BUSINESS REPORT

Vinamilk Yogurt

Student name:
Student ID:

 Unit code: MKT10007

 Semester and Year: Spring 2021
 Assignment Number: 4
 Date of Submission: 11 April 2021

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 TABLE OF CONTENTS
Content Page
Table of Contents 3
1 - Introduction 4
2 - Target Market Analysis 4
2.1 - Demographic characteristics 4
2.2 - Motivations 5
2.3 - Frustrations 5
2.4 - Criteria for choice 5
2.5 - Life goals 5
3 - Brand Extension and Product Strategy 5
3.1 - Brand extension strategy 5
3.2 - Brand elements 6
3.3 - Brand personality 6
3.4 - Proposed product 6
4 - Competitor and Positioning Analysis 7
4.1 - Competitor analysis 7
4.2 - Positioning Map 8
4.3 - Positioning Statement 8
4.4 - Value proposition framework 8
4.5 - Brand equity 9
4.6 - Brand relationships 9
5 - Marketing Mix 9
5.1 - Place 9
5.2 - Promotion 9
5.3 - Price 10
5.4 - Product 10
6 - Conclusion 12
References 12

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1 - INTRODUCTION
This report provides information obtained through market analysis, consumers’ experience, and competitor
analysis of the dairy company Vinamilk with the aim to launch a new product into the Vietnamese market.
The inquiry pays attention to the motivations, frustrations, criteria for choice, and life goals of the target
customer segment while providing the strengths and weaknesses of the possible competitors of the brand.
The report analyses the target market to provide a brand extension and product strategy then presents a
marketing mix for the new product. Competitor and positioning analysis should also be covered.

2 - TARGET MARKET ANALYSIS

2.1 - Demographic characteristics
Based on the features of the products, the ideal persona of Vinamilk yogurt’s target customer segment is a 24-
year-old girl named Nguyen Hong Ngoc. She works as an office worker in a media company in Hanoi. Based on
her job position, Hong Ngoc earns an arguably middle salary in the Vietnamese market, which is 8 million VND
per month. She is married and also planning to have a child in the next year. Besides taking care of her family,
Hong Ngoc also enjoys her free time surfing social media and shopping, which is a common hobby among
young women (Alasagas 2015).

Ideal persona - Nguyen Hong Ngoc

(Vinamilk sau 20 nam phat trien 2019)

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2.2 - Motivations
Based on the ideal persona, we can refer to the whole target customer segment. Due to the office work,
customers often have to sit on the spot a lot and do not have much time to exercise. Therefore, they want to
find a healthy product that can help them ensure and improve their health condition, such as yogurt.

2.3 - Frustrations
Although Vinamilk yogurt has met most of their needs, its consumers are still not fully satisfied. Specifically,
Vinamilk (2019) argued that their customers are quite busy and have little time before starting work each
morning. Therefore, they want to find a handy product that can not only be eaten without processing but also
provide enough energy for them to work all morning, which plain yogurt cannot supply.

2.4 - Criteria for choice

It is believed that the target customer segment of Vinamilk yogurt is people with middle income (Brands
Vietnam 2013). Therefore, they tend to select products based on strict criteria. Their priority criterion while
purchasing should be the product quality, which means that they usually concern about whether the quality of
a product might be ensured and worth the money they spend on it or not. Besides, due to the busy work, the
consumers also look for a product that is easy to buy anywhere, which will help save their time in shopping.
They also prefer a product that can be eaten without processing so that they can spend less time preparing.
Additionally, since they have a middle income in the Vietnamese market, they demand to find a product that is
affordable but still full of nutrients.

2.5 - Life goals

The consumers aim to ensure that they are always in their best health condition to work most effectively.
Besides, they are more willing to buy products at affordable prices and are convenient for them as they are
busy with their work. With the products of Vinamilk yogurt, customers are more likely to achieve their goals.
Specifically, the quality of input materials of Vinamilk is always reliable with imported cows (Loc 2019) and
yeast from confirmed sources (San pham sua chua Vinamilk dong hanh cung nguoi tieu dung Viet 2017).
However, its products still maintain reasonable prices. Additionally, with an extensive system of retailers,
Vinamilk products can be found anywhere, which will help customers save time in purchasing.

3 - BRAND EXTENSION AND PRODUCT STRATEGY

3.1 - Brand extension strategy
The target customer segment includes busy office workers who have little time preparing breakfast before
starting work each morning. Besides, they also want to find a product that is full of nutrients to ensure their
health condition since they do not have much time to exercise due to their job characteristic. Therefore, the
most reasonable brand extension strategy to suit these needs is the strategy of line extension. Specifically, a

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product integrating yogurt and oaty fruity cereal should be launched into the cup yogurt category, which will
offer a solution for busy workers.

