Table of ContentsEXECUTIVE SUMMARY..............................................2INTRODUCTION...................................................2PART 1: MARKETING MIX..........................................3I. Product – Explain how products are developed to sustain competitive advantage.........................................3a. Product description.......................................3b. Target market and target customers........................4c. Goals.....................................................4d. Features..................................................4

II.. Place – Explain how distribution is arranged to provide customer convenience.........................................10III.Prices – Explain how prices are set to reflect an organization’s objectives and market conditions..............12IV. Promotion – Illustrate how promotional activity is integrated to achieve its aims for the target market.........141. Promotion in exclusive outlets:..........................152. Promoting events:........................................153. Mass media and print media:..............................164. Beauty centers:..........................................16

V. Analyze the additional elements of the extended marketing mix 16

PART 2: MARKETING MIX IN DIFFERENT CONTEXTS...................18I. Plan marketing mix for 2 different segments in consumer markets......................................................18II..Illustrate the differences in marketing products/ services to organization rather than consumers........................20III.Show how and why international marketing differs from domestic marketing...........................................22

Page | 1

NATIONAL ECONOMICSUNIVERSITYBTEC HND IN BUSINESS AND MANAGEMENT

Assignment Cover Sheet

CONCLUSION....................................................25REFERENCES....................................................26

Page | 2

EXECUTIVE SUMMARY

The major purpose of this report is to recommend marketing

plan for a new product of TH True Milk Company in dairy

industry. Based on previous findings and gathered information in

marketing audit that we have already conducted in assignment 1,

our group plans to develop a new milk product called UHT Fresh

Milk Added Collagen in order to provide women especially young,

successful ladies with both milky nutrition and preserving

beauty elements. The paper is not only focus on the main 4Ps but

also analyzing additional components of extended marketing mix

and further contexts of this tool. In particular, the first part

of this report will be aimed to the principal elements in

marketing in which point out strategies in Product, Place,

Prices and Promotion for the new product. The second half is

about different contexts that marketing mix is applied.

INTRODUCTION

The TH Milk Food Joint Stock Company as part of TH Group

which was established with the financial advisor of North Asia

Commercial Joint Stock Bank is a well-known brand in dairy

industry of Vietnam. Processing and UHT milk is their major

business. The company is famous for advanced management system

and integrated production processes, synchronized by

international standards from planting grass, building barns,

cattle feed processing, management veterinary control,

processing and packaging, to the distribution of products to

consumers. It is their goal to become clean milk and UHT milkPage | 3

supplier in Vietnam and at the same time develop chain

convenience stores called TH True mart to provide clean fresh

produce from Farm TH, safe and high-end products for consumers.

On the way to achieve the goals, suitable new products and

proper marketing tools are crucial. Therefore, the report will

propose marketing mix for TH True Milk in order to help the

company with a new launching product. Followed by introduction,

Part 1 is the proposed marketing mix created for the new product

and this part is about to explain key elements of marketing plan

including Product, Price, Place and Promotions and three

additional components for marketing mix. On the other hand, Part

2 of the report will examine the marketing mix plan from

different approaches and in various contexts.

PART 1: MARKETING MIX

I. Product – Explain how products are developed to sustain

competitive advantage

Product is the term refers to goods or services that firms

offer their customers. Products could be tangible object or

intangible services in which associated with other aspects such

as features, warranties, options, packaging and so on to attract

consumers’ intention and drive them to purchase decision. A

successful product is one that satisfies customers’ needs and

wants, provides value for money to them, stimulates their

interests and at the same time helps distinguish a company’s

brand name from the others. Applied to our group’s company, TH

True Milk’s new product needs to be distinctive from the other

Page | 4

“me-too” products from their competitors. Also, it must be able

to fill up consumers’ satisfaction, providing its value to

consumers accordingly to their wants and needs. To any marketing

mix plan, product is the crucial part that has to be in place

before other elements of price, place, promotion, etc. It is

Product that starts and determines further aspects; if there are

no products, there will be nothing to be strategically priced,

placed and promoted. Hence, to begin with the report, product

description and strategy are as follows.

a. Product description

In dairy market, TH True Milk

started as a brilliant producer in UHT

Milk field targeted children as the main

customer. To expand current business and

develop further, the company is in need

of new consumers and ladies are good

choice for them. In Vietnam, women

accounts for over 50 percents of

population and nearly 50 percents of

labor workforce. In modern life these

days, many of them are in desperate need

to improve their beauties as well as to

preserve it. With high wages and standard of living, they are

willing to pay high prices for maintaining-beauty products.

Therefore, they are potential consumers for a kind of milk that

is conveniently packaged and used providing both milky nutrition

and beauty-preserving elements. This is how the new product

called UHT Fresh Milk Added Collagen is created.

Page | 5

b. Target market and target customers

With the intention to provide both healthy nutrition and

beauty preserving elements, the product is aimed to ladies’

class. In particular, this kind of milk is suitable for women at

the age of 18 and older in which help them slow down aging

process. Due to the nature of the product, potential dominated

customers can also be the young ladies with high living standard

that willingly pay for enhancing-beauty products at high prices.

Also, for women at these ages in general, they are in need of

providing certain amount of Calcium so drinking this kind of

milk is a convenient way for them to a healthy life and properly

protected skin. This can be considered as a niche market in

which so many of current milk producers solely focus on regular

market of children and the elders.

c. Goals

As the major part of society, when targeting women and

young women as the main consumers for this product, we expect to

spread this milk in people’s daily life, making it a new

essential dairy in people’s life. For future goals, UHT Fresh

Milk Added Collagen is expected to bring TH True Milk high

margin in profit as well as enhancing the existing image of this

company – branded dairy provider whose image is easily

recognizable among consumers. Resulting from modern production

chain of TH True Milk, the clean ingredients and high-quality

products are outstanding features that could help this kind of

milk to reach these goals.

