Communications strategies " Bright eyes, strong build" ADM + Milk - A sub-brand of VinaMilk

TRƯỜNG ĐẠI HỌC MỞ TP. HCM UNIVERSITE LIBRE DE BRUXELLES

HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL

ECONOMICS & MANAGEMENT

MMA7

Ha Truong Phuong My

Nguyen Thi Truc Vy

COMMUNICATIONS STRATEGIES

“BRIGHT EYES, STRONG BUILD” ADM+ MILK –

A SUB-BRAND OF VINAMILK

MASTER PROJECT

MASTER IN MARKETING & ADVERTISING

Tutor’s Name: Ho Cong Hoai Phuong

Ho Chi Minh City

(2014)

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DECLARATION

We, Nguyen Thi Truc Vy and Ha Truong Phuong My, hereby, declare that this project

is written by ourselves in its entirety based on the information collected from public

sources and internal Vinamilk.

This project is dedicated to our completion of the Master of Marketing and Advertising

course. This has also not been submitted for any degree in any university previously.

TUTOR’S COMMENT

Phuong My and Truc Vy did a good job on this final project. This is a complicated topic and

need a huge amount of data and information to deal.

These students understood well the theory and give some valid points of strategic

recommendations. I highly appreciate their efforts.

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ACKNOWLEDGEMENT

Foremost, we would like to express our sincere gratitude to all of our Professors in Solvay

Brussels School of Economics and Management in the Vietnam-Belgium Master Program

for the invaluable knowledge, motivation and enthusiasm we have received from them.

Our most profound thanks also go to Professor Jean P. Baeyens for his special inspiration

at the very beginning of the course and Professor Marianne Claes for her sympathy for our

unexpected difficulties we encountered during the time of our final project completion.

We would like to thank Mr. Ho Cong Hoai Phuong, our tutor for this project, for his

valuable guidelines and supportive instruction.

We thank our fellows and friends in MMA7 for their support in different ways. We also

take this occasion to extend our thanks to all of our friends and acquaintances, who have

given tremendous assistance to help us finish the project.

Last but not least, we would like to thank our families especially our parents and our

partners who have provided us with continuous support, great encouragement, quiet

patience and unwavering love while witnessing all ups and downs of our project.

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TABLE OF CONTENT

DECLARATION .................................................................................................................1

ACKNOWLEDGEMENT...................................................................................................2

TABLE OF CONTENT.......................................................................................................3

ABBREVIATIONS..............................................................................................................8

LIST OF FIGURES.............................................................................................................9

LIST OF TABLES.............................................................................................................10

EXCUTIVE SUMMARY..................................................................................................11

PART 1: VIETNAM DAIRY MARKET OVERVIEW AND CURRENT

MARKETING COMMUNICATION ACTIVITIES OF VINAMILK ADM+............12

I. OVERVIEW OF MARKET FOR MILK PRODUCTS .................................................................12

1. Market overview of dairy products in Vietnam ........................................................12

1.1 Food and Beverage Market.................................................................................12

1.2 Dairy products Market........................................................................................13

2. Micronutrient fortified milk market..........................................................................17

II. COMPANY OVERVIEW...................................................................................................18

1. Company Mission .....................................................................................................18

2. Company Vision........................................................................................................18

3. Brief growing history................................................................................................18

III. SUB-BRAND OVERVIEW –VINAMILK ADM+ ...........................................................19

1. What is VINAMILK ADM+? ....................................................................................19

2. Product Form ...........................................................................................................20

2.1 Portfolio ..............................................................................................................20

2.2 Package ...............................................................................................................20

3. Value proposition:....................................................................................................20

IV. ANALYSIS OF VINAMILK ADM+ MARKETING ACTIVITIES .........................20

1. PESTEL Analysis......................................................................................................20

1.1 Political...............................................................................................................20

1.2 Economic ............................................................................................................21

1.3 Social ..................................................................................................................22

1.4 Technology .........................................................................................................23

1.5 Environment........................................................................................................23

1.6 Legal ...................................................................................................................24

2. PORTER 5’s Forces Analysis...................................................................................24

2.1 Threat of New Entrants.......................................................................................24

2.2 Power of Suppliers..............................................................................................25

2.3 Power of Buyers..................................................................................................26

2.4 Availability of Substitutes ..................................................................................26

2.5 Competitive Rivalry............................................................................................27

3. SWOT Analyses ........................................................................................................28

