lOMoARcPSD|13376392
TH True Milk 4Ps - hi
Economics (Đại học Kinh tế Quốc dân)
Studocu is not sponsored or endorsed by any college or university
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
NATIONAL ECONOMICSUNIVERSITY
BTEC HND IN BUSINESS AND MANAGEMENT
Assignment Cover Sheet
Table of Contents
EXECUTIVE SUMMARY...........................................................................................................2
INTRODUCTION.........................................................................................................................2
PART 1: MARKETING MIX......................................................................................................3
I.
Product – Explain how products are developed to sustain competitive advantage......3
a. Product description.........................................................................................................3
b. Target market and target customers..............................................................................4
c. Goals.................................................................................................................................4
d. Features............................................................................................................................4
II.
Place – Explain how distribution is arranged to provide customer convenience.....10
III. Prices – Explain how prices are set to reflect an organization’s objectives and
market conditions....................................................................................................................12
IV. Promotion – Illustrate how promotional activity is integrated to achieve its aims
for the target market...............................................................................................................14
1. Promotion in exclusive outlets:.....................................................................................15
2. Promoting events:..........................................................................................................15
3. Mass media and print media:.......................................................................................16
4. Beauty centers:...............................................................................................................16
V.
Analyze the additional elements of the extended marketing mix..............................16
PART 2: MARKETING MIX IN DIFFERENT CONTEXTS................................................18
I.
Plan marketing mix for 2 different segments in consumer markets............................18
II. Illustrate the differences in marketing products/ services to organization rather than
consumers.................................................................................................................................20
III.
Show how and why international marketing differs from domestic marketing......22
CONCLUSION...........................................................................................................................25
REFERENCES............................................................................................................................26
Page | 1
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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 milk 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.
Page | 2
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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 “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.
b. Target market and target customers
Page | 3
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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 highquality products are outstanding features that could help this kind of milk to reach these goals.
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
Page | 4
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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 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 agingskin 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 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.
Page | 5
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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.
Factors
About UHT Fresh Milk Added
How UHT Fresh Milk Added
Collagen
Collagen sustains competitive
advantages
Core benefit

UHT Fresh Milk Added The product embodies the TH’s sprit
Collagen is designed to which so called Vietnam’s Stature.
bring the milk consumers a Since very few Vietnamese people
bottle of nutritious milk before consume milk on daily basis,
with essential elements of TH is aimed to develop products of
Calcium, Vitamin B1 B2, clean, green and pure milk in
B6, Protein, Biotin, Acid determination of becoming a worldclass clean food manufacturer in
Folic, etc.

The main benefits of this Vietnam,
begin
with
dairy
milk is provides crucial cultivation and fresh TH True Milk.
nutrients
to
help The healthy and clean taste of milk
strengthen and improve from TH differ them from the others
users’
every
physical
day,
strength and help in both attracting and
help
in retaining customers.
enhancing people’s health.
Actual
Product
Features

This product consists of Very few of existing brands in
refined
Collagen
which current market have tried adding
Page | 6
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
helps maintain moisture Collagen as a preserving beauty
(Physical
and elasticity to the skin, element into their products in dairy
product)
providing shiny and strong products. The combining effect of
both nutritious and beauty
hair.

TH True Milk UHT MILK supporter in one type of milk is
supplements considered to be unique to
Collagen
collagen Vietnamese consumers.
containing
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 for
people and also a beauty
supporter for women.
Quality
level


For material, TH imports
high standard originations and
the very best cows from
production
New Zealand, USA and
Canada.
The
For
the
entire farming, veterinary
canter,
laboratory
and
milking system are welldesigned
from TH.

manufacturing,
using
Control
which
high quality milk products
genealogy assures the best

in
emphasized the position of
cows’
milk quality
This milk is created within the
The
highly
components and
invested
proof
of
clean and safe production
differentiate them from the
other unqualified and unclear
brands.
Technique from Israel with
Page | 7
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
annual
expert
teams
supervisions.

