Analysis of Marketing Strategy of UTH 100% Fresh Milk by Vinamilk

Running Head: Customer Relationship Management
CUSTOMER RELATIONSHIP MANAGEMENT

2
Customer Relationship Management
Vinamilk is one of the largest dairy companies of Vietnam and this company is serving since
1976. Quality of product of this company is helping them to meet expectation of their
customers. This company currently have more than 250 dairy products including fresh milk,
soy milk, baby cereals, ice creams, condensed milk and many more (Vinamilk.com.vn,
2019). Consistent development of this company is the main reason competitiveness of this
company. This study is focusing on analysis of marketing strategy of UTH 100% fresh milk
offered by Vinamilk, Vietnam.
This company is offering 100% fresh milk to customers an s they process milk by UTH
technology. According to Malysheva et al. (2016), quality of product affects their loyalty
towards the company. This company heats naturally found milk at 140 for maximum of 6°C
seconds to kill harmful bacteria. This process makes milk more nutritious and healthy. It is
available in different volume boxes and customers can buy this fresh milk as per their
requirement from Vinamilk.
Other dairy firms are producing similar product like fresh milk of Vinamilk and these
companies are considered as potential competitors of this firm. TH True Milk and Dutch
Lady are two direct competitors of Vinamilk. On another hand, Love' In Farm is a and
emerging rival of this company. Maintaining loyal customers becomes difficult due to
existence of similar products in the market (Sudari et al. 2019).
The product of fresh milk has been launched by Vinamilk with an objective of offering good
quality fresh milk to each segment of customers. Proper technology is applied for killing
harmful bacteria healthy ingredients are added to achieve the objective. Main customer
segment is young children and teenagers who are regular consumer of fresh milk for gaining
nutrition and strength. Main consumers belong to age group of 5-14 years and 15-25 years.
As stated by Chernev (2018), fresh milk consumption is heavy among young children and

3
Customer Relationship Management
parents regularly buy this product from the nearest store. In cities and urban areas of
Vietnam, adults also consume this product. Majority of middle and upper-class individuals
buys this product for their families.
Value proposition is simple as they concentrate on quality of products and offer them at
affordable prices. British retail consortium for food safety has recognized this product's
nutritional values, which contains high calcium and low fat. In addition, price of this product
is also cheaper than its major competitors like Dutch Lady. According to Lei & Moon (2015),
pricing strategy satisfies middle-income segment of customers and proper value is provided
through its quality. This company has implemented marketing mix in a proper way. Fresh
milk is a good Product that is rich in essential nutrients and low quantity fat. It is prepared
by heating up the fresh milk at 140 for maximum of 6 seconds to kill harmful bacteria.°C
Promotion is mainly done through broadcast media, newspaper and through meaningful
slogans. At present, they are focusing on economy pricing strategy that helps in providing
high-quality product at comparatively lower prices (Vinamilk.com.vn, 2019). Fresh milk of
Vinamilk is distributed through traditional and modern channels. Traditional channels
include 220 distributors and retail outlets of this firm. Modern channels include supermarkets
and metro that has strengthened its distribution network.
Product strategy of this firm is helping them to maintain loyal customers. Vinamilk ensures
quality of fresh milk and customers prefer this approach. 100% fresh milk is a healthy drink
and it is on high demand of customers. This product has two variations including fresh milk
with sugar and fresh milk without sugar. This product is helping this company to gain
maximum financial benefit. Promotional strategy of this firm has included media channels,
newspapers, and slogans. It means they are mostly focusing on offline marketing. They may
face difficulty to enlarge customer base if they do not focus on social media marketing.
However, according to Zhao, Libaers & Song (2015), most of the modern age people are