A marketing plan to help Vinamilk organisation

A merchandise plan to help Vina draw organisationVina draw, one of outmatch draw manufacturers in Vietnam, is specializing in manufacturing blue quality products from core dairy products include liquid and powdered milk to prize added dairy products such as condensed milk, cheese, yogurt and coffee The organisational objectives argon to grow its grocery sh be in Vietnam as well as overseas countries. Hence, to expand market place share in Australia, one of the large export markets of Vinamilk, this organisation has to develop a good marketing st respectgy for a product named Dielac accredited. This product, which is developed by Center for nutrition Research and ingathering Development of Vinamilk, is good for older popu recent and intolerant persons because it contains elevated protein and no lactose help to increase calcium absorption, digestion, advantageous bacteria and laxative, e peculiarly it is trusted to use as medicine.It is seen that there is a big opportunity for Vinamilk Company to sell the special product in this prosperous coun raise, Australia with a highly developed economy and a diverse universe, especially high demands of increasing number of older people on products good for their health and mannerstyle. In addition, Vietnam and Australia are all members of World Trade Organisation (WTO), ASEAN Australian New Zealand Free Trade Agreement (AANZFTA) and Asia Pacific Economic Cooperation (APEC), therefore, Australia government breaks down art barriers by liberalizing international trade and investment rules to support Vietnamese traders who want to run their crinkle organization in Australia. However, to limit risks as well as homophile and fiscal resources, Vinamilk would initially use exporting as the mode of entry in this target market. It appears many challenges for Vinamilk when exporting Dielac Ensure into Australia such as sozzled competition, different consumers needs and wants, strict standards and high products s tandardsConversely, Vinamilk can expand their international business once Dielac Ensure is accepted in Australia market, it can be besides sold in New Zealand and other markets where fuddle high demands about products.The purpose of this get over is aim to increase the market share that Vinamilk organisation property done introduction of Dielac trusted in the Australia market. This report, however, is prepared and based on assumption of Vinamilk, marketing st dictategy proposed in the report may change and it does non guarantee that it can touch success in Australia.Structure of this report comprises of selling environmentForeign market analysisMarketing strategyMarketing implementationFinancialsEvaluation and control proceduresThrough these analyses, Vinamilk will explore Australia market by this flexible marketing strategy with competitive pr nut cases and effective distribution channels, specially a product strategy. And it is expected that Vinamilks market share will be i ncreased by 10 percent within two old age when Dielac Sure is launched in Australia.This strategic marketing plan also recommends Vinamilk to apply SWOT analysis, Total Quality Management and Marketing Audit in evaluating and controlling marketing activities. These methods are very useful and efficient. Furthermore, Vinamilk should manage its employees, who play a vital role in marketing activities, in an effort to satisfy their demands and needs. If employees get high job satisfaction and a strong commitment to the organisation, employees will attempt in order to achieve the organisations goal and objectives. In addition, Vinamilk should focus on customers demands and wants first, and try to develop and remark long term customer relationships. Finally, it is the international business, there are many risks for the organisation, it hence requires that Vinamilk should prepare careful exit strategies for the bad occurrence happen in the future.TABLE OF CONTENTI. INTRODUCTIONBackg roundVietnam Dairy Product Joint Stock Company (Abbreviated Vinamilk) was founded in 1976 under the name of southern Coffee Dairy Company with the initial capital only snow billion VND. Going through 24 establishing and developing years, Vinamilk Corporation grows up and becomes a leading producer of dairy products in Vietnam, holding 75% of Vietnamese milk market as well as one of the top 100 strongest brands by the Vietnamese Ministry of Industry and Trade in 2006. (Vinamilk, 2010).At this time, VInamilk is manufacturing and trading many different product ranges including liquid and powdered milk, condensed milk, drinking and spoon yoghurt, ice cream, and cheese, coffee Vinamilk commits that always satisfy customers with high-quality, safe, and diverse products, the shell advantage and competitive prices.Besides strong domestic distribution with 183 distributing channels and 94,000 selling points throughout Vietnam, Vinamilk products are