Page | 6

d. Features

The core value in customers’ minds when buying TH True Milk

products is that TH True Milk provide fresh dairy products in

the context of developing industrial societies, rising incomes

and a better understanding of the benefits of this drink, milk

demand is increasing. While the environment is becoming more and

more polluted, the demand for clean milk is even more essential,

TH True milk is the one who could meet it. And what they

producing are useful products which can enjoy right away; good

drinks with essential micronutrients supplements.

In UHT Fresh Milk Added Collagen, there are milky

nutritious elements like other normal products of TH True Milk

such as Calcium, Vitamin B1 B2, B6, Protein, Biotin, Acid Folic,

etc. With those ingredients, this milk provides essential

nutrients to help strengthen and improve users’ physical

strength every day. For every 100ml, it provides to 74.8 Kcal

and drinking 2-3 180ml bottles per day could help in enhancing

people’s health.

Besides, this product consists of refined Collagen which

helps maintain moisture and elasticity to the skin, providing

shiny and strong hair. Collagen is a protein that is available

in human body. Approximately 70% of Collagen involves in the

construction of the skin structure. Collagen creates sustainable

networks to support the skin from the inside, to ensure firmness

and elasticity to the skin. Thus, collagen is considered to be

an important factor to maintain skin's youthfulness. To women

after the age of 25, their ability to synthesize collagen

decreases makes the skin starts showing aging signs, also

revealing the loss of firmness; the skin looks much less smooth

Page | 7

than in the young age. In particular, hormonal dysfunction

during menopause can cause the loss of collagen 30% within 5

years. So, for women of these years and ages, they are in need

of a proper source of Collagen to maintain the skin’s elasticity

as well as to prevent aging signs. Therefore, TH True Milk UHT

MILK Collagen supplements containing collagen peptides - short

circuit of hydrolyzed collagen to be absorbed into the body

easily. The effect of Collagen Beauty peptides has been

demonstrated by the clinical research center at Kiel (Germany).

The product’s raw materials are of natural origin, not harmful

to people’s health and more suitable for women aged 18 years and

older to prevent and slow down aging process.

In other words, the product does the job as a nutrition

provider for people and also a beauty supporter for women. It is

the fact that everyone dreams of a healthy life and almost every

woman dreams of a long-lasting beauty. So, this new product is

considered to kill two birds with one stone – both helping

people in daily nutrition and providing ladies with aging-skin

preventer. In recent market, existing milk products are merely

focus on providing additional amount of Calcium for women. In

fact, there are very few of them can provide outstanding

different features to consumers. So, this kind of Added Collagen

milk if release is a breakthrough of which contains unique

combination of elements that no companies tried. The combined

effects for both health and beauty with new ingredients are key

things that distinguish this product from the others. For

further business scenarios, competitors also has to face many

difficulties in copycatting this kind of product if they do not

Page | 8

possess well-performed R&D department and modern production

chain like TH True Milk.

In term of marketing, a product plays an important role in

which can help create competitive advantage for companies. A

sustainable competitive advantage is an advantage that one firm

has over the others in a field of the market that customers

consider important. This includes product quality, product

price, quality of service, speed of delivery, level of

innovation, variety of choice, etc. Critically, the advantage is

considered sustainable only if competitors consider it very

difficult if not impossible to mitigate the advantage (they

could have to spend a lot of money, of time, or both). From our

point of view with the aim to introduce the new UHT Fresh Milk

Added Collagen to consumers, we would like to use this

differentiated product itself to sustain competitive advantage

for TH Company.

In the latter part of

Products, our group will

applied the three levels of

product in context of UHT

Fresh Milk Added Collagen

to demonstrate how this one

can develop sustainable

competitive advantage for TH True Milk.

Page | 9

Factors About UHT Fresh Milk

Added Collagen

How UHT Fresh Milk Added

Collagen sustains

competitive advantages

Core benefit UHT Fresh Milk

Added Collagen is

designed to bring

the milk consumers

a bottle of

nutritious milk

with essential

elements of

Calcium, Vitamin

B1 B2, B6,

Protein, Biotin,

Acid Folic, etc.

The main benefits

of this milk is

provides crucial

nutrients to help

strengthen and

improve users’

physical strength

every day, help in

enhancing people’s

health.

The product embodies the

TH’s sprit which so

called Vietnam’s

Stature. Since very few

Vietnamese people before

consume milk on daily

basis, TH is aimed to

develop products of

clean, green and pure

milk in determination of

becoming a world-class

clean food manufacturer

in Vietnam, begin with

dairy cultivation and

fresh TH True Milk. The

healthy and clean taste

of milk from TH differ

them from the others and

help in both attracting

and retaining customers.

Actual FeaturPage | 10

Product

(Physica

l

product)

es This product

consists of

refined Collagen

which helps

maintain moisture

and elasticity to

the skin,

providing shiny

and strong hair.

TH True Milk UHT

MILK Collagen

supplements

containing

collagen peptides

- short circuit of

hydrolyzed

collagen to be

absorbed into the

body easily. The

effect of Collagen

Beauty peptides

has been

demonstrated by

the clinical

research center at

Kiel (Germany).

The product does

the job as a

nutrition provider

Very few of existing

brands in current market

have tried adding

Collagen as a preserving

beauty element into

their products in dairy

products. The combining

effect of both

nutritious and beauty

supporter in one type of

milk is considered to be

unique to Vietnamese

consumers.

