1, Identify macro and micro environmental elements which impact marketing decisions and explain how they connect with your chosen business.
You should use evaluation tool to use to the business: SWOT, PEST, and Five-Forces analysis. (Outcomes 2a) – Micro environment: the market comprises all aspects of a market which will affect the company’s relationship with its customer and the patterns of competition. It includes suppliers, rivals, publics, advertising intermediaries. – Macro environment: the macro environment may be described when it comes to four tips components: political/legal, economic, social/cultural, and technological (PEST factor) [According to Organization Essentials Literature -Marketing, (Part B: segmentation, Targeting and Positioning, Phase 2: The marketing environment, p93 – p96)]. |SWOT | |Strengths |Opportunities | |Strong brands, large business |The helpful policies of the government from the dairy sector | |Distribution network throughout Vietnam |(2000 billion permitted for dairy development task to 2020) | |Diversified products, competitive prices |Supply of type raw material – clean milk – is relatively secure (e. g. | |Production line of worldwide |have dairy cow plantation, farms etc . ) | | Leadership capacity of good management |Joining the WTO: market growth, business and learning encounter | |Diversified product lines (150 products) | | |Sustainable relationships with partners | | |Talent and professional of marketing and product | | |Marketing research knowledge is good | | |Very attractive advertisement and advertising campaign. | | |Weaknesses |Threats | |Products mainly focused on domestic market. |Vietnamese economic lack of stability (inflation, economic crisis…) | | Advertising activities with the company focused in southern of Vietnam |WTO: appears many competitors | | |Uncertainty worldwide personal situation | |PEST | |Political/Legal |Requirements on meals hygiene and safety very strictly control | | |Economics stableness to help the business with the company | | |The preferential procedures of the federal government of the dairy products industry | |Economic |Fast-growing economy of Vietnam (i. e. creating a positive impact on the domestic purchasing power) | | | Join WTO pressure to compete for people who do buiness | | |Dairy importance tax decrease, creating good for imported dairy products improved conditions | | |Inflation, increased gas, increased cow prices | |Social/Cultural |Increasing living specifications | | |Need to further improve health and magnificence | | |Proportion of malnourished children remains excessive | | |Most Japanese people do not have the habit of ingesting milk | |Technological |Improve and contemporary technologies | | |Milk powder extraction technology | | | Modern gear in the field of the labels | | |Technology top quality management in accordance to ISO | |FIVE-FORES Analysis | |New Entrants more | For milk production, the costs are not high to join hence the potential opponents to participate easily in this| |competition |segment.
However, entry costs for liquid milk products and yogurt is very high. Moreover, to | | |establish distribution networks require a large expenditure. At present, Vinamilk contains a big advantage in | | |distribution.
Yet , the conversion cost of client products is nearly equal to zero so Vinamilk remain | | |competitive pressure in the average. | |Substitute goods or | Milk products are not currently available alternatives. However , offered the wide-ranging needs of shoppers, dairy| |services |products can compete with many health care products such as fizzy drinks … So , Vinamilk are at risk from | | |substitute products. Today, Vinamilk is producing several items of moving water for health advantages to | | |expand market share. | |Customers negotiating power| Vinamilk is certainly not pressured by any distributor.
The company offers two division channels: (1) the | | |traditional channel (240 distributors plus more than 150, 000 points of sale, make the distribution much more than | | |80% of Vinamilk total production, (2) distributed through modern channels (such as supermarkets …). For milk | | |products, when the cost of elements is excessive, Vinamilk can sell at excessive prices that customers have to | | |accept. Therefore , Vinamilk can transfer the drawbacks from the outside provider to the customer. | |Suppliers bargaining power| Vinamilk has benefit when they bargain with farmers in the purchase of raw milk because the purchasing | | |company may be the largest, accounting for 50% of milk country. Moreover, Vinamilk drawback as reliance on | | |milk imported from in foreign countries.
