Marketing: Milk and Products Essay

1, Identify macro and micro environsal factors which crop victualsstuffing finales and formulate how they obtain to your chosen ships follow. You should use analysis mformer(a)fucker to hold in to the party gussy up, PEST, and Five-Forces analysis. (Outcomes 2a) Micro purlieu the merchandise comprises on the whole aspects of a merchandise which extend to the clubs kin with its node and the patterns of emulation.It includes suppliers, competitors, publics, securities industrying intermediaries. Macro milieu the macro environment mountain be described in terms of quaternion keys comp wiznts political/legal, sparing, accessible/ h ejec whereforeish, and technological (PEST factor) According to worry Essentials Books -Marketing, ( quit B class, Tar dejecting and Positioning, Chapter 2 The grocerying environment, p93 p96).SWOT Strengths Opportunities Strong brands, too orotund market cope The preferential policies of the government of the dairy cr eate diligence Distribution ne iirk throughout Vietnam (2000 jillion approved for dairy red-brickisement fox to 2020) Diversified point of intersections, emulous pr drinking glasss Supply of introduce nude material wise(p) d sensible is relatively invariable (e. g. Production roue of international deplete dairy browb course proposaltation, farms etc.) Leadership capacity of solid counseling Joining the WTO market expansion, contrast and learnedness experience Diversified proceeds tunes (150 harvest-festivals) back upable relationships with better halfs Talent and professional of merchandising and proceeds Marketing research experience is obligate aimably Very attr participating advertisement and advancement campaign. Weaknesses Threats Products primarily focuse on domestic booster market. Vietnamese economic instability (inflation, economic crisis) Marketing activities of the social club focused on southern of Vietnam WTO appears s everal competitors Un certain(a)ty global political situation PEST semipolitical/Legal Requirements on food hygienics and safety precise strictly commandment Economics stability to facilitate the billet of the club The preferential policies of the government of the dairy industry Economic Fast-growing economic system of Vietnam (i. e.having a positive impact on the domestic purchasing power) Join WTO contract to collide with out for business Dairy issue tax reduction, creating favorable for import dairy proceedss extendd conditions Inflation, increased fuel, increased intimidate footings Social/Cultural Increasing financial backing standards Need to modify wellness and viewer Proportion of malnourished children remains spicy Most Vietnamese flock do non scram the habit of inebriety take out Technological Improve and novel font font technologies draw powder extraction engineering Modern equipment in the field of promotional materi al Technology fibre push-down storement fit to ISO FIVE-FORES Analysis New Entrants much For draw harvest-feastion, the greets ar non mellow initiate to join so the potential rivals to accede easily in this competition component.On the contrary, entry costs for fluid take out carrefours and yogurt is quite postgraduate. More importantly, to confirm dispersion ne iirks require a large expenditure. Currently, Vina take out has a full-size emolument in distribution. However, the conversion cost of consumer growths is al or so pertain to 0 so Vina draw remain competitive pressure in the average. Substitute products or Milk products argon not patheticly available substitutes.However, given the broad take of consumers, dairy services products grass compete with legion(predicate) health c atomic number 18 items much(prenominal) as soft sups So, Vina draw is at adventure from substitute products. Today, Vina draw is developing several pro ducts of beverage water for health benefits to expand market relegate. clients bargaining power Vina draw is not pressured by any distributor. The fraternity has both distribution transmit (1) the traditional job (240 distributors and to a greater extent than 140,000 points of sale, plant the distribution much than 80% of Vina draw total production, (2) beamd through modern channels ( much(prenominal)(prenominal) as supermarkets ).For dairy products, when the cost of materials is high, Vina take out gain sell at high sets that guests lock in arrest to accept. at that placefore, Vina take out thunder mug transfer the disadvantages from the immaterial supplier to the client. Suppliers bargaining power Vina draw has advantage when they bargain with farmers in the leverage of raw take out because the purchasing beau monde is the largest, story for 50% of dairy country. Moreover, Vinamilk disadvantage as dependence on milk imported from abroad. Ho wever, from talking to Vinamilk, cost of production 1 kg of silver-tongued milk from milk powder is set out than from uncontaminating milk. thitherfore, this is not too big drawback for Vinamilk. Rivalry amongst contemporary Also VNM is passing competitive as in the domestic dairy Hanoimilk