Page | 11

for people and

also a beauty

supporter for

women.

Qualit

y

level

For material, TH

imports the very

best cows from New

Zealand, USA and

Canada. The cows’

genealogy assures

the best milk

quality

For manufacturing,

the entire

farming,

veterinary canter,

laboratory and

milking system are

well-designed

using Control

Technique from

Israel with annual

expert teams

supervisions.

UHT Fresh Milk

Added Collagen is

certificated ISO

quality product

This milk is created

within the high

standard originations

and production in

which emphasized the

position of high

quality milk products

from TH.

The highly invested

components and proof

of clean and safe

production

differentiate them

from the other

unqualified and

unclear brands.

Page | 12

with the most

modern preserving

tools.

Design

&

packagi

ng

Style: From the main

theme of “Truly

Nature”, TH focus on

the two basic colors

of white and blue

emphasize on the

simple but high

quality and

presentable products.

Packaging material of

TH True Milk is an

example of the

elegance and high

class.

Size: 180ml bottle

Packaging is in

creation under high

standardization with

safe and friendly-

environmental

materials.

Packaging is of

importance when

attracting consumers.

The simple but elegant

design of UHT Fresh Milk

Added Collagen makes it

more suitable to the

ladies – targeted

customers.

Brand

name

Branding is firm’s

"name, term, design,

Page | 13

symbol, or any other

feature that

identifies one

seller's product

distinct from those

of other sellers

name”. In fact, TH

True Milk is well-

known for its

outstanding clean and

safe products with

ingredients made of

high quality

components through

modern and standard

production. From the

beginning stage of

the firm, this brand

is targeted to bring

Vietnamese consumers

with breakthrough

products of which

assure highest

quality daily milk

for customers. UHT

Fresh Milk Added

Collagen is a further

step in the field of

both nutritious and Page | 14

beauty supportive

effect in TH’s Milk.

Augmente

d

product

After

sale &

servic

e

Products of TH

True Milk new line

especially this

one from Fresh

Milk Added

Collagen, as to

attract more

consumers will be

sold with addition

of gifts like

cotton mask or tea

mask of which for

beauty support.

Also, a line of

beauty preserving

related questions

and advice will be

created to help

with ladies with

the same worries.

Consumers who long time

engaged with the brand

will receive gifts and

discounts as rewards.

This is an expression of

appreciation from TH

True Milk to loyal

customers. In addition,

by helping with the

regular aging worry of

ladies, TH will create

tight connection with

them, building a long

lasting customer

relationship afterwards.

Delive

ry &

credit

In TH True Milk, all

the staff is well-

trained with friendly

and professional

manner. Whenever

In TH Mart, customers

will enjoy a clean and

enjoyable place of

shopping. Unlike the

normal overcrowded Page | 15

coming to an outlet

of TH, consumers will

be willingly helped

by the staff and

assisted with

additional advice and

introduction about

existing types of

milky and food on the

shelves.

supermarkets and stores,

TH True Milk’s Stores

bring comfort to

shoppers; make the

purchase process of them

easier with addition of

more ways of paying.

II. Place – Explain how distribution is arranged to provide

customer convenience

Place is one of four main Ps in marketing mix. The term does

not refer to business location itself but rather the customers’

location. The “Place” defines the best ways of getting goods to

consumers’ hands. Also, this P is used in reference to methods

and channels for effective and efficient products distribution

which are crucial for both reducing cost and maximizing profit

for companies. In TH True Milk, before coming to the end-users,

products are transferred through different stages. From the

early stage of cows importing, herd control, veterinary care,

disease prevention and treatment to milking, the fresh milk is

transported and stored by cooling tank trucks at 2-4 degrees C

in order to best preserve the nutrients of TH True Milk. In this

place, the latest pasteurization techniques are applied to

ensure quality, naturalness, flavor, nutrition and safety of the

Page | 16

company’s clean, fresh milk. After production stages, the milk

are distributed to TH Stores, TH retail outlet and TH True Marts

in best conditions and bring to families standardized products

with preserved essences, flavors and nutrients of nature.

In TH True Milk Company’s case, they have carried out both

outbound and inbound logistics in accordance with its direct

selling system called TH True Mart for the distribution of TH

True Milk. TH True Mart is a chain of retail stores that

provides food products safe, clean, fresh and delicious and most

nutritious, natural origin, produced by Farm Fresh Dairy TH.

Under the advice of North Asia Commercial Joint Stock Bank-

oriented and high-tech investments of the Group, TH True Mart

facility is invested with modern design and special interior

materials, as well as the upgraded methods in preserving the

best products. Milk are not only preserved carefully under the

best conditions but also placed neatly on the shelf which is

convenient for consumers to find their wanted goods. Compared to

a scattered layout of normal supermarkets, TH True Marts are

truly ideal for customers. Instead of wandering around and

hardly find the items in crowded places, TH True Milk offers

consumers with clean and scientific designed stores; enable them

to free and smart shopping.

Page | 17

Besides, to bring convenience to consumers, the outlets are

located near many schools and offices in big cities. In the

first stage, this system is concentrated in the major cities of

Hanoi, Nghe An and Ho Chi Minh City. As a long term strategy,

this will be key distribution channels and specialty channels

besides traditional distribution. The number and location of

distribution outlets are designed scientifically and rationally

due to geographical and population maps in each region, namely

the density distribution of the major streets, residential

areas, high-rise buildings, schools, hospitals ...For instance,

the chain stores in Hanoi are located in nearby center path like

Chua Boc, Nguyen Chi Thanh, Hoan Kiem and so on which is easy

for residents to find with a system of 40 stores citywide. For

the new UHT Fresh Milk Added Collagen, like the other kinds of

milk coming from the TH True Milk system, they will be stored

and placed in these outlets with a separated section in order to

attract customers and using normal transferring methods of TH

True Milk to come to the end-users. With the cooperation of more

than 200 outlets nationwide, TH True Milk is about to have no

difficulties in distributing its new products. Base on this huge

network, TH’s products can be well-connected and widely spread

to more parts of country.

