Customer and Vinamilk advertisement on TVT3 in 2009.DOC

Customer and Vinamilk advertisement on TVT3 in 2009

I Introduction

The report contains the investigation of how the two advertisements: 100% fresh milk and V-fresh affect the customers when they saw them on the VTV3 the research will be divided in to two parts, the first part is to investigate the preference of customers when they watch these commercial, the second part is to research the sales of Vinamilk in 2009 I think this way of research will let you see carefully and it is comparative between the attention of customers on TV advertisement and the change in sales.

In the fourth quarter of 2008, the news that spread through the nervousness of the consumers was about the dairy products made the consumer suspected the quality of these products.

Firstly, the buyers worried when there was a piece of news mentioned the milk powder that produced in china has a chemical called Melamine Some of companies in China tended to be producing for profit so in order to increase the profit per product, these companies used the chemical called Melamine Melamine is extracted from coal, the industrial chemical commonly used in the manufacture of plastics, fertilizer, fire resistant fabrics, dyes and household products Major element in its composition is nitrogen (up 66%) Although no nutritional value, but it is usually given to raw milk to increase protein content, by the method of assessment in milk protein content is often based on the percentage of nitrogen in the product Experts confirmed the chemical structure of melamine makes it easy to pass the devices analyzed When in the body, melamine causes kidney stones and urinary calcium tube Thus, the milk powder products contained melamine as yogurt; ice cream can also cause disease In Viet Nam, after the news was spread the Ministry of Health had verified all companies, at the end result that 23 brands of dairy products contained Melamine, the echo of the news prolonged till 2009.

Nevertheless, at the same time, in 9th October 2008, the Environmental Police of Division Police in Tien Giang province give the sample of product of Vinamilk to the lab

when heard the feedback of the customer named Nguyen Cong Phuc and result that in the sample had 7 bacteria and 4 of them were exceed the standard This news had affected the Vinamilk image which it was built in the customer thought.

These 2 things were the most affected news during the late 2008 and 2009; consumer’s choice in 2009 changed much compare with 2008 For example, the customer’s behavior till 2008 preferred cheap one, buyers tended to buy things without

Realize the quality of dairy products However, when the scandal of San Lu Company in China happened, then the Ministry of Health published the list of dairy brands whose products had Melamine, the habits had changed Now buyers tend to buy products with certificated standard quality.

These scandals happened in the late 2008 there is no doubt that in 2009; dairy companies had to surfer the bad effects Buyers were so doubtful and suspect the quality of the product Customers’ purchase power was decreasing

Vinamilk, the largest and powerful company in term of dairy products during 2009 had to experience those effects too And in 2009, Vinamilk presented 2 new types of dairy products, the first product was “100% fresh milk”, the second one was “vfresh” Company knew the difficulties in 2009 so that the promotions of the new products were extremely necessary because Vinamilk understood very well the effects of advertising on consumers The role of a good advertisement is to informing them about product and services and influencing their attitudes, beliefs, and finally their purchase This research follows the idea how customer response to advertisement of Vinamilk about those two brands name, or how effective these commercials were The topic of this research is: “Customer and Vinamilk advertisement on TVT3 in 2009”

Today, there are mass of advertisements in every channel on TV Because that option of advertising is the quickest and easiest way to reach the potential customers In order to have the advertisement on TV screen, businesses has to pay VTV3 a lot just for a 30-second advertisement It is important to business to evaluate the effectiveness of the advertisement toward the customers The main purpose of this research is to define the affections of Vinamilk’s advertising during 2009 toward the buyers Because of the

limitation of knowledge so that this paper will include only two of those advertisements They are the advertisement of 100% fresh milk and vfresh’s advertisement

This research was conducted in order to know how effective the Vinamilk’s advertisements on TV are in the year of many dairy scandals.

1.4 Research question:

1, How did customers response toward Vinamilk’s commercials on VTV3 in 2009?

(In this research question, I only focus on 2 advertisements which have been recommend in the background part of this report)

2, How did the responses affect Vinamilk sales and market share in 2009?

1.5 Research method:

This research based on two types of data: Primary data and second-hand data Primary data use the survey method The population of this research is the students from Intake 50 Advance program The survey questions will be answered by a population of 56 students The type of survey question is multiple choice questions Surveys spread out are 56 copies of survey questions Surveys collected are 56 copies Survey questions are stored in Appendix part of this report.