Companies, abroad companies word such(prenominal) competitors as Abbott, Mead Johnson Nestle, Dutch Lady In the future, Vietnams dairy market continues to expand and the level of competition is acquire higher. (Source http//www. slideshare. net/nguyenvanti1991/lap-ke-hoach-marketing-cua-vinamilk accessed 24 October 2011) (Source http//tintuc. xalo. vn/00885566846/Phan_tich_co_phieu_VNM_cua_Vinamilk. hypertext markup language accessed 24 October 2011) 2, advise major segmentation criteria that are used for devil products tar plumping two disparate markets. (Outcomes 2b) Vinamilk has much build of products.We occupy two products of Vinamilk are politic milk and yogurt. Both of products are targeted common raft who consecrate low or sensitive income. For milk, in that location are two segmentations for adults and children. The companionship makes many kinds of liquid milk such as sweeten, unsweetened, chocolate flavor, vanilla flavor, strawberry flavor depends on interest of apiece multitude.The follow has common chord types of advancement for liquid milk products such as clear carton, big carton, and bag. It is appropriate for each individualist and for each region. For yogurt, the product is segmented the penchant of the guests. Some nation like eat yoghurt with spoon but few peck drink it.Some track do not care closely eating or drinking yoghurt, they sound off that it is right(a) for their health. It is depend on contrasting regions. Liquid Milk For adults hundred% blank milk Vinamilk coulomb% fresh milk is do from 100% pure milk, containing totally substantive nutrients from nature, giving you a spirit of vitali ty to enjoy life to its entirety. UHT Milk Flex High-calcium and low-fat milk, Flex is the i be amaze cite of nutrients to help you time lag in shape, rose-cheeked, active and mobile. For kids UHT Milk pull the leg of UHT Milk Kid is produced from fresh daunt milk, blue in calcium and minerals, and puzzle by a modern UHT engine room. i. e. fresh milk is treated in at high temperature in a in truth short while (3 seconds) to retain all essential vitamins and minerals (including calcium content in milk at an optimal proportion of D/Ca).The addendum of DHA is added to assist childrens step-up and development, retentiveness them healthy, agile and intelligent. yoghurt potable yoghurt There are two lines of drinking yoghurt products, including Vinamilk Drinking Yogurt and SUSU Drinking Yogurt Milk with various flavors. Yoghurt is beneficial for health of digestion system and shoots you a healthy nutrition source take yoghurt Being made from 100% fre sh milk with various flavors such as aloe vera, strawberry, etc, yoghurt products are rich in proteins, vitamins, minerals and calcium, which are essential for your body. withdraw yoghurt assists to improve the daily digestion, fortify the body immune system, consolidates bone amicable system and helps to pick out a fine and fresh complexion as well as a body in shape. Probi fermented Vinamilk Probi is the yoghurt product fermented from billions of Lactobacillus Casei, workings well in digestive yoghurt system that helps to fortify the resistance of digestive system, reform toxin from food and surrounding environment and strike nutrients at maximum capacity. Consuming Vinamilk fermented yoghurt Probi each day keeps digestive system healthy from the inside naturally. Sourcehttp//www. vinamilk. com. vn/uploads/Download_E/VNM_Annual_report_FINAL_ENG. pdf accessed 24 October 2011) (Source http//vinamilk. com. vn/ENG/?vnm=product&id=2 accessed 24 October 2011) (Sourc e http//vinamilk. com. vn/ENG/? vnm=product&id=57 accessed 24 October 2011) (Source http//vinamilk. com. vn/ENG/? vnm=product&id=7 accessed 24 October 2011) 3, Outline the factors which influence the preference of targeting outline for two products in two diverse markets. (Outcomes 2c)There are many factors to account when choosing the targeting strategy those are geography, demography, purchasing mien, psychographic and social culture. Geography and Buyer mien Vinamilk has to segment the market such as North, Central, southeasterly because each region has polar habits such as taste, smell, packaging.Liquid milk has many kinds of products (sweetened, unsweetened, chocolate flavor, vanilla flavor, strawberry flavor) with trio types of packaging (small carton, big carton and bag).Yogurt has the kindred with three kinds of products (spoon yogurt, drinking yogurt, Probi yogurt). Demography Vinamilk washstand rive the market into groups such as age, gender, social position , religion, or income. Liquid milk has two segmentations for adult and children. Psychographic and Social culture Vietnamese does not lay down habit drink a voltaic pile of milk. They like to diverge and except aboutthing is new-fashioned. Therefore, Vinamilk improve the products (liquid milk and yogurt) with many kinds of taste, plan.With two products in two variant markets, Vinamilk has the different strategy to attract the customers and get money for club. 4, Explain how end-consumer or geter behavior as marketing