However , by talking to Vinamilk, cost of production 1 kg of liquid milk by milk| | |powder is leaner than by fresh milk. Therefore , this may not be too big drawback for Vinamilk. | |Rivalry amongst current | As well VNM is highly competitive such as the home-based dairy Hanoimilk Companies, foreign companies term such | |competitors |as Abbott, Mead Johnson; Nestle, Dutch Woman … In the foreseeable future, Vietnam’s dairy products market is constantly on the expand and | | |the amount of competition achievement higher. | (Source: http://www. slideshare. net/nguyenvanti1991/lap-ke-hoach-marketing-cua-vinamilk [accessed 24 August 2011]) (Source: http://tintuc. xalo. vn/00885566846/Phan_tich_co_phieu_VNM_cua_Vinamilk. html [accessed twenty-four October 2011]) two, Propose key segmentation criteria that are used for 2 products targeting two distinct markets. (Outcomes 2b) Vinamilk has much kind of products.
We choose two products of Vinamilk happen to be liquid milk and yoghurt. Both of goods are targeted common people with low or medium salary. For dairy, there are two segmentations for all adults and children.
The company makes many kinds of liquefied milk including sweetened, unsweetened, chocolate flavor, vanilla flavour, strawberry flavor… depends on interest of each people. The company features three types of presentation for liquid milk products just like small ticket, big fichier, and handbag. It is suitable for each person as well as for each place. For yogurt, the product is definitely segmented the preference in the customers.
A lot of people like take in yoghurt with spoon but some people drink this. Some people do not care about ingesting or ingesting yoghurt, they think that it is best for their well being. It is be based upon different locations. |Liquid Dairy | |For adults |100% fresh milk | | |Vinamilk completely fresh dairy is made from 100% pure dairy, containing most essential nutrients via nature, providing you with a | | |sense of energy to enjoy your life to the entirety. | | | UHT Milk Flex | | |High-calcium and less fat milk, Bend is the ideal way to obtain nutrients to help you keep in shape, healthier, active and | | |energetic. | |For kids |UHT Dairy Kid | | |UHT Milk Youngster is created from fresh cow milk, abundant in calcium and minerals, and treated with a modern UHT technology. | | |i. e. fresh milk is usually treated in at high temperature in a very short time (3 seconds) to maintain all necessary vitamins | | |and minerals (including calcium content in dairy at an optimum proportion of D/Ca).
The supplement of DHA is definitely added to | | |assist children’s development and growth, keeping them healthy, snello and intelligent. | |Yoghurt | |Drinking yoghurt | There are two lines of drinking yoghurt products, which includes Vinamilk Having Yogurt and SUSU Ingesting Yogurt Milk| | |with various tastes. Yoghurt is helpful for well being of digestive function system and brings you a healthy nutrition supply | |Spoon yoghurt | Being made via 100% fresh milk with assorted flavors such as aloe vera, blood, etc, yogurt products will be rich| | |in healthy proteins, vitamins, minerals and calcium supplement, which are essential for your body.
Place yoghurt assists to improve the | | |daily digestive function, reinforce the entire body immune system, consolidates bone composition and helps to bring a fine and fresh | | |complexion as well as a human body in shape. | |Probi fermented | Vinamilk Probi may be the yoghurt product fermented by billions of Lactobacillus Casei, functioning well in intestinal | |yoghurt |system that helps to reinforce the resistance of digestive system, cleanse toxin by food and surrounding environment | | |and absorb nutrients at maximum capacity. Consuming Vinamilk fermented yogurt Probi every day keeps gastrointestinal system | | |healthy from inside naturally. | Source: http://www. vinamilk. com. vn/uploads/Download_E/VNM_Annual_report_FINAL_ENG. pdf file [accessed 24 October 2011]) (Source: http://vinamilk. com. vn/ENG/? vnm=product&id=2 [accessed twenty-four October 2011]) (Source: http://vinamilk. com. vn/ENG/? vnm=product&id=57 [accessed 24 October 2011]) (Source: http://vinamilk. com. vn/ENG/? vnm=product&id=7 [accessed 24 October 2011]) several, Outline the factors which in turn influence picking out targeting strategy for two goods in two different markets. (Outcomes 2c) There are many things to consider when choosing the targeting strategy; those happen to be geography, population analysis, buying tendencies, psychographic and social culture. – Location and Purchaser behavior: Vinamilk has to part the market including North, Central, South since each location has several habits such as taste, smell, packaging….
