VIETNAM NATIONAL UNIVERSITY

INTERNATIONAL SCHOOL
***

INTERNATIONAL MARKETING
FINAL ASSIGNMENT
INS101801

VINAMILK ENTERS LAOS MARKET

Lecturer: Ph.D Ho Nguyen Nhu Y

Full name Student code

Nguyen Minh Thu 20070336
Dương Thúy Nga 20070261
Đỗ Khánh Huyền 20070192
Nguyễn Thị Minh Hạnh 20070163
Nguyễn Hà Khánh Huyền 20070198

Hanoi, 3rd June 2023

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 Table Content
I. EXECUTIVE SUMMARY ....................................................................................................................4
II. CURRENT MARKETING SITUATION ............................................................................................ 4
1. Vinamilk in the Vietnamese Market ............................................................................................ 4
1.1 Achievements in the Vietnamese Market .........................................................................4
1.2 Product Review ................................................................................................................ 6
1.3 Supplier Review .............................................................................................................. 7
1.4 Competitive Review ......................................................................................................... 7
1.5 Channels and Logistics Review ....................................................................................... 8
1.6 Customer Segmentation .................................................................................................. 8
2. Potential to develop into the international market ....................................................................... 9
1. Macroeconomic Environment Analysis (PESTLE) ...................................................................10
1.1 Political Factors ..............................................................................................................10
1.2 Economic Factors ........................................................................................................... 11
1.3 Sociocultural Factors ......................................................................................................12
1.4 Technological Factors .................................................................................................... 13
1.5 Legal Factors .................................................................................................................. 14
1.6 Environmental Factors ................................................................................................... 15
2. Industry Environmet Analysis (Five Forces Model) ................................................................. 16
2.1 Threat of new entrants ....................................................................................................16
2.2 Bargaining power of buyers ........................................................................................... 17
2.3 Bargaining power of suppliers ....................................................................................... 17
2.4 Threat of new substitutes ................................................................................................18
2.5 Competitive rivalry .........................................................................................................18
IV. SWOT ANALYSIS ..........................................................................................................................19
1. Strengths .................................................................................................................................... 19
2. Weaknesses ................................................................................................................................ 20
3. Opportunities ..............................................................................................................................20
4. Threats ........................................................................................................................................21
V. ENTRY MODE .................................................................................................................................. 22
1. The market extension product ....................................................................................................22
2. Entry mode to the Laos market ..................................................................................................23
VI. OBJECTIVES & GOALS .................................................................................................................25
1. Goals .......................................................................................................................................... 25
2.Objectives ................................................................................................................................... 25
VII. MARKETING STRATEGY ...........................................................................................................26
1. Market Target .............................................................................................................................27
1.1 Demographics .................................................................................................................27
1.2 Geographics ....................................................................................................................27
1.3 Psychograpics .................................................................................................................27
1.4 Behavioral ...................................................................................................................... 27
2. Market Positioning .....................................................................................................................28
3. Differentiation ............................................................................................................................29
4. Integrated Marketing Mix (4Ps) ................................................................................................30
4.1 Product ........................................................................................................................... 31
4.2 Price ................................................................................................................................31
4.3 Place ............................................................................................................................... 31
4.4 Promotion ....................................................................................................................... 33
VIII. ACTION PROGRAMMER ............................................................................................................34
Campaign 1 .................................................................................................................................... 35
Campaign 2 .................................................................................................................................... 38
Campaign 3 .................................................................................................................................... 40
Campaign 4 .................................................................................................................................... 41
IX. PROJECTED MARKETING BUDGET .......................................................................................... 42
X . CONCLUSION ................................................................................................................................. 49
GANTT CHART......................................................................................................................................50
INDIVIDUAL CONTRIBUTION .......................................................................................................... 54
REFERENCE .......................................................................................................................................... 55

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I. EXECUTIVE SUMMARY
Vinamilk Dairy Company is one of the leading dairy companies in Vietnam and has
good brand awareness in existing international markets such as China, Japan,
Malaysia, etc. The company is planning to enter a new potential international market.
With a growing economy and growing demand for dairy products, Laos presents an
attractive opportunity for Vinamilk to expand operations and build a strong position in
the region. To reach the target customers, Vinamilk has developed a comprehensive
marketing plan to successfully enter the Lao market.

This marketing plan is designed to target and meet the specific needs of the Lao
market. Vinamilk's main customers include families with children and people who
care about health. By understanding the demographic, geographical, psychological,
and behavioral characteristics of this customer group, Vinamilk aims to customize
products and marketing strategies to attract the attention of Lao consumers through
integrated marketing strategies (4Ps). Throughout the marketing strategy, Vinamilk
positions itself as a safe, high-quality milk company of international standards,
containing good nutritional content to help improve the health and immune system of
users. In addition, Vinamilk will also make a difference by focusing on organic dairy
products, which is in line with the trend of consumers concerned about health and
environmental protection in the Lao market. The project to build the Lao-Jagro
organic dairy resort, a large farm with a scale of 5,000 hectares, is a testament to
Vinamilk's commitment to quality, product innovation, and environmental protection.

II. CURRENT MARKETING SITUATION

1. Vinamilk in the Vietnamese Market
1.1 Achievements in the Vietnamese Market

 Overview of Vinamilk
Vinamilk is one of the leading dairy companies in Vietnam and is considered a
symbol of the domestic dairy industry. Vinamilk was established in 1976 with the
original name Dong Nai Dairy Ingredients. Initially, the company only focused on
producing soy milk and some other dairy products. Through the development process,
Vinamilk has expanded its production scale and invested in modern technology. In
1993, the company officially changed its name to Vietnam Dairy Products Joint Stock
Company (Vinamilk). In 2003, Vinamilk became the first company in the dairy
industry in Vietnam to open a public listing on the Ho Chi Minh City Stock Exchange.
The listing helps the company increase capital and attract investment to grow stronger.

Vision
“To be a world-class brand in the food and beverage industry, where people
put their trust in health and nutrition products.”

Missions
“Vinamilk is committed to bringing to the community a top-quality and high-
class nutrition source with our respect, love, and high responsibility for human
life and society.”

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 Core values
 Quality: committed to delivering products of the highest quality, assuring
safety and nutritional value, upholding strict quality control measures

 Innovation: embraces innovation and continuously seeks to improve their

products, processes, and technologies: invests in research and
development products for the market.

 Integrity: conducts its business with integrity, transparency, and ethical

practices, maintains a strong commitment to compliance with laws and
regulations, as well as responsible corporate governance.

 Sustainability: dedicated to sustainable development and environmental

responsibility. Vinamilk strives to minimize its ecological footprint,
optimize resource utilization, and support sustainable farming
practices, prioritize the well-being and development of its employees and
the communities they operate in.

 Customer Focus: Vinamilk places a strong emphasis on understanding and

meeting the needs of its customers, actively listens to customer feedback,
engages in continuous improvement, and aims to exceed customer
expectations by providing products and services that bring value,
convenience, and satisfaction.

 Achievements of Vinamilk

The company is a leading enterprise in the dairy processing industry, currently

accounting for 75% of the dairy market share in Vietnam. In addition to strong
domestic distribution with a network of 183 distributors and nearly 94,000 sales
points covering 63 provinces and cities, Vinamilk products are also exporting
products to 57 countries and territories. The company has built a network of dairy
exports. and related products to many countries around the world, such as China, the
USA, Japan, European countries, and Southeast Asia. Vinamilk currently has more
than 45 domestic and foreign member units, including 17 factories, 15 farms, and
more than 20,000 employees. In 2021, Vinamilk achieved revenue of more than VND
61 trillion, contributing VND 4,794 billion to the State budget. This enterprise is also
implementing a series of large projects such as Hung Yen Dairy Factory, Moc Chau
Dairy Paradise, and a Joint Venture with Japan in the field of beef.

 In 2017, Launched the first European-standard 100% Organic Fresh Milk

produced in Vietnam. One of the 2000 largest listed companies in the world and
the only Vietnamese FMCG company on the list. to this list, with revenue and
market capitalization of $2.1 billion and $9.1 billion, respectively.
 In 2019, Vinamilk on the Top 200 best companies with revenue of over 1 billion
USD in Asia Pacific (Best over a billion).
 In 2021, celebrating 45 years of establishment, Vinamilk not only became the
leading nutrition company in Vietnam but also established a solid position as a

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 National Brand on the map of the global dairy industry. The company has entered
the top 40 dairy companies with the highest revenue in the world (Plimsoll
Statistics, UK).

 Vinamilk Highlighted Promotional Activities

Vinamilk has implemented many promotional activities to position the brand and
create a strong identity in the Vietnamese market.

Media advertising campaigns: Vinamilk's advertising campaigns often focus

on honoring the nutritional value of milk and the image of healthy, happy
families through campaigns like "The 1 choice: Vinamilk - Health and family
love", "Each cup of Vinamilk milk is a family love", "Nursing health, bonding
with Vinamilk", etc.

Sponsorship and sports events: The association with sports events such as
football, athletics, basketball, racing, etc. have helped Vinamilk build a strong
image and connect with the sports community through the "Vinamilk Cup",
"Vinamilk Cycling Tour", "Vinamilk Sports for All"

Social and Charity Programs: Vinamilk has carried out many social and
charity activities to create an image of a responsible and caring producer for
the community. The company has organized programs to support education
and nutrition for children, along with the construction of educational and
medical infrastructure for the community: Dairy Fund "Rise Vietnam", Fund 1
million Trees for Vietnam, Scholarship Fund "Vinamilk - Nurturing Young
Vietnamese Talents",...

1.2 Product Review

With a variety of products, Vinamilk currently has over 200 dairy products and dairy
products, including condensed milk, powdered milk, nutritional powder, fresh milk,
ice cream, yogurt, and cheese. And other products such as soy milk, fruit juice, cake,
instant coffee, bottled water, tea, and instant chocolate. Vinamilk's products are not
only trusted by Vietnamese consumers but also in the foreign market. Up to now,
Vinamilk dairy products have been exported to many markets around the world: USA,
Canada, France, Russia, Germany, Czech Republic, Poland, China, the Middle East
region, and Asia region.

Specifically, 3 product lines shortlisted for the program include fresh milk (100%
Vinamilk fresh milk, organic fresh milk); yogurt (organic yogurt, fruit yogurt, Probi
live yeast), and Vfresh 100% juice (apple, grape, orange juice). These are the key
products of Vinamilk, with a closed production process from input to output and strict
quality control, so they are very popular in the Vietnamese market.

Vinamilk's 100% fresh milk product is a product line that has been favored by
Vietnamese consumers for many years. Nielsen Vietnam Co., Ltd recently announced
the results of market research, according to which Vinamilk 100% fresh milk is

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leading in both volume and sales in the segment of fresh milk brands for 12
consecutive months. continued, from July 2016 nationwide.

As for premium organic Vinamilk fresh milk, Vinamilk is the first dairy company in
Vietnam to produce organic fresh milk products according to European organic
standards. This is the result of the construction of the Vinamilk Organic Dalat dairy
farm - the first dairy farm in Vietnam to meet European organic standards, certified
by the world's prestigious Control Union (Netherlands) organization. For fresh and
pure milk, the farm must ensure ideal natural conditions, the most advanced dairy care
technology, and environmental protection. All processes of taking care of cows and
producing raw milk are guaranteed to strictly comply with the "3 NO" regime of the
European organic standard. First, no growth hormone is used for cows. Second. , no
antibiotic residues Thirdly, no pesticides are used. The cows are fed organic standard
feed, without pesticides as well as chemical fertilizers and genetically modified
substances.