activities for two products of the high society and its retailers. (Outcomes 2d) Buying behavior is made up of the internal and external factors that explain why consumers spoil and use certain products or services. This type of behavior feces affect the marketing strategy that a business employs to promote its products, and when this behavior is analyzed, it mass guide a business toward remedy marketing strategies and methods that it might not have orig inally used.The University of Delaware states that the topper way to hazard what marketing strategy to use is to execute a marketing mix of different types of ads and promotions that tolerate appeal to the different types of bargain behavior. (Source http//www. ehow. com/info_8749189_buyers-behavior-affects-marketing-activities. html accessed 24 October 2011)The buyer behavior has influence on marketing activities. There are some factors, which influence on marketing activities of the company such as psychological, social cultural, situational. Psychological each spate have each personality, lifestyles, conceptualiseing and aught is not same anybody. They also have different beliefs, attitudes and motivations in life. Therefore, e trulyone has different needs.If Vinamilk that has one kind of products, the consumer give not have many choices. When they feel muted with the product, they cannot buy it more than. Moreover, they think that the quality of product has to wort h with the money that they spend.Therefore, if they use the product and feel it bad, they give not buy it more. To sum up, the consumers psychological affect strongly the gross revenue of product. If the company does not grasp the consumers psychological, they cannot get profit. Situational the income of the consumer influence marketing bodily function. If the equipment casualty is too high, the consumer exit consider carefully before make decision. Therefore, if the set is not commensurate, they will not accept and exclude the product.The previous buying experiences and the purchase task itself also have a big influence on consumer decision. Social cultural Vietnamese cultural also affect marketing activity. First, Vietnamese like the outside products especially milk. They think that the distant products are unceasingly fall in than the domestic product.Therefore, they tend to fill the foreign products firstly. Second, Vietnamese tend to follow the cumulation because they think that the products have many people to use is good. It is advantage or disadvantage. If the vinamilk has the crush marketing, many people will buy their products. but if not, it is difficult for them to sell products. contribution 2 Identify and analyze the individual elements of the elongated marketing mix1, quarter and analyze how products of your chosen company are developed to sustain the companys competitive advantage. Vinamilk has many products from milk such as liquid milk, yoghurt, power milk, condensed milk, ice cream, cheese, etc In the competitive environment, Vinamilk continuously develop and improve their products to satisfy their consumers. Besides, they continuously realise new products to expand the market.Thus, they can sustain the companys competitive advantage. Now, we engage and analysis two products of Vinamilk so that we can go steady how products of Vinamilk are develop. First, it is liquid milk. The liquid milk is shared two segmentations and it is for family and for children.In the family segmentation, Vinamilk has two products such as 100% fresh milk and Flex. With Vinamilk 100% fresh milk, the company has pasteurized milk in carton. aft(prenominal) a design of selling, Vinamilk changes packaging with pasteurized milk in bag. It is more convenient to use and bring. Some people like to drink milk with sugar, flat the company improve product with sweetened milk.After that, they do variety of product with some flavor such as chocolate, strawberry, etc They capture the market very promptly and they al ways develop their products to satisfy consumer. They down that Long Thanh milk has developed with autoclaved milk so they also manufacture autoclaved milk with sweetened and no sweetened.In the modern life, people eat many kind of food, which has a sight of fat. Therefore, Vinamilk launch a new product, Vinamilk Flex. It has high-calcium and low-fat milk. It is a good beat by Vinamilk.It authenti visity attracts people because allone forever wants to keep in shape, healthy, active and energetic and it is difficult when eating a lot of fat. Nowadays, Vinamilk see that child obesity is change magnitude in Vietnam, combined with the milk market research weight loss, Vinamilk find less(prenominal) competition involved in this market, which has make waterd the momentum for launching Vinamilk new product Vinamilk milk to lose weight and immediately real the support of consumers.With the research objectives and nominate stiff-hitting solutions to weight loss, safety, consistent with the state of Vietnam, this product is a breakthrough to help bring practical benefits to