3.1 Strength...............................................................................................................28

3.2 Weaknesses.........................................................................................................29

3.3 Opportunities ......................................................................................................30

3.4 Threats ................................................................................................................30

4. Competitor analysis..................................................................................................31

4.1 Direct competitors...............................................................................................31

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4.2 Indirect competitors............................................................................................32

4.3 Market players’ analysis.....................................................................................34

5. Marketing objectives ................................................................................................35

6. Segmentation ............................................................................................................35

6.1 Product segments - Liquid milk..........................................................................35

6.2 Demography segmentation .................................................................................37

6.3 Micro-nutrient fortified milk for children from 2 to 12......................................38

7. Targeting ..................................................................................................................38

8. Positioning................................................................................................................40

9. Pricing strategies......................................................................................................41

9.1 Milk pricing stabilization policy.........................................................................41

9.2 Micro nutrient fortified milk pricing ..................................................................41

10. Distribution channels .............................................................................................42

11. Communications.....................................................................................................45

11.1 Design a message..............................................................................................45

11.2 Summary of marketing activities from 2010-2013...........................................45

PART 2: CRITICAL REVIEW OF VINAMILK ADM+ MARKETING

COMMUNICATION PLAN IN 2010-2013.....................................................................46

I. METHODOLOGIES...........................................................................................................46

1. Integrated marketing communications.....................................................................46

2. Sub-branding strategy ..............................................................................................46

II. REVIEW OF VINAMILK ADM+ MARKETING COMMUNICATIONS PLAN IN 2010-2013 ....46

1. The brand story.........................................................................................................46

1.1 The parent brand image ......................................................................................46

1.2 The initial sub-brand image ................................................................................47

1.2.1 Launching.....................................................................................................47

1.2.2 Three glasses of milk per day campaign ......................................................48

1.3 Unexpected Story................................................................................................48

1.3.1 The happy animated cow officially becomes the sub-brand image .............48

1.3.2 Happy animated cow – the sub-brand image of ADM+ milk......................49

1.4 Evaluation on brand image building...................................................................50

1.4.1 Amiable endorsement...................................................................................50

1.4.2 The sub-brand image of ADM+ milk versus the brand image of Vinamilk 50

1.4.3 Brand name education..................................................................................51

2. Integrated Marketing Communications....................................................................52

2.1 Objectives ...........................................................................................................52

2.2 Target groups......................................................................................................52

2.3 Strategy analysis.................................................................................................52

2.3.1 Advertising...................................................................................................52

A. Advertising activities....................................................................................52

a. Outdoor ......................................................................................................52

b. Magazines / newspapers ............................................................................53

c. TVC............................................................................................................53

B. Review ..........................................................................................................53

a. Lovely advertising soundtracks .................................................................53

b. Promoting the new aspect of physical development: Eyesight improvement

.......................................................................................................................54

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2.3.2 Sales Promotion ...........................................................................................55

A. Sales Promotion Activities ...........................................................................55

a. Free samples...............................................................................................55

b. Gifts ...........................................................................................................55

c. Discounts....................................................................................................55

d. Loyalty Program ........................................................................................56

B. Sales Promotion Review...............................................................................56

a. Non-separate promotion from mother brand promotion............................56

b. Frequency of free gifts...............................................................................56

c. Limited use of loyalty program..................................................................57

2.3.3 Public Relations ...........................................................................................57

A. PR campaigns...............................................................................................57

a. Education meeting......................................................................................57

b. PR events/ sponsor.....................................................................................57

c. Press releases..............................................................................................57

B. Campaign review ..........................................................................................58

a. Ineffective PR ............................................................................................58

b. Reliance on the mother brand ....................................................................58

c. No strong reaction on scandal regarding milk quality ...............................58

2.3.4 Direct Marketing ..........................................................................................58

A. Direct consumer contact ...............................................................................58

B. Digital marketing strategy ............................................................................58

C. Necessary improvements..............................................................................59

a. Reliance on Vinamilk website ...................................................................59

b. Uncontrolled information ..........................................................................59

c. Ineffective online TVC ..............................................................................59