Second-hand data are information on the Internet The address on the Internet of Vinamilk is http://www.vinamilk.com.vn Company has very detailed financial

statements since it became Joint Stock Company and listed on the stock market

+The advertising is very important and vital part of a successful business Advertising can be of any kind, some of the popular forms of advertising are:

Print Media Advertising: This is the advertising in which we promote the business through Newspapers, Magazines, Journals and books This advertising covers all of people who are related directly or indirectly with above said media This is very popular

form of advertising as print media is very important We can further categorize the print media (newspapers) into Entertainment, Careers, Classifieds, technology (Computers, Electronics, defense), Real Estate, Lifestyles, Comics and much more It also includes hoardings and banners.

Television: TV is a very popular platform for advertising It covers nearly all kind of audience and of all genders.

Internet: The newest and increasingly getting popular form of media is internet As it is the widest platform for the advertisers It covers everything from a needle to a ship These days more and more companies are focusing on advertising through internet Internet advertising comprises of websites, portals, gadgets, feeds and search engines.

With help of advertising the business firms publicize their businesses to make it more popular and to create brand awareness Advertising help them in increasing revenues which directly increases the profit of the companies Many companies are having separate departments for advertising The function of these departments is to make plan and make budgets for advertising Advertising helps in forecasting sales of a company If the company spends more on advertising then definitely the people will be more aware about the brands of the company.

Impact of Television: We live in a culture bombarded with promotional

messages Studies differ on the number of ads seen by the average American, but

researchers cite from 850 to 3,000 ad messages experienced daily These messages come from traditional sources like TV and newspapers but also on coffee cups, bill inserts catalogs, T-shirts and the like The competition for the eyes and ears of the American consumer is fierce Getting attention fosters the awareness that is the first rung of the advertising action hierarchy It is so very critical to creating sales of an advertised product

Medium Properties: Television has the properties of sight; sound and motion that

traditionally set it apart from other media such as radio (sound only) or print (sight only) With its three-pronged assault on its viewer's senses, TV is able to create broad

awareness for a product Television is considered a mass medium because of the numbers of people it reaches

Pervasiveness of TV: National broadcasters like VTV3, VTV2, VTV1 and VTV4

reach more than 87% of households in Vietnam have TV Television reaches more than 94% of the country's population, a huge potential audience for a television commercial But even TV's mass audience gets segmented as viewers fragment along age, gender and racial groups to watch particular networks, channels and programs

Effectiveness of TV Ads: The actual impact of an individual television ad

depends on the kind of product being advertised Some product categories are just naturally more interesting than others More important is the creativity of the message itself

This is where specialists in television advertising truly earn their paychecks as it is their job to create ads that break through the clutter of television advertising, get attention, and communicate its unique selling proposition and so position the product for a sale

Television advertising has established a pantheon of highly regarded brands and brand icons like Coca-Cola, Pepsi-cola…

Television Broadcasters: All national broadcasters have affiliated local stations Local broadcast stations have some autonomy in program lineup, especially during the daytime and late-night periods Local news is the bread and butter of local TV Local stations have their own inventories of local ad units for sale and are given a share of some time slots available in prime-time programming for local ad sales Buying local ads might provide a savings over national ad prices in the same TV program.

Cable television advertising brings a new level of audience targeting and cheaper advertising costs Cable TV practically invented the long-format commercial known as Infomercials, which even national broadcasters use to sell available time inventories, especially late night

VTV3 a TV channel broadcasts sports information, entertainment and economic information of Vietnam Television Station This is a popular TV channels in Vietnam with the type of program can serve diverse entertainment needs of audiences of all ages Although VTV3 hasn’t make any research about viewer rating but it’s obviously that the rating is very high due to 2 reasons

Firstly, VTV3 is the channel of entertainment, sport, film, talk show, games…

The pie chart above showed the percentage based on the number of people and their habit of watching VTV3 clustered in 4 categories: daily watching, 4-5 times per week, less than 4 times per week and never watch There is 46% of the research sample frequently watch this channel which means major of the sample consider VTV3 is their favorite channel 34% of them said that the frequency of watching VTV3 is 4-5 times a week 14% rarely watch this channel and only 6% never watch VTV3

It is obviously that VTV3 is one of the most successful TV channel in Vietnam Broadcasted officially since 31/3/1996, part of VTV (Vietnam Television) Till 2010, VTV3 is the first choice of every household in this country The reason is the content of the channel can satisfy all hobbies of viewers Children can find their entertaining TV shows in 4pm to 5pm, it’s just the time children come back home for a long day studying and at 4 to 5pm is the time for them to relax For adults, there are many film, TV shows, games shows, sport… Moreover, the time frame of each show is very fit for the family At 7pm, when all members in a family gather together, having dinner is the time for news, weather forecast At 8pm, when the dinner is done and family sit together and watch film.