1.3 Supplier Review

Vinamilk is one of the largest dairy companies in Vietnam and is highly appreciated
for its product quality. This is because Vinamilk uses the best raw materials and
modern production plants, which meet international standards for food safety and the
environment.
Vinamilk's raw materials are purchased from high-quality dairy farms, ensuring the
safety and freshness of products. These farms are strictly controlled by Vinamilk and
ensure compliance with regulations on milk quality and the environment. Currently,
Vinamilk has more than 200 livestock farms across Vietnam's provinces, with more
than 150,000 dairy cows and millions of poultry. The farms are built and managed
according to international standards for food quality and safety, ensuring the health of
animals and the quality of dairy products. In addition, Vinamilk also invests in dairy
cow breed development projects, helping to improve milk yield and quality.
In addition to 13 dairy factories spread across Vietnam, Vinamilk also invested in
building the Angkor dairy factory in Cambodia (Vinamilk owns 100%), Vinamilk
holds a 22.8% stake in the Miraka dairy factory (New Zealand), owns 100% of the
shares of Driftwood factory (USA) and invests in a subsidiary in Poland as a gateway
to trade Vinamilk's commercial activities in Europe.

1.4 Competitive Review

In terms of competition, Vinamilk faces several local and international players in the
dairy industry. Some of the key competitors include TH True Milk, Nestle, Dutch
Lady, NutiFood, Abbott, and FrieslandCampina. TH True Milk is a relatively new
player in the market, but it has been expanding rapidly and aims to capture 6.1% of
the market share by 2020. Nestle is a multinational company that operates in various
sectors, including dairy. Its market share in Vietnam's dairy industry is estimated to be
around 10%. Dutch Lady is a subsidiary of FrieslandCampina, a Dutch dairy company.
Dutch Lady has a market share of around 22% in Vietnam's dairy industry, while
FrieslandCampina's total market share is around 15.8%.

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According to Euromonitor International's report, Vinamilk is the largest dairy brand
in Vietnam with a market share of about 43.3% in 2020. In addition, Vinamilk is also
one of the largest dairy companies in Southeast Asia.

Dairy market share in 2020 - source: Euromonitor, SSI estimates.

1.5 Channels and Logistics Review

 Channels review
Vinamilk's products have become popular and easy to find throughout Vietnam
because it uses 3 main distribution channels. The first channel is the supermarket
system, from large supermarkets such as Co.opmart, and Big C to small supermarkets
such as Walmart, Family Mart, and B'smart. The second distribution channel is
through dealers with more than 220,000 stores in 63 provinces in Vietnam (ISAAC
2019). Last not but least, due to the development of e-commerce, Vinamilk also sells
its product through partnerships with major online retailers such as Lazada, and Tiki,
website Vinamilk. These channels and distributors nationwide have brought
Vinamilk’s products to every corner of Vietnam with the same quality.

 Logistics review
The company has a fleet of more than 1,500 vehicles, including refrigerated trucks
and vans, ensuring that products are transported optimally. Vinamilk also operates a
centralized warehouse management system, ensuring that stock levels are monitored
and products are distributed in a timely manner. The company employs RFID
technology to track and monitor its products' movements from farm to shelf, ensuring
the safety and quality of its products.

1.6 Customer Segmentation

Vinamilk brand divides target customers into two groups including individual
customers and institutional customers. Vinamilk always brings customers the highest

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quality, most nutritious and delicious products for the health of each family member.
All ages and subjects are suitable for Vinamilk's products.

Individual customer groups

As consumers who have the need to buy and are willing to pay to buy
Vinamilk products, especially parents with children from 2-10 years old. This
group of customers has a relatively diverse product demand (good product
quality, product nutritional value, reasonable price, eye-catching packaging
design...) and accounts for a relatively high proportion of total sales.

Organizational customer groups

Distributors, wholesalers, retailers, shops, supermarkets... have the need and
goodwill to distribute Dielac Alpha products as well as other Vinamilk
product lines. This is a group with requirements on discount rate, sales bonus,
timely ordering, etc. related to product distribution strategy.

2. Potential to develop into the international market

With domestic achievements, Vinamilk is currently the leading dairy company in

Vietnam, with the potential to develop and reach out to the international market.
Thanks to its efforts in increasing its strong domestic presence with its brand
reputation, extensive distribution network, and diversified product portfolio, Vinamilk
has built a solid foundation. Furthermore, the assurance of quality and safety
standards, the ability to innovate and research, the growing demand for dairy products,
and regional economic integration also contribute to Vinamilk's expansion. Currently,
Vinamilk will continue to expand its distribution system and invest in the Vietnamese
Dairy Dream channel (including the store system and online sales channel). Besides,
the company will continue to promote R&D activities, launch new products, and
improve quality, with an orientation not only on nutritional value but also added value
for consumers. Vinamilk also improves governance capacity and operational
efficiency at its member companies and cooperates to promote the implementation of
key investment projects such as Hung Yen Dairy Factory, Beef Farming, and
Processing Projects. (Vinabeef), Moc Chau Milk Paradise complex project.

Therefore, with a solid foundation, product portfolio, and commitment to quality,

Vinamilk has the potential to successfully expand into the international market and
become a recognized global player in the dairy industry.

Vinamilk's position in the international market.

Market and development

Vinamilk has been present in many international markets. Key markets that
Vinamilk focuses on developing include China, the US, Japan, Singapore, the
Philippines, Thailand, Malaysia, Australia, and countries in the Middle East.
Vinamilk has built a wide distribution network and gained the trust of
consumers in these markets.

Good ability to meet market demand

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 Vinamilk's entire farm applies 4.0 technology in dairy cow farming and
management. Herds of cows are imported directly from the US, Australia, and
New Zealand, creating a premise for Vinamilk to obtain the best quality fresh
milk products.The whole production process of the factory is in compliance
with GMP standards and strict international standards such as ISO 9001, ISO
17025, ISO 14000, 22000, and FSSC 22000 standards.

Global ranking

In the Global Food and Beverage Industry Report 2022 published by Brand
Finance, the Vinamilk brand is the only representative from Southeast Asia in
the Top 10 most valuable dairy brands globally (6th place) and the Top 5
strongest milk brands globally (2nd place). Vinamilk is also the only
representative of Vietnam and Southeast Asia in the Top 40 largest dairy
companies globally in terms of revenue (according to Plimsoll, UK), with
products exported to 57 countries and territories, with scale expanding.

Effective investment for foreign branches

2022 revenue of Driftwood (USA) recorded a growth rate of over 30%, this
figure at Angkormilk (Cambodia) is over 10%. At the same time, the company
also completed the projects of the Lao-Jargo Dairy Farm Complex (Laos) and
invested in expanding factories and farms in Cambodia with an estimated
investment of 42 million USD. For the export segment, Vinamilk has
successfully signed many contracts with a total value of 100 million USD,
expected to be implemented in the first 6 months of 2023 and reach over 200
million USD for the whole year of 2023.

Despite achieving great brand value and success, Vinamilk's development potential is
still highly appreciated when it becomes the most potent global dairy brand in 2022.
That is a good condition for Vinamilk to continue to reach out to the world.

1. Macroeconomic Environment Analysis (PESTLE)

1.1 Political Factors

Laos is a socialist country with a one-party political system, which means that the
government has a strong influence on the economy and business environment. The
socio-political environment and social order and safety in Laos have been considered
stable for many years now. This is clearly reflected in the point of view and consistent
policy of the Lao People's Revolutionary Party and the Lao State. This political
stability is always considered the most favorable and attractive opportunity for
strategic activities of investors, foreign manufacturers, and businesses in general and
Vinamilk in particular.

The friendship between Vietnam and Laos is also extremely good. The two countries
officially established diplomatic relations on September 5, 1962. Vietnam is one of
Laos' largest trading partners. Leading among countries investing in Laos are China
($5.2 billion), Vietnam ($4.7 billion), and Thailand ($4.6 billion).

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Laos is a strong developing country with an economy that is being boosted by policies
that encourage investment from the government. In particular, the dairy industry is
also set out with special policies to attract investors. Laos has been promoting the
development of the dairy industry by providing subsidies and incentives to farmers
and investors. The Lao government provides land and financial support to investors in
the dairy sector to help them start and develop their businesses. This policy helps to
reduce investment costs and increase profit opportunities for businesses.
In addition, Laos has reduced import taxes on dairy products and related products, in
order to attract dairy producers to invest in the country. One of the prominent policies
is the exemption of import tax for equipment, machinery, and raw materials for milk
production. This reduces initial investment costs for dairy producers and facilitates
production expansion.

The government has also been working to improve the infrastructure and logistics to
support the growth of the industry. In addition, the Lao government has provided
loans with preferential interest rates to dairy producers to help them expand
production and improve product quality.

In general, Laos is a potential market for the dairy industry because the Lao
government currently has preferential policies to promote investors. Besides, the close
relationship between Laos and Vietnam brings benefits to Vietnamese investors,
especially Vinamilk.

1.2 Economic Factors

Laos' economy has achieved a high and stable growth rate in recent years. According
to World Bank data, the GDP growth rate of Laos in recent years tends to gradually
increase:
Real GDP growth rate of Laos

Source: The Bank of Lao PDR: "Lao economic data".

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Laos' growth rate is still slower than other countries in Southeast Asia with a GDP per
capita of around $2,500 in 2020. However, Laos is trying to promote a diversified
economy and attract foreign investment to speed up future development. Therefore,
many economists believe that Laos will continue to grow positively in the coming
years. Currently, Laos has become an official member of the WTO since 2013, which
will help Laos diversify investment sources as well as trade activities to other regions
because countries investing in Laos are mainly in the field of natural resource mining.

The average income in Laos is relatively low. Many people in Laos work in
agriculture, with rice being the main crop. Despite economic growth in recent years,
poverty remains a significant issue in Laos, with around a quarter of the population
living below the poverty line.

Access to basic services such as healthcare and education can also be limited in some
areas. Therefore, milk consumption in Laos is much lower than in other developed
countries. The main reason is that the price of milk in Laos is still quite high
compared to people's income.

In addition, many Laotians do not have the habit of using milk in their daily diet.
However, in recent years, domestic and foreign dairy companies have invested
heavily in the Lao market, helping to reduce prices and promote the health benefits of
milk. This gradually promotes milk consumption in Laos to increase. Besides fresh
milk, condensed milk and powdered milk are also becoming popular choices for Lao
people. These dairy products are widely available in supermarkets and convenience
stores across the country.

In summary, milk consumption in Laos is increasing gradually over time thanks to the
investment of dairy companies and the promotion of milk's health benefits. However,
there are still many challenges to raising milk consumption in this country.

1.3 Sociocultural Factors

Society
According to statistics of the World Health Organization, as of 2021, the population
of Laos is about 7.9 million people with a diverse mix of ethnic groups and languages.
Laos' population growth rate is slowing down, from 2.5% in the 1980s to about 1.5%
in 2021. The Lao population has a young structure, with about 40% of the population
under 15 years old and only about 4% of the population over 65 years old. However,
Laos' population is maturing and aging rapidly, with the proportion of people over 65
expected to increase to around 10% by 2050.

The population of Laos is distributed mainly in the deltas and valleys of the Mekong
River. However, there are still some regions in eastern and southern Laos where
population growth rates are higher than the national average.

The young population has increased dramatically, the population distribution is

concentrated in rural areas, and the dairy industry in Laos has the potential for
development. With the growing nutritional needs of children, the dairy industry will

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have the opportunity to develop and expand the consumption market. However, in
order to meet the needs of consumers, the dairy industry needs to invest in technology
and product quality management to ensure food safety and product quality. In
addition, it is necessary to have policies to support and encourage dairy producers to
promote the development of this industry.