UHT Fresh Milk Added
Collagen is certificated ISO
quality product with the
most modern preserving
tools.
Design &
Style: From the main theme of
packaging
“Truly Nature”, TH focus on the attracting consumers. The simple
Packaging is of importance when
two basic colors of white and
but elegant design of UHT Fresh
blue emphasize on the simple
Milk Added Collagen makes it more
but high quality and
suitable to the ladies – targeted
presentable products.
customers.
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.
Brand
Branding is firm’s "name, term,
name
design, symbol, or any other
feature that identifies one
seller's product distinct from
those of other sellers name”.
In fact, TH True Milk is wellknown for its outstanding
clean and safe products with
ingredients made of high
Page | 8
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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 beauty
supportive effect in TH’s Milk.
Augmented
After sale
product
& service

Products of TH True Milk
Consumers who long time engaged
new line especially this one with the brand will receive gifts and

from Fresh Milk Added
discounts as rewards. This is an
Collagen, as to attract
expression of appreciation from TH
more consumers will be
True Milk to loyal customers. In
sold with addition of gifts
addition, by helping with the regular
like cotton mask or tea
aging worry of ladies, TH will create
mask of which for beauty
tight connection with them, building
support.
a long lasting customer relationship
Also, a line of beauty
afterwards.
preserving related
questions and advice will
be created to help with
ladies with the same
worries.
Delivery
In TH True Milk, all the staff is
In TH Mart, customers will enjoy a
& credit
well-trained with friendly and
clean and enjoyable place of
professional manner. Whenever shopping. Unlike the normal
Page | 9
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
coming to an outlet of TH,
overcrowded supermarkets and
consumers will be willingly
stores, TH True Milk’s Stores bring
helped by the staff and assisted
comfort to shoppers; make the
with additional advice and
purchase process of them easier
introduction about existing
with addition of more ways of
types of milky and food on the
paying.
shelves.
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 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
Page | 10
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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.
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, highrise 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 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
Page | 11
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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.
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
Page | 12
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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 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.
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.
Page | 13
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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 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
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
Page | 14
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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:
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
Page | 15
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
two main customers for two product lines at the same time. Examples for such kinds 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:
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
Page | 16
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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 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 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
Page | 17
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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.
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
Product
Women at the age of 18-30
 UHT Fresh Milk Added Collagen

Women at the age of 30 and older
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
Page | 18
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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
Price
follows:
Fresh Milk Added Collagen 1:
Fresh Milk Added Collagen 2:
Sweeter taste due to majority
Using milk formula added more
preferences of young-aged women.
Calcium to prevent bone diseases
Also, heavy taste of Calcium could
since women at this age generally
be undesirable for them so the
soon
lighter and less Calcium-focused is
osteoporosis. Collagen should also
needed for this group of consumers.
be raised when these ages can
have
symptoms
of

easily see the aging signs.
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 slightly change.
Price of 10 000 to 12 500 VND per Consumers of higher level of
bottle of 180ml milk in which is income and the product are also
affordable. Our group does not raise more nutritious added so the
the price for this group too high since price is higher than the type 1. In
some of them are still in studying age particular, this will be in range of
and even though this is for high class 12 500 to 15 000 VND per 180ml
consumers,
daily
expensive bottle. Women at this age will
consumption can sometimes hold care more about their beauty and
their purchasing decision back.
Place
scare aging symptoms normally
appeal to them.
 Women at every age are of  Targeted women customers
shopping interest. Moreover, the
of this age are of young
younger they are, the more
mothers so the ideal place to
likely they are willing to spend
sell these products are mainly
time wandering around for their
direct selling outlets system
interest. Since then, the places
nearby
residential
areas
Page | 19
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
Promotion
for this group should be TH True
which are useful for daily
Mart
near
purchase and trade marketing
center path, rising buildings and
in supermarkets such as Maxi
schools in Hoan Kiem, Dong Da,
Mark, Big C, …. Convenient
Hai Ba Trung District, District 1
stores are of wise choices also
and 2, etc which is convenient
in accordance with the target
for buyers.
of
outlets,
located
 Youngsters spend most of their
time,
especially
on

busy
housewives
customers.
To these customers, using
social
sports events can attract so
networks so ideal promoting
many children and adults.
could be through TV, Internet or
Coming to those events could
websites
help bring not only these
advertisements,
websites of which the young
women
but
mainly look for beauty stuff are
children. Beauty events are
of useful promotion tools.
quite popular among these
mothers
 In these days and age, the use of
also
as
well.
their
This
printed newspapers especially
promotion channel should be
within the young are less and
conducted
less applied so the promotion
larger scale than in the first
should
group.
turn
into
online
advertisements and CFs. The
cost
of
advertising
through
printing will be deducted as well.

Because
standard
properly
of
higher
and
with
living
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.
Page | 20
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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 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.
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
Page | 21
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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.

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
Page | 22
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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 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 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.
Page | 23
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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 | 24
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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, 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 | 25
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)
lOMoARcPSD|13376392
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_7Ps.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-extendedmarketing-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 | 26
Downloaded by 14 Nguyen Minh Hang (hangnmhs170748@fpt.edu.vn)