Th True Milk Vietnam

CHAPTER I

INTRODUCTION

1.1 Background

The role of packaging and labeling of goods has been changing today’s business environment due to stiff competition and dynamism existing in the business world. Packaging and labeling are related to designing and producing suitable packages for a product (Ahmad et al, 2012).  According to Khan, et. Al (2016), a packaging is the most important tool to attract the customer on the brand. Packaging elements like color, material, design and font style, and printed information are considered as predictors or independent variables. Due to increasing self-service rapid changes in consumer lifestyle, the interest in a package as a tool of sales promotion and stimulator of impulsive buying behavior is growing increasingly. Thus, package performs an important role in marketing aspects, especially at the point of sale and could be treated as one of the most important tools influencing customer’s buying behavior. Also, superior packaging of the products serve to protect and transport the product from one place to another place and is beneficial to cover the loss and wastage (Maiksteniene, and Auruskeviciene, 2008) as cited by Raheem et. al (2014). Today most of the companies consider the packaging and labeling as an affirmative root and it leaves the first impression on consumers to buy the products.

According to Philip Kotler (2013), “A label might contain a brand name, logo or information.” Before purchasing any new product, the consumer seeks the information and labels as one of the sources that tell about the particular product . Labeling of the product has a significant element of the consumer choice. It provides detail about the name, feature, quality, price, utility, nature, ingredients etc. of the product and also manufactured date, place, and producer’s identification. Through labeling consumer easily compare the products.  (Khan, et. Al., 2016) Food labeling might refer to naming a product or the listing of ingredients. The key objectives of a food label are to provide information for the consumer, help sell the product and assist the consumer in making comparable food choices. ( Kumar and Ali, 2011)

TH True Milk is still considered as a new market entry in the milk drink category classified as a fresh milk dairy products as it was just introduced in the market late December 2011 in Vietnam. The core of the strategy of the company is anchored in the concept of “True Milk” or “True natural Milk”, i.e. it does not use powder milk for processing. The company is also proud of the fact that: All products are made from “fresh clean pure milk” produced in the TH commercial farm and proud to declare that this milk is also produced with added ingredients based on the calcium supplement. The company wants to be as transparent as possible for consumers about  the ingredients of the milk through its product’s packaging and labeling. (Son, 2012)  TH True Milk provides many kinds of fresh milk with high quality which are clean, fresh ,delicious and nutritious milk. Moreover, they also satisfy the demand of customers. For example, UHT less sugar TH True Milk helps consumers‟ ideal body; the new line of product with Collagen additional specializing for smooth skin and shiny hair for women; UHT also has different flavors like strawberry and chocolate (new) thus helps the customer buy and drink their preferred flavor. Also, it can be seen that the target customer of this company is not only kids but women as well.