Analyzing Vinamilk's Marketing Function: A Comprehensive Report

This report examines the marketing processes and strategies of Vinamilk, a leading dairy company in Vietnam. It begins with an introduction to marketing concepts and an overview of the marketing process, including understanding the marketplace, designing customer-driven strategies, creating marketing mixes, and building customer relationships. The report then analyzes the role and tasks of Vinamilk's marketing function, including its micro and macro environments. Furthermore, it explores the relationships between the marketing department and other departments such as sales, finance, and operations. The report concludes by summarizing key findings and insights into Vinamilk's successful marketing approach, emphasizing customer value creation and relationship management. The assignment is a BTEC HND report submitted by a student to fulfill their marketing module.

ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 2 Marketing Processes and Planning
Submission date 10/03/2023 Date Received 1st submission
Re-submission Date Date Received 2nd submission
Student Name Tran Thi Ngoc Tam Student ID BH01016
Class BA0602 Assessor name Ngo The N
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plag
making a false declaration is a form of malpractice.
Student’s signature Tam
Grading grid
P1 P2 M1 M2 D1

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 Summative Feedback:  Resubmission Feedback:
Grade: Assessor Signature: Date:
Internal Verifier’s Comments:
Signature & Date:

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Table of Contents
I. Introduction ............................................................................................................................. 4
II. Overview of the marketing process ........................................................................................... 4
2.1 Marketing concept: ................................................................................................................. 4
2.2 Overview of the marketing process: .......................................................................................... 5
2.2.1 Understanding the marketplace and customer needs: ............................................................... 6
2.2.2 Designing a customer-driven marketing strategy: ..................................................................... 7
2.2.3. Creating a complete advertising strategy .................................................................................. 7
2.2.4. Engage customers, domesticate worthwhile connections, and pride customers ........................ 8
2.2.5. Identifying and capturing client value ...................................................................................... 9
III. Analysis of the role, tasks of marketing fumction of Vinamilk .................................................... 9
3.1. MICROENVIRONMENT: .............................................................................................................. 11
3.2. MACRO ENVIRONMENT: ............................................................................................................ 14
VI. Analyze of effective relationship between the marketing department and other departments
and functions in Vinamilk ....................................................................................................... 16
4.1. Marketing department vs Sales department ........................................................................... 16
4.2. Marketing department vs Finance and Accounting department ................................................... 17
4.3. Marketing Department and Operations and Production Management Department ................... 17
V. Conclusion .......................................................................................................................................... 18
VI. References ......................................................................................................................................... 18

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I. Introduction:
I am applying for the position of Marketing Manager in Vietnam Dairy Products Joint Stock Company,
commonly known by the brand name Vinamilk, which is a company that manufactures and sells milk and
dairy products. During the interview, I was asked to discuss the concept of Marketing and the role of the
Marketing department at Vinamilk. At the same time, I will also show the relationship between the
Marketing department and other functional departments in the company in the report. This company
has a strong and effective marketing strategy to help increase sales and maintain the growth of the
brand. Vinamilk has used many different marketing strategies to attract customers, including: Pricing
strategy, Advertising strategy, distribution strategy, promotion. All the above strategies have helped
Vinamilk create a strong brand and increase their sales.
II. Overview of the marketing process:
2.1. Marketing concept:
According to Lawrence J. Gitman , marketing is the technique of getting the proper items or offerings or
thoughts to the proper humans at the proper place, time, and price, the usage of the proper
merchandising strategies and making use of the fantastic humans to grant the consumer carrier related
with these goods, services, or ideas. This idea is referred to as the “right” principle and is the groundwork
of all advertising and marketing strategy. We can say that advertising and marketing is discovering out
the desires and wishes of conceivable consumers (whether companies or consumers) and then supplying
items and offerings that meet or exceed the expectations of these buyers. Marketing is about developing
exchanges. A change takes location when two events provide some thing of cost to every different to
fulfill their respective desires or wants. In a standard exchange, a client trades cash for a true or service.
In some exchanges, nonmonetary matters are exchanged, such as when a character who volunteers for
the corporation charity receives a T-shirt in change for time spent. One frequent false impression is that
some human beings see no distinction between advertising and sales. They are two exclusive matters
that are each phase of a company’s strategy. Sales accommodates virtually promoting the company’s
merchandise or carrier to its customers, whilst advertising is the system of speaking the cost of a product
or carrier to clients so that the product or provider sells.

