VIETNAM MARITIME UNIVERSITY

INTERNATIONAL SCHOOL OF EDUCATION

STRATEGIC MARKETING REPORT

MAJOR: BUSINESS MANAGEMENT &

TH TRUE NUT
Lecturer: Dr. Nguyen Hai Ninh
CLASS: BMM08
Group 7:
1. Bùi Thị Thu Hương - 76106
2. Nguyễn Phương Thảo - 84927
3. Nguyễn Thị Lan Anh - 76442
4. Nguyễn Vũ Khánh Huyền - 76202
5. Nguyễn Mai Phương - 69256
6. Phùng Anh Quân - 76463

HAI PHONG, January 2021

PREFACE .................................................................................................................... 3

CONTENT ................................................................................................................... 4

I. Executive Summary .............................................................................................. 4

1. Brief introduction of the Company ................................................................. 4

2. Introduction of the Company........................................................................... 4

3. Mission Statement ............................................................................................. 5

4. Products ............................................................................................................. 5

5. Target customers ............................................................................................... 5

6. Marketing objectives......................................................................................... 5

II. Marketing strategy analysis ............................................................................... 6

1. Market needs .................................................................................................... 6

2. Market trend...................................................................................................... 6

3.Market growth ................................................................................................... 7

4. Competitors analysis ......................................................................................... 7

5. Target customer persona ................................................................................ 10

III. Marketing Strategy.......................................................................................... 12

1. Setting Product Strategy ................................................................................ 12

2. Setting Price Strategy ..................................................................................... 14

3. Setting Place Strategy ..................................................................................... 15

4. Setting Promotion Strategy ............................................................................ 16

Conclusion .................................................................................................................. 19

References .................................................................................................................. 20

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 PREFACE
In recent decades, the world economy has changed dramatically under the
pressure of globalization that boosted technology development and the penetration of
new entrants in goods and services markets. Globalization is a business development
opportunity that world corporations cannot ignore. The development of technology,
especially information technology, has broken geographical barriers. Customers now
have more rights than before, and thanks to technology, they can have access to better
product information and more choices.
Obviously, with a strong integration trend, a new business wants to operate
successfully in a new market, they need to equip with the skills and knowhow to fit the
new market demand. Building a correct Marketing mix strategy is the most crucial
ability to create a company's competitive advantage in today's competitive
environment. This report's primary purpose is to recommend a suitable marketing
strategy for a new product of TH True Milk Company in the dairy industry. Based on
previous findings and gathered information in the real market that we have already
conducted in Haiphong's supermarkets such as BigC and Vinmart, our group plans to
research a new milk product called TH True Nuts in order to provide consumers,
especially for personal users, with milky nutrition for good physical health and brain
function. The report includes three main parts. In particular, the first part of this report
will be aimed to introduce general information about TH Group. Following this, we
will present the market analysis of this product. Finally, our report will mention the
principal elements in marketing in which point out strategies in Product, Place, Prices,
and Promotion for TH True Nuts milk in Hai Phong city.

