ASSIGNMENT COVER SHEET

STUDENT DETAILS
Student ID
Student name: Lê Nguyễn Thuỳ Dung number: 31221024343

UNIT AND TUTORIAL DETAILS

Unit name: Principle of Marketing Unit number: PMK - 48 - 11

Tutorial/Lecture: Class day and time: 8a.m Wednesday
Lecturer or Tutor name: Dr. Nguyen Ngoc Quynh Thu

ASSIGNMENT DETAILS

Title: A2_Business Analysis Report

Length: 1650 Due date: 26 March 2023 Date submitted: 26 March 2023

DECLARATION

X: I hold a copy of this assignment if the original is lost or damaged.

X: I hereby certify that no part of this assignment or product has been copied from any other
student’s work or from any other source except where due acknowledgement is made in the
assignment.
X: I hereby certify that no part of this assignment or product has been submitted by me in
another (previous or current) assessment, except where appropriately referenced, and with
prior permission from the Lecturer / Tutor / Unit Coordinator for this unit.
X: No part of the assignment/product has been written/ produced for me by any other
person except where collaboration has been authorised by the Lecturer / Tutor /Unit
Coordinator concerned.
X: I am aware that this work may be reproduced and submitted to plagiarism detection software
programs for the purpose of detecting possible plagiarism (which may retain a copy on its
database for future plagiarism checking).

Student’s signature: Dung

Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above
declaration has not been signed.
 TH TRUE MILK ANALYSIS REPORT

I. INTRODUCTION
a. TH True Milk
● The official title of TH True MILK is TH Milk Food Joint Stock Company, which belongs
to TH Group. This is a 100% Vietnamese dairy brand specializing in producing and
supplying milk and dairy products found in 2009 (Biz, n.d.)
● TH True Milk started the project "Centralised dairy farming and dairy processing with a
high-tech industrial scale" which has been spread to several more provinces and cities (TH
Group Pioneered the Application of Environmentally Friendly Consumer Materials
Solutions, n.d.)
b. Dairy market in Vietnam
● The country's liquid milk production in 2021 is estimated at more than 1,770 million litres,
up 4.5% over the same period in 2020. In the two years 2020-2021, despite difficulties due
to the epidemic, the revenue of Vietnam's dairy market in 2020 is estimated at 113,700
billion VND and in 2021 is estimated at 119,300 billion VND (baochinhphu.vn, 2022).