2.3.5 Social corporate responsibility.....................................................................59

A. Social campaigns..........................................................................................59

B. Social evaluation...........................................................................................60

PART 3: RECOMENTDATION FOR FURTHER IMPROVEMENT .......................61

I. FURTHER IMPROVEMENT................................................................................................61

1. Develop ADM+ milk into an independent brand name............................................61

1.1 Current state of affairs ........................................................................................61

1.2 Suggested remedies.............................................................................................61

2. Leverage the positive responses to the happy cow as the brand image ...................62

2.1 Current context ...................................................................................................62

2.2 Practical suggestions...........................................................................................62

3. Influence mothers .....................................................................................................63

3.1 Current situation .................................................................................................63

3.2 Suggested remedies.............................................................................................64

II. STRATEGY FOR 2014-2016 ...........................................................................................64

1. Objectives:................................................................................................................64

2. Marketing activities purposes...................................................................................65

3. Target audience ........................................................................................................65

4. Key message .............................................................................................................65

5. Context......................................................................................................................65

6. Integrated Marketing Communication programme for 2014-2015..........................66

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6.1 Advertising..........................................................................................................66

6.2 Sales Promotion ..................................................................................................67

6.3 Events & Experience ..........................................................................................67

6.4 PR........................................................................................................................68

6.5 Digital- Social media ..........................................................................................69

7. Budget Allocation .....................................................................................................70

7.1 Advertising..........................................................................................................70

7.2 Sales Promotion ..................................................................................................70

7.3 Events & Experience ..........................................................................................70

7.4 PR........................................................................................................................71

7.5 Digital- Social media ..........................................................................................71

8. Timeline ....................................................................................................................71

8.1 Advertising..........................................................................................................71

8.2 Sales Promotion ..................................................................................................71

8.3 Events & Experience ..........................................................................................72

8.4 PR........................................................................................................................72

8.5 Digital- Social media ..........................................................................................72

PART 4: CONCLUSION ..................................................................................................74

APPENDICES....................................................................................................................75

APPENDIX 1: ILLUSTRATION OF VINAMILK ADM+ ADVERTISING ACTIVITIES ..................75

- 2010-2011: Out of home, Prints and Package design- “Nang tam voi, sang tam

nhin” campaign............................................................................................................75

- 2011- 2012: Out of home, Prints and Package design – “3 cay chum lai nen tam voc

cao” campaign .............................................................................................................75

- 2012- 2013: Out of home, Prints and Package design – “3 Ly chum lai nen tam voc

cao"...............................................................................................................................76

APPENDIX 2: ILLUSTRATION OF VINAMILK ADM+ TVC ..................................................77

- 2010-2011: a kid and a laughing cow........................................................................77

- 2011-2012:.................................................................................................................77

TVC 1: Jumping cows ..............................................................................................77

TVC 2: Playing with a kite .......................................................................................77

TVC 3: Collection of funny cow stickers.................................................................77

- 2012-2013:.................................................................................................................78

TVC 1: High heel shoes and glasses shop ................................................................78

TVC 2: Journey around the world ............................................................................78

- 2013-2014: ADM shop...............................................................................................78

APPENDIX 3: ILLUSTRATION OF VINAMILK ADM+ ADVERTISING PLACES .......................79

APPENDIX 4: ILLUSTRATION OF VINAMILK ADM+ SALE PROMOTIONS ............................80

- Free gift:.....................................................................................................................80

2010-2012:................................................................................................................80

2013: .........................................................................................................................80

- Loyalty program.........................................................................................................81

APPENDIX 5: FORMAT THE PROMOTION OF COLLECTING ADM+ CARDS TO EXCHANGE

TICKET FOR ADM+ FESTIVAL TO MEET THE HAPPY COW...................................................81

APPENDIX 6: MONTHLY MAGAZINE “BRIGHT EYES, STRONG BUILD”................................81

APPENDIX 7: ILLUSTRATION OF TOUCH POINTS FOR VINAMILK ADM+ ADVERTISINGS.....82

1. Movable objects: ......................................................................................................82

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1.1 On buses..............................................................................................................82

1.2 On Food carts......................................................................................................82

2. Fixtures.....................................................................................................................83

2.1 On the public electric box...................................................................................83

2.2 On the street surface ...........................................................................................83

2.3 At the bus stop ....................................................................................................83

2.4 At the elevator and stair......................................................................................84

2.5 In the childcare centers.......................................................................................84

APPENDIX 8: SURVEY ON BRAND RECOGNITION AND IDENTITY.........................................85

REFERENCES...................................................................................................................88