3.2 - Brand elements

 Brand name: Vinamilk Cereal Yogurt

This is considered the most suitable brand name since it can capture the main ingredients of the product,
which are yogurt and cereal.

 Slogan: “Break-fast with Vinamilk Cereal Yogurt”

The mentioned slogan is chosen due to the purpose of launching this cereal yogurt product is to create an
instant food which can be served as a quick breakfast for busy people. This is also the meaning of the word
“break-fast”.

 Logo:
The logo of Vinamilk Cereal Yogurt, which is used in promoting this new product, will contain the logo of
Vinamilk. It will also include the word “Cereal Yogurt”, which helps differentiate the product from other yogurt
lines of its parent company.

 Characters:
Vinamilk's character is a cow. However, it does not fit well with the criteria of quick and convenient but still
nutritious of this product. Therefore, the company should create a new character to represent this product
line. It might be a fictional character combining a cow and a bee. The reason for choosing a bee is that the bee
is a busy and agile animal, which is quite similar to the product characteristics.

3.3 - Brand personality

Among five main types of brand personalities (Tarver 2020), Vinamilk Cereal Yogurt should have the
personality of “Sincerity”, which includes down-to-earth, honest, wholesome, and cheerful characteristics.
This can be explained by the fact that this product can meet the most practical need of its consumers, which is
the demand to have a reasonably priced product that is easy to eat and easy to buy. Additionally, Vinamilk
Cereal Yogurt is a convenient food but still rich in nutrients, and it can provide enough energy for consumers
to work in their best condition.

3.4 - Proposed product

 Core product:
Due to the busy job, customers want to purchase a reasonably priced product that can be eaten without
processing to save their time and provide them with enough energy to work.

 Actual product:

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The first thing a customer sees when considering a product is the brand name. Therefore, keeping the name
simple will help busy buyers save time without wondering what the product is. Additionally, plain yogurt itself
is a nutritious product, and when combining with oaty fruity cereal, it can provide much more energy. Besides,
Vinamilk Cereal Yogurt should also be stored in a bowl-sized plastic cup so that people can eat more at once
without wasting their time peeling each small one. The yogurt cup will also come with a plastic spoon to
increase convenience. Furthermore, this is an instant product that can be eaten without processing, making it
perfect for busy people.

Example for a bowl-sized cup

(Thumb Hole Buddha Bowls 2013)

 Augmented product:
Besides essential customer services, delivery service should also be emphasized since the target customers are
busy workers. Specifically, Vinamilk should provide a shipping service to deliver products from the nearest
selling points to consumers. This will help those who are busy and sometimes do not have time to go to offline
stores.

4 - COMPETITOR AND POSITIONING ANALYSIS

4.1 - Competitor analysis
Currently, the Vietnamese market has very few brands serving the office staff segment. They often provide
functional foods in the form of pills. The explanation might be that this is a small customer segment that does
not receive much attention. However, Vitacap is a brand targeting this segment that should be mentioned.
Vitacap provides customers with pills which supply vitamin and mineral to aid in recovery and improve fitness
(Kim 2019). Therefore, its users can improve their health in the quickest way. Besides, this product can be
found at any pharmacy. However, its downside is that Vitacap is just a product supporting the customer's diet.

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Therefore, it cannot be used as a full meal. Additionally, the price for a box of Vitacap is 150 thousand VND
(Pharmacity), which is quite expensive for a middle-income person.
Although not targeting office workers, Yakult drinking yogurt is also a product that customers consider when
looking for convenience. Specifically, this product is also good for the users' digestive system and immune
system, just like cup yogurt (Yakult). Additionally, it can also be found at any supermarket and convenience
store, which is convenient for busy people. Furthermore, the price of 25 thousand VND for a four-pack is
considered affordable. However, like Vitacap, Yakult is also a product supporting the customer's diet. As a
result, it cannot supply enough nutrition.

4.2 - Positioning Map

4.3 - Positioning Statement

Vinamilk Cereal Yogurt will provide a solution for busy office workers who want the quickest and most
convenient breakfasts. We offer fresh yogurt combined with oaty fruity cereal to help customers save time but
still maintain energetic at only 15 thousand VND. Unlike other brands, Vinamilk Cereal Yogurt ensures
customers are in their best condition while prioritizing convenience.