exported to many countries such as the Australia, joined States, France, Canada, and Asia.Purpose of the reportThis report creates a marketing plan to help Vinamilk organisation, a Vietnamese brand to achieve a successful launch of Dielac Sure in Australian market, one of the potential markets for this product as well as for Vinamilk. However, the report has finished in a short time, there are many limitations in marketing research, customer analysis and the financial cipher. The marketing strategy proposed to the organisation in this report may be changed in the future.II. FINDINGSMarketing environment1.1 Cultural environmentToday, Australian society is changing values and demographics. It results not only opportunities but also challenges to milk manufacturers, in particular to Vinamilk organisation. The increasing number of older Australian offers a big market segment for Dielac sure.Furthermore, this elderly population is trying to contain active lifestyles as well as straining solution to film healthy lifestyle. Australian people require products, which are good for their health and maintain quality of their sleep as well as quality of their life.It is apparently seen many Australian consumers now are looking for products friendly to the environment. There is a new tendency become Green consumer. They accept to spend more in purchasing products having eco friendly package as well as slang an account of fair trade or environmental practices. (choice, 2009)The increasing of local supermarket, a huge supercenter is convenient for consumers purchase. They can buy Dielac Sure in anywhere at anytime. Besides, development of technology is playing a vital factor in supporting consumers purchase. Shopping online or buying at home through Internet or telephone is very convenient to busy consumers.Consumers are pay more trust on other peoples experiences and when decide buying purchase, they normally trend to buy brand, not buy products.1.2 EconomicAustralia has a sustainable rate of economic gro wth with GDP per capita $38,500 in 2009 (ABS, 2009). It is slightly high than that of the United States, United Kingdom, Germany, and France representing the almost populous countries.The economic crisis in 2008 affected the Australian economy by decreasing construction projects, housing turnover, including the serious decrease of commodity sales. The employment rate increased greatly. However, at the end of the fiscal year 2008, Australia still kept growing and gained the fastest pace 2.7% in 2009 (Economywatch, 2010). Australian is position their confident in the economy due to continuously growing consumer price index. (ABS, 2010).The Australia Government is controlling consumer inflation on an average between two and ternary percent over business cycles by a responsible monetary policy. Consequently, the inflation is low at only 2.3% in March 2010 (ABS, 2010). In addition, with the blend and practical structure of financial regulations and institutions, Australia is seen as a potential investment destination for other countries.1.3 PopulationUntil now, population of Australia is over 22 million people with birth rate (12.47 births/1,000 population) is more than death rate 6.68 deaths/ 1000 population (ABS, 2010). Although it is the large country with the area over 7 million square kilometer, population of Australia is mainly concentrated in urban areas. This prosperous country has high GDP $997.2 billion (2009 est.) (CIA, 2010) and own(prenominal) income per capita is high $19,213.50 per person(Nation master, 2010) meanwhile inflation rate and unemployed rate is low, only 1.8% and 5.6% established 2009 (CIA, 2010).One element of Australias natural resource base is minerals. Other important natural resources involve fo slackeningry and fisheries, and together with agriculture, they conduce significantly to the Australian economy and Australias Gross Domestic Product (GDP). Since Australia purchases more goods and services from overseas than the v alue of goods and services it exports (ABARE, 2009a), export value of minerals hold near 7.7 per cent of GDP. Australia export value $160.5 billion is slightly less than import $4 million. Current account balance of Australia is -$29.89 billion (2009 est.) and ranking 182nd compared to the world. However, its exchange rate is so high 1.2894 AUD/ USD (2009).Goods enter Australia that be openeded by the Australian Customs Service and depending on the type and value of the goods or products, there may be costs involved, including clearance fees, customs duty, goods and services tax and other taxes. Especially, dairy products imported to Australia subject to Imported Food Control Act 1992.1.4 governmental and legal environmentThe Australian political environment is very stable. It has a lower rate of riots, terrorism and chaotic political dispute.Australia attracts new businesses by a strong, transparent corporate governmental system as well as