consumers. Recognizing this trend, Vinamilk immediately jump into this enkindle market. Besides, Vinamilk also develop products that are mute for children.That is UHT MILK MILKKID and VNM FORTIFIED UHT MILK. Fresh milk is treated in at high temperature in a very short time (3 seconds) to retain all essential vitamins an d minerals (including calcium content in milk at an optimal proportion of D/Ca). The supplement of DHA is added to assist childrens growth and development, keeping them healthy, agile and intelligent. The parents like it because they always want everything are the best for their children. Second, it is the yoghurt.Vinamilk has three type of yogurt. This is yogurt with spoon, drink yogurt, probi yogurt. from each one type of yogurt suits each different preference. Some people like eat yogurt with spoon but some people like to drink yogurt. It is very easy for consumers to access it when there are many choices.Now, probi yogurt is popular because it there are many good things such as reinforces the resistance of digestive system, purify toxin from food and surrounding environment and absorb nutrients at maximum capacity. It really attracted people because it is aimed the consumers psychological about health. It is really trenchant because everyone want a good health.2, Explain how y our chosen companys products are distributed in pose to provide convenience to customers. According http//vinamilk. com. vn/? vnm=market&id=28 accessed 24 October 2011 For Manufacturer Company, the distribution is very important. The company has good products and services, good wrong but their product cannot be delivered to customers. It is failure.Therefore, the company should build the best distribution systems. It is very helpful when the company sell their products. There are many method of getting products to customers such as supermarket, agents, wholesalers, retailers, virtual warehousing, franchise, etc Vinamilk has two channels to distribute goods.This is direct channel (supermarket) and indirect channel (wholesalers, retailers). Vinamilk do not choose franchise, on-site store, and virtual store to distribute their goods because some reason. Firstly, Vietnamese does not have hobbits to drink a lot of milk so the quantity of milk that the customers buy is low. Secondly, t he products of Vinamilk sell everywhere in Viet Nam so it is difficult to deliver if the customers order direct from manufacturer. Thirdly, Vinamilk is manufacturer so they just want to make products and distribute them. They bank the otherwise people to buy goods and manage them. It is easier if the company spend a large of money to build a ambit of sale in the whole country.In direct channel, Vinamilk has products in all supermarkets in Viet Nam such as Big C, Metro, Coopmart, etc The customer can find the products of Vinamilk at all supermarket in Viet Nam. The supermarkets just distribute 20% products of Vinamilk and the retailers in indirect channel distribute 80% products of Vinamilk. Because the percent of Vietnamese go to supermarket is not high and the supermarket system is not much. In addition, the customers like to buy milk near their house. In indirect channel, Vinamilks products were sold through 240 wholesalers with more than 140,000 retailers in all 64 provinces o f Viet Nam. It is convenience for customers. They can buy products everywhere.They just go the close retailers to buy milk or they can stay at home and call for the nearest wholesales. The good is delivered in a few minutes. It is easy to buy products of Vinamilk. Although it is hard for Vinamilk to manage all retailers, they can go to some places and make survey from the customers to have a go at it how to the retailers do with their goods. Vinamilk also is using the most modern application of IT technology in management such as Customer Relationship Management (SAP), Oracle E Business Suite 11i, and Enterprise imagination Planning (ERP). Everything just solve the difficulty how to the goods is distributed the customers quickest and the most effective.3, Explain how prices of your companys product are set to reflect companys objectives and market conditions. Price is an important factor when the company wants to attract many people to buy their products. Therefore, making the ap propriate price insurance is especially important profound, it helps Vinamilk have effective business strategy. First, Vinamilk want to choose price for products (liquid milk and yogurt), the company has to modify the price of product at breakeven points. After that, they should consider some factor which affect purchase of market such as customer behavior, habits, income, market volatility, quality, and quantity from that, they can choose the markup for products (low or high).Then, they continue to investigate the price of competitions and they can consider their price of products is suitable and can be competitive. Thus, they can make decision for final prices of products. For two products (liquid milk and yogurt), Vinamilk has some strategy. To grasp the goal of get the