Culture
Lao culture has unique characteristics and reflects the diversity and depth of the Lao
people. What is remarkable is the strong influence of Buddhism on people's lives and
thoughts. Also, another important aspect of Lao culture is traditional cuisine. A
signature dish is Khao Jee, a type of white rice that is served with dishes such as meat,
fish, vegetables, and spices. Besides, milk is usually used in some special Lao dishes
such as milk bread (khao nom krok) or milk cake (khao tom mat). Therefore, the use
of milk in Laotian cuisine can be considered a modern culinary style and may not be
suitable for some traditional Lao people. However, with the development of the
economy and culture, milk is becoming a more popular and used product in Lao
cuisine which affects on consumer behavior toward dairy products:

 Using fresh milk: Fresh milk is considered the most popular milk in Laos,
produced from local farms and sold at local markets. People often buy fresh
milk daily to drink or make dishes such as yogurt, flan, and ice cream...
 Using condensed milk: Condensed milk is also a type of milk commonly
used in Laos, especially in desserts such as ice cream, flan, pudding...
 Using powdered milk: Powdered milk is also used in Laos, but not as popular
as fresh milk and condensed milk, often used to make drinks such as milk
coffee, milk tea...
 Using other animal milk: In addition to cow's milk, Lao people also use
goat's milk and sheep's milk to make dishes.
 Using specialty milk: Specialty milk such as soy milk, and peanut milk is
also commonly used in Laos, especially in vegetarian dishes.

However, due to the difficult economic and cultural situation of Laos, not all families
can afford to use milk adequately and regularly. Many families still have to use fresh
milk as the main and only use condensed milk or powdered milk when necessary.

1.4 Technological Factors

Laos, as a developing country, has made progress in improving its technological

infrastructure over the years. However, it still faces challenges in terms of technology
adoption and access, especially in rural areas.The following are technological factors
in Laos that can support the potential development of Vinamilk's dairy industry in
Laos.

Agricultural technology
Laos is continuing to apply modern agricultural technologies to improve farming
methods. Vinamilk can take advantage of this by partnering with local dairy farmers
and introducing advanced farming techniques, such as improved farming methods,
feed management, and animal health. This cooperation can ensure a sustainable and
quality milk supply for Vinamilk.

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Cold Chain Infrastructure
The availability of cold chain infrastructure, including refrigeration and transportation
systems, is crucial for maintaining the quality and freshness of dairy products. A well-
developed cold chain helps prevent spoilage and allows for the distribution of milk
and dairy products to distant markets, thereby expanding the industry's potential.

Digital technology
Laos' efforts to improve digital connectivity and digital literacy could provide an
opportunity for Vinamilk to explore innovative methods of marketing, distribution,
and customer acquisition. create. Leveraging digital platforms, e-commerce, and
mobile applications can help Vinamilk access the growing digital consumer market in
Laos.

Dairy Processing
Technological advancements in dairy processing, including pasteurization,
homogenization, and packaging, can help ensure product safety, extend shelf life, and
maintain quality standards. Proper processing facilities and equipment are necessary
for value addition and diversification of dairy products.

In summary, the technological system in Laos is not yet considered advanced, but
there are still favorable facilities to support in the dairy industry.

1.5 Legal Factors

Some prominent Laos dairy industry legislation is crucial for safeguarding consumer
health, guaranteeing milk quality, and fostering trust in the Lao dairy market. These
rules must be followed by businesses in the dairy sector in order to assure legal
compliance, enhance product quality, and conduct operations sustainably

Regulations on production standards

Laos has regulations on dairy production standards to enhance quality
assurance and food safety. Dairy companies must comply with these
regulations and obtain appropriate certification before they can operate.

Regulations on food hygiene and safety

Laos applies regulations on food hygiene and safety during the production,
processing, and distribution of milk. This includes the regulation of
maintaining sanitary conditions in the manufacturing plant, testing the quality
of milk, and dealing with potential risks associated with food safety. Need to
follow ISO 9001 for quality management, ISO 22000, and HACCP (Hazard
Analysis and Critical Control Points) for food safety management

Regulations on advertising and trademarks

Enterprises must overcome these regulations and ensure that information on
labels and advertisements does not cause confusion or misunderstanding for
consumers. Milk produced and sold in Laos must be fully and clearly labeled
according to regulations. Labeling includes information on the manufacturer,

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 ingredients, origin, expiry date, instructions for use, and any other relevant
claims.

Regulations on import and export

Laos has regulations on the import and export of dairy products. Companies
wishing to import or export must comply with these regulations and respond to
requests for quality control and relevant documentation.

In general, the dairy industry of Laos has many regulations that dairy investors need
to pay attention to, especially on food safety and hygiene standards. To be able to
enter the Lao market, dairy companies must meet the dairy standards set by the
government.

1.6 Environmental Factors

Environmental factors in the dairy industry in Laos not only affect the sustainability
of this industry but also play an important role in ensuring the quality and safety of
dairy products. Sustainable environmental management and the protection of natural
resources are essential to ensure the development and success of the dairy industry in
Laos. In Laos has a number of favorable environmental factors for the dairy industry,
here are some highlights:
Abundant and fertile land: Laos is known for its vast areas of fertile land,
which is favorable for agricultural activities, including dairy farming. The
availability of land provides opportunities for grazing and cultivating fodder
crops, essential for dairy cattle.

Favorable climate: Laos has a tropical climate with distinct wet and dry
seasons. This climate is suitable for dairy farming as it allows for year-round
forage production and a continuous supply of nutritious feed for dairy cattle.

Limited industrial pollution: Compared to some heavily industrialized

countries, Laos has a relatively lower level of industrial pollution. This can be
advantageous for the dairy industry, as it helps maintain the quality and purity
of the environment, minimizing potential contamination risks.

In particular, there are a number of favorable geographical factors when transporting

Vinamilk dairy products from Vietnam to Laos, helping to transport quickly, and
shortening time and costs.

Border: Vietnam and Laos border on a border of more than 2,000km. This
contiguity facilitates the movement of goods, including milk, between the two
countries. The distance between the big cities of the two countries such as
Hanoi, Da Nang, Ho Chi Minh (Vietnam), and Vientiane, Luang Prabang
(Laos) is not too far apart. This reduces the time and cost of transporting milk
between key locations.

Transport network: Transport network: The two countries have a well-

developed transport network including roads, waterways, and air. This
facilitates the transportation of milk from Vinamilk's manufacturing plants in
Vietnam to points of sale or distributors in Laos.

15
 Seaports: Vietnam has many large and developed seaports, such as Hai Phong
Port, Da Nang Port, and Cat Lai Port. Using a seaport to transport Vinamilk
milk from Vietnam to Laos can be a reasonable and time-saving option.

2. Industry Environmet Analysis (Five Forces Model)

2.1 Threat of new entrants

In 2021, Laos imported milk worth 3.72 million USD, becoming the 111th largest
milk importer in the world. Also this year, Milk was the 291st imported product of
Laos. The Lao dairy e-commerce market is predicted to reach USD 4.0 million by
2023 and accounts for 58.9% of the dairy & egg e-commerce market in Laos. It is
expected to continue to increase in the coming years.

From this data, we can see that the demand for milk in Laos is greater than the
domestic supply. The dairy industry in Laos has a relatively developed structure but is
still in the growth stage and has not reached maturity compared to some countries in
the region. Therefore, there will be many new competitors who want to enter the dairy
market in Laos. However, barriers to market entry are something that companies must
consider carefully, such as:

Capital Requirements: Establishing a dairy business often requires

significant investments in infrastructure, resulting in high capital requirements
that can act as a significant barrier to entry.

Distribution Network: New entrants will need to invest in building their own
distribution network, which can effectively create barriers to entry and limit
their ability to reach customers.

Brand Loyalty: Established dairy companies often enjoy brand loyalty and
customer trust, which is difficult for new entrants to imitate.

16
Furthermore, in the dairy industry in Laos, the competitive structure is monopolistic
competition. There are many competitors that offer similar dairy products but
different prices, strategies, or quality to consumers. Each company has some degree
of market power and tries to offer unique selling propositions to attract customers.
However, there is no single dominant player that controls the entire market. In this
market, the barrier to entry will be medium.
In summary, although the dairy industry in Laos is still in a growth phase, due to the
monopolistic competition structure and other barriers to entry will create great
challenges for new entrants, so it is possible to comment that the threat from new
entrants in Laos is quite high.

2.2 Bargaining power of buyers

Buyers' strong bargaining power implies that customers have significant leverage in
their interactions with suppliers, which can affect profitability and competitiveness in
the industry. Although the domestic dairy industry in Laos is not really developed, the
volume of milk imports is extremely large, which makes Laos a potential market for
competitors to enter the market. There are more domestic and imported dairy
companies, and customers also have more choices instead of being dominated by an
exclusive brand. Moreover, the dairy industry has low switching costs because the
price difference is not too high, even very small. From the above, we can see that the
bargaining power of buyers is relatively high.

2.3 Bargaining power of suppliers

Although it is still dependent on a number of sources such as cow breed or technology

such as:

 Vinamilk imports Holstein Friesian (HF) purebred dairy cows, which are
registered with the American HF Dairy Association and have complete
pedigree information for up to 3 generations.

 All Vinamilk's products are manufactured on modern machinery and

equipment from Sweden, and European countries - G7 and are strictly
controlled according to the quality management system according to ISO
international standards. World-leading company certified.

But in general, milk suppliers do not have too much influence on Vinamilk. In
addition to focusing on developing marketing strategies, Vinamilk also promotes the
strategy of building dairy farms in Vietnam and Laos. This ensures the supply and
controls the quality of its dairy products. Since its development until now, the brand
has had the 12 largest international standard farms in Asia, with a herd of 130
thousand cows.
Because Vinamilk can be independent in terms of supply and continues to invest in
expanding its supply, the bargaining power of suppliers is relatively low.

17
2.4 Threat of new substitutes

Vinamilk mainly produces products related to cow's milk and is currently developing
more nut milk and soy milk products with outstanding products such as Vinamilk
fresh soy milk and Vinamilk walnut milk. Vinamilk's risk in the Laos market not only
comes from rival companies but also from milk substitutes in Laos. Here are the
names of some milk substitutes along with the pros and cons of each

Nut milk: Nut milk such as almond milk, barley milk, or chia seed milk is
also consumed in Laos as a milk substitute. They can be a good choice for
people who are vegetarians or have dairy allergies. However, nut milk does
not provide the same amount of protein and calcium as animal milk, and it
may not be suitable for young children or people with special nutritional needs.

Other plant milk: In addition to soy and nut milk, there are other plant-based
milk such as coconut milk, barley milk, almond milk, barley milk, and olive
milk. These kinds of milk are often seen as a milk substitute for vegetarian or
restricted dairy options. However, these types of milk have different flavors
and nutritional profiles, and may not provide the full range of nutrients that
animal milk has.

Natural milk: Some people can substitute milk by using natural ingredients
such as fresh coconut water, almond water, or coconut fat water. However, the
disadvantage of this method is that it cannot provide adequate nutrients for the
body, especially calcium and vitamin D.

These substitutes may pose a risk to the dairy industry in Laos because switching
costs are low so consumers can choose these alternatives over cow's milk products.
Threats from substitutes can be difficult for the dairy industry because milk
substitutes can cause price competition and change consumer demand.

2.5 Competitive rivalry

In Laos, there are many rival companies of Vinamilk such as Dutch Lady (Malaysia),
Foremost (Thailand), Lao Dairy Company and Magnolia (Philippines). Prominent
among Vinamilk's competitors in Laos is Lao Dairy Company which has been
operating since the 1990s and was established by foreign investors. Lao Dairy
Company offers bottled milk products, powdered milk and frozen milk. The
company's products are branded Laodi, manufactured at the factory in the capital
Vientiane.