Liquid milk all kinds of products (sweetened, unsweetened, chocolates flavor, vanilla flavor, strawberry flavor…) with three types of the labels (small fichier, big ticket and bag). Yogurt gets the same with 3 kinds of goods (spoon fat free yogurt, drinking fat free yogurt, Probi yogurt). – Demography: Vinamilk can easily divide industry into teams such as era, gender, social position, religion, or income. Liquid milk has two segmentations for adult and children. – Psychographic and Social culture: Vietnamese does not have habit drink a lot of milk. They want to change the other is fresh. Therefore , Vinamilk improve the goods (liquid milk and yogurt) with many kinds of taste, design….
With two products in two several markets, Vinamilk has the distinct strategy to attract the customers and get cash for firm. 4, Describe how end-consumer or client behavior as marketing activities for two goods of the firm and its stores. (Outcomes 2d) “Buying behavior” is made up of the internal and external factors that explain for what reason consumers get and make use of certain goods and services. This type of behavior can affect the marketing strategy that the business uses to promote usana products, and when this behavior is analyzed, it can guide a business toward better marketing plans and methods that it might not have originally employed.
The School of Delaware states that the best way to gauge what marketing strategy to work with is to build a “marketing mix” of different types of ads and promotions that can appeal to the various kinds of buying patterns. (Source: http://www. ehow. com/info_8749189_buyers-behavior-affects-marketing-activities. html [accessed 24 October 2011]) The buyer behavior has influence in marketing actions. There are some elements, which effect on advertising activities with the company including: psychological, cultural cultural, situational. – Internal: each individuals have each personality, lifestyles, thinking and nobody is not same anybody. There is also different beliefs, attitudes and motivations in every area of your life.
Therefore , people have different requirements. If Vinamilk just offers one sort of products, the buyer will not have many selections. When they think boring while using product, they cannot buy this more.
Moreover, they think the fact that quality of product must worth with all the money that they can spend. Therefore , if each uses the product and feel that bad, they will not buy it more. In conclusion, the consumer’s psychological influence strongly the sales of product.
In the event the company would not grasp the consumer’s psychological, they can get profit. – Situational: the profits of the customer influence marketing activity. If the price is way too high, the consumer is going to consider thoroughly before making decision. Therefore , in the event the price is certainly not suitable, they will not accept and exclude the merchandise. The previous buying experiences as well as the purchase task itself also have a big effect on customer decision. – Social ethnical: Vietnamese ethnic also influence marketing activity. First, Vietnamese like the international products especially milk.
They think that the international products are always better than the domestic merchandise. Therefore , they tend to choose the foreign products first of all. Second, Vietnamese tend to the actual mass since they think which the products have many people to 2 good.
It really is advantage or disadvantage. If the vinamilk has got the best promoting, many persons will acquire their products. but once not, it is hard for them to offer products. Portion 2: Discover and analyze the individual aspects of the prolonged marketing mix: 1, Illustrate and evaluate how products of your chosen company happen to be developed to sustain the company’s competitive advantage. Vinamilk has many items from dairy such as liquid milk, yogurt, power milk, condensed dairy, ice cream, mozzarella cheese, etc… In the competitive environment, Vinamilk constantly develop and improve their goods to satisfy their particular consumers. Besides, they constantly create new releases to increase the market.
Hence, they can support the company‘s competitive benefits. Now, we choose and research two goods of Vinamilk so that we can see how products of Vinamilk are develop. First, it really is liquid milk. The liquefied milk can be shared two segmentations and it is for family and for children.
Inside the family segmentation, Vinamilk has two goods such as totally fresh dairy and Bend. With Vinamilk 100% refreshing milk, the organization has pasteurized milk in carton. Over time of advertising, Vinamilk alterations packaging with pasteurized dairy in handbag. It is far more convenient to use and bring. A lot of people like to drink milk with sugar, quickly the company boost product with sweetened dairy.
After that, they are doing variety of product with some taste such as candy, strawberry, etc… They capture the market in a short time and they always develop goods to satisfy customer. They see that Long Thanh milk has created with autoclaved milk therefore they also manufacture autoclaved dairy with sweetened and no sweetened. In the modern life, people eat many kind of food, that includes a lot of excess fat. Therefore , Vinamilk launch a new product, Vinamilk Flex. It includes high-calcium and low-fat milk.