In addition, since milk is a regular commodity,

distribution can be largely spread; the milk can also be

distributed through trade marketing in retailers like Coopmart,

BigC, MaxiMark, etc. This indirect marketing method is used in

parallel with the direct selling mentioned above. Besides

selling in retail store of their own, TH True Milk also

contracted to outside distributor which help their products

Page | 18

coexist on the same shelf with other competitors like Vinamilk,

Dutch Lady and so on. By this means, TH Milk has offered busy

consumers a chance to shop along with other stuffs. If people do

not have enough time to go to specific store of TH True Milk,

they can easily find TH products on normal shelves. Nonetheless,

most of TH’s customers find it more desirable when shopping in

TH True Marts. This indirect methodology solely accounts for a

smaller percentage in compare to direct selling method

distribution of the company.

In the future, in addition to current direct purchasing

method at TH True Mart and popular supermarkets, consumers can

also order online on the website thmilk.vn and receiving milk in

their home. Currently, this system is now in developing stage

and promised to coming into force in the nearest future. TH

Group believes that this development will bring Vietnamese

consumers to a more enjoyable and convenient shopping experience

along with traditional forms.

III. Prices – Explain how prices are set to reflect an

organization’s objectives and market conditions

Pricing decisions are ones that could have incredible impact

on marketing organization. Price strategies that are not built

up under careful consideration could lead the company to both

financial loss and declined market share. For this 1-year

marketing mix, the prices are needed to be set up carefully so

that the product can properly enter the market and bring back

profit for the company. More important, the price is needed to

fit with the company’s goals, strategy and objectives.

Page | 19

1. TH True Milk’s objective

The mission of TH True Milk is to strengthen Vietnamese’s

physically and mentally healthy, provide essential nutrients in

not only dairy products but also healthy lifestyle, becoming a

world-class clean dairy manufacturer in Vietnam, beginning with

fresh Th True Milk. TH also aims to create trust in consumers

mind about clean and high quality milk .Since then, the price

setting for UHT Fresh Milk Added Collagen needed to be suitable

and reasonable for targeted consumers. In fact, due to other

prices of relevant products from TH True Milk, the firm is not

concerned with attempting to achieve the goals of offsetting low

prices by selling high quantities of products. Instead,

customers receive the best products and willing to pay at higher

prices for better quality. For example, due to recent data on

prices, TH Milk’s prices are higher than Vinamilk’s ones, on

average it worth 26,500 dong per 4 bottles of 180 ml whilst the

price of Vinamilk for the same amount is 22,500 VND. According

to the current competition, the marketing skimming strategy

seems to fit with TH True Milk the best. Applying this

approach, competitors are likely to be incapable of producing

the same high quality products like TH. Furthermore, the quality

and image of TH True Milk products is completely match with the

high-end users of the brand. It is a common thought in

Vietnamese people’s minds that cheap things equal poor quality

and expensive stuffs deserve their prices. For those reasons, it

is suggested for the UHT Fresh Milk Added Collagen to charge the

price in range of 10,000 to 15,000 VND per 180ml bottle, which

is suitable for medium-upper class, especially young, successful

Page | 20

ladies. However, this setting must be aligned with the proposed

quality or else will lead to massive consequence in the lost of

customers. Future adjustment also could be considered for

instance change in prices of Milk in duration of 6 months. If

the to the third or fifth month the milk has not been consumed,

the price should be deducted with the aim to lower income people

to purchase.

2. Market conditions

Market conditions including the three basic ones: suppliers,

competitors and customers are crucial in determining price of

the product.

a. Suppliers

As the origination of dairy products from TH, the cows are

imported from overseas countries like Canada or Australia. Some

of them are affected by animal disease such as BSE (2011) in

which leads to lots of consumers skeptical about the quality and

safety of the products. Thus, the change in climate will cause

trouble for the imported cows even in the high conditions of TH

farms. The rising cost in feeding and taking care of these cows

will not be a small number. From a different point of view, like

other industry, the unpredictable rise of petrol (in

transportation of milk) and equipments will require TH a fully

prepared financial support to both maintaining the current

system and bring consumers best quality milk. According to

demand and supply theory the price as a consequence will be

raised as well. Therefore, TH should have suitable adjustment in

pricing to both cover the cost and ensure the firm’s

profitability.

Page | 21

b. Competition

In Vietnam dairy market, the biggest rival of TH True Milk can

be seen as Vinamilk. This brand has long time existed before TH

and a giant in milky industry. In compared to this firm, the

price of TH True milk (according to thmilk website, price is

about 26,500 dong per 4 bottles of 180 ml) is often 3500 – 4500

VND higher than them. The difference lies in the modern and high

standardization production chain they own. These two brands both

compete with each other in creating trust in consumers about a

clean and safe milk manufacturer. Nonetheless, with the

experiences in both domestic and international market, Vinamilk

seems to be more familiar to Vietnamese users than TH.