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 CONTENT
I. Executive Summary
1. Brief introduction of the Company:
 Unit name: TH DAIRY FOOD JOINT STOCK COMPANY
 International transaction name: TH DAIRY FOOD JOINT STOCK COMPANY
 Address: 166 Nguyen Thai Hoc, Quang Trung precinct, Vinh city
 Phone: 1800545440
 Tax code: 2901270911
 Website: http://www.thmilk.vn/
2. Introduction of the Company
TH True Milk Company is TH Dairy Food Joint Stock Company, under TH
Group. TH True Milk brand name's logo only has two letters, "TH" but it contains a
great meaning. Specifically, TH stands for "True Happiness". The group president
shared that this is TH Dairy Company's wish to bring the most "real" milk from nature
to everyone. TH True Milk was established in 2008, under Mrs. Thai Huong's direction
- Founder and Chairman of the Board of TH Milk Food Joint Stock Company. The
business was established under the financial advice of Bac A Commercial Joint Stock
Bank. Entering the Vietnamese market in 2010, the Company always aims to produce
the most authentic "fresh milk" products. The TH True Milk project was started in 2009
by importing Israeli dairy technology and thousands of cows from New Zealand. From
that point on, that business began to grow rapidly. Currently, the business has become
a leading unit in producing "clean" fresh milk, with a herd of up to 45,000 cows
imported and cared for under special regimes.
Although the Company is only 12 years old, but TH True Milk has achieved many
proud achievements. In 2013, the Company inaugurated a fresh milk factory in Nghe
An with a capacity of 500,000 tons/year. The dairy herd is raised according to high-
tech standards, with more than 45,000 cows carefully selected from New Zealand,
Australia, Canada, etc. In 2018, TH True Milk Company inaugurated the first high-
yield dairy farm in Moscow, Russia.
Although appearing in the market not as long as other brands, TH True Milk has
increasingly proved its superiority in the Vietnamese dairy segment. The Company has
introduced more than 70 products to the basis of clean fresh milk, clean food, and clean
beverages.
TH True Milk is honored to receive the title of High Quality Vietnamese Goods
for 3 consecutive years. Not only that, the Company also became "A reliable supplier
in Vietnam and a reputable brand" in 2011. TH True Milk branded products were in
the list of "Top 100 trusted and used products".

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 3. Mission Statement:
The TH Group aims to become Vietnam's leading manufacturer of dairy
products. Today, TH Group is the second-ranked dairy manufacturer, behind Vinamilk
JSC. The core value of the group's strategy is anchored in the concept of "True Milk"
or "True natural Milk"; it does not use powder milk for processing. The Company is
proud that all products are made from "fresh clean pure milk" produced in the TH
commercial farm.
Besides, followed by the mission are TH is True and Happiness, TH bring the best
modern technology come to Vietnam's market, bring the fresh and natural product
come to customers, nutrition is the deciding factor and milk is the important factor, and
create the best quality product and famous brand. Broadens "TH True Milk" brand,
extend to ASIAN countries, contributes to increasing its sale volume.
4. Products
- Beverage
- Th True Water
- Th True Nut
- Ice Cream
- Butter, Phomat
- Pasteurized Milk
- Uht Fresh Milk
- Formula Fresh Milk Th Topkid
- Th True Yogurt
- Japonica Fvf
5. Target customers:
TH True Milk products meet the needs of most customers, from children to
adults. However, at the present, TH is launching a new product line that is the type of
milk as well as the product that we are researching. After a survey period, our group
targeted customers, mainly young women (23-30 years old) who have income and
unmarried to serve their own needs ( mainly diet ) live in the Hai Phong city. They
have a habit of going shopping mostly at convenient stores and supermarkets.
6. Marketing objectives:
Advertising for new products, introducing the nuts milk products through the
media to promote the product to become widely popular in the market. As a result, the
product attracts many interested potential customers, not only women, to become loyal
customers who always trust and prioritize use. Expand the market for the future
product. Currently, TH's nut milk products have been exported to China, within the
next three to four years, this new product will be exported to many other countries
around the world, and is one of the brands of nuts milk most common used.

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 II. Marketing strategy analysis
1. Market needs :
In Vietnam, the intent of consuming nut milk is also increasing sharply. The report
of a survey in 2019, up to 66% of Vietnamese consumers wants more products made
entirely from natural materials. Alternatives to cow's milk such as soy milk, almond
milk, rice milk, oat milk, coconut milk, cashew milk, etc. will become progressively
attractive to consumers, with different needs depending on the region.
According to the CAGR, in 2018, fresh milk accounted for 12% of Viet Nam
liquid milk market structure. Meanwhile, the percentage of alternative milk on Vietnam
liquid market reached the highest level, with 84 %.

2. Market trend:
According to Nielsen's latest 2018 study, 37% of Vietnamese consumers consider
health to be among their top two concerns, while 90% are concerned about the long-
term health impact of artifical ingredients and 76% want to know everything that goes
into their food. Alternative milk is 100% plant-based dairy products, such as grains,
legumes, or vegetables. Currently, using nuts milk instead of pure milk is a popular
global trend. With this market trend, the new product line of TH True Nut will have
great opportunities to maintain and boost the consumption rate.