low barriers to trade and investment. It is very easy to establish a new business in Australia. It only takes two days to complete the license. On 14 June 1990, an agreement on trade and economic co-operation between Australia and the Socialist Republic of Vietnam was signed. It creates opportunities for Vietnamese companies doing their businesses in Australia. (Australian Treaty Series, 2010)In spite of this, it is an important and compulsory aspect that any organization has to consider in order to operate business lawfully in Australia. Vinamilk is in charge of protecting intellectual property rights worldwide, ensuring to enforce posit as well as federal rules and regulations.In addition to regulation by Australian Government, Vinamilk needs to follow a number of laws and regulations, including the followingTrademarks the logo or symbol represents for the company. Vinamilk has also shewed the trademark in 79 countries including Australia in 1999.Patents an exclusive right granted by a government to manufacture or use an invention during a specific period of time. Vinamilk can register its patent for this product that is safe for users and use as medicine for predateing .Copyright The right of protecting the authors original products against illegal usage from plagiarism.Trade unfathomable used to prevent leaking secret traditional method. For instance, the secret of manufacturing natural latex rubber Dielac Sure of Vinamilk Company.Foreign market analysis2.1 Describe market2.1.1 Australian dairy manufacture2.1.1.1 OverviewThe Australian dairy industry is Australias largest processed food industry, and ranks in the top four-spot of the nations rural industries. Australias climate and natural resources are complimentary to dairying and allow deed based on year-round pasture grazing. Australia has almost two million dairy cows, producing around 9 billion liters of milk each year.http//www.readyed.com.au/urls/dairy/dairy.htmlOver two-thirds of the 9.4 litres of milk produced in 2008-09 was produced in Victoria, 10 percent in new South Wales and 7 percent in Tasmania. dairying occupies a relatively large proportion of the agricultural welkin in TasmaniaJust over half the milk produced in Australia during 2008-09 was consumed by the domestic market the remainder being exported as either drinking milk or manufactured products.4 www.dairyaustralia.com.au Milk Production Report, viewed 16 February 2010.5 In 2007-08 the value of Tasmanias livestock products (which mainly includes wool, milk and eggs) was $413 million. Of this amount $275 million was the estimated value of farmgate milk output (approximately 67 per cent). Source Australian Bureau of Statistics 1307.6 Tasmanian State and regional Indicators, December 2009 www.abs.gov.au and www.dairyaustralia.com.au, Dairy 2009 Situation and Outlook, June 2009, p. 82.7 About half of the domestic consumption is as drinking milk, the remainder being used in the exertion of cheeses, butter, and milk powders. Dairy Austral ia, Dairy 2009 Situation and Outlook, June 2009, www.dairyaustralia.com.au.2.1.1.2 Recent developmentsIn 2008, Dairy Australia reported that the Australian dairy industry was enjoying the best world market conditions in decades international dairy commodity prices rose to record levels through 2007, due to consistent strong demand and tight supplies, as well as the cause of exchange rates and cuts in export subsidies. This led to higher farm-gate milk prices for Australian dairy farmers- prices increasingly by more than 50 percent in southern region during 2007-08. Dairy Australia did note that despite the optimism, the industry still remain constrained by the high cost and limited availability of production inputs, uncertain climatic conditions and reducing herb numbers.Australian Dairy Industry in Focus 2008, p. 3.Higher farm-gate prices continued into the 2008-09 season until, following the global financial crisis, milk processors reduced the price paid to farmers sharply.Beside s, Australian milk production declined year on year by 4.9 percent in the first four months of 2009-10 as a result of drought and low water allocations in the irrigation system, the low prices as well as reduced demand.Monthly milk productionSource Dairy Australia, www.dairyaustralia.com.au.2.1.1.3 Competitors in marketThe manufacturing sector of the Australian dairy industry has become more concentrated since the first stages of deregulation in the late 1980s the outcome being increased foreign ownership and a reduction market share of farmer owned cooperatives. The five major companies have increased their milk processing capacity from 50 percent to 75 percent of the market.In 1999, the five largest milk manufacturers in Australia were Murray Goulburn, Bonlac, Daisy Farmers Group (all three entities were cooperatives), matter Foods Ltd and Pauls/ Parmalat.Today, Bonlac is owned by Fonterra, and the Dairy Farmers Group has been acquired