Therefore, with the aim to niche market of high income

consumers, TH True Milk is in need of maintaining a certain

pricing level of which help retain the image and strategic goal

of the company. In case of UHT Fresh Milk Added Collagen, if the

price is set unreasonable low, this will lead to lost in both

profit and targeted customers.

c. Customers

Customers have a huge impact on prices of TH. As mentioned

above, the target consumers of this company, especially this

Fresh Milk Added Collagen is upper income people, the price per

bottle must reflect the high class which deserve with the

proposed quality. If it is set too low, in accordance with

general thought of Vietnam’s consumer, the quality will be

interpreted lower and quantity therefore will be declined and

vice versa. If the price is too high, of course, no one could

Page | 22

afford for daily use. For instance, if TH sells at extremely

high pricing level, consumers will find other substitutes like

Strawberry Milk from Dutch Lady or Vinamilk. They have lots of

choices in milky products, so the pricing strategy must be

considered carefully and thoughtfully.

With potential milk market as mentioned above, in

accordance with increasing GDP per capita, boosting demand for

dairy products, especially premium, high quality milk, to

guaranteed for in-depth growth of Vietnam's milk market in the

future, such pricing strategy is fully justified. With the

development of the market, income, standard of living, clear

milk is no longer luxury goods and it gradually becomes regular

and indispensable product in people’s daily life.

Due to the term of this 1 year plan, the prices should not

change whilst the sales trend has not been shown clearly.

Adjustments later needed to be taken under proper

considerations. There will be certain changing factor that can

affect the price like the inflation of over 15% per year (2012

data) or the increasing labor rate, rising input prices, etc.

According to the former TH True Milk’s CEO, Mr. Tran Bao Minh:

“Initially, the price of TH True Milk can have a little difference in compared to the same

products. However, when the first phase of the production project completed in 2013,

TH Milk's can provide up to 50% of total national milk. Four years later, raw milk

production of the company is expected to be more than 3 - 4 times the country’s. Thus,

consumers will have enough milk for daily drinking at the most reasonable prices."

IV. Promotion – Illustrate how promotional activity is

integrated to achieve its aims for the target market

Page | 23

Promotion is of importance when talking about marketing.

Promotional tools are in charge of providing information,

increasing brand awareness, building up images for the

companies. TH True Milk communicates with consumers about its

products in various ways. The company’s promotional efforts seek

to differentiate its products from those of other competitors.

With the aims to quickly create long-lasting impression in the

Vietnamese customers mind, TH True Milk incessantly, building

images from the period of logo design, concise slogan that

meaningfully implied to unique advertising implementation, brand

building through practical activities that are critical to the

public interest in environmental management and energy

efficiency. These campaigns are always used in reference by the

other brands as a "lodestar" of marketing art. TH True Milk

implemented which so-called Preemtive Claim or Law of mind - concepts

of Al Ries. Accordingly, TH True Milk was the first company to

claim they produce "clean milk" and took a step ahead of the

competition against veteran when doing this. That's more than

buzz and media storm. TH True Milk has adopted branding strategy

"perceived quality". By owning True which means "clean" in

consumers’ minds, TH Milk is on the right track to become the

leading brand in fresh dairy segment.

For promotional activities, they must comply with slogan

and image of Fresh Milk – “Truly Nature” that TH True Milk

raised. In case of the new UHT Fresh Milk Added Collagen, the

promotion could be conducted through different channels as

follows:

1. Promotion in exclusive outlets:

Page | 24

Through the system of retail stores TH True Mart, new

product can be promoted through traditional ways like

attractive standees and in-store marketing. The staff will

be trained on features of products and promote them to

regular customers come by the stores. Directed to women

customers, this personal promotion could help in raising

the awareness of the new product among consumers’ minds.

The outlets should represent two main colors of TH which is

white and blue. In accordance with that, LCD TVs are needed

to turn on regularly running TH’s ads with staffs dressing

outstandingly as milk producers.

2. Promoting events:

Since the product is aimed for ladies who want to preserve

their beauties, beauty events is suitable for promoting.

The new releasing milk can be used as trial drink for women

come to the events. The events could vary like the previous

“TH True Milk and women beauty”, “TH True Milk accompanying

with women’s health and beauty”, etc. In addition, through

word-of-mouth marketing after these events, especially of

young women, it is more likely to spread the products’

outstanding features to the consumers. Also, this milk’s

promotion can also be combined with the regular milk

products’ promotion from TH. For sport events, along with

promoting for children’s milk, there could be a section for

young parents – where young mothers can find this product

of their interest besides caring for their kids. This kind

of events helps promotion direct to two main customers for

two product lines at the same time. Examples for such kinds

Page | 25

of events could be listed as TH’s “TH mini artist” with the

cost of 500 million VND for the whole events which in turn

help boost sales up to 10% in 2011.

3. Mass media and print media:

Mass media has huge impact on attracting consumers.

Therefore, TH True Milk should also utilize this promotion

method. Housewives are also of the important customers to

this milk so TV ad is a useful tool. There should be a

simple advertisement deliver clear message about the

breakthrough aspects of products in which differentiate it

with the other competitors and attract customers from the

first stage. A simplified ad is best fit with the clean

image of the firm. There are some channels could be

utilized for this promoting such as VTV3, TVC, HTV, SCTV

and so on daily at the time of 8pm to 10 pm with the

advertisements’ length of 30 seconds per ad, reducing to 15

seconds in the last phase of promotion campaign.

Internet with online marketing is needed as well by adding

banner or small ads on sites of famous web pages. Also,

magazines especially ones for women and businesswomen

should have included TH advertisements as well. The spread

of these weekly newspapers could help the company to reach

to more women. For magazines like The Youth, Women, New

Hanoi, advertisements should be colorfully printed in top

pages of weekly editions.