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To motivate exchanges, entrepreneurs comply with the “right” principle. If a nearby Avon consultant
doesn’t have the proper lipstick for a plausible client when the patron wishes it, at the proper price, the
workable client will no longer trade cash for a new lipstick from Avon. Think about the final alternate
(purchase) you made: What if the rate had been 30 percentage higher? What if the shop or different
supply had been much less accessible? Would you have sold anything? The “right” precept tells us that
entrepreneurs manipulate many elements that decide advertising and marketing success.
Most profitable corporations have adopted the advertising concept. The advertising notion is based
totally on the “right” principle. The advertising idea is the use of advertising facts to center of attention
on the desires and wishes of clients in order to boost advertising and marketing techniques that now not
solely fulfill the wishes of the clients however additionally the accomplish the desires of the organization.
An organisation makes use of the advertising thinking when it identifies the buyer’s wants and then
produces the goods, services, or thoughts that will fulfill them (using the “right” principle). The
advertising and marketing notion is oriented towards appealing clients (be these clients companies or
consumers) via presenting value. Specifically, the advertising idea includes the following:
• Focusing on the wants and wishes of the clients so the company can distinguish its
product(s) from competitors’ offerings. Products can be goods, services, or ideas.
• Integrating all of the organization’s activities, consisting of manufacturing and promotion,
to fulfill these needs and needs
• Achieving long-term desires for the agency by using gratifying consumer wishes and wants
legally and responsibly. (openstax)
2.2. Overview of the marketing process:
Marketing is the way companies create value for customers and build strong relationships with customers
in return they derive value from customers. The steps of the marketing framework include:

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Figure 1: The Marketing Process: Creating and Capturing Customer Value
Source: KOTLER, P. and ARMSTRONG, G. (2018)
2.2.1. Understanding the marketplace and customer needs:
The first step of the strategic marketing process involves understanding the customer and the market.
The foundation of this step includes an understanding of the customer's wants and needs.
• Customer needs, wants, and demands. Human needs are states of perceived deprivation that
comprise physical, social, and individual needs. Human requirements take the form of wants as
they are influenced by culture and individual personality. Demands are human desires backed by
purchasing power.
• Market offerings are a collection of products, services, and experiences made available to a
market to meet a need or want. They can be actual items, but they can also be services -
essentially immaterial activities. Marketing myopia is the phenomenon of paying more attention
to firm products than to the underlying demands of consumers.
• Value and satisfaction are critical components of customer interactions.
• Exchanges are the acts of receiving a desired object from someone in exchange for something.
Marketing is the process of attempting to establish an exchange relationship with an audience.
• A market is the collection of all current and prospective buyers of a product or service. In the face
of rivals, marketing entails supplying a market of final consumers.

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2.2.2. Designing a customer-driven marketing strategy:
The following step involves creating a customer-driven marketing strategy. Now that we understand the
basics of markets and customers, it is time to decide which customers and markets to serve. Creating a
marketing strategy involves market segmentation, targeting, and positioning (STP). The STP model helps
marketers decide which customers to target and how. Once marketers have selected a target customer
group, it is essential to position and differentiate the product. Positioning and differentiation allow the
product or service to stand out from competitors by highlighting the value it brings customers, thus,
satisfying customer needs.
The business must also decide which overarching concept will lead its marketing strategy. The five key
concepts are as follows:
• The production concept follows the idea that customers will always demand products that are
available on the market. Therefore, companies have to focus on maximizing production and
distribution.
• The product concept is the idea that customers demand high-quality products that have useful
features and numerous benefits. Therefore, companies should focus on product innovation and
differentiation.
• The selling concept argues that customers will not value or purchase a product unless a brand
specifically targets large promotional campaigns at them.
• The marketing concept follows that companies should create products that satisfy customers'
wants and needs better than competitors rather than focusing on production or selling.
Therefore, understanding customers is key.
• The social marketing concept is the most recent one. This concept argues that organizations
should satisfy both the short and long-term needs of customers and society in general. The focus
here is on maintaining the welfare of the company and society. Therefore, the focus should be on
sustainability.
2.2.3. Creating a complete advertising strategy

