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Nutifood Report
Nutifood Report
Nutifood Report
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ASSIGNMENT DETAILS
Written Report (Team Project ) - Little Sunshine Team
Title:
11:59 PM
Length: 2352 words Due date: -21/11/2023 Date submitted: 21/11/2023
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plagiarism checking).
I. INTRODUCTION
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1. COMPANY
DESCRIPTION
1.1. BACKGROUNDS
Nutifood is a leading Vietnamese nutrition company with a rich
history of innovation and commitment to improving the nutritional
standards of Vietnamese people. Nutifood was founded in 1989 by
a group of dedicated doctors in Vietnam. In the early 1990s, the
company developed the Enalaz method, which revolutionized how
nutrition was delivered to patients who could not eat by mouth.
This ground-breaking technique saved countless lives, and the
desire to “Raise nutrition standards for Vietnamese people" was
shaped and became a guideline for the community's journey to
create a happy and healthy life for all stages of life (History of
Development | Nutifood, n.d.). In the early 2000s, Nutifood began
to expand its product portfolio beyond clinical nutrition to include
infant and child nutrition products. Nutifood has continued to
grow and expand over the years, and it is now one of the leading
nutrition companies in Vietnam.
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1.2. MISSION
“Meeting specialized nutrition demands for each object and each
age, daily nutrition demands for all families” - Nutifood
1.3. VISION
“Becoming a globally famous company in terms of nutrition
science and healthcare” - Nutifood
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2. PRODUCT
DESCRIPTION
DEMOGRAPHICS
Nutifood focuses on mothers with young children, ages 0 to
9 and live in urban areas. In 2020, this age group made up around
23.2% of the overall population, and they consumed over 99,3
thousand metric tons of milk powder (Statista, 2020)
ECONOMIC FACTORS
Vietnam saw a notable growth in GDP per capita of 8.02% in
2022 despite the Covid-19 epidemic caused a large fall in global
GDP (World Bank, n.d.). Furthermore, the production of milk
powder increased significantly between 2020 and 2022, reaching
143,6 thousand tons (CSI Research, 2022). As a result, there is an
increasing need for dairy items. However, Nutifood needs to
apply careful strategies over the 2023 recession, since it would
have a harmful impact on the economy of Vietnam. It is
important to develop a number of tactics to mitigate the
effects of the upcoming recession
MICROENVIRONMENT
COMPANY
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Nutifood has a brand portfolio mainly focused on
beverages. Milk powder will be the main topic of this
article.
OPPORTUNITIES THREATS
TARGETING
A segmented marketing strategy targeting mothers whose
children aged above 2 and have problems with malnutrition, and
stunting with alternatively healthy formula milk with good quality
was chosen for Nutifood.
Treatment
To assist their children in restoring normal health, these moms
will frequently see specialists or doctors to modify their diet
and employ supplementary items.
DIFFERENTIATION
Nutifood has a difference in 2 points:
Firstly, Nutifood Grow Plus milk formula is a special
treatment formula for malnourished and stunted children.
It is completely different from other similar product
lines that also claim to increase weight and height with
synthetic substances.
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DIFFERENTIATION
Second, Nutifood is different because the product
formula is researched and recommended by a team of
nutrition experts at the Swedish Nutrition Research
Institute Nutifood, is completely different from Dielac
Grow PLus (trying to do the same, pretending that the
product is trusted by experts but has no research
institute)
=> Nutifood Grow Plus is the true scientific nutritional solution
for malnourished kids
25
POSITIONING
POSITIONING MAP
Advertising:
Nutifood sponsored 25 billion VND to sponsor the Vietnam National under-19
Football Team (U19) right at the time U19 is receiving the most attention
from the public.
Direct marketing:
32
Social media: Has over 160,000
followers page to engage mothers
enabling them to discuss the product.
Social activity: Nutifood actively
participates in social and charitable
activities to build a reputable,
responsible, and community-friendly
brand image
Sales Promotion
• Releases promotion
discounts: price reduction,
buy 1 get 1, scratch card, etc.
• Events like playing online
minigames and giving away
limited items to encourage
involvement with the target
group.
[See more information in
Appendix D]
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VI. CONCLUSION
With its strong performance in social media campaigns and promotions,
Nutifood Grow Plus has established a strategic position for itself in the milk
powder sector. To maintain its position, Nutifood should invest in research-
development processes and adhere to strict quality control measures.
Besides powdered milk, liquid milk is growing rapidly (AGlobal, 2022). Not
only does Nutifood need to push powdered milk, but the brand also needs to
push liquid milk. However, unlike powdered milk, liquid milk needs to highlight
the convenience - “on-the-go nutrition” for children when they go to school.
