2. Vision, Mission, Objectives of Lothamilk: 3.1 Vision:
Become one of the best seller with trust in Vietnam 3.2 Mission
When supply milk products, Lothamilk Company always sure about the nutrition and health for customers.
3. Analyze: 4.3 Market analyze: 4.4.1 - The percentage of Milk Company in Vietnam :
43.5%: the other pasteurized milk company
31.8%: Vinamilk
14.9%: Dalatmilk
9.8%: Lothamilk
- According to Ministry of industry and trade, the amount of Pasteurized milk at 2015 was from 760 to 780. This figure increases to1100-1150. At 2025, they will be 1500- 1550.
- Market analysis:
According to | Way to split standard | Features | Geography | The North of Vietnam | Too far from the producing area | | The Middle of Vietnam | have the habit of drinking milk | | The South of Vietnam | have habit of drinking milkNear the producing area | Income | Low income | Not have habit of drinking milk | | Middle of Vietnam income | Have demand drinking milk but drink not much pasteurized milk | | High income | Have responsibility of healthAbility to afford drinking pasteurized milk | Demand | Built up Vitamins and minerals | Demand improving nutritrion | | Improve healthy condition | Demand increase height, weight | | Feel the good taste of milk | Enjoy the natural taste of cow milk |
4.4.2 Determine the goals of making strategies * 2016:
+ Get higher revenue for pasteurized milk
+ Take account 15% of Vietnam milk market.
+ Evaluate the development of Lothamilk, reasssert the Lothmilk brand in customers. * 2020: Confirm the brand; expand the market area to all Mekong Delta, and the developed city from Hue to Ca Mau province.
4.4 Analyzation according to SWOT of Lothamilk company:
Strength: * New and famous brand. * The providing area expands. * Shipping with low fee inside Hochiminh city. * Various kinds of milk products with competitive price. * The process of making Lothamilk is morden. It is imported from Sweetland * The list of Lothamilk products are plenty with 20-milk product and 15 products made from milk. * The marketing team and researchers of Lothamilk are well educated and have experience. * The farmers of Long Thanh farms have good skills of growing milk cow. * The products are accepted by some organization such as ISO, Thuonghieuviet (Viet Nam brand), Hang Viet Nam chat luong cao (Vietnam product with high quality standard). * The first pasteurized milk brand in Mekong Delta * | Weakness: * Lothamilk company supply for Hochiminh city and Dong Nai province. * The marketing strategies are weak. * The milk products have short expired day because Lothamilk Company does not use preservation chemical. * The size of herd of cow is small. * These products are suitable for people who are older than 3 ages. * The branch of Lothamilk is not beautiful. It does not stand out. * The delivery network is small. * The brand does not cause impress for customers * The cost of producing is high. |
Opportunities: * The demand of drinking milk increases rapidly from 500 to 805 million of liter around 5 years. * In 2010, in average, each people drink about 15l/year. This figures increase up to 28 by 2020. * Lothamilk company’s farm is located at Long Thanh district where creates good condition for growing grass for cows. * Applying the advantage of biogas helps, they reduce a lot of money.Cow -> Dung -> Biogas -> Gas + Electricity + Fertilizer Fertilizer -> grass -> CowThe market of pasteurized milk is developing.There is few competitor in Middle of Vietnam Vietnam area. | Threaten: * Vietnam economics is fluctuated * Vietnam joins into WTO; therefore, the standard of milk is higher. * Hygiene is also a big problem. Milk is very easy to go off. In addition, Lothamilk is pasteurized milk, which is easy to go off without good preservation condition. * Napier grass (or Elephant grass) in Vietnam is not enough nutrition for cow to make milk. Lothamilk has to import alfalfa grass for cow’s food. This contains much nutrition for cow to help them create more milk. * Many competitor in milk market such as Mocchaumilk, Vinamilk, Dalatmilk. |
4.5 Analyze according to PEST of Lothamilk company:
Environment | Description | Political environment | The requirement of hygiene is extremely strict.Vietnam has the fixed politicsThe government gives law to support the milk company. | Economic environment | The Vietnam economics develops quickly, which creates invisible hand for inside market.When Vietnam joins into WTO, many milk companies have to have competitive press. Unless they give effort, they can get out Vietnam’s marketThe importing tax decrease, which makes convenient condition for the foreign milk products.The price of facilities, petrol, and cow rise regularly. | Social environment | Living standard of Vietnamese is level up.The demand of developing health and beauty is increase.The scale of children who are low weight is still high.Most Vietnamese children or people do not have habit of drink milk every day. | Technology environment | The process is imported from Sweetland | Natural Environment | Hot and humid climateDisasters occurs regularly |
4. Marketing Mix:
Produce: Improve the package of product.
Price: Make plan for balance the price, and policy of giving competitive price with other brands
Place: Expand the market area; improve the delivery channels to the South and Middle of Vietnam are
Promotion: Confirm the Lothamilk Company position at Middle of Vietnam area; reconfirm the location at South area.
5. Marketing strategy:
Goal 1: From 2016 to 2020, spend about 100 billion to develop the customer service.
Action:
* Give promotion for customers in special occasion (Birthday, Event, Tet holiday...) * Build more customer service center
Goal 2: Give balance price in the market + increase company profit
Action:
* Decrease the price of material * Upgrade the process of making milk products * Reduce unnecessary workers.
6. Marketing tactic:
Goal 1: From 2016 to 2020, spend about 50 billion to develop the customer service.
Action 1: Give promotion for customers in special occasion (Birthday, Event, Tet holiday...)
