Analyzing Vinamilk's Marketing Strategy for UTH Fresh Milk: A Report

This report provides an in-depth analysis of Vinamilk's marketing strategy for its UTH 100% fresh milk product. It begins with a background of the company and the product, highlighting its competitors like TH True Milk and Dutch Lady. The report then describes Vinamilk's current marketing strategy, including its target segments (young children, teenagers, and urban adults), value proposition (quality and affordability), and marketing mix (product, promotion, pricing, and distribution). The diagnostic section evaluates the strategy, noting the reliance on traditional promotion methods and the potential for digital marketing. Finally, the report offers prescriptive recommendations, such as incorporating social media marketing and diversifying the product range with premium pricing strategies to attract a broader customer base and maintain a competitive advantage in the market.

Running Head: Customer Relationship Management
CUSTOMER RELATIONSHIP MANAGEMENT

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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℃
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

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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.℃
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

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using social media and it is easier to reach them through popular social media platform.
Lower pricing is being offered by this company and it is good for attracting customers.
However, this company may have less profit due to this pricing strategy. Both traditional and
modern channels are being used by this company for distribution of Fresh milk. As
mentioned by Fan, Lau & Zhao (2015), this strategy is potent enough to help this company to
occupy maximum market share.
It can be concluded that Vinamilk has maintained good quality of fresh milk according to
global standards. Moreover, they have tried to provide this product at economy pricing that
has helped to attract large base of consumers. Good quality products and supportive pricing
strategy have helped them to achieve the business objectives. However, it can be seen that
they rely on traditional techniques of promotion. In this competitive age, it is essential to
adopt digital marketing strategies. Incorporation of social media strategy can help this firm to
gain large base of customers and attractive contents can be shared easily. Social media
advertising is a cost-effective strategy, which can help Vinamilk to reduce operational costs.
In addition, Vinamilk has adopted the strategy of economy pricing strategy to offer high-
quality products at low prices. This can impact competitive advantage as market competition
is increasing at a faster rate. Hence, the product of fresh milk can be diversified to offer
different range to customers. Premium pricing strategy for a high-quality range can be
adopted after diversification to attract upper class of the society.

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