The dairy market in Laos has a lot of potential, but the competition will be fierce in
the future, in the context that foreign competitors and local companies are planning to
expand production and develop the market. In order to compete effectively, Vinamilk
will need to focus on improving product quality, increasing advertising and customer
outreach, and developing special products that meet the diverse needs of consumers.
market.

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IV. SWOT ANALYSIS

1. Strengths

Brand Reputation
Vinamilk has established a strong brand reputation in Vietnam and internationally. It
is recognized as a trusted and reputable brand, known for its high-quality dairy
products. Vinamilk on the Top 200 best companies with revenue of over 1 billion
USD in Asia Pacific (Best over 1 billion).

Product Diversity
Vinamilk offers a wide range of dairy products, including milk, yogurt, cheese, ice
cream, and infant formula. This diverse product portfolio caters to various consumer
preferences and segments, allowing Vinamilk to capture a larger market share.

Quality Assurance
Vinamilk places a strong emphasis on quality assurance throughout its production
processes. It implements strict quality control measures, adheres to international food
safety standards such as ISO, and HACCP, and invests in advanced technology and
research to ensure the safety and quality of its products. Vinamilk is the only
company in Asia that has an automatic milking system that meets G.A. Fast high-
temperature sterilization technology, Modern milk powder canning technology.

Supply Chain Management

Vinamilk has a well-established and efficient supply chain management system. It
works closely with dairy farmers, ensuring a stable and high-quality milk supply. The
company also has an extensive distribution network, allowing its products to reach
consumers across Vietnam and in international markets.

Innovation and R&D

Vinamilk invests in research and development (R&D) activities to continuously
innovate and improve its product offerings. It focuses on developing new flavors,
formulations, and packaging designs to meet evolving consumer demands and
preferences.

Market Leadership
Vinamilk holds a dominant market position in Vietnam's dairy industry. Vinamilk
currently accounts for 75% of the dairy market share in Vietnam. It has a large
market share and benefits from economies of scale, enabling it to compete effectively
and maintain its leadership position.

International Expansion
Vinamilk has successfully expanded its presence in international markets. It exports
its products to over 50 countries worldwide, leveraging its brand reputation and high-
quality products to penetrate and compete in global markets.

Corporate Social Responsibility

Vinamilk demonstrates a commitment to corporate social responsibility by
implementing sustainable and environmentally friendly practices. It supports local

19
dairy farming communities, invests in social welfare programs, and contributes to
environmental conservation efforts.

These strengths have contributed to Vinamilk's strong market position, brand

recognition, and sustainable growth in the dairy industry, both in Vietnam and
internationally. It is a strong premise for Vinamilk to develop well in the Lao market.

2. Weaknesses

While Vinamilk has several strengths, it also faces certain weaknesses that can pose
challenges to its operations and market competitiveness. Some of the weaknesses of
Vinamilk include:

Limited International Market Penetration

Although Vinamilk has expanded its presence in international markets, its global
market share is relatively smaller compared to some multinational dairy companies. It
faces challenges in establishing a strong foothold and competing with well-established
brands in international markets.

Product Pricing
Vinamilk's pricing strategy, particularly for premium and specialized products, may
be perceived as relatively higher compared to some competitors. This pricing strategy
can limit the company's ability to attract price-sensitive consumers, especially in
price-driven markets.

Brand Differentiation
While Vinamilk is a recognized and trusted brand in Vietnam, it faces increasing
competition from both local and international dairy companies. Ensuring strong brand
differentiation and consistently delivering unique value propositions can be
challenging in a crowded market.

Supply Chain Management

While Vinamilk has a well-established supply chain, it may face challenges in
managing and ensuring the quality and consistency of milk supply from local dairy
farmers. External factors such as fluctuations in milk production, weather conditions,
and farming practices can impact the reliability of the supply chain.The source of
supply of raw dairy milk can not fulfill the production demand. Besides , Vinamilk
investing in organic farms and importing dairy cows abroad costs a large amount of
money.

It is important to note that these weaknesses are relative and can be addressed through
strategic initiatives, market adaptations, and continuous improvements to maintain
and enhance Vinamilk's competitiveness in the dairy industry.

3. Opportunities

From the analyzed data, the Lao market is still very potential in the dairy industry,
with typical opportunities as follows:

20
Weakness in Laos' milk production capacity
Laos has few dairy farms and natural milk production is low. There are a number of
milk processing factories in the country, but the scale and production technology are
still limited. Vinamik can fully take advantage of this to penetrate deeply into the Lao
market because Vinamilk has large farms and advanced technology in milk
production.

Increasing demand for milk in Laos

The dairy market in Laos is still growing and the demand for milk is increasing due to
the growing population and awareness of the health benefits of milk. Milk
consumption in Laos is increasing over time thanks to investments by dairy
companies and the promotion of milk's health benefits. Along with that, the culture of
liking sweets and soft drinks and using milk in dishes is increasingly popular in Laos,
which has become an opportunity factor for Vinamilk to enter this market.

Social and political stability

The socio-political environment and social order and safety in Laos have been stable
for many years. Laos is a country with favorable investment policies, supporting
foreign businesses to invest in this country, especially in the dairy industry.

Vinamilk meets strict censorship regulations on milk in Laos

Companies that want to import and export must comply with regulations on
censorship of the dairy industry in Laos, meet quality control requirements and related
documents, making it difficult for other competitors to enter the market, but Vinamilk
has capable of meeting these requirements.

Environmental and geographical factors facilitate trade between the two

countries
Laos has favorable environmental factors for the dairy industry such as fertile soil,
favorable climate, and limited industrial pollution. Along with that, the favorable
geographical factor when transporting Vinamilk dairy products from Vietnam to Laos
helps the transportation process take place quickly, shortening time and costs: sharing
a border of more than 2,000km, The transport network is developed both by road, by
waterway, by air and Vietnam has many large seaports developed.

These opportunities have made Vinamilk decide to enter the Lao market in the dairy
industry. However, threats still need to be considered in order to weigh the risks and
tailor the specific strategy.

4. Threats

Besides the opportunities to help Vinamilk develop in the Lao market, there are still
notable threats for Vinamilk. Some threats to Vinamilk when entering the Lao market
can be mentioned:

Economic weakness in Laos

Laos is a developing country, and the economy is still quite weak, Vinamilk may have
difficulty in finding potential partners and customers in Laos.

21
Difficulties in administrative procedures
The regulations and administrative procedures in Laos are still quite complicated and
slow, which can slow down Vinamilk's investment and development in this market.
Competition: Competition from competitors in the domestic dairy industry and other
imported dairy products in Laos.

Low income
The average income in Laos is relatively low, causing the demand for milk to
decrease, people will prioritize buying essential products over milk unless necessary.

It is important for Vinamilk to carefully assess these threats and develop a

comprehensive market entry strategy to address potential challenges and leverage its
advantages and capabilities to achieve its goals. competitive advantage in the Lao
market.

V. ENTRY MODE

With the increasing demand for fresh milk in recent years, combined with favorable
climatic factors for livestock and milk production, favorable geographical factors
when transporting milk from Vietnam to Laos showed us that Laos is a potential
market for Vinamilk to develop. After analyzing the strengths and weaknesses of
Vinamilk and analyzing the opportunities and challenges for the company in Laos,
Vinamilk decided to enter the Lao market with the main product of fresh cow's milk
in the form of a joint venture.

1. The market extension product

Fresh milk is a popular product in Laos, the economic development of Laos is leading
to an increase in income and consumer demand is also increasing accordingly.
Consumers in Laos are very interested in products of high-quality standards, safe for
health, and provide adequate nutrients for the body. However, nut milk products in
Laos are not providing enough of the above criteria, thus creating opportunities for
Vinamilk's fresh milk products to thrive in this market. The boom of the retail
industry in Laos will contribute to making Vinamilk fresh milk products easily
accessible to consumers. From the above potentials, Vinamilk has decided to bring
100% fresh milk products closer to consumers in Laos.

22
2. Entry mode to the Laos market

Vinamilk has signed a joint venture agreement with Lao and Japanese enterprises to
start the construction of an organic dairy resort complex of 5,000 hectares in Laos.
This is the result of cooperation between enterprises from three countries Laos,
Vietnam, and Japan, aiming to form an international standard organic fresh milk
material area to supply to the Vietnamese market and Asia, while promoting the
development of high-tech dairy farming in Laos. This is the form of a forward joint
venture because Vinamilk is expanding its production and business activities by
investing in a new project, i.e. an organic dairy cow resort complex. This project will
provide raw materials for Vinamilk and help increase the production output of the
company.

23
Benefits when Vinamilk enters the Laos market in the form of a Joint Venture

Firstly, the joint venture helps Vinamilk access the Lao market more quickly
and efficiently. Thanks to the support from its Japanese partner, Vinamilk can
take advantage of the experience and relationships of its partners to reach
potential customers and partners in Laos.

Secondly, the joint venture helps Vinamilk reduce risks and investment costs.
When participating in a joint venture, Vinamilk only needs to contribute a part
of the capital and share risks with partners. This helps Vinamilk reduce initial
investment costs and risks in the business process.

Thirdly, the joint venture helps each country promote its own strengths: Laos
plays a central role in receiving investment and providing land funds to form
super-large-scale farm complexes. Vinamilk is the main investor with
abundant financial resources, and experience in building the dairy industry in
tropical climates, along with a large consumer market and international brands.
Japan plays the role of supplying rare genetic resources, providing equipment,
technology, know-how in the livestock industry, and quality management
according to Japan's highest standards.

Fourthly, the joint venture helps Vinamilk strengthen its competitiveness and
expand its market. Thanks to the support from Japan, Vinamilk can improve
its production capacity and supply high-quality products to the Lao market. At
the same time, Vinamilk also has the opportunity to expand the market into
other countries in Southeast Asia.

In summary, Vinamilk decided to bring products to the Laos market in the form of a
joint venture with Japan. It is the right business strategy and brings many benefits to

24
both sides. This is a prime example of taking advantage of partners and expanding the
market in the region.

VI. OBJECTIVES & GOALS

1. Goals

Vinamilk has launched Lao-Jagro Company and started constructing phase 1 of an

organic dairy "resort" complex with a scale of 5,000 hectares in Xiengkhouang
province, Laos. Phase 1 of the project is expected to raise 24,000 cows, with an initial
investment of 120 million USD. Phase 2 will be invested to increase the expected
herd size to 100,000 cows, on an area of 15,000 to 20,000 hectares. Total investment
for both phases is expected to reach 500 million USD. And this year Vinamilk intends
to bring Vinamilk's products to the Laos market. In order to achieve the plan,
Vinamilk has set specific targets in the Lao market this year as follows:

Firstly, Vinamilk aims to put the Lao-Jagro cow farm into operation and aims to
supply milk to both the Lao market and a part of the Vietnamese market. Besides,
Vinamilk's biggest goal in the period is to import and distribute Vinamilk's products
in the Laos market and expand its product range.

The second goal of Vinamilk is to increase its brand awareness in the Lao market.
Vinamilk aims to bring its brand to all Laotian people and position its products as a
safe and high-quality product line. Moreover, Vinamilk aims to create awareness and
educate Lao consumers about the benefits of milk and the nutritional value of its
products.

When entering Laos market, Vinamilk wants to take advangtage from this potential
market. Currently, after two investment phases, Vinamilk's total investment capital
has reached $500 million. The important goal Vinamilk set in Laos market is to
increase sales revenue from helping the company recover the invested capital of 500
million USD and increase Vinamilk's profit from the Laos market.

