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Buying decision, target segments, positioning, environment

forces - TH true milk
Principles of Marketing in English (Đại học Kinh tế Quốc dân)

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Q1. The product that I have purchased is a pack of sweetened TH true Yogurt
(original flavor)

a) The decision-making process I applied to this product includes 5 stages

following:

1. Need recognition
As most of Tet traditional foods are highly caloric and greasy such as Banh
Chung which is made of sticky rice coat with pork belly and mashed green
beans filling or Nem Ran, a deep-fried dish if not to mention many kind of
sugar-coated snacks, I would like to have something that help me digest
these all.
2. Information search
Although TH true Yogurt has always been my favorite yogurt, at the time, as
I took in an interest in Dalatmilk products, seeing them in convenience
stores and in a milk tea shop, I searched Dalatmilk and some other milk
brands website to check their yogurt ingredients.
3. Alternatives evaluation
Ever since I acknowledged my lactose intolerant, checking food’s
ingredients is a must. Even though my lactose intolerant is not much severe,
I do get stomach pain and sometimes diarrhea. People with lactose intolerant
cannot eat most of dairy products. However, the bacteria added in yogurt
somehow help break down the lactose. A small amount intake of dairy is
okay so I can still eat yogurt. That is only if it does not contain any kind of
dairy byproducts added to enhance flavor such as milk fat, milk powder and
whey, which most of Vietnamese yogurt brands’ products such as Vinamilk,
Ba Vi or Dutch Lady do. As far as I know, there are only two Vietnamese
yogurt brand that meet my requirement, namely Dalatmilk yogurt and TH
true Yogurt. Both are known as “fresh and clean”, but Dalatmilk promotes
themselves as a supplier rather than a family brand like TH milk. Moreover,
Dalatmilk yogurt’s price is double TH’s price.
4. Purchase decision
As my top priority is not clean or organic yogurt, I chose sweetened TH
yogurt, the one with lower price. Furthermore, when I and my family went

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shopping to stock up food for Tet holiday, Dalatmilk yogurt was out of stock
anyway.
5. Post-purchase decision
Since I have grown familiar to sweetened TH yogurt taste, the fact that there
was no Dalatmilk yogurt at the supermarket I and my family went to did not
bother me, but next time I might consider buying Dalatmilk yogurt.

b) Factors influence my behavior:

1. Need recognition

- Cultural (Culture): Tet holiday was around the corner and eating traditional
food is a must

- Psychological (Beliefs and attitudes): Eating caloric and greasy food is

believed to be bad for digestion and for your health in general, while eating
yogurt does the opposite that is helping your digestion thanks to the probiotics
contained.

2. Information search

- Personal: Dalatmilk designs caught my intention as I like simple packaging

- Psychological - Motive: When I take an interest in something, I feel the urge to

search it up on the internet

- Psychological - Beliefs and attitudes: Since I have been eating TH yogurt, I

have faith in the product and trust the brand. As a result, I did not feel the need
to check its information.

3. Alternatives evaluation

- Personal: Due to my lactose intolerant, I could only eat non-dairy or less-dairy

products, and thus have to consider the ingredients.

- Personal – economics situation: As a student and a person who come from a

middle-class family, price just comes after ingredient to me.

4. Purchase decision

- Unexpected situational factor: Dalatmilk yogurt was out of stock at the place I
went to

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5. Post-purchase decision

- Psychological: I did not feel dissatisfied with what I bought as it was the
product I have already loved

c) According to an essay I found on the internet, I could belong to these market

segments of TH true milk

- Geographic: Sub-urban

- Demographic:

 Age: 18-40: consumers who decide which brand of milk to choose from
 Gender: female
 Occupation: student
 Education level: University
 Income: people who depend on their families

- Psychographic:

 Lifestyle: Health considerate

 Personality: care for their own health, price sensitive

- Behavioral:

 Occasion: buy to consume

 Usage rate: medium or light users
 Loyalty status: potential users

Some other segments TH true milk might have:

- Geographic: Urban, rural

- Demographic:

 Age: 3-18 (consumers at growing stage)

 Gender: All gender
 Occupation: housewife, bartender, baker, beauty blogger, etc.
 Education level: Kindergarten, Primary School, Secondary School, High
school, Postgraduate
 Income: Financial autonomy (low, medium and good income), some groups
of customers depend on their families (e.g. children, students, etc.)

