i STATEMENT OF AUTHORSHIP FINAL PROJECT NAME BRANDING STRATEGY OF DUTCH LADY IN VIETNAM STUDENT NAME PHAM NGOC HIEN PHAM XUAN VINH Declaration and Statement of Authorship 1. We hold a photocopy of this final project which can be produced if the original is lost or damaged. 2. This final project is our origin work and no part of it has been copied from any other student’s work or from any other source except where due acknowledgement is made. 3. We have not previously submitted this work for any other course/ unit 4. We give permission for our work to be scanned for electronic checking of plagiarism. 5. We give permission for a copy of our marked work to be retained by the Department for review by external examiners ii ACKNOWLEDGEMENT In order to finish our final project, we have received a lot of kindly support and precious contribution from many people. First of all, I would like to send our big thank to Prof. Serge Bywalski, our tutor, for his dedicated instruction and constructive feedback so that we can go through all phases of this final project smoothly. We also would like to say thank to Prof. Alain who has give to us the critical comments and improvement in order to make our project better. We are also very grateful to Solvay - ULB Vietnam, Education management Admin for giving us the full information and feedback during the course. Next, our thankfulness goes to our boss, our colleagues and our friends who support and give us valuable ideas and insights. The last but not least, we would like to express our love and our appreciation to our family who are always beside and support us in term of spirit as well as material. Thanks to this final project, we not only achieve the applied Marketing knowledge, but also get more overview the dairy market and how to build the brand in dairy field as well. Ho Chi Minh, March, 2013 Pham Ngoc Hien & Pham Xuan Vinh iii LIST OF ABBREVIATION BUMO - Brand used most often CAGR - Compound Annual Growth Rate DDP - Dairy Development Program DKY - Drinking yogurt milk DL - Dutch Lady Vietnam FCV - FrieslandCampina Vietnam FMCG - Fast moving consumer goods IFT - Intermittent feeding trajectory P4Ws - Purchase for 4 Weeks RTB - Reason to believe SCM - Sweetened condensed milk TOM - Top of mind TOM ad - Top of mind advertisement TVC - TV commercial UTH - Ultra high temperature milk VNM - Vinamilk WOM - Word of mouth iv LIST OF FIGURES Figure 1: Average income of Vietnamese in 5 main cities 4 Figure 2: Contribution of the Dairy Market 6 Figure 3: Drinking Usage Panel 7 Figure 4: Annual Growth rate of Dutch Lady 8 Figure 5: Dutch Lady UHT sales contribution by region 8 Figure 6: Segmentation mapping 10 Figure 7: Monthly TOM brand awareness liquid milk 12 Figure 8: Monthly TOM Ad awareness liquid milk 13 Figure 9: Brand consumed P4Ws liquid milk 13 Figure 10: Dutch Lady Brand image 14 Figure 11: Brand Character and Image of Vinamilk 16 Figure 12: The growth of categories drinking 22 Figure 13: Factors to affect consumer to purchase a FMCG product 23 Figure 14: The evaluation of environment concerned when purchase a FMCG product 24 Figure 15: The evaluation of charity concerned when purchase a FMCG product 25 Figure 16: Ansoff's Matrix 26 Figure 17: Porter Generic Strategy 1985 28 Figure 18: Happy Cow Milk mapping 31 Figure 19: Pricing Strategy 32 Figure 20: Three level of product 34 Figure 21: The Dairy Market Volume and Value 50 Figure 22: The Market Share of Dairy Market in Value and Volume 51 Figure 23: The evaluation of food safety when decide to buy 52 Figure 24: The react of consumer if product manufacturing negatively affects the environment 52 Figure 25: Maslow Hierarchy 1943 53 Figure 26: Media strategy Model 53 v LIST OF TABLES Table 1: Vietnam Long-term Macroeconomic Forecasts 4 Table 2: Selected Asian Economies: Real GDP and Consumer Prices 5 Table 3: Market share of Dutch Lady and Vinamilk in Value and Volume 15 Table 4: The drinking habit by age 20 Table 5: The drinking habit by region 21 Table 6: The drinking habit by income 21 Table 7: Population by Sex and by Age group in 2011 54 vi LIST OF PICTURES Picture 1: 15 Years of Dutch Lady in Vietnam 2 Picture 2: Product Portfolio 3 Picture 3: Some communication materials of Vinamilk 15 Picture 4: The TV Commercial of Vinamilk 17 Picture 5: The Print advertisement of Vinamilk 18 Picture 6: Out of Home advertisement of Vinamilk 19 Picture 7: Brand activation of Vinamilk 19 Picture 8: The American Humane Certificate 29 Picture 9: The Design of Happy Cow Milk bottle 35 Picture 10: Illustration of Happy Farm online game 45 vii LIMITATION Dutch Lady is well-known brand in the world which has a wide-range of data and researches in many different analysis, therefore, in our report, deal to the scope of work, we would like to discuss the case of Dutch Lady’s communication in Vietnam only.We