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 3.Market growth :

Line chart 1. The growth rate forecast of milk product lines

Source: VIRAC, Euromonitor

According to the study of CAGR, the growth rate of alternative milk has been
declining since 2013. However, it is the only product line has significantly increased
and is predicted to increase sharply from 2016 to 2022. By comparing with the growth
rate of yogurt and liquid milk , the growth rate of alternative milk (soy milk, walnuts
milk…) will reach 15% - the highest level in market growth’s milk by 2022. Overall,
although the market growth rate of alternative milk experienced fluctuations, this rate
has remarkably grown up in recent years. Therefore, this is a favorable opportunity for
TH group to launch their TH True Nut product line to satisfy consumer’s demand in
the future.
4. Competitors analysis
TH True Milk Walnut
- Price: 12500 Vnd
STRENGTHS WEAKNESSES
 The competitive product line is still
 High creativity and adaptability limited.
marketing strategy  High production cost leads to high price
 High-quality products, do not use product.
artificial substances  Direct selling systems are not widely
distributed across the country.

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 COMPETITORS:
1. Vinamilk Walnut Yogurt.
- Price: 9000 Vnd/ 100ml
Vinamilk is a leading enterprise in the dairy processing industry in Vietnam,
currently accounting for 75% of dairy's market share in Vietnam. Besides, Vinamilk
Yoghurt accounts for 26% market share.
- Strengths:
 Diversity of product line and packaging
 Marketing:
Vinamilk designs and prints new packaging to bring the messages of the holidays
to consumers. The expenses that Vinamilk spends on design change programs account
up to about 10% of the total cost.
Eye-catching packaging had contributed significantly to increased sales for
Vinamilk when it launched to the market.
 Distribution: Nationwide distribution network.
2. 137 Degrees Walnut Milk.
- Price: 23000 Vnd/ 180ml
137 Degrees is a milk brand made from nuts such as almonds, walnuts,
pistachios,... from Thailand. 137 Degrees Walnut Milk is an imported dairy product
that is trusted by many people in Vietnam. 137 Degrees milk product is processed at a
temperature of 137 degrees to help keep almost all the ingredients' nutrients and
freshness.
- Strengths:
 Product: the product does not contain lactose, a sugar found in animal milk.
Suitable for vegetarians, people with lactose intolerance and diabetics.
 Marketing: Using story telling marketing to attract customers.
3. L'Orchata.
- Price: 40000 Vnd/ 250ml
L'Orchata - The first Vietnamese seed milk supplier. 100% ingredients are made
from different types of nutritious nuts: almonds, cashews, Chufa seeds,... L'orchata is
an excellent source of nutrients to bring customers a healthy body, maintain a supple
physique, repel disease.
- Strengths:
 Packaging: Use of glass bottle packaging, which is very environmentally
friendly.
 Use a good promotion strategy: perform the bottle exchange program 6 empty
bottles = 1 bottle nut milk.

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  Diversity of product line and packaging (has a line of products for people with
diabetes).
4. Sahmyook Foods
- Price: 16000 Vnd/ 190ml
Sahmyook Foods - the leading nutritional food brand in Korea. Sahmyook Foods
nut milk is a famous Korean product. The main ingredients used are fruits and seeds
with high nutritional sources, safe and especially good for health.
- Strengths:
 Distribution: Nationwide distribution network.
 Price: This is a foreign milk product but its price is not high compared to other
products of the same type.
In general, each brand has its own strengths. However, in Vietnam domestic
market, competitors have not yet effectively implemented marketing strategies to
promote nuts milk products and competitive advantage of product that combines
between cow’s milk and different kinds of nuts. A few brands with premium pricing
strategy attract the number of consumers ineffectively in Vietnamese market, including
TH True Milk. To reach our target customer successfully, it is necessary that TH group
should focus on building a smart marketing strategy, whislt, they should attach special
importance to set pricing strategy and product strategy. The specific strategies will be
presented in the next parts.