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After imposing their predominant advertising strategy, agencies will improve a built-in marketing plan.
An advertising and marketing graph specifies which purchasers will be served and how fee will be
created. The marketer creates an integrated advertising approach that offers fee to customers. It
consists of the advertising mix: the tools needed to put the graph into action, which are the 4Ps: product,
price, place, and promotion.
2.2.4. Engage customers, domesticate worthwhile connections, and pride customers:
All three of the previous procedures lead to this one: growing worthwhile patron relationships. Customer
relationship administration (CRM) refers to the exercise of growing and keeping lucrative customer
relationships by way of imparting foremost client cost and satisfaction. Superior customerperceived-
value, which is the customer's comparison of the distinction between all the advantages and all the costs
of a advertising provide in assessment to these of competing offers, and ultimate patron satisfaction,
which is the extent to which a product's perceived overall performance fits a buyer's expectations, are
both critical here. Client pride might also be received by using going above and beyond.
There are a variety of tiers of client relationships. They can vary from easy friendships to full-fledged
unions and all in between. Companies are turning into extra discriminating in their client selection.
Emerging applied sciences have paved the avenue for two-way consumer interactions, giving shoppers
more power and control. The advertising world is additionally adopting customer-managed connections:
marketing relationships in which clients have interaction with companies and with one every other to
structure their relationships with brands, aided by way of present day new digital technology. Consumer-
generated advertising is a rising thing of this dialogue: company interactions created by way of buyers
themselves, in which people play an increasing role in defining their very own company experiences and
these of different consumers.
To set up patron interactions, modern entrepreneurs often collaborate with a large vary of partners.
Partner relationship administration entails working carefully with companions in different company
departments and outdoor the enterprise to together supply greater price to consumers. These partners
may be inside or exterior to the corporation. The provide chain is a pipeline that connects uncooked

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materials to completed goods, and the groups concerned can turn out to be companions thru furnish
chain management.
2.2.5. Identifying and capturing client value
The model's ultimate segment is to seize value. Customer lifetime price is the whole price of all
purchases made by a consumer over the route of a lifetime of patronage. Businesses should try excessive
when it comes to developing patron relationships in order to make sure that customers return. A
properly CRM can aid improve client share, which is the share of a customer's purchasing that a company
receives in its product categories. Client fairness is the sum of all of the company's customers' lifetime
values. It is the well worth of the company's purchaser base in the future.
III. Analysis of the role, tasks of marketing fumction of Vinamilk
Vinamilk is currently a leading enterprise in the field of manufacturing dairy products in Vietnam.
Products from the Vinamilk brand are distributed evenly throughout 63 provinces and cities across the

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country with 220,000 points of sale. According to statistics of the United Nations Development Program,
this is the 15th largest company in Vietnam in 2007.
As a large company with a long history and a business with a diverse customer base, marketing plays an
important role in establishing the brand image of Vinamilk worldwide. The Marketing Department is very
important in promoting the company and Vinamilk's goals. It acts as the company's public face,
coordinates and produces all documents that reflect the company.
The marketing function has roles and responsibilities:
Brand image Vinamilk is building and developing: In order to achieve success and create a competitive
position in the market, Vinamilk's Marketing department must first build its image and brand. They must
specifically design and manage a customer service system. Professional products, a sign of participating
in product quality programs such as: High quality Vietnamese goods, ISO..., and actively participating in
supporting social activities to promote brand image brand. For example, in 2016, the Vietnam Tall Milk
Fund gave to disadvantaged children nationwide an amount of milk worth 22.5 billion VND, equivalent to
4 million glasses of milk, so far there have been more than 373 thousand disadvantaged children in
Vietnam have benefited from 30 million glasses of milk with a total value of 120 billion dong, through the
Tall Vietnam Milk Fund, accompanied by Vinamilk. (VietNamNet News, 2018)
• Research, product development, market development for Vinamilk to help the company grow
stronger: Vinamilk must collect all necessary market information to estimate market demand,
target market, and market expansion. The marketing department will be responsible for
responsibilities such as: Creating systems for collecting and analyzing data on prices, products
and competitors. Analyze and evaluate information gathered, make decisions to improve existing
products or build completely new products. Proposing new product ideas, product design
direction, branding, product packaging, and so on. Create a market expansion strategy that aligns
with the company's growth goals.
• Create and implement marketing strategies to assist organizations in taking the correct course of
action to meet their goals: The primary responsibility of the marketing department is to design a
marketing strategy for the company and Manage the implementation of marketing initiatives.