II. MACRO ENVIRONMENT

a. Demographic
● From 2000 to 2020, the proportion of children aged between 0 and 14 in Vietnam accounts
from 23.2% to 31.6% (Vietnam: Share of Children in Population 2020, n.d.).
➔ Dairy products are mostly for children, so with such a high percentage of children during
the past 20 years, the dairy market has become extremely potential.
● In urban areas such as Ho Chi Minh City (the Southeast region) and Hanoi (the Red River
Delta), per capita income is high (appendix 1).
➔ TH True Milk focuses on customers who have stable incomes in big cities, so an average
high income in big cities is a great opportunity for them.
b. Economic:
● Since 1986, Vietnam has transformed from one of the world's poorest nations to a
low-middle-income nation. The poverty rate decreased from 14.3% in 2010 to 3.8%t in
2020 (The World Bank, 2022).
➔ When the average income increases, people's living conditions and purchasing power also
increase. Instead of only paying attention to enough food, people care more about health
development and nutritional supplements through dairy products.
● The inflation rate in Vietnam in the past 7 years has always been at 2.67% to 3.5%
(Statista, 2018). As the inflation rate is high, the price of products will also increase.
➔ The cost of TH True Milk, which is already high because of the complicated production
process, now the higher the price, the more difficult it is for TH True Milk to reach a
diverse range of customers. The market share of TH True Milk is more difficult to expand.
c. Social
● The need for clean and safe food is a major priority in the 4.0 age. Customers do not need
products that are “more chemical than food”. TH has quickly satisfied users with the motto
"clean milk", and "all for public health".
➔ TH True Milk's business point of view coincides with the wishes of customers, in other
words, TH True Milk has sensitively grasped the needs of customers in the new modern
society, so TH True Milk gradually wins the trust of customers.
III. MICRO ENVIRONMENT
a. Customer
● Families with small children who earn a moderate to high income make up TH's clientele.
TH True Milk also targets people who enjoy natural and safe goods.
● Customers are putting TH under a lot of pressure:
❖ Price pressure: Customers are always looking for affordable, high-quality items
❖ Quality pressure: Customers desire high-quality goods, especially pasteurised
goods like milk.
➔ As analysed in the Macro-environment, TH True Milk is leaning towards quality
prioritisation, so in order to gain more market share, TH True Milk needs to research more
ways to minimise the cost of the production process to produce more affordable milk lines.
b. Marketing intermediaries
● TH Milk Products are offered at more than 130,000 locations nationally through 180
distributors such as Co.opMart, Circle K, VinMart, etc. (TH True Milk Triển Khai Hệ
Thống Quản Lý Phân Phối Với Acumatica, 2016).
➔ Milk is known as a popular beverage, so it is important to distribute milk in as many places
as possible to be easily accessible to customers as soon as they have a need. TH True Milk
has diversified marketing intermediaries, so it can reach customers quickly, and bring large
sales.
● TH True Milk has its own retail system directly through TH True Mart stores which are
present in the North, Central and South regions (Thịnh, n.d.).
➔ Thanks to the large network of stores, the recognition of the brand is increasing. In the
long run, when customers think of milk, they will think of TH True Milk. However,
opening many stores also costs a large amount of money in terms of space, personnel,
operating fees, etc.
● TH's products were also distributed via the online ordering channel which has had home
delivery service since 2014.(Thịnh, n.d.).
➔ TH True Milk has clearly grasped the market trend of online shopping. This approach both
helps TH True Milk save money, resources, and is more convenient for customers.
c. Competitors
● Domestic dairy companies now control a majority of the market share for liquid milk up to
2020, including Vinamilk, which holds 43,3%, FrieslandCampina at 15,8%, Nutifood at
7,2%, and TH True Milk at 6,1% ( appendix 2).
● The market saw a number of significant acquisitions last year, including Blue Point and
VietCapital's purchase of IDP and Vinamilk's acquisition of Moc Chau Milk. The
analytical team concluded that all of the target firms saw rapid growth following the
purchase.
➔ When major businesses expand through M&A and additional rivals enter the market, the
competition in the dairy sector likewise tends to get more intense.
● International milk brands like FCV, Nestle, Abbott compete with native dairy businesses.
The overall turnover in the first five months of 2020 was 466.76 million USD, an increase
of 5% over the same time in 2019 (appendix 3).
➔ Vietnamese people's demand to buy foreign milk is gradually increasing because of its
superior quality. However, TH True Milk still has a competitive advantage over foreign
 brands because they have entered the market sooner and as a local brand, they understand
the culture and lifestyle of the Vietnamese people.
IV. SWOT analysis
a. Strengths:
● Professional staff:
❖ Ms. Thai Huong is the founder of TH True Milk Group. She is currently in the top
10 typical Vietnamese businessmen and the first woman to bring clean fresh milk
production technology into Vietnam with a closed chain. A talented and brave
leader helps TH achieve many achievements (VnExpress, n.d.)
❖ TH True Milk also owns a staff of highly qualified technical staff that is regularly
fostered and trained by leading experts.
● Stable source of investment capital:
❖ TH True Milk owns stable capital from Bac A Bank. Many projects have been
started with large scales up to trillions of billions (Ngân Hàng TMCP Bắc Á - BAC
a BANK, n.d.)
● Positioning famous brands:
❖ For sustainable development and success, brand awareness is the most important
key. TH's overall brand awareness is 85% and loyalty index is 29% (TH True
MILK- Thương Hiệu Sữa Tươi Sạch Hàng Đầu, n.d.).
b. Weaknesses:
● High operating cost of dairy farming system:
❖ As analysed in the Technology in Macro environment, TH has spent a lot of money
to apply modern technology and techniques. Estimated costs up to thousands of
billions of dong per year (TH Group Pioneered the Application of Environmentally
Friendly Consumer Materials Solutions, n.d.).
● Uncompetitive price:
❖ Compared to other competitors, especially Vinamilk, price is always a weak point
for this brand. It is difficult for TH True Milk to reach a large proportion of
customers in Vietnam - those with low and middle income.
c. Opportunities:
● Open-door policy, exchange between markets (appendix 4).
❖ With the open-door policy, taking advantage of high-quality products, TH True
Milk confidently conquers difficult markets in the world. Up to now, TH Group has
expanded to China and the Federal Republic of China. Russia, Australia and
ASEAN countries (Nam, 2022).
● Domestic market potential:
❖ As analysed in the Customer in Micro environment, the domestic milk market is
showing signs of improvement in growth due to the young population structure,
increasing income and attention to "clean" products.
d. Threats:
● High level of competition:
❖ TH True Milk has to compete with both domestic and international brands since the
EU-Vietnam Free Trade Agreement (EVFTA) officially took effect (analysed in the
Competitor - Microenvironmental section). The taste of foreign products, high
quality, and low price make TH have to constantly improve to be competitive.
● Competitive substitutes
 ❖ TH's competitors are constantly expanding their market share while diversifying
their product lines. Alternative products, competing with fresh milk of TH true
MILK can be soy milk powder, oat milk or drink yogurt.