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5. Target customer persona

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11
 III. Marketing Strategy
1. Setting Product Strategy
To be supported by nutritionists, many natural products increasingly attractive
to women consumers, especially for young people, who are looking to, create a relaxed
lifestyle to balance with the daily hustle and bustle of life. Understand the trend, after
a period of research, TH Group launches a set of premium nut milk products from
Macca nuts, walnuts rich in nutritional value, and disease prevention. Walnuts are
imported from US While Macca are imported from Australia, South Africa and partly
purchased from some farms in Vietnam. Besides, this is the first time the Vietnamese
market has available a set of non-sugar nut milk products using sweet taste from dates.
TH True Nuts milk products also have fresh milk ingredients from TH dairy farms,
which increase the amount of protein and calcium, which if only nuts will not be
enough. With this creativity, TH has the first set of nut milk products in Vietnam to
add fresh milk, suitable for all ages:
 Walnut milk
 Macadamia nut milk
 Almond milk
 Nuts and Gac fruit milk
These four products have received huge attraction from women customers
generally and from the clean eaters community particularly.
*Packaging
To contribute to environmental protection, one of the community's global issues,
we also plan to use glass bottles to replace the regular paper packaging. By using glass
bottles, milk can be kept in the best condition, and the customers also can easily check
the quality of milk by looking. Furthermore, now when life quality is increasing, people
require products that are safe and convenient to protect health and the environment, so
it is appropriate to use milk bottles.
* Diversification strategy
Since the demand is gradually increasing, just four plant milk products can not
satisfy the customers. Therefore, our group decides to conduct horizontal product

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development. Besides nuts that are high cost and must be imported from abroad like
Almond, Walnut and Macca, TH can also use familiar Vietnamese nuts, seeds, and
beans, which have familiar taste with Vietnamese residents and reduce the cost; hence,
the Company can reduce the price and attract more customers. We suggest that TH can
create more types of plant milk such as Lotus seed milk, black beans milk, pumpkin
seeds milk; or they can combine a variety of nuts, seeds, and beans with other
ingredients to create more flavors (black sesame with lotus seeds milk, pumpkin with
lotus seeds, sweet corn with soy milk and pea flower...). These ingredients are also high
in nutrients, low calories, and lower prices than imported nuts.
Besides, Viet Nam is famous for the number of tropical fruits such as mango,
banana, papaya, watermelon, orange,... with very reasonable price. TH Company can
take advantage of these ingredients and launched the Tropical milkshake set (Mango
milkshake, watermelon milkshake, papaya milkshake, durian milkshake,...)

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 2. Setting Price Strategy
TH is currently using cost-based pricing strategy because the Company
intensely focuses on the production process to bring high-quality products to the
customer, and I completely agree with this strategy. TH True Milk is the first and only
brand in our country to apply Germany's most modern ESL sterilization technology to
make the best-sterilized milk products. Besides, compliance with accurate temperature
and time helps eliminate most bacteria, so the product can be left for a month, longer
than traditionally pasteurized milk.
However, since TH’s products are known to have the highest price among other
domestic products, it is hard for TH to compete with other brands and gain the highest
possible profit. Therefore, we recommend TH should use the ingredients from farms
in regions of Viet Nam. For example, with vegan milk products line, Company can
buy lotus seeds from Hung Yen, cashew from Binh Phuoc, etc. With Tropical
milkshake, mango can be taken from provinces of Mekong River Delta, grapes can be
bought from some suppliers in Ninh Thuan Province, etc. This will help the Company
reduce the international delivery cost and a number of imported taxes on products but
still have good quality sources.