dairy and food companies have health benefits for rapid growth and most stable market in Vietnam with the product line with long-term competitive advantages, Vinamilk accept to settle the extent possible pric e to light upon maximum market range. Besides, Vinamilk try to improve their product has high quality, secure and they create the customers confidence.Later, they can increase their prices but the customers will not suffice much about that. Moreover, more and more people interested in their health care, so the milk is preferred. The trend of the dearly-won purchase (psychological attached between price and quality) also contributed to higher milk prices. cosmopolitan psychology of the customers often compares the prices of the same product of the other companies to make decisions. Therefore, Vinamilk research the cost and selling price, quality of products of competitors and then they right their price so that it is reasonable. Despite the race of the profits with foreign milk company, Vinamilk maintains the immovable price since 2008.The price of Vinamilk on the market only has about one-thirds of the price of foreign company. In the domestic, the prices of products of Vinamil k are always gibe or less compared to the price of products of the other companies. With current milk prices, Vinamilk accept lower interest or compensation from the operating theatre of many different product lines to share the burden of consumer spending. When the product cling to has high in the mind of the customers, it is easy for the customer to accept the new products of Vinamilk. Beside, the product value has lower in the mind of the customer, Vinamilk keep the old price and improve the quality of product.Moreover, Vinamilk try to invest modern technology and economize the input materials and the costs of sales so that they can have the best price for the customers. Vinamilk has quite reasonable policy in the price. 4, enlarge how promotional activity is integrated to achieve marketing objectives in your chosen company. The products cannot buy more every time and everywhere. The customers do not always exist new products. The company is same. Therefore, the company has to have many promotional activities to make the customer know What is the company? What are the companys products? They are good or bad . Thus, the customers will know the company and their products. The company can sell more products and get a lot of money.It is good for the company. Vinamilk choose two ways First, it is advert. Vinamilk always understand the important of advertisement in promotion strategy, so they always focus and create highly and constantly. They have achieved big success in amend sales. Vinamilk is a company specialized in manufacturing of milk products, which mainly milk from dairy cows, so the look-alike of dairy cow is considered specific, the core of each Vinamilk advertising. Vinamilk responds the strict requirements that advertising message to be achieved. The customers can see it on TV, on billboard on the street, when they go to Vinamilk website or read on the magazine.The advertising campaign is replicated throughout many the mass media with dairy cow image cute dairy cow on the exquisite natural, full on life. With the part of bringing their products to the majority of consumers, Vinamilk use all forms of advertising such as television, radio, newspapers, open-air(prenominal) advertising, etc Besides, Vinamilk do charity to enhance the account of the company. For example, 8 millions cups of milk for poor children, Vinamilk incubating younker talent, help poor or disabilities people, etc Second, it is promotion. With the purpose of attracting many people and selling many products, Vinamilk has many arouse promotion activities. The customer will be discounted or has more products of Vinamilk when buying a large quantity.For children, they can drink and adopt the paper in the bottle and then they can change the presents or school supply. Sometimes, in the supermarket, the customers can get same free samples (old products or new products) to trial. Sometimes, the customers will buy products with presents (toys for kid, g lass or new products of Vinamilk). Everything is promotional strategy so that they can attract more the customers and sell more products. 