4.4 - Value proposition framework

The chosen value proposition should be “More for more”, which means the customers might have to pay a
higher price, but they will receive more benefits in purchasing the product. The selection of this framework
can be explained that there will be more yogurt and cereal contained in a bowl-sized cup than in a regular
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single yogurt cup. As a result, Vinamilk Cereal Yogurt’s price must be a little higher than that of a usual yogurt
cup. However, in exchange for a higher price, consumers might be offered more benefits as this product
provides a nutrition combination of yogurt and oaty fruity cereal.

4.5 - Brand equity

It is reported that Vinamilk was founded in 1976 based on three dairy factories left by the old regime (Vinamilk
c. 2019). Therefore, it has gone through more than 40 years of development in the Vietnamese market. When
considering Vinamilk Cereal Yogurt, although customers can realize the convenience this product brings by its
packaging, they might not immediately believe in the quality since the price is comparatively low compared to
the benefits the product is supposed to offer. Therefore, having a long and trustworthy operating history in
Vietnam can help Vinamilk launch this product easier since customers are more willing to pay for a product
when the company has positive brand equity (Hayes 2021).

4.6 - Brand relationships

Vinamilk provides the consumers with considerate customer services via different medium, including hotline,
email, website, and warm attitude of employees at its sales points. Besides, Vinamilk’s product quality is
always guaranteed, and it is proved by the consumers’ experience throughout the company’s development
history. Above all, Vinamilk also tries its best to improve to meet the customers’ needs. Therefore, Vietnamese
consumers remain a positive thought about the company, namely a brand which always prioritizes its
customers’ benefits. For this reason, when considering Vinamilk Cereal Yogurt, consumers are more likely to
trust the benefits that the product is supposed to bring and more willing to buy it.

5 - MARKETING MIX
5.1 - Place
Due to the company’s extensive intermediary system of both small and large retailers, consumers can easily
find Vinamilk Cereal Yogurt anywhere, including grocery stores, Vinamilk sales points, or supermarkets, etc.
Additionally, the target customers are busy people, and Vinamilk Cereal Yogurt is also a new product in the
market. Therefore, the product should be displayed on the middle shelves that are at the eye level of
customers to allow them to see the product more easily, thereby saving their time in purchasing.

5.2 - Promotion
The conveyed promotional message should be based on the Positioning Statement. However, it needs to be
presented in a more attractive and compelling way to motivate the customers to buy the product. For
example, an effective message should be like “For busy office workers, Vinamilk Cereal Yogurt is here to
provide the solution. We offer fresh yogurt combined with oaty fruity cereal to make the quickest breakfasts
for you at ONLY 15 thousand VND. Come and get now!”

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Since the target customers enjoy surfing social media, promoting on big platforms is the most effective way to
reach a large amount of audience. Specifically, besides posting and running ads on Facebook as the main
method since Facebook is the most used social networks (Tankovska 2021), it is also efficient to run video ads
on YouTube and TikTok as generation Z today tends to use these two platforms for entertaining after work
(Nielsen 2018; Brands Vietnam 2020).
To increase the attractiveness of the promotional strategy, hiring famous people who have certain influence in
the society for advertising should also be considered. A suggested KOL for promoting Vinamilk Cereal Yogurt
should be Giang Oi, who is a famous vlogger and YouTuber about lifestyle and health. Therefore, she might be
a suitable role model of a busy office worker who helps convey the promotional message easier.

Vlogger, YouTuber - Giang Oi

(Giang Oi la ai? Tat tan tat ve vlogger Giang Oi 2020)

5.3 - Price
The pricing strategy should be based on the customer value-based approach, selling Vinamilk Cereal Yogurt at
15 thousand VND. This strategy is suitable as the target customers earn a middle income. Therefore, they will
not willingly pay for an expensive meal, especially when they have not seen this kind of product appear in the
market. Besides, if the product has an affordable price compared to the abundant benefits it brings, it will
sound more attractive to the customers.

5.4 - Product

 Core product:
The core benefit the customers will gain when purchasing is a quick meal at a reasonable price which can
remain them healthy and energetic.

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  Actual product:
The raw materials to make Vinamilk Cereal Yogurt should be gathered from reliable sources. Specifically, milk
and yeast to make the yogurt part will be taken from current Vinamilk’s suppliers. For the cereal part, fruits
will be gathered from domestic farmers, which will help the company minimize the money spent on
production, thereby minimize the product price.