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 3. Setting Place Strategy
In TH True Milk, before coming to the end-users, products are transferred through
different stages. From the early stage of cows importing, herd control, veterinary care,
disease prevention and treatment to milking, the fresh milk is transported and stored
by cooling tank trucks at 2-4 degrees C in order to best preserve the nutrients of TH
True Milk. In this place, the latest pasteurization techniques are applied to ensure the
quality, naturalness, flavor, nutrition, and safety of the Company’s pure, fresh milk.
After production stages, the milk is distributed to TH Stores, TH retail outlet, and TH
True Marts in the best conditions and brings families standardized products with
preserved essences, flavors, and nutrients of nature.
In Hai Phong, we plan to open more direct selling systems called TH True Mart
that sells our products directly to consumers. TH True Mart is a chain of retail stores
that provides food products safe, clean, fresh and delicious and most nutritious, natural
origin, produced by Farm Fresh Dairy TH. Under the advice of North Asia Commercial
Joint Stock Bank-oriented and high-tech investments of the Group, TH True Mart
facility is invested with modern design and special interior materials, as well as the
upgraded methods in preserving the best products. Milk are preserved carefully under
the best conditions but also placed neatly on the shelf which is convenient for
consumers to find their wanted goods. Compared to a scattered layout of normal
supermarkets, TH True Marts are truly ideal for customers. Instead of wandering
around and hardly find the items in crowded places, TH True Milk offers consumers
with clean and scientific designed stores; enable them to free and smart shopping. To
bring convenience to consumers, the outlets are located near many schools, university
and offices, hospitals, residential areas in both urban areas and rural areas in Haiphong
city. For instance, the chain stores in Haiphong are located in nearby center path like
Nguyen Duc Canh, To Hieu, Lach Tray, Le Loi, etc. and in some towns of Haiphong’s
districts such as Thuy Nguyen, An Duong, An Lao, Kien An, etc. It is easy for residents
to find with a system of 40 stores citywide. For the new TH True Nuts, like the other
kinds of milk coming from the TH True Milk system, they will be stored and placed in
these outlets with a separated section in order to attract customers.

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 In addition, because the major of Hai Phong customer tends to buy TH true nuts
at convenient stores or supermarket, so we plan to continue to expand these retailing
channels. Specifically, we will continue to boost sales TH true nuts through convenient
store coordinating supermarkets such as BigC, Coopmart, Vinmart, Mega, and Aeon
mart in coming soon. This indirect selling method is used in parallel with the direct
selling mentioned above.
Furthermore, our group also use non-store retailing channel that is vending
machine. We plan to locate more than 100 vending machines in universities, colleges
and industrial areas in Haiphong city. TH True nuts and TH true milks will be placed
with other drinks in vending machine that students as well as employees easily take a
chance to buy this product line.
4. Setting Promotion Strategy
*Advertising
When mentioning traditional advertising media, TV advertisement is an effective
tool. We run ads about 10s on some TV channels such as VTV3, THP, VTV1. We will
invite Tang Thanh Ha who is a well-known actress and model in Vietnam and gains
reputation for a healthy lifestyle by getting fits, clean eating to perform in
Advertisement as well as an ambassador of us. Especially, she owns a natural beauty
and always sets a good example for many Vietnamese woman.
Moreover, there are some billboards covered on high buildings in the center of
Haiphong city (Nguyen Duc Canh, Quang Trung, To Hieu street) in 2 next years. We
also place banners in bus stop, supermarket, especially, in famous fitness center in
Haiphong such as Queen Bay, 123Gym,.. As the target market of this product is of
women in general and high – income people in particular, these customers are likely to
visit fitness center often. Thereby, providing these places with banners is an effective
way to attract more new customers who are likely to go on a reducing diet.
Online marketing is needed as well by adding internet banner or small ads on sites
of famous webpages such as Zingtv, Kenh14, bilutvzz, Baomoi.... This is mainly
because the age group 23-30 spends a lot of time on surfing the internet and accessing
social networking sites such as Facebook on a daily basis.