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 Family size: family of 3-4, single, etc.

- Psychographic:

 Lifestyle: Health considerate, openness to trying new brands and products

 Personality traits: active, care for their family, love natural products, etc.
o 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
o 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. (very price sensitive)
o Adults: Need a product that can provide calcium for their body. This
group is less price sensitive and rather focus more on the quality. (less
price sensitive)
o Families: Need a high-quality product to provide nutrition for their
children (Less price sensitive)
o Cafe shops and Restaurants: Usually need a large amount of high-
quality product.

- Behavioral:

 Occasion: new release event, sale event, etc.

 Usage rate: daily/heavy users, regular user
 Loyalty status: regular users, first time users

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d)

The diagram shows the comparison of 4-pack sweetened yogurt (original flavor) of
5 brands, namely Dalatmilk, TH true milk, Dutch Lady, Vinamilk and Ba Vi. There
are two criteria used to differentiate these products that are lactose content and
price.

- Lactose content: it is hard to precisely measure the lactose content, but Dalatmilk
yogurt and TH true yogurt probably contain less lactose than the others.

- Price: Vinamilk, Ba Vi and Dutch Lady yogurt are just the same price of
approximately 20,000 dong. TH true yogurt is a bit higher by 5000 dong, while
Dalatmilk yogurt’s price is the highest, 40,000 dong.

Q2.

a)

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- TH true milk aims to serve the needs of healthy dairy products that are clean and
fresh by not using dairy byproducts such as milk powder, milk fat or whey.

- The value TH true milk aims to bring to their customers is the mental value of using
safe and nutritious products. By consuming dairy products that are believed to be
healthful, moreover, clean, customers would feel satisfying as they are doing
something good for their health.

b) TH true milk perform their marketing activities through:

- Advertising channel: TH's main communication activities include: TVC

(Television Commercials) appearing regularly on channels VTV3, VTV1, VTV6,
HTV7, etc. with a transparent message about the essence of nature, clean production
process.

- Outdoor advertising: Banners, outdoor signs, billboard at bus shelters, inner

city areas, near schools, etc. are also utilized.

- Internet advertising: pop-up ads, official website with detailed information about the
products, brand story, shopping online, etc.

- TH true mart store: other than distributing products to wholesale and retail agents,
TH opened their own chain stores.

- E-commerce: TH's products are available on online shopping platform such as

Shoppe and Lazada with many discounts on designated sale day.

c) The environmental factors that have the biggest impact on the marketing activities
of TH could be competitor in microenvironment. Although TH true milk is quite
popular in Vietnam, it is Vinamilk that is recognized as the top dairy brand. Vinamilk
is a familiar brand and trusted by Vietnamese consumers for more than 34 years, while
TH true milk has been on the market for only 12 years. Furthermore, with cheaper
price and wide distribution network, Vinamilk dominates rural regions, where TH true
milk have not yet to successfully enter.

Sociocultural factor in macroenvironment could also contribute to TH true milk

challenges. Although in the 4.0 era, people's awareness and understanding are
increasing, Vietnamese people still prefer cheaper products. 63% of the population of
Vietnam is rural where the average income is not high. That is why knowing

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chemicals and byproducts added in dairy products or not, their priority is the price.
Accessing local distribution channels and changing people’s milk-drinking
habits is not easy at all. But with the increasing economic indicators, income increases
and the number of civil servants and entrepreneurs in the provinces also increased
significantly, TH true milk should promote more in this potential market.

REFERENCE

https://www.studocu.com/vn/document/truong-dai-hoc-tai-chinh-
marketing/marketing-practices/th-true-milk-nguyen-li-marketing/18927451

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