4. Beauty centers:

Page | 26

As the target market of this product is of women in general

and high living standard ladies in particular, these

customers are likely to visit beauty salon often. Thereby,

providing these places with this milk as a common drink

during the spare time is an effective way to promote the

products. In parallel with normal distribution through

exclusive outlets, these places are also of the important

part of TH businesses and promoting opportunities here

should be recognized and utilized.

V. Analyze the additional elements of the extended marketing

mix

In accordance with regular 4Ps of marketing, the additional

elements including People, Process and Physical environment need

to be concerned as well.

In regards of People, this is the most key element of

any service or experience. Services are produced and consumed at

the same time, and customer experience is altered to meet the

individual needs of people. Consumers buy from people that they

like, so the attitude, appearance and personal skills of all

staffs need to be placed first. All customer facing personnel

must be trained to maintain a high quality service. Training

should begin as soon as the individual starts working. The

induction will involve the person in the organization's culture

for the first time, as well as briefing him or her on day-to-day

policies and procedures.  Due to the new products, TH staffs

must be well-trained about the new product and its features.

Also, they need to be persuasive enough to turn customers to

Page | 27

decision of trying new things as introducing to them UHT Fresh

Milk Added Collagen. The frequent concern of consumers is the

products’ effect to their health as Collagen is included in the

ingredients. So, clear and convincing information staffs provide

are required to positively affect the buying decision of

consumers. Moreover, customer service as TH planned to expand

for further online purchasing is needed revising as well. If the

firm can perform a good customer service system, it can create

proper trust in consumers; help boost both profit and reputation

of the brand.

From our group’s own experiences when visiting the store on

Chua Boc Street, the staff in general is well-prepared with

friendly and warm welcoming manner. However, in busy time, some

are still not sensitive enough to customers’ demand. For

instance, some staff seems to be quite confusing when dealing

with various requests from children consumers at the same time

importing new milk packages and checking bills. It is suggested

for this firm to comprehensively develop a clear people culture

and a basic employees’ training system rather than focus only on

production improvement. It is obviously the careful training

employees will help create a professional image of TH in

consumers’ mind.

Another P is related to Process, this mostly refers to

service field. In TH True Mart, the process of service flows

from warmly welcoming when customers entering the Mart. Staff

since then have the duty of guiding them to their needed section

of Milk which is normally presented through shelves with

specific cards. At the same time, they are in charge of

providing consumers with relevant information and advices on

Page | 28

suitable products to helping them with packaging and post

purchase. The important plus point for TH True Milk is that

everybody know what to do and how to do it. Again, the

importance of well-trained staffs is called. An experienced in

servicing is key success factor to attract customers. The

impression services bring could determine the whole feelings of

consumers about the products.

Finally, Physical environment is one of the crucial

elements in which customers will base on to make judgments about

the organizations. Consumers are now typically comes to products

through retail units with high level of presentation so a clean

layout could distinguish a company from competitors. In TH True

Milk case, the TH True Marts are designed with a view to fresh

feeling with two basic colors: white and blue. This design

helped bring a bright and clean image to the consumers, make it

more recognizable from other normal companies. Rather than

random placements and crowded stuff like normal brands in

supermarkets, the separate section with neatly placed products

in TH True Mart helps consumers to feel at ease when finding

their wanted goods. The colors are the best to describe and fit

with the brand’s slogan of “truly nature”. The visual effect of

designed colors is one of the main factors that remind consumers

of TH True Milk brand. Official website: www.thmilk.vn provides

a wide range of information about TH’s products, news and TH

Mart as well as milky information (modern production and healthy

ingredients). Information is presented in different forms

(video, audio, articles). With target customers of medium-upper

income class, such a clean, scientific and fresh layout is

suitable and effective in attracting them.

Page | 29

PART 2: MARKETING MIX IN DIFFERENT CONTEXTS

I. Plan marketing mix for 2 different segments in

consumer markets

Different segments require different marketing approaches

and tools. For Vietnam market, our group will look at

demographic segmentation. In particular, this part of report

will focus on two segments of Vietnamese consumers; there will

be distinction of two main target ages of consumers which are

women at the age of 18-30 and women at the age of 30 and older.

Our group has chosen these groups of consumers as they are

reported by experts to be the most successful and caring for

beauty. However, the beauty need and characteristics of women

from these two ages are different. More clearly, women of

younger group tend to use TH Milk for daily nutrition provider

and beauty supporter while the older group is more in need of

calcium with more percentage of Collagen to maintain their

beauty. They are more likely to pay more for the beauty

preserving products as well.

Since these customers are different in some aspects,

marketing plan’s characteristics for them will accordingly

changes. Hence, marketing mixes of these two segments do similar

and differs in certain ways as follows.

SEGMENTS Women at the age of 18-

30

Women at the age of 30

and older

Product UHT Fresh Milk Added Collagen

Page | 30

Natural origin raw materials, not harmful to

people’s health and more suitable for women

aged 18 years and older to prevent and slow

down aging process.

Since the general milk formula has already been

applied international standards and

standardized resulted in high quality, the

product origins will still be kept.

The products for two segments will be divided

into two kinds: younger age group will have

Fresh Milk Added Collagen 1 and older one will

have Fresh Milk Added Collagen 2 which have

differences as follows: Fresh Milk Added

Collagen 1: Sweeter

taste due to majority

preferences of young-

aged women. Also, heavy

taste of Calcium could

be undesirable for them

so the lighter and less

Calcium-focused is

needed for this group of

consumers.

Fresh Milk Added

Collagen 2: Using milk

formula added more

Calcium to prevent bone

diseases since women at

this age generally soon

have symptoms of

osteoporosis. Collagen

should also be raised

when these ages can

easily see the aging

signs.Price Prices in range of 10,000 to 15,000 VND per

180ml bottle

The Calcium and Collagen added differs between

the two kinds of product so the price will

Page | 31

slightly change.