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 *Public Relations:
In the first place, we will organize some promotion events. For example, “TH
True Nuts accompanying with women’s health and beauty” in Opera House’s Square
of the city. Not only that, we also plan to hold online minigames called “Healthy
breakfast with TH True Nuts” where Facebook’s users can post up their picture with
TH True Nut products and choose a winner who have the most beautiful photo” or “TH
True Nuts” on facebook’s pages such as Mon ngon Haiphong, Foody Haiphong, BigC,
Yeu Bep. At this game, Facebook users can have opportunity to receive valuable gifts
such as handbag, massage machine, vouchers… by answering small questions fastly
and correctly with a view to evaluate consumer’s understanding about TH True Nut’s
products.
Another PR tool is e-newspaper. We will carry out deploying online articles on
online newspapers published on high-traffic networks such as Vnexpress.vn, Zing.vn,
Kenh14.vn, Tuoitre, Dantri, Baomoi.com, 24h.com.vn to promote products. These in-
depth articles address issues such as the reality and causes of obesity and solutions to
improve physique and brain; eat clean, safety weight-loss ... will help the Company
easily spread the value that TH milk nuts products bring to consumers.
*Sales promotion
Promotion in exclusive outlets: Through the system of retail stores TH True
Mart, new products can be promoted through traditional ways like attractive standees
and in-store marketing. The staff will be trained on features of products and promote
them to regular customers come by the stores. Directed to women customers, this
personal promotion could help in raising the awareness of the new product among
consumers’ minds. The outlets should represent two main colors of TH which is white
and blue. In accordance with that, LCD TVs are needed to turn on regularly running
TH’s ads with staffs dressing outstandingly as milk producers.
In supermarkets, we will offer 1 bottle of different flavor when buying 4 bottles
of 180ml. Besides, we hire some PG standing at milk stand and create kiosks for trials
and collect feedback from customers.

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 In retail stores (TH True Mart), we also provide free door-to-door milk delivery
to our customers within 5km radius. Especially, the customers can be able to register
to receive fresh milk every week and every month. Of course, the customers who
register for door-to-door delivery service can have free shipment.
With the Tropical Milkshake and plant milk set with glass bottle packaging, we
will run the event “Save the environment with TH True Milk”. When the customers
bring back 6 glass bottles to a TH True Mart, the customers can have 10% discount for
the next payment.
Online sales promotion “buy one get one” on Now Food, Grab Food on the special
occasion such as Black Friday, Women’s Day, Chrismas…
*Sponsorship
Sponsor for sports events as well as art competition taking place in Lach Tray
Stadium, Hang Hai Stadium, Viet Tiep Cultural Palace.
CSR campaign: donate money, free milk for underprivileged dwellers in poor
communes such as Lai Xuan, Hong Thai,
Sponsor for Hai Phong Flamboyant Festival.
Sponsor for Miss University in Haiphong city.

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 Conclusion
In conclusion, the report did the job as consulting TH True Milk with brand new
product- TH True Nuts in marketing mix, target to women as dominant consumers, set
up reasonable prices due to better quality, continue to pursue a product diversification,
suggest distribution through exclusive outlets and using both traditional and
nontraditional promotion tools with a view to helping this Company expanding new
business. It is recommended for TH Group to consider specific economic changes and
conditions to decide on a suitable marketing method for the next products. Research
and rational actions are especially needed when the Company wants to attract more
customers in Hai Phong city and quickly gain more market share in Vietnam's current
dairy industry when competing with big rivals- Vinamilk. The dairy market of Vietnam
implied lots of opportunities for our new products. In addition, TH True Nut is the first
nut milk product in Vietnam combined with fresh milk, creating a balanced source of
nutrition and bringing significant health benefits suitable for all ages. Through our
marketing strategy, we hope that in the next two years, TH True Nuts product lines of
TH corporation will become a familiar product in daily consumption of Haiphong 's
women and quickly become standard nutrition drinks with the entire of Haiphong
citizens. After learning Strategic Marketing course, our group feel so grateful to Mr.
Hai Ninh, who is our instructor in this course, who provided us with tons of useful
knowledge and interesting practices that help us to understand clearly the importance
of marketing strategy when building a marketing plan for business and know obviously
how to build a marketing strategy for a new product in an actual market.

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[
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2021)

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