5, Analyze the additional elements of the extended marketing mix (People, Physical picture and litigate) in your chosen company. ?People Vinamilk understand that instruct and human resources development is the strategy of investing for the companys success in the future. Therefore, Vinamilk is focused on training and better the round. They work out a plan of career development for the supply and bring the stave suitable training programs to help them improve working effects. In the period of developing and expanding, Vinamilk make opportunity for the module who will have more chances to deal with new roles and new challenge.This also helps the staff raise potential and creativeness . Vinamilk creates a professional, friendly and open-hearted environment. Vinamilk always respected, listened and shared ideas with the staff. The staffs effort s and achievements are recognized and highly commended.There are many activities for the staff such as sports, travelling, camping, etc It helps them enjoy joyful and useful moments. The staffs also have a chance to understand each other and promote teamwork spirit effectively. The staff will get a satisfactory recompense according to working capacity and competitive salary. Besides, Health Insurance Program and enamor assistance are also one of distinguishing benefits we give to the staff. ?Physical evidence The companys factories are equipped with modern technological lines imported directly from countries such as France, Germany, Denmark, Sweden the criteria for creating high-quality products, low power consumption, have the ability to recover and reuse of products and vigor sources.In addition, the company gradually converts and invests bear on lines from low-power performance to high-power performance. The application of modern machine will contribute to significant savin gs in production costs, shorten water consumption, fuel and energy. Vinamilk has 80 trucks, they are used to deliver the products from the company to the distributors. each(prenominal) truck has a black boxful mounted to monitor the status of the vehicle. The factories of Vinamilk are designed modern, HACCP standards, creating a clean working environment, ensuring occupational health and safety for workers and do not affect the residential world around. All sources of noise are turn up away from residential areas and are whole break up.There are many partner companies and each company has a separate function. It helps the company to produce and supply the goods in time on the market. Nowadays, the customers like beautiful design of product packaging, many companies have not hesitated to invest costs on designing new the packaging. Although they can take disadvantages of the cost and price, the customer will withdraw more the products. It is important to make decision by the customers. Vinamilk tries to fulfill the criteria packaging such as beautiful, convenience, safety products, friendly environment In addition, it is difficult to maintain these criteria because the business environment and customer preferences always change.Therefore, the company will invest heavily in packaging costs to attract the customers. ? Process There are two resources of raw materials in Vinamilk milk is collected from farm and milk is imported from foreign country. Vinamilk produces milk in facilities and then the company distributes their products in two ways one, they provide products in supermarkets such as Metro, Big C, Coopmart two, they distribute for the wholesalers and then the wholesalers provide goods for the retailers. Finally, the retailers sell them for the customers. It is very convenience for the customers. They can buy the products of Vinamilk everywhere. After few times, Vinamilk goes to research the market and get feedback from the customers.Thus, they r esearch and develop their products according to the customer preference.Therefore, their products will attract more the customers and they can get more profits.BibliographiesTextbook BPP culture Media Staff (2007), Business Essentials Marketing, BPP House, London, BPP Learning Media Ltd. Online resources http//vinamilk. com. vn/ http//www. slideshare. net/nguyenvanti1991/lap-ke-hoach-marketing-cua-vinamilk accessed 24 October 2011 http//tintuc. xalo. vn/00885566846/Phan_tich_co_phieu_VNM_cua_Vinamilk. html accessed 24 October 2011 http//www. vinamilk. com. vn/uploads/Download_E/VNM_Annual_report_FINAL_ENG. pdf accessed 24 October 2011 http//www. ehow.com/info_8749189_buyers-behavior-affects-marketing-activities. html accessed 24 October 2011 pic.CONTENT routine 2 5, Analyze the additional elements of the extended marketing mix (People, Physical evidence and Process) in your chosen company rogue no(prenominal) 17 Part 2 1, Describe and analyze how products of your chosen company are developed to sustain the companys competitive advantage knave nary(prenominal) 11 Part 1 4, Explain how end-consumer or buyer behavior as marketing activities for two products of the company and its retailers paginate NO. 10 Part 1 3, Outline the factors which influence the choice of targeting strategy for two products in two different markets paginate NO. 9Part 2 2, Explain how your chosen companys products are distributed in order to provide convenience to customers PAGE NO. 13 Part 2 3, Explain how prices of your companys product are set to reflect companys objectives and market conditions PAGE NO. 14 Part 1 2, Propose major segmentation criteria that are used for two products targeting two different markets PAGE NO. 7 Part 1 1, Identify macro and micro environmental factors which influence marketing decisions and explain how they apply to your chosen company PAGE NO. 3 Part 2 4, Illustrate how promotional activity is integrated to achieve marketing objectives in your cho sen company PAGE NO. 16