By doing this, Nutifood can take advantage of market opportunities to
develop and increase customer usage occasions, which means there will be
more sources of growth in terms of revenue for the business.
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REFERENCES
About us | Nutifood. (n.d.). NutiFood. https://nutifood.com.vn/en/about-us
Báo Thanh tra. (2023, January 4th) Nutifood: Thương hiệu sản phẩm từ sữa nổi
tiế ng liên tục gây chú ý với các thương vụ thâu tóm và thoái vố n.
https://thanhtra.com.vn/kinh-te/tai-chinh-ngan-hang/nutifood-thuong-
hieu-san-pham-tu-sua-noi-tieng-lien-tuc-gay-chu-y-voi-cac-thuong-vu-
thau-tom-va-thoai-von-206241.html
Công an nhân dân. (2022, May 24). Bình quân 1 người Việt Nam tiêu thụ 27 lít
sữa/năm - Báo Công an Nhân dân điện tử. Báo Công an Nhân Dân Điện Tử. [On
average, a Vietnamese person consumes 27 liters of milk/year - People's
Public Security Electronic Newspaper. People's Electronic Police Newspaper.]
https://cand.com.vn/Xa-hoi/binh-quan-1-nguoi-viet-nam-tieu-thu-27-lit-
sua-nam-i654766/
Forbes. (2022, September 18). Nutifood đầ u tư chi phố i 51% công ty thực phẩm
bổ sung Cawells của Thụy Điển. Forbes Việt Nam.
[Nutifood makes a controlling investment of 51% of the Swedish food
supplement company Cawells. Forbes Vietnam.]
https://forbes.vn/nutifood-dau-tu-chi-phoi-51-cong-ty-thuc-pham-bo-sung-
cawells-cua-thuy-dien
Giáo dục Việt Nam (2018, March 4). 73 học sinh Đồ ng Nai vào viện sau ăn sáng,
uố ng sữa ở trường, nghi do ngộ độc. [73 Dong Nai students went to the
hospital after eating breakfast and drinking milk at school, suspected of
poisoning. Vietnamese Education.]
https://giaoduc.net.vn/73-hoc-sinh-dong-nai-vao-vien-sau-an-sang-uong-
sua-o-truong-nghi-do-ngo-doc-post184128.gd
Giáo dục Việt Nam (2018, March 8). Sau vụ 73 học sinh bị ngộ độc, dấ u hỏi lớn
về chấ t lượng sữa học đường. Giáo Dục Việt Nam. [After the poisoning of 73
students, there are big questions about the quality of school milk.
Vietnamese Education.]
https://giaoduc.net.vn/sau-vu-73-hoc-sinh-bi-ngo-doc-dau-hoi-lon-ve-chat-
luong-sua-hoc-duong-post184174.gd
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REFERENCES
History of Development | Nutifood. (n.d.). NutiFood.
https://nutifood.com.vn/en/history-of-development
(2015, September 29). Bầ u Đức hợp tác với NutiFood bán sữa. [ Bau Duc
cooperates with NutiFood to sell milk ] thanhnien. vn. https://thanhnien.vn/bau-
duc-hop-tac-voi-nutifood-ban-sua-185505525.htm
(2016, January 1). Thị trường sữa Việt Nam: Tiề m năng còn rộng mở. Tạp Chí Công
Thương. [Vietnam dairy market: Potential is still open. Industry and Trade
Magazine.]
https://tapchicongthuong.vn/bai-viet/thi-truong-sua-viet-nam-tiem-nang-con-
rong-mo-43247.htm
(2021, June 6). Món quà dinh dưỡng cho người Việt từ Nutifood Sweden.
vnexpress.net. https://vnexpress.net/mon-qua-dinh-duong-cho-nguoi-viet-tu-
nutifood-sweden-4289124.html
(2021, November 4). Nutifood đưa 100% sữa New Zealand bò ăn cỏ tự nhiên về Việt
Nam. Báo Điện Tử Dân Trí.
https://dantri.com.vn/kinh-doanh/nutifood-dua-100-sua-new-zealand-bo-an-
co-tu-nhien-ve-viet-nam-
20211103133228976.htm#:~:text=NutiMilk%20l%C3%A0%20nh%C3%A3n%20hi%E1%
BB%87u%20%C4%91%E1%BA%A7u,New%20Zealand%20%2D%20Fonterra%20cung
%20c%E1%BA%A5p.