It is a good step by simply Vinamilk. It really attracts people because everyone always would like to keep in shape, healthy, active and energetic and it is difficult once eating a whole lot of body fat. Nowadays, Vinamilk see that child obesity is definitely increasing in Vietnam, combined with the milk market research weight loss, Vinamilk find fewer competition linked to this market, containing created the push for introducing Vinamilk new product – “Vinamilk milk to lose weight” and immediately received the support of consumers. With the research objectives and provide powerful solutions to weight-loss, safety, consistent with the state of Vietnam, this system is a discovery to help deliver practical rewards to buyers.
Recognizing this trend, Vinamilk immediately hop into this kind of exciting market. Besides, Vinamilk also develop products which have been reserved for kids. That is UHT MILK MILKKID and VNM FORTIFIED UHT MILK. Refreshing milk can be treated in at high temperature in a very short time (3 seconds) to keep all vital vitamins and minerals (including calcium content material in dairy at an optimal proportion of D/Ca).
The supplement of DHA is usually added to support children’s growth and development, keeping all of them healthy, acuto and smart. The parents want it because they will always want everything are the most effective for their children. Second, it’s the yoghurt.
Vinamilk has three type of fat free yogurt. This is yogurt with tea spoon, drink fat free yogurt, probi yogurt. Each type of yogurt meets each distinct preference.
Some people like take in yogurt with spoon however lots like to drink yogurt. It is extremely easy for customers to access this when there are many choices. Now, probi fat free yogurt is well-known because it there are plenty of good things such as reinforces the resistance of digestive system, purify toxin by food and surrounding environment and absorb nutrients by maximum capacity. It really drawn people since it is aimed the consumer’s emotional about overall health.
It is really successful because everybody want a health. 2, Describe how your chosen company’s goods are allocated in order to provide convenience to clients. According: http://vinamilk. com. vn/? vnm=market&id=28 [accessed 24 October 2011] To get Manufacturer Company, the syndication is very important. The corporation has very good products and services, very good price however product may not be delivered to consumers.
It is inability. Therefore , the corporation should build the best distribution systems. It is very helpful when the company offer their products. There are plenty of method of getting items to customers such as supermarket, agents, wholesalers, retailers, digital store, franchise, etc… Vinamilk has two channels to distribute merchandise. This is immediate channel (supermarket) and roundabout channel (wholesalers, retailers).
Vinamilk do not choose franchise, on-site store, and virtual store to disperse their products because several reason. First of all, Vietnamese will not have hobbits to drink a lot of milk so the level of milk the fact that customers get is low. Secondly, the merchandise of Vinamilk sell everywhere on Viet Nam so it is challenging to deliver in case the customers buy direct by manufacturer.
Finally, Vinamilk is usually manufacturer thus they simply want to make companies distribute these people. They trust the other folks to buy items and control them. It is easier if the company dedicate a large involving to build a series of sale in the whole nation.
In direct channel, Vinamilk has items in all grocery stores in Viet Nam just like Big C, Metro, Coopmart, etc… The customer can find the items of Vinamilk at all superstore in Viet Nam. The supermarkets simply distribute 20% products of Vinamilk as well as the retailers in indirect funnel distribute 80% products of Vinamilk. Because the percent of Vietnamese go to supermarket is usually not high and the superstore system is not much.
In addition , the customers like to get milk close to their house. In indirect funnel, Vinamilk’s items were sold through 240 wholesalers exceeding 140, 500 retailers in all of the 64 zone of Viet Nam. It truly is convenience can be.
They can order items everywhere. They just go the nearest retailers to obtain milk or they can work and call for the nearest wholesales. The good is delivered in a few minutes. You can actually buy products of Vinamilk. Although it is hard to get Vinamilk to deal with all stores, they can head to some places and generate survey from your customers to know how to the retailers do with their merchandise.
Vinamilk also is using the most modern application of THAT technology in management such as Consumer Relationship Supervision (SAP), Oracle E Organization Suite 11i, and Venture Resource Organizing (ERP). Every thing just resolve the problem how you can the goods can be distributed the customers quickest plus the most effective. several, Explain how prices of the company’s product are going reflect company’s objectives and market conditions. Price is an important factor when the organization wants to attract many visitors to buy their products. Therefore , producing the appropriate cost policy is particularly important significant, it helps Vinamilk have effective business technique.