Golden hour is the term which means a period of time when the number of people expected to watch the channel is the highest In 2009, the golden hour is between 8pm and 9pm However, the time 7pm to 8pm is often have the same amount of viewers as the

golden hour because news of this day would be summarizing at this time Further more, advertisements which broadcast at these time also have to paid higher price because the

+ “100% fresh milk” advertisement

Description (Company intention of 100% fresh milk advertisement): The commercial presents a view of nice and clean green field Where a class of cows marching and the slogan of this product appear: “100 percent fresh milk” The melody was great and memorable The image of cute cows impressed the audiences You can see for yourself by follow this link: http://www.youtube.com/watch?v=3s1z61vtmo0

In order to be objective we have investigated more and due to the theory in MKTG (the book for marketing learner), 100% fresh milk ad is categorized in production advertising; its type was competitive advertising Firms use this type of advertising to influence the demand for a specific brand In this type, the promotion becomes less informative and appeals more to emotions during this phase Advertisements may begin to stress subtle differences between brands, with heavy emphasis on building recall of a brand name and creating a favorable attitude toward the brand In this advertisement, the information in this advertisement was not informed, however, the emotion of this

advertisement was emphasized In detailed, the joy of drinking Vinamilk’s products appeared on cows’ face The competitive thing that against other product is the liquid milk contain in the box is 100% pure fresh milk We have heard about two dairy scandals were the toxicant named melamine in Chinese milk powder and the case of misusing the term fresh milk Because of that, was the milk used in liquid milk real fresh milk or not was the customers’ prior doubt Vinamilk needed to emphasize the brand Vinamilk in customers’s mind so that they chose the name of the brand was 100% fresh milk The meaning of this was they need the customers knew that their product did not have toxic substance

Youtube.com, the popular website for uploading and watching videos and when the commercial of 100% fresh milk was uploaded, it has reached 447528 views

that was a large number and it showed that how popular this commercial was in 2009 Many television advertisements feature catchy jingles (songs or melodies) or catch-phrases (slogan) that generate sustained appeal, which may remain in the minds of television viewers long after the span of the advertising campaign In order to define which good advertisement is or what is bad advertisement the target should be focusing on feedback of TV audience about the melodies and the slogan of an advertisement For this purpose of research, in the survey which I have spread I have question 54 individuals for the melodies and slogan of this advertisement.

The result has been calculated and post on the bar chart below

The statistic has proved that over 60% of the samples’ answer in this survey question about the melody in 100% fresh milk advertisement was good 30% of them thought it were very good and memorable; nevertheless, 34% of them said that it was quite good Dam Thi Thuy Van, student from HAUI (Hanoi University of Industry) university, when I asked her a question: “how do you feel about this melody?” and she said: “the melody is very interesting and when they played this commercial on VTV3, I sang it all days” However, 27% of them thought the music was normal and only 9% of them hate it Some offensive feedback claims that the music was ridiculous with an image of cows Other supports the response of nice-catching-song defense that the target of this advertising was the kids and young customers so that they designed the appeal of the advertising funny and a litter fiction in this ad Because of this, they decided the catching jingle of this advertisement made of the funny melody and it image of the cows which are look very funny too, they even can talk and sing

As we have discussed so far, the melody of 100% fresh milk ad had made a great good impression in the audience heart and that was the first advantage of selling product because music is the most effective way to impress the audience But, together with the music, what can customers see is also affect them The image of the cows marching and singing in the intention of Vinamilk was to lay stress on the slogan they need customer understand In my investigate, 34% of people like this image, they thought it was creative and need only 34% of the viewers like this image means 34% of the customers remember Vinamilk product and that can be concluded in theory the probability that buyers choose 100% fresh milk products will be higher than others brand In this bar chart below you will see the preference level of this advertisement’s image where number 1 present preference at the highest level and 5 is the lowest level