Price of 10 000 to 12 500

VND per bottle of 180ml

milk in which is

affordable. Our group

does not raise the price

for this group too high

since some of them are

still in studying age and

even though this is for

high class consumers,

daily expensive

consumption can sometimes

hold their purchasing

decision back.

Consumers of higher

level of income and the

product are also more

nutritious added so the

price is higher than

the type 1. In

particular, this will

be in range of 12 500

to 15 000 VND per 180ml

bottle. Women at this

age will care more

about their beauty and

scare aging symptoms

normally appeal to

them.Place Women at every age are

of shopping interest.

Moreover, the younger

they are, the more

likely they are

willing to spend time

wandering around for

their interest. Since

then, the places for

this group should be

TH True Mart outlets,

located near center

Targeted women

customers of this

age are of young

mothers so the ideal

place to sell these

products are mainly

direct selling

outlets system

nearby residential

areas which are

useful for daily

purchase and trade

Page | 32

path, rising buildings

and schools in Hoan

Kiem, Dong Da, Hai Ba

Trung District,

District 1 and 2, etc

which is convenient

for buyers.

marketing in

supermarkets such as

Maxi Mark, Big C, ….

Convenient stores

are of wise choices

also in accordance

with the target of

busy housewives

customers. Promotion Youngsters spend most

of their time,

especially on social

networks so ideal

promoting could be

through TV, Internet

or websites

advertisements,

websites of which the

young mainly look for

beauty stuff are of

useful promotion

tools.

In these days and age,

the use of printed

newspapers especially

within the young are

less and less applied

so the promotion

should turn into

To these customers,

using sports events

can attract so many

children and adults.

Coming to those

events could help

bring not only these

women but also their

children. Beauty

events are quite

popular among these

mothers as well.

This promotion

channel should be

conducted properly

with larger scale

than in the first

group.

Because of higher

living standard and

Page | 33

online advertisements

and CFs. The cost of

advertising through

printing will be

deducted as well.

higher percentage of

using spa and beauty

salon, promoting

through beauty

centers need to be

pushed up.

II. Illustrate the differences in marketing products/

services to organization rather than consumers

Marketing products or services to organization indicates

many differences from to consumers. Not understanding and

recognizing these things in comparison between the two methods

could cause businessmen to waste of time and loss of money in

making decisions. Therefore, there are certain differences as

follows. The first distinguishable aspect is the market size.

When conducting business with organizations, the market is often

at niche size with fewer buyers than consumer markets but with

larger prospects. For instance, when TH True Milk market the

products to Big C as their distributor, the quantity is up to

thousands bottles whilst this number for consumer market is

scattered. Purchasing with customers happens with huge numbers

of clients but smaller size of products. To B2B’s approach,

cultivating quality prospect is of importance, not the quantity.

Secondly, purchasing process of organizations could take

months to complete with sophisticated procedures and contracts

while consumer purchases can take place at anywhere with shorter

amount of time from a few minutes to couples of hours. The

lengthy process of understanding clients’ needs is required for

Page | 34

companies in order to create trust and assure that your

product/service is best for them. The contract between TH Group

and its suppliers as well as distributors like Coop Mart has

been considered, prepared and built up for months, even for

years before everything coming into operations. B2B sales

require consultative selling which based on understanding of

clients’ needs and creating trust as well as maintaining

relationship with customers. Meanwhile, sometimes, based on

emotional want rather than a rational decision, buyers could

purchase a bottle of TH True Milk in a few seconds. This direct

method leads B2C to the sale approach of convincing consumer

that they should have the products being sold.

Thirdly, sales in B2B are fewer in number but results in a

higher return on investment from a marketing investment

standpoint. Sales from consumers are large in quantity but with

typically smaller profit and less return. A return of a bottle

of TH True Milk sold cannot be placed under comparison to one of

an order of hundreds bottles to Big C from this company.

The purchase decision, on the other hand, is another

difference. In B2B, budget is of importance and the key driven

factor lead them to purchasing. Buyers are commonly demanding,

skeptical and fastidious about a new decision. From their

approach, there are tons of things to be considered before any

purchase. Meanwhile, in B2C, consumers are more emotional based

when making purchase decision than what they need or the budget.

A shopping women with intend to buy milk for her children if

attracted by the new coming products or some other related

stuffs could be easily stuck into it and is likely to purchase

things that out of original intention.

Page | 35

Finally, in organizations market reputation, personal

relationship and consultative selling are key main factors that

build up brand identity. Businessmen are not easily fooled by

normal advertising tools. On the contrary, consumers primarily

believe in advertising and define brands the way it was shown on

the media. For instance of TH Group, as compliance with North

Asia Bank, the company has a back up reputation but still climb

on by their year-to-year relationship with both Vietnam and

foreign governments to help with current business.

For large companies, the differences between market to

organizations and consumers require firms to well-balance

business activities as well as profit involved consideration.

Understanding key elements and utilize the nature of those

marketing ways, firms are likely to success in both fields.

III. Show how and why international marketing differs

from domestic marketing

International marketing or global marketing is the term refers

to marketing carried out by organizations overseas or across

national borderlines. This strategy employs an extension of the

techniques used in a firm’s original country. It refers to the

company-level marketing practices across the border including

market identification and targeting, entry mode selection,

marketing mix, and strategic decisions to compete in

international markets. International marketing and domestic

marketing have many differences due to its varied

characteristics. It is of importance for TH True Milk to

understand international conditions and people in attempt to

market their products to overseas consumers.