Oaty fruity cereal mixed with yogurt

(Oliver c. 2011)
The product should be served in a bowl-sized plastic cup with a plastic spoon. Besides, the packaging should
be designed simply but still impressive. Specifically, the packaging will include the product name, an
illustration of the product, explanation of what the product is, etc., like other products Vinamilk is offering.
However, instead of a vertical and rough design, the containing cup should be made to be smooth and curved
towards the bottom like a bowl to make the product look better.

Illustration of the packaging

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  Augmented product:
Besides the delivery service mentioned above, Vinamilk should also improve its customer service by providing
customer service through phone calls periodically. Specifically, Vinamilk’s staff should contact the customers
every three months to inquire after them. This action is also to find out if the customers have anything
dissatisfy with the company. This service will create an opportunity for Vinamilk to promptly make changes to
improve the quality of its products and services. Besides, the company can also introduce to the customers
about new products or offers through this phoning service. This improvement aims to provide the most
dedicated service to busy customers and to enhance the company image in the consumer minds.

6 - CONCLUSION
The main purpose of this report is to propose a strategy to launch a new product into the Vietnamese market
based on the analysis of the brand’s target market, competitor, and positioning strategy. This product aims to
focus on the customers’ benefits rather than the company’s profit.
In addition to the analysis of possible competitors and positioning approach, the report develops a brand
extension and product strategy, as well as a marketing mix for Vinamilk Cereal Yogurt.
In general, the new product focuses on a customer segment that has not been targeted by many brands today.
However, this market is quite difficult to approach, and it can also bring little profit to the company.

REFERENCES
 Alasagas, A 2015, ‘Younger women shop more, but older women spend more – study’, Marketing Mag,
27 April, viewed 6 April 2021, <https://www.marketingmag.com.au/news-c/younger-women-shop-
older-women-spend-study/>.

 Brands Vietnam 2013, Cau chuyen ve hu sua chua Vinamilk (The story of Vinamilk yogurt jars), Brands
Vietnam, viewed 6 April 2021, <https://www.brandsvietnam.com/2076-Cau-chuyen-ve-hu-sua-chua-
Vinamilk>.

 Brands Vietnam 2018, GenZ tien phong dung TikTok, Gapo va Lotus xac lap cho dung tren thi truong
mang xa hoi (Gen Z pioneers in using TikTok, Gapo and Lotus establish a foothold in the social
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<https://www.brandsvietnam.com/congdong/topic/24468-GenZ-tien-phong-dung-TikTok-Gapo-va-
Lotus-xac-lap-cho-dung-tren-thi-truong-mang-xa-hoi>.

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<https://odditymall.com/includes/content/thumb-hole-buddha-bowls-1.jpg>.

 ‘[Consumers choosing Vinamilk yogurt]’ [image], in Vinamilk sau 20 nam phat trien (Vinamilk after 20
years of development) 2019, Wiki Marketing, viewed 6 April 2021, <https://wikimarketing.vn/wp-
content/uploads/2019/03/sua-chua-vinamiks.jpg>.
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 ‘[Giang Oi]’ [image], in Giang Oi la ai? Tat tan tat ve vlogger Giang Oi (Who is Giang Oi? All about
vlogger Giang Oi) 2020, Cool Mate, viewed 8 April 2021,
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<https://www.investopedia.com/terms/b/brandequity.asp >.

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<https://vnexpress.net/vung-nguyen-lieu-giup-vinamilk-dan-dau-thi-truong-sua-tuoi-3934677.html>.

 Nielsen 2018, Ket noi voi the he Z tai Viet Nam (Connecting with generation Z in Vietnam), Nielsen,
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 ‘[Oaty fruity cereal]’ [image], in Oliver, J c. 2011, DIY oaty fruity cereal, Jamie Oliver, viewed 9 April
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 Pharmacity, Vien bo sung vitamin va khoang chat Vitacap (Hop 5 vi x 10 vien) (Vitacap Vitamin and
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 ‘San pham sua chua Vinamilk dong hanh cung nguoi tieu dung Viet’ (‘Vinamilk yogurt products
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 Tankovska, H 2021, Most popular social networks worldwide as of January 2021, ranked by number of
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<https://www.investopedia.com/terms/b/brand-
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nt%20enjoys.>.

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 Vinamilk 2019, Sustainable Development Report 2019, Vinamilk, viewed 6 April 2021,
<https://www.vinamilk.com.vn/en/sustainable-development-news/2067/sustainable-development-
report-2019>.

 Yakult, Nhung dieu thu vi ve Yakult (Interesting facts about Yakult), Yakult, viewed 8 April 2021,
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