by National Foods. Fonterra (20 percent), to gether with Murray Goulburn (the largest remaining farmer owned cooperative, supplying 37% percent of Australias milk) are the heavy(p) market players in the manufacturing milk market2.1.1.4 DistributionMilk sold through various channels including fast food outlets, supermarkets, independent grocers, corner stocks, and service localises. However, the sale of milk through the supermarket channel has slowly been increasing Dairy Australia noting a recent change in the deportment of two large chains- they have embarked on a marketing campaign encouraging consumers to require comparisons between their own generic branded milk with that of branded products. Dairy Australia comment that although this behavior is unlikely to affect the volume of dairy products consumed there may be an impact on the channel and value of dairy sales as consumers seek greater value in their purchases and move to generic labeled and price discounted branded products.2.2 Market size (ok)Drinking milk sales by state (million litres)NSWVICQLDSAWATASAUST1979/80531437249127119411,5041989/90582449316150164471,7301999/00597440383185190481,9332000/01633456393201201501,9342001/02626460403185200501,9242002/03620475404183208521,9422003/04627476418196212521,9812004/05641486429200215532,0242005/06660499444192216502,0612006/07692510474201226532,1562007/08682524499205237552,2022008/09(p)696533510208241562,244Source Milk processors and State Milk AuthoritiesAustralian milk consumption has been steadily shifting from prescribed to modified milk types, such as reduced and low fat milks, over a number of years. This trend reversed for a period during 2008, as consumers responded to rapidly increasing retail prices by switching to the relatively lower-prices regular full cream milks. The longer-term trend has returned during the most recent year.Drinking milk sales bytype (million litres)RegularReducedLowfatFlavoredUHTTotal1989/901,257322111401,7301999/001,0994981731641,9332000/011,094415951651651,934 2001/021,074435105170one hundred forty1,9242002/031,0554401201741531,9422003/041,0574621181901541,9812004/051,0634921161991542,0242005/061,0934881242011552,0612006/071,1075301252131812,1562007/081,1265531232131872,2022008/09(p)1,1435721182102012,244Source Milk processors and State Milk Authoritieshttp//www.dairyaustralia.com.au/Our-Dairy-Industry/Industry-Statistics//media/Documents/Our%20Dairy%20Industry/Latest%20Statistics/NationalMilkSalesAugust2010.ashx2.3 Government participationhttp//www.abs.gov.au/Ausstats/emailprotected/90a12181d877a6a6ca2568b5007b861c/b006a83a9127b0f5ca256dea00053965OpenDocumentNowadays, Australian dairy industry operate in a de modulate and unfastened market which only government involve being in the food standards and food safety assurance systems and prices are affected by world situation.A look at the dairy industry of Australia prior to 1 July 2000 reveals an industry governed by two separate sectors, the regulated market/ snotty-nosed milk sector and the non-regulated manufactured milk sector six separate dairy industries, one in each state and high levels of Australian Government assistance and complex state government regulatory intervention. Regulation came in two forms state government support of the market/fresh milk sector and Australian Government support of the manufactured milk sector.In the 1980s and 1990s state governments had the responsibility of controlling price and milk quality, and for formulating policy for the market/fresh milk sector. Up until deregulation, dairy farmers selling their milk as market milk received a substantially higher farm gate price than the average price paid for manufactured milk, even though there was little distinction between the two products. crosswise Australia under this regulated market, a number of different schemes existed which allocated the large guaranteed price premium proportionally to all dairy farmers, encouraging farmers to produce more milk than would be produced under free-market conditions. State governments also engaged in establishing legislation that regulated interstate access to their market milk sectors. The manufactured milk sector on the other hand was characterized by open access, with products from this sector being traded freely within and between states.Although the manufactured milk sector was characterized by open access, it was not thoroughgoingly devoid of policies that distorted the market for dairy products. Up until July 2000, measures to support domestic prices, restrict imports, subsidize exports and restrict the production of substitutes were used.By the early- to mid-1990s it was clear a fall in the price of market milk, relative to manufactured milk, was required and price controls and supply quotas needed to be removed or substantially reduced. The Australian Government began phasing out market support in the dairy industry, in line with its commitments to