also want to analyse the branding strategy of Dutch Lady in our point of view instead the whole marketing activities. Besides, the Vietnamese dairy market is quite competitive with many different rivals both of local and global; hence, based on the current market share and performance of Dutch Lady Vietnam, we have just picked out Vinamilk as our key competitor to analysis and skip for the other rivals. Furthermore, after analysis on the current performance of Dutch Lady, we have found some findings and given the feasible recommendations. There are two strategies that DL can apply for short-term and long-term development. Each of strategy would be used for each different branding plan for DL. Due to the limitation of this project, we would focus only on building a branding plan for launching the “Happy Cow Milk” concept. Moreover, in order to make this report more visual and attractive, the using images, pictures, and photos has been collected from the Internet and usage for illustration purpose only. Finally, this report has been written in English which is not the primary language of the team researchers. Therefore, sometimes, the readers could be found some parts, and sentences which are difficult to understand and not clear about the point of view, please notice to us for further improvement. It would be our pleasure to make it clear and update it for later. viii TABLE OF CONTENT EXECUTIVE SUMMARY 1 1. INTRODUCTION 2 1.1. Overview about Dutch Lady Vietnam 2 1.1.1. Background of Dutch Lady Vietnam 2 1.1.2. Product portfolio 2 1.2.2. The current Dairy Market 6 1.3. Findings 9 2. DUTCH LADY AND 3C ANALYSIS 9 2.1. Company 10 2.1.1. Segmentation and target consumers 10 2.1.2. Dutch Lady current performance 12 2.1.2.1. Branding performance 12 2.1.2.2. Findings 14 2.2. Competitors analysis 14 2.2.1. Current performance of Vinamilk 14 2.2.2. Brand performance Vinamilk 15 2.2.2.1. Brand Characteristics 15 2.2.2.2. Branding Strategy 16 2.3. Consumers insight 20 2.3.1. How the customer consume Dairy product 20 2.3.2. Vietnamese Perception trend 22 2.3.2.1. Being Cleaner and Greener 22 2.3.2.2. Being responsible 24 3. RECOMMENDATIONS 26 3.1. Happy Cow Milk concept 28 3.2. Targeting customers 29 3.3. Positioning 31 3.4. Pricing strategy 32 3.5. Product description 33 3.5.1. Core benefits 33 3.5.2. Actual product 33 ix 3.5.3. Augmented product 34 3.6. Packaging 34 3.7. Communication 35 3.7.1. Tone of voice 35 3.7.2. Communication plan for 2 years 37 3.7.2.1. Pre-launch Stage 37 3.7.2.2. Launch Stage 39 3.7.2.3. New product line extension launching 47 4. REFRENCE LIST 49 5. APPENDIX 50 5.1. Appendix 1: List of figures 50 5.2. Appendix 2: List of tables 54 1 EXECUTIVE SUMMARY Dutch Lady has emerged as one of the first global corporation to invest in Vietnam in the very beginning of the Opened Economic. Aiming to set up a strong basement in Vietnam, Dutch Lady Vietnam has put great effort during 16 years to provide not only the good quality of dairy products but also improve the physical body of the Vietnamese. The success of Dutch Lady roots from localizing their products and bringing it closely to Vietnam consumer. In this report, team researchers want to find out about the current branding strategy of Dutch Lady in Vietnam and how it communicate to the Vietnamese consumers. This report will comprise in 3 parts which is assigned to bring the clear point of view about Dutch Lady, its key competitors, and feasible branding strategy in the next 2 years. In the first part, it would provide to the reader about the overview of the Vietnamese diary market. It also discusses about how potentiality of the liquid milk market and some macro- economy factor driven this market in the next 3 years. The second part would examine the current performance of Dutch Lady on the 3C model: Company, Competition and Customer. The Company analysis discusses about the segmentation and target customer of Dutch Lady, differently, the segmentation of liquid milk is based-on the psychology of consumer and their milk consumed behaviour. Besides, it also examine on the current branding performance of Dutch Lady. Furthermore, in order to understand clearly about key rivals, the competitor will examine on the branding performance of Vinamilk which is a key competitive rival. Then, of course, the customer insights is the key which lead to the success of ay branding campaign, therefore, the team researcher also want to find out how consumers purchase Dairy product and their perception trend. Based-on the below analysis, part three would like to point-out the feasible branding strategy to Dutch Lady in order to achieve the main objectives for both of short-term and long-term development: to keep and improve the current position of Dutch Lady in Vietnamese Dairy market and to explore a new market. Due to the limitation of this project, the team researchers would only propose the communication plan for Dutch Lady to explore a new market through 3 stages: pre-launch, launch, and post-launch. [...]