(2023, September 4). Chiế n lược Marketing của Nutifood: Giải pháp dinh dưỡng
hàng đầ u (Phầ n 1). Happy Live. [Nutifood's Marketing Strategy: Leading Nutritional
Solutions (Part 1)].
https://happy.live/chien-luoc-marketing-cua-nutifood-giai-phap-dinh-duong-
hang-dau-phan-1/’
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APPENDICES
APPENDIX A
Macro Environment
Social factors
The Vietnamese population is growing and urbanizing. This is leading to a
growing demand for convenient and nutritious food and beverage products.
Vietnamese consumers are also becoming more health-conscious and are
more likely to spend money on products that are perceived to be healthy.
Viet Nam is one of the most rapidly aging countries in the world. Average age is
predicted to rise from 32.5 in 2020 to 41.2 in 2050 so that Vietnam will go into the
aged population, transitioning from an “aging” to an “aged” society. This
demographic change happens in Vietnam not only because of a reduction in
mortality and an increase in life expectancy but also and largely because of a sharp
decline in fertility. It can cause a reduction in the consumption of baby formula.
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APPENDICES
APPENDIX A
Macro Environment
Environment factors
NUTIFOOD BINH DUONG DAIRY FACTORY WAS HONORED TO RECEIVE THE "TOP 10 FRIENDLY GREEN FACTORIES" AWARD
(SOURCE: INTERNET)
The year 2020: NutiFood Binh Duong Dairy Factory was recently honored to receive
the "Top 10 Friendly Green Factories" award. At the same time, NutiFood was also
honored as an "Enterprise developing sustainable green economy" in the program
"Building and Developing the National Green Economy in 2020" for its employees on
food safety and consumer protection procedures.
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APPENDICES
APPENDIX A
Macro Environment
Technological factors
New technologies in milk production and processing are making it possible for
Nutifood to produce higher-quality products at a lower cost. This is giving Nutifood
a competitive advantage over its competitors. In particular, NutiFood always
"stands aside" from milk quality crises that have occurred in recent years such as
"milk contaminated with melamine" and "milk contaminated with Clostridium
Botulinum" which many businesses, including multinational companies, have had to deal
with.
APPENDICES
APPENDIX A
Micro Environment
Publics
The success story of the Grow Plus+ brand is partly due to the experience and
trust of mothers. Through word of mouth, they created an effect for Grow
Plus+, rising to the top of the specialty milk industry - which is the playground of
famous multinational corporations.
According to Nielsen's 2016 milk market survey data, Grow Plus+ product ranks
first in the market share of special treatment milk (based on output) for children
nationwide.
With an output of nearly 2.38 million tons consumed, the Grow Plus+ special
treatment milk powder line accounts for 37.3% of the national market share. The
ready-to-drink special treatment milk group sold more than 7.55 million kg in 2016,
accounting for 38.4% of Vietnam's market share (twice as much as the brand with
the second highest market share at 16.9%).
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APPENDICES
APPENDIX B
SWOT Analysis
STRENGTHS: MARKETING
Price strategy: Nutifood prices its products in the affordable segment, so their
products are around 5-7% cheaper than their competitors; products. For example,
900 grams of powdered milk usually costs 300.000VND/ box while it costs
340.000vnđ/box for Vinamilk powdered milk
=> Lower prices compared to other brands meaning accepting lower profits than
other brands but receiving a high rate of product sales
Communication strategy: generously funded 20 billion for Hoang Anh Gia Lai Football
Academy (2013), "World Milk Drinking Day", "Children's Day"
=> Conveying meaningful messages to customers=> Successfully beautifying the
brand’s image and brand value
Distribution strategy: maximize the use of channels to create convenience for users'
purchases such as retail channels, supermarket channels, and direct sales.
=> Reaching a huge number of customers=> Large sales, large profits.
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APPENDICES
APPENDIX B
SWOT Analysis
STRENGTHS: COMMUNITY ACTIVITIES
- Pioneering in national development to protect Ngoc Linh Ginseng. In 2022, Nutifood
announced its investment in the Quang Nam Ngoc Linh Ginseng - Pharmaceutical -
Trading Company (Quasapharco) and cooperated with Nui Chua National Park to
preserve and develop rare medicinal and aromatic plant resources
-Producing Jelly products in the world's first ECOLEAN packaging.
-Charity walk in Vietnam
-Participating in founding and operating the Nutrition Support Fund for Poor
Patients in Ho Chi Minh City
-Cooperating with the Vietnam Youth Association, distributed more than 7,000 banh
tet to poor workers on the streets and loving shelters.