V. MARKETING ISSUES
a. Image and ethical issues:
● Over a decade of development, TH True Milk is known as an enterprise that attaches
importance to sustainable development, always developing products that are "all-natural"
and "for public health". However, at TH True Milk's dairy farm in Nghia Dan, Nghe An,
people here have to bear the consequences such as dust, pollution of wastes such as
manure, cow's food, noise pollution because of engines and transportation vehicles
constantly operating, water pollution due to cow dung, etc. (moitruong.net.vn, 2020).
➔ Obviously, TH True Milk went against their statements about environmental protection
and public health. If TH True Milk continues to fail to solve this problem, in the long run,
TH True Milk's image will be severely negatively affected, and this unethical behaviour
will make consumers no longer believe in the motto of producing "clean" products - which
has made TH True Milk successful.
b. Price:
● The issue of price has been repeatedly mentioned in this report. The price of TH True Milk
is higher than that of other competitors such as Vinamilk, Dutch Lady and the percentage
of rural population is high, at 65% (News, 2021).
➔ If TH True Milk still maintains its high-cost marketing strategy and does not launch
cheaper milk lines, it will be difficult to expand the market.

VI. REFERENCE
● baochinhphu.vn. (2022, June 1). Doanh thu thị trường sữa Việt Nam đạt 119.300 tỷ đồng
năm 2021. Baochinhphu.vn.
https://baochinhphu.vn/doanh-thu-thi-truong-sua-viet-nam-dat-119300-ty-dong-nam-2021-
102220601161219471.htm
● Biz, T. trường. (n.d.). TH true MILK là gì và quá trình hình thành và phát triển của TH true
MILK. Thị Trường Biz.
https://thitruongbiz.vn/th-true-milk-la-gi-va-qua-trinh-hinh-thanh-va-phat-trien-cua-th-true
-milk-1243.html
● moitruong.net.vn. (2020, October 2). Nghĩa Đàn (Nghệ An) – Bài 5: Trang trại bò sữa TH
True Milk gây ô nhiễm nặng nề, người dân xóm Đông Lâm tiếp tục kêu cứu. Tin Tức
Moitruong.net.vn.
https://moitruong.net.vn/nghia-dan-nghe-an-bai-5-trang-trai-bo-sua-th-true-milk-gay-o-nhi
em-nang-ne-nguoi-dan-xom-dong-lam-tiep-tuc-keu-cuu-5202.html
● News, V. T. C. (2021, July 5). 65% dân số sống ở nông thôn, Việt Nam công nghiệp hóa
thế nào? Báo Điện Tử VTC News.
https://vtc.vn/65-dan-so-song-o-nong-thon-viet-nam-cong-nghiep-hoa-the-nao-ar622228.ht
ml#:~:text=Theo%20k%E1%BA%BFt%20qu%E1%BA%A3%20T%E1%BB%95ng%20
%C4%91i%E1%BB%81u
● Ngân hàng TMCP Bắc Á - BAC A BANK. (n.d.). Baca-Bank.vn.
https://baca-bank.vn/SitePages/website/tin-tuc/97/17/False/TT/Tin-tuc/LTT
 ● Statista. (2018). Vietnam- Inflation Rate 2024 | Statistic. Statista; Statista.
https://www.statista.com/statistics/444749/inflation-rate-in-vietnam/
● TH Group pioneered the application of environmentally friendly consumer materials
solutions. (n.d.). TH Group Pioneered the Application of Environmentally Friendly
Consumer Materials Solutions.
https://www.thmilk.vn/en/tien-phong-group-applied-solutions-of-raw-material-consumptio
n-raw-materials/
● TH True Milk Triển Khai Hệ Thống Quản Lý Phân Phối Với Acumatica. (2016, January
22). DMSpro.
https://www.dmspro.vn/th-true-milk-trien-khai-he-thong-quan-ly-phan-phoi-voi-acumatica
/
● TH true MILK- Thương hiệu sữa tươi sạch hàng đầu. (n.d.). Https://Dangcongsan.vn.
https://dangcongsan.vn/thong-tin-kinh-te/th-true-milk-thuong-hieu-sua-tuoi-sach-hang-dau
-563460.html
● The World Bank. (2022, November 7). Vietnam Overview. World Bank.
https://www.worldbank.org/en/country/vietnam/overview
● Thịnh, N. V. (n.d.). Hệ thống phân phối sữa TH TRUE MILK, nhà cung cấp đại lý.
Retrieved March 25, 2023, from
https://www.dichvusieuthi.com/2019/11/he-thong-phan-phoi-sua-th-true-milk.html
● Vietnam: share of children in population 2020. (n.d.). Statista.
https://www.statista.com/statistics/678823/vietnam-children-as-a-percentage-of-the-popula
tion/
● VnExpress. (n.d.). Bà Thái Hương vào top 10 doanh nhân Việt Nam tiêu biểu.
Vnexpress.net. Retrieved March 25, 2023, from
https://vnexpress.net/ba-thai-huong-vao-top-10-doanh-nhan-viet-nam-tieu-bieu-4522651.h
tml

VII. APPENDIX
● Appendix 1

● Appendix 2
● Appendix 3

● Appendix 4