Page | 36

Economics:

As a result of different components and characteristics,

domestic market and international ones differs a lot from

economics point of view. A stable market can create advantage

for TH True Milk when operating. Nonetheless, a country of

unpredictable and dangerous economy is likely to do harm to the

firm’s business. Consumers in a crisis nation will definitely

reduce their purchase and be more reserved in daily expense. It

is needed to take into consideration whether the target country

TH want to market their products are wealthy and suitable enough

for the marketed milk. A wise and careful-prepared pricing

strategy could also bring TH True Milk desirable outcomes. In

compared to foreign countries, for the similar products and

quality, milk prices in Vietnam are 30% higher than the overseas

nations. TH True Milk is well-known for the higher class in

domestic market so the price is of high level which is often 10%

than the others (usually 3500-4500 VND higher than Vinamilk for

the same type of milk bottle). When TH enters international milk

industry, keeping the same prices requires firm thoughtful

consideration in both sales and profitability aspects.

Social:

Different countries will bring back different consumers’

behavior. It is obviously that the home country’s customers will

be easier to understand than the international ones. Integrated

into overseas industry, companies have to face with various

types of enormous behaviors from consumers of different

backgrounds. Hence, careful research is often conducted before

any deeper movement into the big sea. In Vietnam, TH True Milk

mainly deals with skeptical thoughts of consumers in quality’s

Page | 37

problem especially the safety and originations of claimed

ingredients on the milk. Marketing of them, thereby, aiming for

proof of high quality milk components and standardization

production. On the other hand, in other countries, due to

standard requirements, TH will have to prove their products to

be free of forbidden ingredients and still nutritious to

consumers.

Cultural:

Also, making wrong decisions that violate one’s culture or

traditional value could do harm to the companies and even more,

self-eliminate them from the market. Not all countries are able

to be applied one cultural approach successfully. TH True Milk

on its way to international market is required to have suitable

strategy for different cultures. TH’s style in Vietnam is

considered to be high class level. Nonetheless, in other

nations, the same conditions are viewed as normal type. With the

lack of both experience and financial support when operating in

overseas countries, it could be hard for TH to maintain their

image of high class brand. Instead, the company could invest in

distinct features of products and culture that could distinguish

them from the competitors. For example, it could be useful to

display the traditional milk making process in old Vietnam in

accordance with a more casual and Vietnamese decoration style

but still keeping original basic colors of TH. The differences

come from the company’s nature itself and to be success in

outside markets, utilizing them is a wise movement. Also, milk

preferences of foreigners and Vietnamese people are varied. In

developing countries, they tend to care more about the fatness

of products while the domestic consumers aimed to improve their

Page | 38

height and daily nutrition. Therefore, TH True Milk should focus

on diet ingredients for demanding consumers.

Competition:

Competitors’ evaluation is crucial whenever a company enter

a market. International market, certainly, implied more

competitiveness than the domestic one. In Vietnam, in

competition with TH, there is likely to be Vinamilk a huge

rival. Vinamilk in domestic milk market is well known for its

strong brand which is familiar to everyone in Vietnam while TH

is aimed to upper class in society with high standard products.

Nonetheless, overseas market is a huge playground for milky

brands and TH at that time will have much more rivals to take

into consideration when operating, Nestle, Dutch Lady and so on

from this point with more experienced in international market

will turn into their biggest difficulties. Hence, TH is needed a

fully analysis of their rivals and suitable research in which

set the stage for their further strategy in promoting TH Brand.

In conclusion, whether it is international marketing or

domestic marketing, companies are required to have clear

understanding and realizing the current situation of the place

they are in and utilizing the nature of markets, turning

demerits into merits are needed for firms to succeed.

Page | 39

CONCLUSION

Dairy market of Vietnam implied lots of opportunities. For

TH True Milk, developing and marketing a brand new product with

two functions in one which enhancing people’s health and

preserving skin beauty could help attract more customers,Page | 40

especially young ladies. Nonetheless, the products’ performance

based a lot on marketing methodology and practices. Therefore,

the report did the job as consulting TH True Milk with brand new

product – UHT Fresh Milk Added Collagen in marketing mix, target

to women as dominant consumers, set up higher prices due to

better quality, suggesting distribution through exclusive

outlets and using both traditional and nontraditional promotion

tools with a view to helping this company expanding new

business. Our group did have precious experience applying

theories into actual business practices when analyzing and

building this marketing plan.

In conclusion, it is recommended for TH True Milk to

consider certain economics changes and conditions to decide on

suitable marketing method for the new products. Research and

rational actions are especially needed when the company wants to

attract more customers and gain more market share in current

dairy industry of Vietnam.

Page | 41

REFERENCES

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

May 2010. <http://www.blog.myvietbrand.com/1672/brand-

identity- th-true-milk>

2. Extended Marketing Mix, Value Based Management Website,

viewed on 15 June 2010.

<http://www.valuebasedmanagement.net/methods_booms_bitner_7

Ps.html>

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

perspective, Pearson, Singapore.

4. Mandatory Unit 1 – Marketing – Supporting foundation

degrees course book, BPP Professional Education, Great

Britain.

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

2013. <http://www.thmilk.vn/vi/true-mart>

6. The extended marketing 7Ps, The Times 100 Business Case

Studies, viewed on 14 August 2012.

<http://businesscasestudies.co.uk/business-theory/marketing

/the-extended-marketing-mix-7ps.html#axzz2TnVlzDpS>

7. Vietnam import-export review in 2009, Vietpartners, viewed

on 01 April 2010. <http://www.vietpartners.com/Statistic-

imex.htm>

Page | 42