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APPENDICES
APPENDIX B
SWOT Analysis
OPPORTUNITIES: COMPANY
The chart shows the Vietnamese dairy milk revenue structure
-With a GDP growth rate of 6 - 8%/year, the average income per capita increases
by 14.2%/year along with the trend of improving the health and stature of
Vietnamese people, causing the need to use all kinds of products. milk and dairy
products are at high levels
=> With a large amount of consumer demand for milk, milk consumption per capita
is quite high and tends to increase continuously by about 7-8%, this has made
Vietnam a potential dairy market.
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APPENDICES
APPENDIX B
SWOT Analysis
OPPORTUNITIES: COOPERATIONS
The dairy cow farming cooperation project between Hoang Anh Gia Lai (HAGL)
and NutiFood was signed in June 2014, in which HAGL invested 6,300 billion VND to
develop dairy herds; NutiFood invested in building a fresh milk factory in Gia Lai,
purchasing all milk from the HAGL farm.
After more than 1 year since the start of signing the project, up to now, HAGL's
dairy herd has nearly 10,000 cows, of which more than 5,000 cows produce milk
with a daily output of more than 100 tons.
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APPENDICES
APPENDIX B
SWOT Analysis
WEAKNESSES: PUBLICS
Food quality and safety issues due to poor inspection
There was a case where some children suddenly had symptoms of suspected
poisoning, such as stomach pain, nausea, fatigue…
Moreover, on June 1, Mr. B. took milk for his 26-month-old son to drink. Seeing his
son crying and refusing to drink milk, he tried it and discovered that the milk had
a sour taste and appeared curdled
=> Milk quality controversy => Becoming threats of Nutifood => Reduced revenue,
product image and sales will suffer.
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APPENDICES
APPENDIX B
SWOT Analysis
THREATS: COMPETITORS
About 72 businesses are now involved in the production, importation, and trade of
milk in Vietnam, in addition to hundreds of generic milk distribution agencies.
Vinamilk holds a significant market share of around 49% in Vietnam's milk market,
with other rivals including Dutch Lady (with a 25% market share), Mead Johnson,
Abbott, Nestle, Ba Vi, Moc Chau, and others.
APPENDIX C 47
UNICEF says that 1.8 million children under 5 years old in Vietnam have nutritional
deficiencies or are short. Of these children, the rate of malnutrition among children
from ethnic minorities living in remote areas is twice as high as the rate among
children living in remote areas overall.
A lot of people still don't get enough micronutrients. The general rate of anemia in kids
younger than 5 is 28%. Statistics also show that only 1 in 4 babies younger than 6
months are fed only breast milk, while 59% are given a varied and full weaning diet.
As a result, Nutifood has made the correct decision regarding its long-term
development and forging its own course in the powdered milk industry by selecting this
market segment.
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APPENDIX D
Communication channel
Thuy Minh was welcomed to collaborate with Nutifood due to her status as
an informed mother who espouses the value of expert nutrition.
Additionally, Thuy Minh advocates for the need to address the issue of
inadequate nutrition among children and pushes for the use of Nutifood
Grow Plus as the solution she chooses.
Advertising
Since Nutifood supports the U19 team, the team's values and reputation are
linked to the brand. As football is the most popular sport in Vietnam and
has a loyal fan base, a successful team can positively reflect highly on the
sponsor and improve customer perceptions of the business. As a result,
Nutifood's brand recognition and awareness in the Vietnamese market
increased.
=> Kill two birds with one stone
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Social Media
Nutifood established a fanpage with the dual purpose of increasing brand
recognition and promoting customer confidence by enabling them to access
product details online without the need to physically visit the establishment
or contact customer service. Nutifood can also gather customer feedback
regarding the product with little difficulty. This allows Nutifood to adapt
its business strategies through its fanpage.
Direct marketing
Charity and social activities contribute to the development of Nutifood's
brand image as friendly and socially conscious. This method not only
enhances Nutifood's reputation among its existing customer base but also
creates favorable psychological emotions among potential customers who
have yet to try Nutifood products or are thinking about doing so.
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Promotion
Vietnamese mothers frequently participate in minigames with attractive
prizes that appeal to their fear of missing out, which is why Nutifood's
advertising campaigns frequently target them. To take advantage of
the benefits that these campaigns provide, this will encourage them to
search for products containing scratch cards, codes, or discount
programs. In addition to stimulating consumer interest, these marketing
initiatives generate financial gains for Nutifood.
CONTACT INFORMATION
TEAM MEMBERS
Thank
!you !