In recent years, Vinamilk has always shown continuous efforts in researching and implementing successful marketing strategies. In addition, Vinamilk's market segmentation strategy is also conducted effectively.
It helps to increase brand recognition for Vinamilk and attract customers to use and trust the company's products.
Vinamilk succeeded in selecting market segmentation
Up to now, this brand has been successful in building a 4Ps marketing mix strategy as well as effectively using online marketing channels to convey creative and unique product messages to consumers.
So what factors have helped the marketing strategy of this leading dairy company succeed? Let's find out with FieldCheck in today's article.
Established in 1976, Vinamilk (Vietnam Dairy Products Company) has grown strongly to capture about 40% market share of milk and dairy products in Vietnam.
With a diversified product portfolio, Vinamilk has launched more than 200 products nationwide and exported them to many other countries such as the US, Germany, Canada, etc.
According to Euromonitor's report, Vinamilk currently holds 40% of the dairy market share in Vietnam.
Vinamilk's market segmentation consists of customers with similar needs that a business can satisfy. The company will gain an advantage over other competitors by identifying the right market segment. Accordingly, the marketing strategies also achieved the expected goals.
Choose your target market
Vinamilk is determined to provide quality dairy products to consumers. The products of this milk brand are aimed at people of all ages.
It can be seen that Vinamilk divides its market segments into two groups:
Besides these two main segments, Vinamilk also develops yogurt and powdered milk products to meet the needs of all ages.
Vinamilk implements a marketing strategy based on the STP model (Segmentation, Targeting, Positioning).
As mentioned in the above content, Vinamilk's market segmentation strategy is divided into three types: demographics, behaviors, and geography. The following table summarizes the detailed division of brands.
The right market segmentation helps increase sales effectively
Vinamilk's marketing strategy has successfully captured the child customer segment from 5-14 years old. The brand wants to develop children physically.
This is why Vinamilk 100% organic focuses on this customer and because children currently account for 23.2% of the total population (According to Statistic 2020).
Vinamilk ranked first in brand recognition (accounting for 40%) and high-value stocks.
Regarding rivals Love in farm and Meadow Fresh, these two brands are considered quite new in the market, so the competition is not high. As for TH True Milk, this brand has a fast growth rate, is currently trying to take market share from Vinamilk, and is developing sustainably.
Regarding the price, Vinamilk offers a fairly reasonable price, suitable for the income of most Vietnamese people. Thanks to that, the brand's products are present on most of the shelves of stores, supermarkets, and markets across the country.
Vinamilk's 4P marketing strategy
The brand divides its products into five main categories: dairy products, dairy products, fruit juices, tea, and coffee.
To increase consumer confidence in the brand, Vinamilk has committed to providing only products that are good for consumers' health.
The brand also undertakes regular technological innovation to launch new products tailored to the tastes of consumers as well as their health.
Vinamilk introduces many products such as low-sugar milk, fat-free soy milk, flavor supplements, and 100% organic for the high-end customer segment.
Thanks to the correct implementation of the product strategy, Vinamilk continues to maintain its position in the Vietnamese market.
See more: 4Ps marketing
Although Vinamilk has launched a wide range of products, the pricing strategy of powdered milk is one of the most appropriate directions for the brand.
Despite competition from big names abroad, Vinamilk has maintained stable prices for its products in recent years.
Many say that the quality of milk powder from abroad is better than that of domestic; however, most powdered milk materials in Vietnam are imported.
Therefore, many families today have chosen domestic dairy products to use. Therefore, Vinamilk is also popular thanks to its good performance in both quality and price.
The brand has also improved a few products to increase quality and cost, such as Dielac, Dielac Alpha, Friso – Friso Gold, etc.
Vinamilk's strategy is to develop a wide distribution system spanning the whole country. The brand wishes to provide products to consumers as quickly as possible.
Currently, Vinamilk has three main distribution channels:
Brands are also not left behind by the strong development of e-commerce. Online stores on sales pages and websites are also developed to support online orders.
Not only encapsulating within the domestic scope, but Vinamilk also expands its market share to foreign countries. Many products of Vinamilk are now present at the points of sale of more than 54 countries and territories.
Multimedia marketing is applied by Vinamilk, focusing on the outstanding feature of the product, which is "100% pure fresh milk". This communication strategy helps create a high competitive advantage and promotes consumer confidence in the brand's products.
The key factor that helps Vinamilk create a buzz in implementing its marketing strategy is the diversification of communication channels, including TVC, radio, video, etc.
It can be said that Vinamilk has succeeded in increasing brand recognition with effective marketing and promotion strategies and with a wide scope, focusing on the Vietnamese family segment.
The company also implemented many lucky draw programs with many great prizes for customers, such as:
This milk brand's CSR strategies also resonate when conveying meaningful messages and noble ideals.
Vinamilk with viral CSR campaigns
Typical Vinamilk "go viral" campaigns include:
Vinamilk is considered a typical example of success when choosing the right Vinamilk's market segmentation. In addition, the brand also deploys appropriate marketing strategies and 4P strategies in marketing, focusing on the right target customers.
Vinamilk has become a familiar name for Vietnamese consumers by converging the right strategies for its business.