In summary, in the first phase, Vinamilk has three main goals: entering the Lao
market and distributing its products in key markets in Laos. Besides, Vinamilk aims
to enhance its brand and increase its identity in Laos. Finally, Vinamilk aims to
increase its revenue in the Lao market and help the company expand and develop.

2.Objectives

To achieve the set goals, Vinamilk breaks down Goals into small steps and sets
objectives for each stage. In the first year, Vinamilk set the following objectives
towards the common goal set.

Firstly, to distribute its products throughout the Lao market, Vinamilk will first import
and distribute its products in large target markets such as Vientiane, Luang Prabang,
and Savannakhet. Vinamilk aims to distribute its products at four big supermarkets in
those three provinces such as Makro Vientiane, Lao ITECC Mall, Dara Market, and
Savan Mall; and other distribution channels such as retail outlets, agents, and

25
convenience stores. Besides, Vinamilk also built a sales network on an online
platform to reach as many customers as possible.

In order to achieve the goal of enhancing its brand identity in the Lao market, the first
year Vinamilk set a specific goal to make its brand image familiar to three target
markets: Vientiane, and Luang Prabang. and Savannakhet. Vinamilk has set a target
of making its advertising campaigns accessible to 90% of people living in those three
big cities and resonates with neighboring rural areas such as Luang Namtha and
Champasak. In addition, Vinamilk focuses on the customer segment which is women
from 25 to 45 years old with an estimate of 1,114,500 million people (data in 2021).
Moreover, Vinamilk aims to organize educational activities and provide information
about the health and nutritional benefits of milk consumption. Vinamilk also promotes
advertising activities to reach the target market and improve Lao people's knowledge
about nutrition and health.

To realize the key goal that Vinamilk wants to achieve is to increase its revenue and
profit in the Lao market. Vinamilk set a specific goal to achieve a profit of at least
USD 00 million in the first year. Because Vinamilk's total investment capital in Laos
is 500 million USD with an expected return on capital in 8 years, the expected annual
profit is set as follows:
Expected payback period = Initial investment / 1 year net profit
500 ������� ���
=> Profit = 8 �����
= 62.5 million USD
With the above calculation, Vinamilk needs an average profit of 62.5 million USD to
be able to return the investment. However, in the first year, Vinamilk was in the stage
of introducing products to customers, so Vinamilk achieved profit target is 50 million
USD. Besides, if you want to promote advertising activities to reach customers as
much as possible, you should set a high advertising cost. With a total operating cost
estimate equal to 60% of sales, we have:
Revenue - Cost = Profit
Revenue - 60% of revenue = $50 million
Revenue= 125 million USD
Sales to be achieved in the first year is 125 million USD
(These figures are referenced based on Vinamilk's financial situation in Vietnam)
In order to achieve the set revenue, Vinamilk will implement discount and promotion
programs in the early stages to familiarize with customers in Laos. In the following
period, Vinamilk focuses on Marketing activities and promotions with the aim of
increasing revenue.

The above objectives are set out towards the common goal of Vinamilk, which is to
distribute its products in the Lao market with the target of big cities, and then bring
the Vinamilk milk brand to the people of Laos. Finally, the economic goal is to
increase revenue through marketing strategies to reach target customers.
The above objectives are set out towards the common goal of Vinamilk, which is to
distribute its products in the Lao market with the target of big cities, and then bring
the Vinamilk milk brand to the people of Laos. Finally, the economic goal is to
increase revenue through marketing strategies to reach target customers.

VII. MARKETING STRATEGY

26
1. Market Target

1.1 Demographics

For milk and dairy products, Vinamilk has three main customer segments 3 to 15
years old; 25 to 45 years old, and 60 to 70 years old. However, Vinamilk's target
customers in Laos will be families with above-average incomes and children between
3 and 15 years old or with elderly people, especially targeting women in those
families. The target group of women will be between the ages of 25 and 45. Their
education level is average and above. Occupations are mainly office workers, teachers,
salespeople, and small business owners. Therefore, the income of this customer group
will be from medium to high, living in cities or large urban areas. Marital status is
married and has children. Demographically, married women are an important and
potential customer segment for health and nutrition-related products such as milk and
dietary supplements. This is because women who have had children often have high
nutritional and health needs for both themselves and their children. In addition,
married women who have had children are also those who have stable incomes and
are able to spend on high-quality products. Therefore, Vinamilk should focus on this
customer segment in order to increase sales and strengthen its brand in the Lao market.

1.2 Geographics

Geographically, Vinamilk's customer segment in Laos will be divided into two

segments: urban and rural. However, in Laos, the demand for healthy dairy products
is increasing. This is explained by population growth and people's nutritional needs.
Therefore, the urban segment is a potential segment that Vinamik targets. Vinamilk
focuses on densely populated areas such as Vientiane's capital, big cities such as
Luang Prabang, Savannakhet, Pakse because these are areas with great potential for
economic development and large consumption markets. In addition, the people of
these cities have a high standard of living and have a demand for high-quality milk
and dairy products. Focusing on these regions also helps Vinamilk strengthen its
presence and brand in the Lao market.

1.3 Psychographics

According to psychology, women who have had children are an important and
potential customer segment for health and nutrition related products such as milk and
functional foods. This is because women often have high nutritional and health needs
for both themselves and their children. They are also the main decision-makers in
purchasing food and drinks for the family. In addition, women who have had children
are also those who have stable incomes and are able to spend on high-quality products.
They are environmentally conscious and tend to prefer organic products. Therefore,
Vinamilk focuses on this customer segment in Laos to satisfy their needs and
strengthen its brand in this market. In addition, married women are also loyal
customers and are likely to make repeat purchases, helping Vinamilk maintain sales
and revenue growth.

1.4 Behavioral

27
Regarding consumer behavior, this factor is a very important part for Vinamilk to
identify its target customers. Vinamilk focuses on exploiting potential customers in
the following consumer groups:
 The group of customers who buy products care about quality and safety: Quality
and safety are the top criteria that customers consider when buying milk. They
look for dairy products that meet strict quality standards and have undergone
appropriate testing and certification. Customers in Laos prioritize the safety and
health of their families, so they are very cautious when buying milk from reliable
sources.

 Group of customers who buy products that focus on nutritional value: Customers
care about the nutritional value of milk, especially when buying for their children.
They look for milks rich in essential nutrients such as calcium, protein, vitamins
and minerals. Milk with added nutritional benefits or micronutrient-fortified
options may be preferred by customers looking for additional health benefits.

 Group of customers interested in price and affordability: Price is an important

factor affecting customer behavior when buying milk. This group of customers
looks at the affordability of dairy products and looks for options that fit their
budget. They seek a balance between quality and price, choosing products that
offer value for money.

 Consumer group concerned about convenience and packaging: Convenience

plays a role in customer behavior when buying milk. Customers prefer dairy
products that are easy to find, buy and consume. They appreciate convenient,
user-friendly packaging that ensures the freshness and quality of the milk.

By focusing on the above customer groups, Vinamilk will help narrow the range of
customers so that it can easily launch marketing campaigns suitable for customers.

2. Market Positioning

Vinamilk is a famous dairy brand in Vietnam developed by positioning: Vinamilk is a

dairy company that provides high quality, safe, and nutritious dairy products that help
strengthen the immune system to help improve people's health use. This is also a
guideline for Vinamilk to position its brand in the international market, and continue
to do so when entering the Lao market.

Market positioning Vinamilk wants to establish a brand image and differentiate itself
from competitors in the minds of Lao consumers. Vinamilk competes directly with
dairy brands in the Lao market. The goal is to become a dairy company that is highly
trusted by customers of Vinamilk's specific brand positioning methods in the Lao
market:

 Quality and Safety: Vinamilk emphasizes the quality and safety of its products.
The company has implemented strict quality control measures, international
standards, and advanced production technologies to ensure the safety and
nutritional value of its dairy products. This positioning helps Vinamilk appeal to
consumers who prioritize product quality and reliability.

28
 Locating nutritional value: In Laos, Vinamilk positions itself as a nutritious milk
label that provides essential nutrients for the body. Vinamilk's dairy product lines
all contain very high calcium content (each 100ml of Vinamilk fresh milk is less
than 120mg of Calcium) which is good for the development of young children. In
addition, there are many essential vitamins in milk such as vitamin A, vitamin D,
and vitamin B, and trace elements such as magnesium, and phosphorus.

 Innovation and Research: Vinamilk invests in research and development to

innovate and create new dairy products that align with evolving consumer trends
and preferences. This emphasis on innovation helps Vinamilk position itself as a
forward-thinking brand, offering innovative and relevant products to the global
market.

 Sustainability and Corporate Social Responsibility: Vinamilk has demonstrated a

commitment to sustainability and corporate social responsibility. By focusing on
environmentally friendly practices, responsible sourcing, and community
engagement, Vinamilk positions itself as a socially conscious brand, appealing to
consumers who prioritize sustainable and ethical business practices.

Finally, just like Vinamilk has succeeded in positioning its brand in Vietnam to
become the "No. 1 fresh milk" brand in Vietnam, it has gone deep into the minds of
customers. Vinamilk wants to position its brand as "international quality", becoming
the leading brand of fresh milk in Laos.

3. Differentiation

Differentiation strategy is a strategy on products and services of an enterprise with the

aim of creating differentiating factors thereby increasing competitiveness with
competitors in the same field and at the same time making an impression on
customers. , making them remember their brand more.

Firstly, to position itself as a safe and quality dairy company, Vinamilk uses a
differentiated strategy focusing on investing in production processes to ensure the
quality of fresh milk. To do this, Vinamilk invests in the production process is as
follows:

 Vinamilk’s Dairy Factory is equipped with pasteurized fresh milk production line
with modern equipment and leading advanced production technology today such
as UHT sterilization technology and aseptic filling technology, the product can
keep its fresh taste for 6 months without preservatives.

 Vinamilk’s milk production process is guaranteed according to international

processes such as: ISO 9001 (Quality Management System), ISO 22000 (Food
Safety Management System), and HACCP (Hazard Analysis and Critical Control
Points). Vinamilk ensures that cows always supply 100% safe and quality milk.
Vinamilk has directly imported 100% high-grade purebred cows from the US,
Australia and New Zealand, these are countries with a developed dairy farming
background. 100% Holstein Friesian purebred cow with the highest quality milk

29
 in the world. Cows are rigorously selected, with full pedigree of the last 3
generations to ensure purebred origin, for abundant and high-quality milk.

 Not stopping there, cow's food also meets Global G.A.P standards. The cow's diet
is set up with the optimal nutritional ratio according to international standards
with 4 times a day meals with high-quality grass ingredients imported directly
from the US, cows are guaranteed to always have fresh meals best. In addition,
cows are cared for according to the application of advanced technology: cooling
mist technology from Sweden and a soft rubber mattress system to help cows
sleep well. Before milking, cows are thoroughly washed and disinfected, listening
to melodious symphonies. All will help cows be more comfortable, so that milk is
also more abundant and of better quality. At Vinamilk, there is a closed automatic
cow milking system, milk is always guaranteed to keep its pure fresh taste before
production and packaging.
 With modern equipment and advanced technology, Vinamilk always brings safe
and quality products.