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Monitor and monitor the implementation process, as well as quickly change, evaluate and report
on the results of the marketing plan. All of these missions aim to enhance understanding
between corporate customers, the business sector and the market for the company's products
and brands.
• Supervising the work of departmental staff: In addition to completing marketing-related tasks for
the entire organization, the marketing department is also responsible for managing the work of
employees in its department such as planning activities, assigning and assigning tasks to
employees. Staff in the department. Develop a plan to check and monitor employee
performance. Evaluate and decide on reward and discipline; review salary increases and
promotions in line with business standards; and Employees who perform rotations in the
department.
• Vinamilk's marketing department is also responsible for defining and managing the brand image
of the organization. Their job is to be aware of what people are saying about the organization and
how it is portrayed in the media. The marketing department will have a blueprint outlining what
they want their brand to look like on social media, on websites, and more. And Vinamilk's
marketing department will also have metrics available so they can track how well they're doing in
achieving those goals.
• Finally and most importantly, the marketing department is also responsible for creating and
distributing marketing materials to promote the company's products and services. There needs to
be a strategic plan so that all the materials are created at the same time, which will help reduce
costs. Marketing and promotional materials are the most important things the marketing
department will produce. They can make or break a campaign. It is this that makes customers
appreciate this consistency from Vinamilk, which helps them trust the business and its products
or services.
3.1. MICROENVIRONMENT:
- Supplier:

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• Raw materials supply sources of Vinamilk include: imported raw materials, raw materials
purchased from cow farmers and domestic cow farms.
• Regarding fresh milk: Vinamilk is self-sufficient in raw milk raw materials, not dependent on
foreign countries. Currently, Vinamilk has a system of 10 active farms, all of which are large-scale
with all breeding cows imported from Australia, the US, and New Zealand. Vinamilk farm system
spread throughout Vietnam is proud to be the first farms in Southeast Asia to meet the
international standard of Global Good Agricultural Practice (Global G.A.P.). The organic dairy
farm in Da Lat, which was inaugurated in March 2017, is the first organic dairy farm in Vietnam
to achieve European Organic standards certified by Control Union. The herd of cows supplying
milk to the company, including Vinamilk's farms and farmers who have signed contracts to sell
milk to Vinamilk, is more than 120,000 cows, providing about 750 tons of raw fresh milk for
production in the world. 3,000,000 (3 million) glasses of milk/day. Commencement of phase 1 of
a dairy farm in Laos with an area of 5,000 hectares and a herd of 24,000 cows. Inauguration
event "Resort" dairy cows Vinamilk Tay Ninh, which uses 4.0 technology comprehensively in farm
management and dairy farming, is the most notable event in 2019. Farm size: 685 ha, 8000
heads and has an initial investment of 1,200 billion VND.
• About powdered milk: Vinamilk imports powder from the world's leading companies: Fonterta is
a leading multinational corporation in the world in the field of milk and dairy products exports,
this group holds 1 Three-thirds of the world's trading volume. This is the main supplier of high
quality milk powder for many famous companies in the world as well as Vinamilk Company.
Hoodwest International plays an important role in the world dairy market and is considered as a
major partner in supplying milk powder to manufacturers and consumers in Europe in particular
and around the world in general. With over 40 years of experience, Hogweat is capable of
providing reliable information on the dairy business and trends in today's dairy market. As a
result, the quality of Vinamilk's powdered milk is not much inferior to that of other foreign
suppliers in the market. Vinamilk has limited pressure from suppliers. Vinamilk can be self-sufficient in raw milk raw materials. depends only on milk powder raw
materials. Moreover, Vinamilk company has put pressure on suppliers on the quality of raw
materials, ensuring good quality for products. Vinamilk is not under pressure from suppliers due