Marketing Assignment

In the business world, one of the most important things that can boost the success of a company is marketing. Marketing is the activities of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society in general. Marketing is very important in achieving the fundamental objectives of most businesses: survival, profits, and growth. Therefore it is not just a job for people in marketing department only but for everyone in the organization. To understand more about the concept of marketing, I will use what I have learned so far in the Marketing course to analyze the mission statement, the SWOT and the favorable environments for TH True Milk – a Vietnamese dairy company.

First of all, I want to provide some general information about the company TH True Milk. TH Milk Food Joint Stock Company was established with the financial supporting of Northern Asia Bank in December 2010. The company is usually called TH True Milk in short. Its head office is located in Nghia Son village, Nghe An province. The business activities of TH True Milk are producing and selling milk and dairy products. They have a lot of dairy products such as pasteurized milk, UHT fresh milk, formula fresh milk, and yogurt. Although there are a lot of TH True Milk products in the market but not all of them are known by consumers. Therefore, to increase sales, TH True Milk Company should choose Market penetration of Ansoff’s strategic opportunity matrix. A firm using the market penetration alternative would try to increase market share among existing customers. Choosing this strategy, TH True Milk needs to make price adjustments the price of TH True Milk products at the present time is quite high compared to its other competitors like Vinamilk or Dutch Lady. However, if they drop the prices of their products, their margins will drop too so TH True Milk has to find a way to reduce production cost so that the price is less and they don’t suffer in margins. Another tactic for TH True Milk to apply market penetration strategy is to increase the promotion for all of their products. Beside television advertisements, they should give offers to the customers such as buy one litter of pasteurized milk you will get one block of yogurt, or customers can get discounts after they receive golden card. By giving discounts and additional benefits to the customers along with raising promotions, it will be ensures that TH True Milk penetrates the market better.

The mission statements of TH True Milk are to broaden their brand in not only Vietnam but also extend to other ASEAN countries, and to increase sale volume and revenue of the company. In my opinion, their mission statements are good and fairly realistic. However, achieving the goal of extending the company brand to other ASEAN countries will require a long period of time and will cost a lot of promotion costs. TH True Milk do act to increase sale volume and revenue and we can see the good result as they double the revenue after each year. TH True Milk revenue was 1000 billion dong in 2012, 2000 billion dong in 2013 and 4000 billion dong in 2014. However, they haven’t done so much according to their mission statement of broadening their brand. Even though they sponsor a very popular TV series called ‘5S online’, they didn’t gain many customers through this campaign because the audiences of that TV series are mostly teenagers or young adults, who are not the main customer of the dairy market. Also, TH True Milk hasn’t launched any promotion in other ASEAN countries as of this year. In 2016, they should try harder in promoting their products in Vietnam as well as some nearby countries.