First, Vinamilk want to pick price to get products (liquid milk and yogurt), the business has to improve the price of merchandise at breakeven points. From then on, they should consider some component which impact purchase of market such as buyer behavior, patterns, income, market volatility, top quality, and quantity… from that, they can choose the markup for products (low or high). After that, they continue to investigate the cost of competitions plus they can consider their price of products would work and can be competitive. Thus, they will make decision for final prices of products. For two products (liquid dairy and yogurt), Vinamilk has some strategy.
To achieve the goal to become the milk and foodstuff companies possess health benefits to get rapid expansion and most steady market in Vietnam together with the product line with long-term competitive advantages, Vinamilk accept to diminish the magnitude possible selling price to achieve maximum market range. Besides, Vinamilk try to improve their product provides high quality, protect and they create the customer’s confidence. Afterwards, they can increase their prices however the customers will not respond very much about that. In addition, more and more people enthusiastic about their health care, so the dairy is recommended.
The trend from the expensive obtain (psychological attached between selling price and quality) also contributed to higher milk prices. Standard psychology from the customers frequently compares the values of the same item of the other firms to make decisions. Consequently , Vinamilk analysis the cost and selling price, quality of products of competitors and then they adjust their price so that it is reasonable.
Despite the race of the profits with foreign milk company, Vinamilk maintains the stabile price as 2008. The price of Vinamilk out there only offers about one-thirds of the selling price of foreign company. In the domestic, the costs of products of Vinamilk are always equal or less compared to the price of products of the other companies. With current milk prices, Vinamilk agree to lower fascination or reimbursement from the procedure of many distinct product lines to talk about the burden of consumer spending.
When the product value has high in your brain of the consumers, it is easy for the customer to accept the new items of Vinamilk. Beside, the item value has lower in your brain of the client, Vinamilk maintain your old cost and improve the quality of product. Additionally, Vinamilk make an effort to invest modern tools and economize the input materials and the costs of product sales so that they can have best selling price for the purchasers. Vinamilk features quite sensible policy inside the price. four, Illustrate just how promotional activity is bundled to achieve advertising objectives within your chosen firm. The products cannot buy even more every time and everywhere.
Absolutely free themes do not often know new items. The company can be same. Therefore , the company has to have many marketing activities to help make the customer find out: What is the company?
What are the company’s items? They are advantages or disadvantages …. As a result, the customers will know the company and their products. The company can sell more products and get yourself a lot of money. It is good for the business.
Vinamilk select two ways: Initial, it is advertising. Vinamilk usually understand the important of advertising in promo strategy, therefore they constantly focus and create very and regularly. They have attained big accomplishment in increasing sales.
Vinamilk is a company specializing in manufacturing of milk products, which will mainly dairy from dairy products cows, therefore the image of milk cow is recognized as specific, the core of each Vinamilk advertising. Vinamilk responds the rigid requirements that advertising message to be achieved. The customers can easily see it in the news, on billboard on the street, after they go to Vinamilk website or perhaps read on the magazine. The advertising campaign is replicated during many the mass media with dairy cow image: sweet dairy cow on the beautiful natural, complete life.
Together with the purpose of bringing their products towards the majority of buyers, Vinamilk work with all varieties of advertising just like television, car radio, newspapers, outdoor advertising, etc… Besides, Vinamilk do charity to enhance the reputation of the organization. For example , “8 millions cups of of milk for poor children”, “Vinamilk incubating fresh talent”, “help poor or disabilities people”, etc… Second, it is promotion. With the purpose of attracting various people and selling various products, Vinamilk has many interesting promotion actions. The customer will probably be discounted or has more goods of Vinamilk when buying a huge quantity.
For children, they can beverage and gather the conventional paper in the container and then they can change the gives or school supply. Occasionally, in the superstore, the customers will get same free samples (old products or perhaps new products) to trial. Sometimes, the shoppers will buy products with gives (toys intended for kid, a glass or new products of Vinamilk). Everything is definitely promotional approach so that they can attract more the purchasers and sell even more products. five, Analyze the extra elements of the extended marketing mix (People, Physical data and Reaction) in your picked company.?