Secondly, Vinamilk also differentiates itself from competitors in the market by

focusing on milk quality and nutritional content and orienting itself as a healthy milk
line. Vinamilk fresh milk has been tested and appreciated for its quality and
nutritional content by many prestigious organizations. especially ISO 22000:2005
Certification Organization - Awarded to Vinamilk in 2014, affirming Vinamilk
commitment in ensuring product quality meets international standards and is safe for
consumers. Each 100ml of 100% fresh milk contains a variety of healthy nutrients;
including 74 kcal, 3.2g fat, 3.1g protein, 120mg Calcium, vitamins A, D, B2, B12 and
trace elements such as Carbohydrate, Magnesium and Phosphorus. With the above-
mentioned rich nutritional content, each glass of milk has a great meaning for each
person's health. When drinking fresh milk, the body is supplemented with essential
vitamins found in milk such as vitamin A, vitamin D, vitamin B and trace elements
such as magnesium, phosphorus, and selenium. As a result, the body will increase
resistance, a healthy immune system, develop the nervous system and maintain
metabolism.

Vinamilk not only develops according to positioning: ‘Vinamilk is a dairy company

that provides high quality, safe, and nutritious dairy products that help strengthen the
immune system to help improve people's health use’, but also shows the difference by
proving that ‘Vinamilk is a brand with a strong social consciousness’. Vinamilk will
always focuses on its social responsibility, by implementing many programs to
encourage the sustainable development of the community and the environment.
Vinamilk has implemented many important programs in the fields of education,
people's health care and community building, especially providing free milk for poor
children.

In short, Vinamilk will differentiate itseft that Vinamilk is not only a brand possessing
advanced technology and quality products, but also a brand that is socially conscious
and always tries to clarify its social responsibility in the process of development.

4. Integrated Marketing Mix (4Ps)

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4.1 Product

With positioning‘ Vinamilk is a dairy company that provides high quality, safe, and
nutritious dairy products that help strengthen the immune system to help improve
people's health’, Vinamilk always puts the quality factor on top and upholds the value
of health. From the supply of 100% fresh milk produced according to international
standards, Vinamilk will surely bring a new, rich, quality milk flavor with high health
value.

In the Laos market, Vinamilk's product strategy will focus on diversifying basic milk
flavors in addition to pure milk, Vinamilk can provide more familiar flavors such as
chocolate, strawberry, and orange with a variety of sizes such as: 110ml,180ml and 1l,
which can meet the needs from children to adults and people with high demand for
milk.

Packaging contributes to purchasing decisions, so Vinamilk will focus on redesigning

eye-catching packaging with necessary information on the label (components,
instructions for use, expiry date). The necessary information on the label will be in the
Lao and English language . Beside, Vinamilk will design product packaging in
accordance with local culture. The main colors are blue and white. In addition, can
add stickers that are friendly to people's lives such as elephants or traditional Lao
costumes.

In order to reach potential target customers, Vinamilk has applied a campaign to

diversify products in terms of sizes and flavors to meet the needs of all customers of
all ages to help them have more choices. when buying products of Vinamilk

4.2 Price

Vinamilk will aim for mid-range pricing. Mainly reach customers with above-average
and stable incomes. Vinamilk will apply a strategy of discounts combined with many
promotions and incentives to hit the customer's psychology, creating the feeling of
wanting to buy not expensive but high-quality products. This helps attract new
customers to the brand and try new products. Vinamilk will implement preferential
price policies for customers when buying products to stimulate consumers to buy in
bulk and increase brand loyalty .

Vinamilk has applied discount vouchers to retail customers and great incentives when
becoming an agent of the brand with the aim of attracting a large number of
customers to buy and experience products, thereby establishing customer relationships.
loyal customers and potential agents for the brand to create loyalty to Vinamilk's
products.

4.3 Place

Distribution channel is an important part of Vinamilk's marketing strategy because it

directly affects other marketing decisions, a suitable and effective marketing channel
will bring the company significant advantages in the market. In the Lao market, to

31
bring products closer to consumers, Vinamilk focuses on traditional distribution
channels in densely populated residential areas in 3 target cities of Vientiane, Luang
Prabang and Savannakhet. Because Laos' telecommunications infrastructure is still
underdeveloped, e-commerce is not widely used, and most Lao people are farmers
and workers, the traditional method will be more accessible to the people. In addition,
Vinamilk also deployed and innovated its online distribution channel to suit Laotian
youth. Below are the main distribution channels Vinamilk will deploy to penetrate the
Lao market:

Entering the Lao market, Vinamilk will distribute its products through a wide and
diverse distribution system through a system of large supermarkets and retail stores.
Large supermarkets and retail stores are important places that Lao consumers often
come to shop every day with many different customers. Vinamilk can reach the vast
majority of customers through the supply of products at large supermarket chains such
as ITECC of Laos and Vientiane Center. Retail stores such as Mini Big C, Makro and
Lao Morning Market are also important access points for customers in different
regions because of the convenience and speed of retail stores. This choice helps
Vinamilk reach a wide range of customers and improve the reach of dairy products to
customers every day.

 In addition, Vinamilk will expand its distribution channel through cooperation

with restaurants, hotels and service businesses. Cooperation with restaurants,
hotels and other service businesses is a way for Vinamilk to approach customers
in the dining and entertainment environment. Providing milk and dairy drinks to
restaurants and hotels can create special product packages and meet the needs of
customers in the field of food and tourism. At the same time, Vinamilk can also
cooperate with other service businesses such as coffee shops, ice cream stalls, fast
food stores to provide dairy products or use milk in dishes and drinks. This helps
Vinamilk penetrate directly into consumers' lives through small daily services.

 In addition to traditional distribution channels, Vinamilk also makes use of online

channels to bring its products to a large number of customers using online
platforms. Vinamilk builds an e-commerce website or cooperates with existing e-
commerce websites in Laos such as Shopping-D, Foodpanda – these are the
platforms used by the majority of Laotian youth to buy food. Therefore, Vinamilk
can reach target customers who are young people and foreigners aged 25-45 who
are living and working in Laos. To be able to manage this distribution channel
well, Vinamilk can apply the DMS.ONE online sales management system for
distributors, retail points and sales staff nationwide. Each employee will be
equipped with a tablet with 3G and GPS connectivity, information related to the
item will be updated regularly. Simultaneously manage transactions, inventory
management, debt management and information management of each retail store.
Thanks to that, Vinamilk can monitor and periodically update sales information
of retailers.

 Vinamilk also aims to cooperate with local distribution partners such as stores,
traditional markets, boarding schools, museums or festival management to take
advantage of the existing network. All of the above selling points are located in
densely populated areas, so Vinamilk's products can easily reach customers who
are women aged 25-45, with small children and the elderly.

32
This strategy of selecting distribution channels will help Vinamilk widely and
effectively present in the Lao market. Combining traditional and online channels,
collaborating with local distribution partners, and optimizing distribution processes
will help Vinamilk be able to meet the needs of target customers and build trust in the
industry. Dairy industry “Vinamilk is a high quality, safe and nutritious dairy
company in Laos market”.

4.4 Promotion

After planning and developing a good product, pricing it appropriately, and delivering
it to customers, Vinamilk now needs to communicate its value propositions to
customers in Laos. The aim is to increase consumer awareness of their products,
which leads to increased sales and also creates brand loyalty. In other words, the
promotion mix is considered the communication aspect of the marketing mix. Below
are the promotions that Vinamilk will implement to attract customers in Laos:

 Traditional advertising: Radio, print, SMS, social networks, and internet

advertising are widely used in Laos. Therefore, Vinamilk will use television,
radio, and newspapers to bring the brand message to a large number of customers
in Laos. A good reputation and strong advertising campaign in Vietnam will also
have a positive impact on Lao consumers.

 Social media: To reach a large population of young people in urban centers,

Vinamilk will utilize social media and popular websites. With 2.2 million
Facebook users in Laos and 1.9 million monthly active users on Youtube. To
reach a large number of these potential customers, Vinamilk will create Facebook,
Tiktok, Youtube, and Whatsapp accounts in Lao to build online communities,
share product information and organize contests and events. online, and interact
directly with customers. At the same time, it is easy to spread campaigns and
promotions to attract customers to use social networks.

33
 Outdoor advertising: Place ads in conspicuous places such as signs, light boards,
billboards, and buses, especially points near commercial centers, schools, and
urban areas to increase Vinamilk's brand recognition.
The landlocked country has a largely
rural population and a strict media
environment, which means many
challenges for industry players.
Therefore, billboards would be a
good choice. In 3 big target markets
of Vientiane, Luang Prabang, and
Savannakhet, billboards will be
placed in the city center to increase
brand recognition.

 Promotion: Including discounts, free gifts or special product packages, and

combos to attract customers' interest. Specifically, on holidays, you will be able
to buy milk in combos, discount products on special occasions, or buy products
associated with Lao national culture.

Through the use of promotional activities such as advertising, online promotion,

promotions and social media channels, Vinamilk is able to build awareness, trust and
loyalty among customers. market in Laos.

VIII. ACTION PROGRAMMER

Activities in the Marketing campaign will focus on three main goals set by Vinamilk:
 Strengthening Vinamilk's brand identity and positioning the brand to differentiate
itself from competitors.
 Building strong long-term relationships with strategic partners and customers in
Laos
 Increase sales to aim to increase revenue and profit from doing business in the
Laos market.
Vinamilk has just entered the Lao market, so in the first year, Vinamilk focused on
building brand image and improving its brand awareness to customers; Besides, it
also implements the remaining 2 goals at the same time. Below is an action plan that
Vinamilk builds within the next year to achieve the set goals. The action plan includes
4 primary Campaign timelines below:

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Campaign 1 Campaign 2 Campaign 3 Campaign 4

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Campaign 1

 Duration: 4 months (from 1st Jan to 30th Apr)

 Objectives: Campaign 1 is organized with the desire to achieve the following

main goals:
+ Increase brand awareness of Vinamilk in the Lao market, especially the file
overlaps with the target customer market of 3 big cities: Vientiane, Luang
Prabang and Savannakhet.
+ Building relationships between Vinamilk and potential customers as well as
partners of Vinamilk in Laos.
+ Increase revenue from target markets in Laos.

 Activities :

Activity 1: Advertise posters at channels and points of sale about Vinamilk in

both direct and online form.

Duration: 4 months (From 1st Jan to 30th Apr)

Detail:
This activity aims to increase Vinamilk's brand awareness in the Lao market,
especially focusing on the target customer market of 3 big cities: Vientiane, Luang
Prabang, and Savannakhet.

Vinamilk plans to bring Vinamilk to the Laos market in early January 2024, so before
that, Vinamilk will contact agents, shopping malls, supermarkets, and points of sale to
prepare for the sale of its products. Vinamilk on store shelves. In addition, Vinamilk
also conducts activities to educate sellers about the brand, the benefits of selling
Vinamilk's products, knowledge about discount campaigns, advertising posters, and
product consulting for customers. customers at the point of sale. All of the above
activities are guaranteed to promote products at the point of sale.

On January 1, 2024, Vinamilk's products will be sold on store shelves at Vinamilk's

distribution channels at 5 major supermarkets and 200 points of sale. At the selling
points, the main poster of this campaign of Vinamilk will be hung with the image of
Vinamilk fresh milk and the Lao-Jagro cow farm in Laos as the main ones.

In addition to selling points, Vinamilk will use 10 outdoor boards such as Billboard
and Pano in densely populated areas such as:
Chanthabouly district: is the central district of Vientiane city, where many
commercial centers, offices, hotels and crowded residential areas are concentrated.

Xaysettha District: This district is located to the east of Vientiane and is also
densely populated. This area has many companies, shops, markets and
residential developments.

Luang Prabang Old Quarter: This is an area famous for its traditional
architecture and a world heritage site. The Old Quarter has many hotels,
restaurants, cafes and markets, attracting large numbers of tourists and local
residents.