... realization of the importance and benefits in drinking milk 21 Table 5: The drinking habit by region (Source: Internal Data) By Income: Most focus on mid and high income in tracking In liquid milk: 40% of high income person drink liquid milk, while middle income is 35.8% and 28.2% in low income However Soya milk is preferred by middle income (45.6%) and high income (44%) Most of drinking liquid milk... the changing of Vietnamese perception about drinking liquid milk These changing could be the result of the increasing of Vietnamese intellectual to integrate with the whole world after the war time People are more educated to realise the benefits of drinking liquid milk in the daily activities Moreover, their disposal income has increase steadily which make them do not consider too much on buying liquid... RECOMMENDATIONS Based on the findings of the current situation of DL in Vietnam, it can be suggested to have a branding strategy in order to achieve the main objectives for both of short-term and longterm development: To keep and improve the current position of DL in Vietnamese Dairy market To explore a new market According Ansoff matrix, in order to achieve the objective of DL to increase sale and development,... its potentialities of high population, increasing of disposal income, the decline of Consumer price, it would be expected a bright future for increasing Vietnamese consumption and household expenditure for the next period 2013f to 2015f In the case of Dutch Lady Vietnam, with these potential Marco-indicators, it is able to believe about the increase of sale during this period Table 2: Selected Asian...2 1 INTRODUCTION 1.1 Overview about Dutch Lady Vietnam 1.1.1 Background of Dutch Lady Vietnam FrieslandCampina Vietnam is a joint-stock company which established in 1995 between Binh Duong Im-Export Company (Protrade) and Royal FrieslandCampina - the leading company of dairy products in Netherlands with 135 global experiences From Grass to Glass From its start in 1995, Dairy Development... company has invested US$1 million in the program in training, technology transfer for farmers, the establishment of a complete controlling system, and encouraging investment in using bio gas system among others Hence, DDP is a full system to control the quality of milk from grass to glass well FrieslandCampina Vietnam can supply the market with over 1.5 billion units of milk every year, offering Vietnamese... users has high income They are able to pay for milk in daily times Table 6: The drinking habit by income (Source: Internal Data) Switching to liquid milk Milk Powder is on decreasing trend in terms of share of throat while Liquid milk is taking the opposite trend There is 9% volume growth of liquid milk comes from IFT mainstream 22 Figure 12: The growth of categories drinking (Source: Internal Data)... consumption of liquid milk and have a better living standard 2.3.2 Vietnamese Perception trend 2.3.2.1 Being Cleaner and Greener Being Cleaner Recently, deal to the increase rapidly of the population in the main cities of Vietnam, the level of hygiene is going down in common, especially in food and beverage industry Vietnamese consumers demand the high level of hygiene of food that they are ready to pay more... customer purchasing power and spending patterns in term of income distribution and change in income are affected strongly by economic issue In the other words that, with the increase of Vietnamese economy and living standard, which would lead to the increase of purchasing power in the next 3 years It can be realised that Vietnam has did really successfully on its recovery after the big regression in 2008 Although,... their body and to continue doing their about the benefit of They have mid- Keen on the job until have time for drinking milk high income eating They have middle income Motivation Time (Mum) Key for Full of calcium Has all the for saving/convenient optimal child and minerals, good things drinking Thirst-quenching development good for the of nature liquid milk Hunger buster (height/intelligence) bones, . of increasing by 6%. It is an evident to believe about the changing of Vietnamese perception about drinking liquid milk. These changing could be the result of the increasing of Vietnamese intellectual. and bringing it closely to Vietnam consumer. In this report, team researchers want to find out about the current branding strategy of Dutch Lady in Vietnam and how it communicate to the Vietnamese. has emerged as one of the first global corporation to invest in Vietnam in the very beginning of the Opened Economic. Aiming to set up a strong basement in Vietnam, Dutch Lady Vietnam has put