People Vinamilk realize that training and human resources development is the approach of purchase for the company’s success in the future. Therefore , Vinamilk is focused on training and increasing the staff. They will work out an agenda of job development pertaining to the staff and bring the staff suitable training programs to help them improve functioning effects. In the period of developing and growing, Vinamilk produce opportunity for employees who will convey more chances to cope with new tasks and new challenge. This kind of also helps employees raise potential and ingenuity.
Vinamilk produces a professional, friendly and open-hearted environment. Vinamilk always well known, listened and shared suggestions with the staff. The staff’s efforts and achievements are recognized and highly commended. There are many activities for employees such as sports, travelling, camping, etc… It can help them appreciate happy and useful moments.
The staffs also have a possibility to understand each other and showcase teamwork soul effectively. The staff will get a sufficient salary in respect to working capacity and competitive earnings. Besides, Health care insurance Program and transport assistance are also certainly one of distinguishing rewards we give to the staff.? Physical evidence The company’s production facilities are equipped with modern day technological lines imported straight from countries just like France, Germany, Denmark, Sweden … conditions for creating superior quality products, low power consumption, have the ability to retrieve and reuse of products and energy sources. Additionally , the company gradually converts and invests control lines from low-power performance to high-power performance.
The usage of modern equipment will lead to significant personal savings in creation costs, lessen water intake, fuel and energy. Vinamilk has 80 trucks, they are really used to offer the products from the company to the distributors. Every truck contains a black package mounted to monitor the status from the vehicle. The factories of Vinamilk are created modern, HACCP standards, building a clean working environment, ensuring work-related health and security for staff and do not affect the residential area around. All options for noise are located away from residential areas and are also completely individual.
There are many spouse companies and company contains a separate function. It helps the company to produce and supply the goods in time on the market. At present, the customers like beautiful style of product packaging, many businesses have not hesitated to invest costs on developing new their packaging.
Although they may take disadvantages of the cost and value, the customer can remember even more the products. It is vital to make decision by the clients. Vinamilk attempts to fulfill the requirements packaging just like beautiful, comfort, safety products, friendly environment … Additionally , it is difficult to keep up these criteria because the business environment and customer choices always transform. Therefore , the organization will spend heavily in packaging costs to attract absolutely free themes.? Process You will discover two assets of unprocessed trash in Vinamilk: milk can be collected via farm and milk is definitely imported from foreign country.
Vinamilk generates milk in facilities and after that the company distributes their products in two ways: one particular, they provide products in supermarkets such as Local area, Big C, Coopmart… two, they disperse for the wholesalers and then the wholesalers provide items for the retailers. Finally, the suppliers sell all of them for absolutely free themes. It is very convenience for the shoppers. They can choose the products of Vinamilk everywhere. After few times, Vinamilk goes to analysis the market and get reviews from the customers.
Thus, they will research and develop goods according to the customer preference. Therefore , their products brings in more absolutely free themes and they will get more income. Bibliographies CONTENT MATERIAL Part a couple of: 5, Analyze the additional components of the prolonged marketing mix (People, Physical evidence and Process) inside your chosen business PAGE NO . 17 Portion 2: you, Describe and analyze just how products of your chosen company are developed to maintain the company’s competitive benefit PAGE NUMBER 11 Portion 1: some, Explain just how end-consumer or perhaps buyer patterns as promoting activities for 2 products in the company and its particular retailers WEB PAGE NO . 15 Part you: 3, Format the factors which influence the choice of focusing on strategy for two products in two distinct markets WEBPAGE NO . being unfaithful Part a couple of: 2, Clarify how your chosen company’s items are allocated in order to provide convenience to customers PAGE NUMBER 13 Part 2: a few, Explain how prices of your company’s item are started reflect company’s objectives and market conditions PAGE NO . 14 Component 1: 2, Propose significant segmentation criteria that are used for two products targeting two several markets WEBPAGE NO . six Part one particular: 1, Identify macro and micro environmental factors which in turn influence promoting decisions and explain how they apply to your selected company WEB PAGE NO . three or more Part 2: 4, Illustrate how marketing activity is definitely integrated to attain marketing goals in your picked company SITE NO . 16
