize TH Milk as a daily source of nourishment and
a beauty booster, but elderly women require more calcium and a higher amount of collagen
to preserve their beauty. Additionally, they are more inclined to spend more on beauty-
preserving goods.
These clients differ from one another in several ways, thus the features of the marketing
plan will alter correspondingly. As a result, the marketing strategies for these two
categories are similar in some respects and different in others.
1. Product
Product diversification strategy: TH True Milk has introduced new ingredients in its
production. The product origins will still be preserved because the general milk formula
has already been standardized to meet high quality requirements and adapted to
international standards. Younger age groups will get Fresh Milk Added Collagen 1 and
older age groups will have Fresh Milk Added Collagen 2, with the following variations
between the two:
 TH Fresh Milk Added Collagen: Women between the ages of 18 and 30 are
welcome. Due to young women's tastes, food has a sweeter flavor. Additionally,
the taste of calcium might be too strong for them, therefore this customer group
needs products that are lighter and less calcium-focused.
 TH Fresh Milk Added Collagen, Primrose oil and Calcium: Since women over the
age of 30 often develop osteoporosis symptoms quickly, drinking milk formula
gave these ladies additional calcium to avoid bone illnesses. When these ages may
easily notice the aging symptoms, collagen should also be boosted.
Quality: Natural origin raw materials, not harmful to people’s health and more suitable for
women aged 18 years and older to prevent and slow down aging process
Packaging: The current consumer trend is focused on product design and packaging.
Understanding that trend, many companies have not hesitated to pour investment costs into
packaging. Tetra Pak packaging technology from Sweden with modern technology,
suitable for the habit of using milk cartons of Vietnamese people. The packaging of this
brand is much more elegant and streamlined than other brands with the dominant blue sky
background, and the image icons represent a beautiful woman who has fresh skin. The
image of the packaging is therefore both luxurious, slightly imported, and shows a full
Vietnamese imprint.
2. Price
In the Vietnamese dairy market, being a latecomer, TH needs a different pricing strategy to
penetrate deeply and widely. Clearly defining the "clean" and "real" characteristics when
building a brand, TH chooses the premium price as a guaranteed ticket to the consumer's
trust of "whatever you pay for". At different distribution channels, the price of TH has a
difference but is still clearly higher than that of other brands.
Prices of the two products above in range of 10,000 to 15,000 VND per 180ml bottle. The
Calcium and Collagen added differs between the two kinds of product so the price will
slightly change.
 TH Fresh Milk Added Collagen 1: Price of 10 000 to 12 500 VND per bottle of
180ml milk in which is affordable. I do not raise the price for this group too high
since some of them are still in studying age and even though this is for high class
consumers, daily expensive consumption can sometimes hold their purchasing
decision back.
 TH Fresh Milk Added Collagen 2: Consumers of higher level of income and the
product are also more nutritious added so the price is higher than the type 1. In
particular, this will be in range of 12 500 to 15 000 VND per 180ml bottle. Women
at this age will care more about their beauty and scare aging symptoms normally
appeal to them.

3. Place
Using both traditional and modern distribution channels with 3 main forms:
 Supermarket - modern channel: present the product at all major
supermarkets and retail systems such as BigC, T-mart, Vinmart, CoopMart.
 Traditional channel: Wholesale and retail agents across the country are also
the place where TH sets foot, targeting customers in rural areas. TH True
Milk's products follow this channel, available in convenience stores,
traditional retail stores, markets
 Key account: Competing fiercely with Vinamilk when distributing to
restaurants, hotels, trade unions, hotels ... especially the "Sữa học đường"
program.
 TH should not hesitate to welcome the new breeze of E- commerce, TH's
products are available on Lazada, Adayroi, Shopee, etc with attractive
promotions.
 TH Fresh Milk Added Collagen 1: Women at every age are of shopping interest.
Moreover, the younger they are, the more likely they are willing to spend time
wandering around for their interest. Since then, the places
for this group should be TH True Mart outlets, located near center path, rising
buildings and schools in Hoan Kiem, Dong Da, Hai Ba Trung District, District 1
and 2, etc which is convenient for buyers.
 TH Fresh Milk Added Collagen 2: Targeted women customers of this age are of
young mothers so the ideal place to sell these products are mainly direct selling
outlets system nearby residential areas which are useful for daily purchase and trade
marketing in supermarkets such as Maxi Mark, Big C, …. Convenient stores are of
wise choices also in accordance with the target of busy housewives’ customers.

4. Promotion
 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, 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 strategies always effect in
marketing artist.
 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 Same VTV3: 19h, 19h45,22h15
VTV1: 20h as 1st VTV1: 20h
HTV7: 21h month.
Duration 45s 30s 20s

 Communication at the point of sale: At the retail systems of TH TrueMart,

they are decorated with two main colors, blue and white, LCDs
continuously display TVCs advertising products. The sales staff wears
costumes like milking staff on the farm.
 With the characteristic that the product is practically attached to the health
and life of consumers, TH's PR activities are always associated with social
benefits, community development, encouraging the development of children
to build a brand that engages with the public. For example: Sponsoring milk
for poor children in remote areas.
 Sale promotion: constantly creates activities such as trial, price promotions,
combos, gifts, buy 4 get 1 free.
 For TH Fresh Milk Added Collagen 1 (Women from 18-30): Youngsters spend
most of their time, especially on social networks so ideal promoting could be
through TV, Internet or websites advertisements, websites of which the young
mainly look for beauty stuff are of useful promotion tools. In these days and age,
the use of printed newspapers especially within the young are less and less applied
so the promotion should turn into online advertisements and CFs. The cost of
advertising through printing will be deducted as well.
 For TH Fresh Milk Added Collagen 2 (women above 30): To these customers,
using sports events can attract so many children and adults. Coming to those
events could help bring not only these women but also their children. Beauty
events are quite popular among these mothers as well. This promotion channel
should be conducted properly with larger scale than in the first group. Because of
higher living standard and higher percentage of using spa and beauty salon,
promoting through beauty centers need to be pushed up.
VI. REFERENCES:

1. Brand identity - TH True Milk, MyVietBrand, viewed on 21 May 2010.

http://www.blog.myvietbrand.com/1672/brand-identity- th-true-milk

2. Extended Marketing Mix, Value Based Management Website, viewed on 15 June 2010.
http://www.valuebasedmanagement.net/methods_booms_bitner_7Ps.html

3. Kotler, P 2009, Principles of marketing – A global perspective, Pearson, Singapore.

4. Mandatory Unit 1 – Marketing – Supporting foundation degrees course book, BPP

Professional Education, Great Britain.

5. TH True Mart, TH True Milk Vietnam, viewed on 15 April 2013.

http://www.thmilk.vn/vi/true-mart

6. The extended marketing 7Ps, The Times 100 Business Case Studies, viewed on 14
August 2012. <http://businesscasestudies.co.uk/business-theory/marketing/the-
extendedmarketing-mix-7ps.html#axzz2TnVlzDpS>

7. Vietnam import-export review in 2009, Vietpartners, viewed on 01 April 2010.

http://www.vietpartners.com/Statistic-imex.htm