35
 Nam Khan District: This is one of the fastest growing areas in Luang
Prabang. With the development of industrial and business zones, Nam Khan
district attracts many migrants and is densely populated.
Savannakhet City: This is the administrative and economic center of
Savannakhet province. The city has many schools, hospitals, shops, markets
and developed residential areas, attracting a large population.

Vinamilk also implements a form of marketing in localities through local newspapers

and nutrition magazines such as:

Vientiane Times - the popular daily English newspaper in Vientiane,

providing economic, political, cultural and social news.

Lao Post - The Laotian daily newspaper, published in Vientiane, brings

diverse news in areas such as politics, economy, education and sports.

Luang Prabang News - a popular local newspaper in Luang Prabang,

providing information on local events, tourism, culture and society.'

NutriHealth Magazine - The magazine focuses on nutrition and health,

providing information on diets, healthy foods and articles on healthy living.
Vinamilk plans to distribute 50,000 magazines and newspapers on the above
pages. Besides, Vinamilk pushes the advertising method through keyword
search on Google (SEO) to maximize Vinamilk's search volume.

At the same time, Vinamilk will post its advertising activities on its official website in
Laos and fanpages on social networking platforms widely used in Laos such as
Youtube, Facebook, Instagram, and Tiktok. Vinamilk also promotes advertising
activities on online platforms such as Google Ads, Facebook Ads, Tiktok Ads, and
Youtube Ads.

36
These activities will be implemented at the same time so that Vinamilk can reach as
many customers as possible and increase Vinamilk's brand awareness in three key
markets, namely Vientiane, Luang Prabang, and Savannakhet.

Activity 2: Promotional video “Vinamilk 100% Organic Fresh Milk”

Advertising content: Emphasizing the freshness and freshness that Vinamilk brings
to consumers through the freshness of Vinamilk milk with its health benefits. The
advertisement focuses on Vinamilk providing fresh milk of high quality, rich in
nutrients and bringing comprehensive health to consumers. In addition, the
advertisement was filmed at the Lao-Jagro cattle farm, Laos to increase the
connection between the advertisement and the viewers in Laos.

Duration: 4 months (From 1st Jan to 30th Apr)

Detail:
In this second activity, Vinamilk will create a promotional video with content
focusing on positioning its milk quality in the context of a vast green pasture with
cows raised in a comfortable environment at the site. Lao-Jagro camp. Vinamilk
publishes this advertisement with the following primary objectives :
+ Reach out to customers and increase Vinamilk's brand recognition in Laos.
+ Through advertising, positioning Vinamilk as a quality and nutritious milk
company for Lao people when viewing ads.
+ Increase viewers' sympathy for Vinamilk milk with the image of a green and
clean dairy farm at Lao-Jagro farm.

After that, Vinamilk ads will be shown on planned TV channels in two main TV
channels in Laos, which have large viewership across the country and three target
markets.
Lao National Television (LNTV): Vinamilk intends to broadcast its
advertisement on LNTV as the national television channel of Laos-providing
news, entertainment, movies and sports programs with viewer traffic. largest
in the country.

Lao Star Channel: This channel mainly broadcasts entertainment programs,

movies, music and featured news. Vinamilk is expected to broadcast its ads at
Lao Star Channel because this channel has a large audience of young viewers
and female viewers make up the majority.

To maximize the effectiveness of advertising, Vinamilk also puts its promotional

videos on the main social platforms in Laos such as Youtube, Facebook, Instagram,
Tiktok.

In summary, this second activity mainly focuses on increasing customer's brand

awareness and initially positioning Vinamilk in the viewers' consciousness.

Activity 3: Promotion buy 2 get 1 free

Duration: 2 weeks

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Details:
Vinamilk carried out the promotion of buy 2 get 1 free within the first 2 weeks of its
launch. This promotion activity of Vinamilk with the main purpose is to reduce prices
for customers to try Vinamilk's products and reach more customers. From there,
Vinamilk can increase revenue in the target market. In short, the main objective of
this activity is to get acquainted with customers in Laos market and then increase the
number of sales.

Campaign 2

 Duration: 3 months ( From 1st May to 31st Jul)

 Objectives:
 Improve customers' brand awareness about Vinamilk
 Continue to position Vinamilk as a safe, high-quality, nutritious milk
company. Vinamilk is oriented to be a brand that cares about the health and
nutrition of consumers.
 Raise the awareness of Lao people about health care and nutritional value,
thereby enhancing the brand value of Vinamilk.
 Build relationships with potential customers who regularly buy Vinamilk's
products. Increase sales of Vinamilk's dairy products in target markets.

 Activities:

Activity 1: Implement activities for customers to try Vinamilk's products at

points of sale

Duration: From 1st May to 15th May

Details:Vinamilk implemented activities for customers to experience Vinamilk's

products at points of sale within 2 weeks. Customers will be able to taste Vinamilk's
fresh milk for free at the stalls, which helps Vinamik approach and deliver its
products to customers. After that, Vinamilk will collect customer feedback to further
improve its quality and taste. For each customer participating in the milk trial program,
they will be given a 15% discount coupon when buying Vinamilk products to increase
the likelihood of customers coming back to buy Vinamilk products. With this trial
activity, Vinamilk wants to bring products closer to consumers and combine with a
discount campaign to boost Vinamilk's sales.

Activity 2: Promote branding advertising activities on social networking

platforms and online.

Duration: From 1st May to 31st Jul

Details:
Vinamilk continues to advertise its products on major online platforms through
Google Ads, Facebook Ads, Tiktok Ads, and Youtube Ads. In addition, Vinamilk
focuses on building social networking sites to increase interaction and increase
followers with viewers. On major social networking platforms such as Youtube,

38
Facebook, Instagram, Tiktok, Vinamilk continues to promote product advertisements
to enhance brand recognition. Meanwhile, Vinamilk posts articles sharing nutrition
and health to raise viewers' awareness of nutritional issues and position Vinamilk
associated with nutrition issues.

Vinamilk also promotes advertising activities through influencers and reviewers.

Initially, Vinamilk focused on famous bloggers in the fields of beauty, nutrition and
family health care because these blogs have a large amount of interaction and are
among Vinamilk's target customers. The three famous bloggers that Vinamilk aims to
cooperate with during this period are:

Rattana Pathammavong (Nary): Nary is a blogger and breastfeeding mom.

She shares experiences, tips and advice on newborn care, maternal nutrition,
and motherhood-related issues.

Malivan Souvannalay (Malivan): Malivan is an interesting and inspirational

blogger with many articles on beauty, nutrition and family life. She shares her
personal experiences and tips on staying healthy and living a healthy lifestyle.

Onchuma Thammasithirong (Ma Lao): Ma Lao is a blogger with expertise

in nutrition and healthy diets. She shares her knowledge on how to choose
food, how to cook it, and how to maintain a healthy and balanced eating
lifestyle.
Vinamilk sends its products to these famous bloggers, then through their reviews,
viewers can trust Vinamilk's nutritional value.

Activity 3: Organize an online activity "Q&A about nutrition with Vinamilk"

Duration: From 1st Jun to 8th Jun

Details:
Vinamilk set up a free health and nutrition consulting team on an online platform.
Customers who contact Vinamilk will ask questions about health and nutrition issues
and will be answered by Vinamilk's nutritionists. This activity was implemented by
Vinamilk within just 1 week, but this campaign helps Vinamilk build strong
relationships with potential customers and through service quality to build sympathy
with customers.

Activity 4: Email marketing campaign

Duration: From 1st May to 31st Jul

Details:
Vinamilk deploys email marketing campaigns to build long-term relationships with
existing and potential customers. Viamilk deploys email activities to all customers
and partners to provide detailed information about products and special offers as well
as the latest news about Vinamilk. Through this activity, Vinamilk wants to build
strong relationships with existing customers and partners. Besides, converting
customers from potential to official customers of Vinamilk.

39
Campaign 3

 Duration: 2 months ( From 1st Aug to 30th Sep)

 Objectives:
 Improve brand awareness of customers with the brand and build a
differentiated image compared to competitors.
 Improve customers' understanding of Vinamilk's milk brand
 Build strong relationships with customers and partners.
 Increase sales through strategic collaboration with KOLs, influencers.

 Activities:

Activity 1: Implement influencer marketing strategy

Duration:
Detail:
On online platforms, Vinamilk continues to carry out advertising activities and
maintain interaction with customers. Besides, Vinamilk uses the strategy of
combining Marketing activities with influencers to promote Vinamilk's image widely
throughout the Lao market. Vinamilk focuses on Tiktok and Facebook platforms
because these are two platforms with a large number of users in Laos. Starting the
campaign, Vinamilk contacted KOLs and celebrities on Tiktok and Facebook and
collaborated on trial sponsorship. KOLs will have the opportunity to try Vinamilk's
products and share their experiences with a large audience. Vinamilk prioritizes KOLs
in nutrition, and family health care. Some outstanding KOLs that Vinamilk will aim
for are:
SinhSinh Laos is a popular KOL who focuses on family health care,
including topics such as nutrition, child development, and parenting tips. They
share practical advice and educational content to help families lead healthy
lifestyles.

Tumlife is a well-known KOL in Laos who covers various aspects of health

and wellness, including nutrition. They provide valuable insights, healthy
recipes, and tips for maintaining a balanced diet and overall well-being.

PhomVit is a KOL specializing in nutrition and healthy eating. They share

informative content, including meal planning ideas, ingredient
recommendations, and the benefits of various foods, with a focus on
promoting a nutritious lifestyle.

Activity 2: Organize a series of Work-shops on “Nutritional health for the

family”

Objective: The goal of the Workshop, Vinamilk aims to share information about the
benefits of nutrition and family health, increase Vinamilk's brand awareness in this
field, and build good relationships with customers. customers and nutritionists.

Guests at the program: The program has the presence of Dr. Bounsouk Phetsavanh
is one of the nutrition experts with high expertise in family nutrition and child health

40
care. She has made a significant contribution to raising awareness about nutrition in
Laos. Vinamilk decided to cooperate with Dr. Bounsouk Phetsavanh because she has
extensive experience in the field of consulting and has the ability to convey
information in an easy to understand and attractive way for clients.
Contents of the workshop: The workshop was organized as a talk about sharing
experiences about family health care, including topics such as nutrition, child
development, and parenting tips. Experts will give advice and answer questions of the
audience.

Workshop plan: Workshop series is expected to be held with 3 main workshops in 3

target markets of Vinamilk. Customers can participate online or offline.

Advertising channel: The workshop will be widely advertised on social networking

platforms. The workshop will be held directly at the venue with the participation of
guest experts, representatives of Vinamilk and relevant influencers. Vinamilk also
deployed invitations to participate in the workshop with all its partners and customers.
The workshop will be broadcast on Lao National Television (LNTV). In addition, the
workshop was also held via the Zoom platform and broadcast live on social
networking platforms.

Monitoring and evaluation: After each workshop, Vinamilk conducts effective

evaluation and feedback from customers. Identify strengths and points for
improvement to improve for next activities.

Campaign 4

 Duration: 3 months ( from 1st Oct to 31st Dec)

 Objectives:

 Activities:

Activity 1: Organize the contest “Creating with Vinamilk”

Duration: 1 months ( From 1st Oct to 31st Oct)

Content:The contest "Creating with Vinamilk" was held to increase the interaction of
customers and Vinamilk. Participants will create dishes and drinks using ingredients
from Vinamilk's dairy products with attractive flavors and eye-catching shapes.

Rules: Participants record a video of the process of making food or drinks with
products from Vinamilk, and then post it on Vinamilk's social networking platforms
and website.