Strategy | People who have responsibility | Finance resource | Time | Efficiency | A. Present gift * Present gift for frequent customers in Birthday * Give gift to frequent customers in special occasion, Tet holiday | Marketing office | 10 billion10 billion | 1/1/2016 – 31/12/2020 | The list of customers who receive giftThe loyal or trust from customers | B. Lottery * Present is one year with free Lothamilk | Marketing office | 15 billion | 1/1/2016 – 31/12/2018 | More people know about Lothamilk |
* Build more customer service center
Strategy | People who have responsibility | Finance resource | Time | Efficiency | A. Build more customers service center * 3 in the South ò Vietnam * 2 in the Middle of Vietnam | Office of facilities and investment | 30 billion20 billion | 1/1/2016 – 31/12/2018 | More people know about LothamilkFirst step of expanding business area to Middle of Vietnam area |
Goal 2: Give balance price in the market + increase company profit * Action 1: Decrease the price of material
Strategy | People who have responsibility | Finance resource | Time | Efficiency | A. Build more cow farm * 3 cow farms in Dong Nai province * 1 cow farm in Quang Nam province | Office of facilities and investment | 30 billion15 billion | 1/1/2016 – 31/12/20181/1/2019- 31/12/2020 | Develop the size of herb cow and amount of milk Expand Lothamilk market area in the Middle of Vietnam | B. Build a huge farm in Dong Nai province to grow alfalfa grass | Office of facilities and investment | 3 billion | 1/1/2016-31/12/2017 | No need to import alfalfa grass |
* Action 2: Upgrade the process of making milk and milk product
Strategy | People who have responsibility | Finance resource | Time | Efficiency | A. Apply the science and technology into the process | Office of technology | 50 billion | 1/1/2017 – 31/12/2019 | Have good gene grass for cow to create milk | B. Upgrade the process of making milk | Office of technology | 100 billion | 1/1/2017 – 31/12/2019 | Increase supply, reduce time to produce | C. Build the factory in the Middle of Vietnam area | Office of facilities and investment | 200 billion | 1/1/2019- 31/12/2020 | Expand Lothamilk market area in the Middle of Vietnam |
Action 3: Reduce unnecessary workers Strategy | People who have responsibility | Finance resource | Time | Efficiency | A. Employ the low price workers | Office of Human resource | 1 billion | 1/1/2016 – 31/12/2018 | Save money in the wage amount | B. Sack unnecessary workers | Office of Human resource | | 1/1/2016- 31/12/2020 | Save money in the wage amount | C. Training workers and farmers | Office of Human resource | 3 billion | 1/1/2016- 31/12/2020 | Develop skill for workers and farmers | | | | | |
7. Delivery strategies
Big branch
(Wholesale and retail)
Big branch
(Wholesale and retail)
Small branch
(Retail)
Small branch
(Retail)
Customers
Customers
Delivery diagram
Lothamilk Company
Lothamilk Company
Strategy | People who have responsibility | Finance resource | Time | Efficiency | A. Delivery in Hochiminh City | Branch which near the customers (distance <10 km) | | 1/1/2016 – 31/12/2020 | Create convenient condition for customers | B. Delivery in Mekong Delta | Branch which near the customers ( distance <10 km) | | 1/1/2017 – 31/12/2020 | Create convenient condition for customers | C. Delivery in some city in the Middle area of Vietnam | Branch which near the customers ( distance <10 km) | | 1/6/2019 – 31/12/2020 | Create convenient condition for customers |
8. Promotion strategies
8.1. Goal 1: Supply pasteurized milk for customers
8.1.1 Basic information about goal 1
Strategy | Target | Market area | Aim | First period | Children at kindergarten and primary school | Hochiminh city | * Give children chance to use pasteurized milk * Create the habit of drinking pasteurized milk for children and their parents * Increase the revenue by supply for kindergarten, primary school, children’s parents | Second period | All people | The Middle and the South of Vietnam | * Bring pasteurized milk to customers * Expand the delivery channels * Expand the market area * Increase the store of brand include small and big branch |
8.1.2 First period
- School choose to cooperate have more than 1000 students.
- Lothamilk will supply milk daily, which creates the best quality standard for milk. Lothamilk also make sure about the hygiene of pasteurized milk.
- Schools also have to accept these things:
+ Help Lothamilk show advertisement things
+Make sure of use only Lothamilk more than 2 years
+ co-operate about hygiene issue
8.1.3 Second period
a. Establish branch near luxury or crowed apartment in Hochiminh city
- Cost: 50 million/ branch (include area, refrigerators, facilities, and the other fees)
- Delivery free with 5% discount for each products for family who bought more than 3 million to buy milk, or bought regularly
- Time: 1/1/2016 – 31/12/2020
b. Establish branch near crowed market, schools, and kindergarten in Hochiminh city
- Cost: 80 ~150 million/ branch (include area, refrigerators, facilities, and the other fees)
- Create the convenient condition for people to reach Lothamilk
- Time: 1/1/2016 – 31/12/2020
8.2 Goal 2: Create good condition for branch
8.2.1 Supply milk cow statues for branch
- Give branch 5 million for promotion
- Condition:
+ Put cow in front of the branch.
+ Must preserve statue and fix if it breaks
+ Return cow statue when the contract is out of date
8.2.2 Repair and renew the branch
- To create the nice image of branch, Lothamilk give free price of repair if the branch condition goes down naturally. However, in case that the branch cause the decrease of branch condition, the owner has to use his or her money to repair the damage.
- Lothamilk will ask the worker to check, repair, clean the refrigerators, air condition for each branch monthly.
9. Evaluate * All strategies are discuss to increase the Lothamilk Company increase. According to the result, Lothamilk will or will not continue the strategies in the future * In the future, if Lothamilk get more profits, Lothamilk company will supply more and more services for customers, built up brand inside customers