Qualifiers:

 Round 1: Preliminary - Vinamilk will select the 10 videos with the most likes and
shares to enter the next round of the contest, the remaining participants will all
receive Vinamilk's coupons depending on the popularity of the contest. Video.

41
 Round 2: The selected contestants will come and cook their own dishes directly,
then the famous chef Chef Tinay (she is a famous Lao chef, Chef Tinay has
attracted attention with her cooking style). She has appeared in many television
programs and international culinary events) will judge and give out 3 people with
the best dishes, corresponding to 2 prizes: 1st, 2nd and 2nd prize. Father

Awards:
 First Prize: $1,000
 Second Prize: $700
 Third Prize:$500
10 participants will receive a 50% discount code when buying Vinamilk.

At the end of the contest, famous chef Chef Tinay will share some experience and tips
in the kitchen and share some simple delicious recipes with Vinamilk products.

Promotion channel: Ads about the contest will be advertised on Vinamilk's official
homepage widely on social networking platforms, especially Tiktok.

Activity 2: Organize a charity music night "Music for the community" to raise
funds for charity

Duration: From 1st Nov to 31st Dec

Detail:
Vinamilk plans to organize a special event combining charity program and cultural
activities in Laos. Vinamilk cooperates with local units to organize the program
"Music for the community" with traditional performances of Laos to raise funds for
charity "Bright Futures". Bright Futures Charity Fund will be used to support
disadvantaged children who cannot go to school through a scholarship program.

In addition, Vinamilk will cooperate with disadvantaged local charity organizations in

the suburbs such as Phongsaly, Luang Namtha, and Vinamilk to organize activities
such as giving gifts, providing nutrition and medical support to the community. Lao
Dong. The charity program focuses on providing nutrition to children and providing
support to disadvantaged families. Vinamilk launches a new "Nutrition Day" with the
aim of distributing free milk to children in kindergartens, primary and secondary
schools in the difficult areas.

Details of activities as well as images of the charity trip will be disseminated by

Vinamilk on social networking platforms and through websites and online newspapers.

Work Break down structure of 4 Campaigns will be detailed at the end of this essay.

IX. PROJECTED MARKETING BUDGET

In the first year, the total estimated cost for Vinamilk's 4 campaigns within 1 year.
With a total cost of more than 6 billion VND. In addition to the expenses incurred in
the period, Vinamilk expects the total budget for marketing promotion to be up to 7
billion VND. Below is a detailed breakdown of the amounts for each campaign

42
 PROJECTED PROJECTED
CAMPAIGN 1 QTY COST PER SUBTOTAL NOTE
UNIT ($) ($)
Advertising
Online 2 20 40
Xaysettha District; Luang
Outdoor Billboard 10 100 1.000 Prabang Old Quarter; Nam
Khan District
Radio - -
Lao National Television
Televison 2 500 1.000 (LNTV) and Lao Star
Channel
Local marketing
Vientiane Times; Lao Post,
Newspaper 50.000 0,4 20.000 Luang Prabang News;
NutriHealth Magazine
In-Store Marketing 5 100 500 Supermarket
Point of Purchase 200 20 4.000
Publish Relations
Sponsorships - -
Charity fund - -
Press Releases - -
Webinars - -
Client Event - -
- -
Contest Prize
Online
Website 1 450 450
Email Newsletter - -
Mobile App - -
Blog - -
SEO 50 5 250
Social Media
Facebook 1 100 100
Instagram - -
Youtube 1 120 120
Google 1 150 150
Tiktok 1 100 100
Twitter - -
Marketing Content
Promotional video
Making Advertising 1 3000 3.000 “Vinamilk 100% Organic
Fresh Milk”
Landing Page - -
Sponsored Content - -
Booking KOLs/ Influencers - -

43
 PROJECTED PROJECTED
CAMPAIGN 2 QTY COST PER SUBTOTAL NOTE
UNIT ($) ($)
Advertising
Online 2 20 40
Xaysettha District; Luang
Outdoor Billboard 10 100 1.000 Prabang Old Quarter; Nam
Khan District
Radio - -
Lao National Television
Televison 500 - (LNTV) and Lao Star
Channel
Local marketing
Vientiane Times; Lao Post,
Newspaper - 0,4 - Luang Prabang News;
NutriHealth Magazine
In-Store Marketing - 100 - Supermarket
Point of Purchase - 20 -
Publish Relations
Sponsorships - -
Charity fund - -
Press Releases - -
Webinars - -
Client Event - -
- -
Contest Prize
Online
Website 1 450 450
Email Newsletter 10.000 0,05 500
Mobile App - -
Blog of Navy, Malivan, Ma
Blog 3 100 300
Lao
SEO 50 5 250
Social Media
Facebook 1 100 100
Instagram - -
Youtube 1 120 120
Google 1 150 150
Tiktok 1 100 100
Twitter - -
Marketing Content
Making Advertising - -
Landing Page - -
Sponsored Content - -
Booking KOLs/ Influencers 3 300 900 Navy, Malivan, Ma Lao

44
 PROJECTED PROJECTED
CAMPAIGN 3 QTY COST PER SUBTOTAL NOTE
UNIT ($) ($)
Advertising
Online - 20 -
Xaysettha District; Luang
Outdoor Billboard 5 100 500 Prabang Old Quarter; Nam
Khan District
Radio - -
The workshop “Nutritional
health for the family” is
Televison 1 500 500
shown on Lao National
Television (LNTV)
Local marketing
Newspaper - 0,4 -
In-Store Marketing 5 50 250 Supermarket
Point of Purchase 200 5 1.000
Publish Relations
Sponsorships - -
Charity fund - -
Press Releases - -
The workshop “Nutritional
Webinars 3 50 150
health for the family” online
The workshop “Nutritional
Client Event 3 45000 135.000
health for the family” offline
- -
Contest Prize
Online
Website 1 450 450
Email Newsletter 30.000 0,05 1.500
Mobile App - -
Blog - 100 -
SEO 50 5 250
Social Media
Facebook 1 100 100
Instagram - -
Youtube 1 120 120
Google 1 150 150
Tiktok 1 100 100
Twitter - -
Marketing Content
Making Advertising - -
Landing Page - -
Sponsored Content - -
KOLs: SinhSinh Laos,
Booking KOLs/ Influencers 3 100 300
Tumlife, PhomVit

45
 PROJECTED PROJECTED
CAMPAIGN 4 QTY COST PER SUBTOTAL NOTE
UNIT ($) ($)
Advertising
Online - 20 -
Xaysettha District; Luang
Outdoor Billboard 5 100 500 Prabang Old Quarter; Nam
Khan District
Radio - -
Contest “Creating with
Televison 1 700 700 Vinamilk” show on Lao Star
Channel
Local marketing
Newspaper - 0,4 -
In-Store Marketing 5 50 250 Supermarket
Point of Purchase 200 5 1.000
Publish Relations
Sponsorships - -
Funds for charity "Bright
Charity fund 1 50000 50.000
Futures"
Press Releases - -
Webinars - -
Music night "Music for the
Client Event 1 23000 23.000
community"
Prize for ontest “Creating
1 2200 2.200
Contest Prize with Vinamilk”
Online
Website 1 450 450
Email Newsletter 10.000 0,05 500
Mobile App - -
Blog of Navy, Malivan, Ma
Blog - 100 -
Lao
SEO 50 5 250
Social Media
Facebook 1 100 100
Instagram - -
Youtube 1 120 120
Google 1 150 150
Tiktok 1 100 100
Twitter - -
Marketing Content
Making Advertising - -
Landing Page - -
Sponsored Content - -
Booking KOLs/ Influencers - 300 -

46
 Campaign Campaign Campaign Campaign PROJECTED
Total
1 2 3 4 SUBTOTAL
Advertising 5.280
Online 40 40 - 0 80
Outdoor Billboard 1.000 1.000 500 500 3.000
Radio - - - 0 -
Televison 1.000 - 500 700 2.200
Local marketing 27.000
Newspaper 20.000 - - 0 20.000
In-Store Marketing 500 - 250 250 1.000
Point of Purchase 4.000 - 1.000 1000 6.000
Publish Relations 210.350
Sponsorships - - - 0 -
Charity fund - - - 50000 50.000
Press Releases - - - 0 -
Webinars - - 150 0 150
Client Event - - 135.000 23000 158.000

- - - 2200 2.200
Contest Prize
Online 5.600
Website 450 450 450 450 1.800
Email Newsletter - 500 1.500 500 2.500
Mobile App - - - 0 -
Blog - 300 - 0 300
SEO 250 250 250 250 1.000
Social Media 1.880
Facebook 100 100 100 100 400
Instagram - - - 0 -
Youtube 120 120 120 120 480
Google 150 150 150 150 600
Tiktok 100 100 100 100 400
Twitter - - - 0 -
Marketing Content 4.200
Making Advertising 3.000 - - 0 3.000
Landing Page - - - 0 -
Sponsored Content - - - 0 -
Booking KOLs/ Influencers - 900 300 0 1.200

47
 CAMPAIGN TYPE PROJECTED SUBTOTAL %

Advertising 5.280 2,08%

Local marketing 27.000 10,62%
Publish Relations 210.350 82,71%
Online 5.600 2,20%
Social Media 1.880 0,74%
Marketing Content 4.200 1,65%
Total 254.310 100%

Estimated total budget: $ 254,310

Equivalent value according to VND: $ 254,310* 23,712 = 6,030,198,720 VND
(Exchange rate on May 29, 2023)

48
X . CONCLUSION
Through this essay, we have proposed a marketing plan for Vinamilk's pure milk
products to the Laos market. We have researched, and analyzed Vinamilk's current
marketing situation and international markets through PESTLE and Five Force Model
to draw conclusions about Vinamilk's potential to reach international markets. Then
the SWOT analysis and the decision to enter the Lao market. From there, propose
goals, marketing strategies, action programmers and projected marketing budget to
help Vinamilk successfully penetrate into the Lao market. All of these are researched
and analyzed based on authentic information. The combination of product quality,
reasonable prices, wide distribution network and effective promotional activities will
help Vinamilk build trust and loyalty from Lao customers, building a strong brand
position in this potential market.

49
GANTT CHART

 Campain 1

50
 Campaign 2

51
 Campaign 3

52
 Campain 4

53
INDIVIDUAL CONTRIBUTION

Member's Name Student ID Task Evaluation

I- Executive summary
VI- Goals & Objective
VIII- Action programmers
IX- Projected marketing budget
Nguyễn Minh Thu Gantt chart
1 (Leader) 20070336 Edit file word 100%

II- 2.Potential to develop into the

International market
III
2.1Threat of new entrants
2.2 Bargaining power of buyers
2.3 Bargaining power of suppliers
IV
3.Opportunities
4.Threats
VII- 4 Integrated Marketing Mix (4Ps)
2 Dương Thúy Nga 20070261 X- Conclusion 100%

II
1.2 Product Review
1.4 Channels and Logistics
Review
1.6 Customer review
III
2.4 Threat of new substitutes
2.5 Competitive rivalry
V- 1.The market extension product
3 Đỗ Khánh Huyền 20070192 VII- 3.Differentiation 100%

II- 1.3 Supplier Review

1.4 Competitive Review
III
1.1 Political Factors
1.2 Economic Factors
1.3 Social Factors
Nguyễn Thị Minh V- 2 Entry mode to the Laos market
4 Hạnh 20070163 VII-1 Market Target 100%

II -1.1 Achievements in the Vietnamese

Market
III
1.4 Technological Factors
1.5 Legal Factors
1.6 Environmental Factors
IV
1. Strengths
Nguyễn Hà Khánh 2. Weaknesses
5 Huyền 20070198 VII- Market Positioning 100%

54
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56