wind down protection in the manufacturing industries and other areas of agriculture.The deregulation of fresh milk pricing from 1 July 2000 had a major affect on farm gate prices for fresh milk. In 2000, around 18% of Australias total milk production was consumed as fresh milk. Victorias proportion of fresh milk to total milk production was only 6% compared with much higher proportions (about 45%) in New South Wales, Queensland and Western Australia. Under regulation, all dairy farmers received a separate price for fresh and manufactured milk. After deregulation, most Victorian manufacturers offered dairy farmers a single, blended price for all milk, which reflected the emphasis of milk being used for manufacturing dairy products and the prices received from the exports of these dairy products in the rest of the world (Edwards 2001).The dairy industry today is fully deregulated, and every dairy farmers farm gate price for milk is now, due to natural forces of supply and demand, affected by world prices no matter where they live within Australia .Summary Conclusions about the Australia marketIn general, Australian milk production declined year on year and continue to fall in the future because of seasonal condition- drought and low water allocations in the Murray-Darling irrigation system, this thing will affect directly and make Australian milk price increase.Besides, the deregulation of milk pricing from 1 July 2000 had a major affect on milk price as well. It is not belong to government control and is affected by world prices. It is considered as one of the advantages if Vinamilk have the plan to enter this market.Marketing planVinamilk position itself as the prestigiousness brand name with high quality products and service. To Dielac Sure, Vinamilk wants to target to the older customers by offering many benefits such as support immune system, equilibrise nutrition, rebuild muscles and strain, and maintain healthy weight From these benefits, Vinamilk is confident to compete with many strong milk brand names which were available in Australia for many years such as Ensure of Abbott and Anlene of Fonterra.3.1 ObjectivesAchieving a unit sales volume for the first year of 2,000 items.Total sales revenues of AUD $3,000,000 in the first year.Expected market share to be 5% in the first year.Aim for an average price of $1,500 per item.Expand consumer awareness of the Vinamilk brand name by 20%.3.2 ProductDielac Sure is produced and developed by Center for Nutrition Research and Products Development of VINAMILK. And it also received The International Certificate in Food Safety and hygiene HACCP. Moreover, this product has special nutrition with high protein and fat thatSupply energy and strengthen body in operating and growing.Recuperate patients health.Dielac Sure is available for feed patient through catheter (under the instruction of doctor or nutritionist)Ameliorate malnutrition.Suit for pregnancy and lactation women.Dielac Sure doesnt contain lactose and cholesterol therefore it is the best choice fo r the elderly and lactose-intolerant persons.Dielac sure is packaged in a can weighed 400g and 1000g and labelled in English with full ingredients and careful directions.3.3 Consumer buying behaviour3.4 communion media3.5 Competitor analysis3.6 Promotion mixPromotion includes four parts public relation, advert, personal selling and sales promotion. In terms of product life cycle, Dielac Sure is in the introduction stage in Australia market. Therefore, promotion requires heavy advertisings and public relations to build brand awareness and guide customers on products benefits. Vinamilk applies personal selling strategies to ensure distribution coverage and supply chain cooperation. Furthermore, Vinamilk should consider a sales promotion strategy, it is important for the company to encourage customers to have a trial on products also trade sales promotion expedites distribution activities for the company.AdvertisingOn television and radioThe newspaper works and The Daily advertiserB illboardsPublic relationSponsorship for charity events submit telephone and send letters to collect customer database and invite them to join in a small companionship on Father Day and Mother Day. They are the days for families, which include a number of elders who are 40 and above.Personal sellingSend business emails to some big retailers to introduce about our new products and increase the available distribution of products.Door to door selling activities will help promote the organisational prestige to customers.Sales promotionBuy 1 can Dielac Sure 1000g get 1free glass or cup.Loyalty program for instance, if customers buy enough 10 cans of Dielac Sure 1000g, they will receive one can 400g free.Encourage more consumers by holding an event one day examine free for older people.3.7 bodily distribution3.8 Channel of distributionCooperating with the big supermarkets in Australia such asColesWoolworthsPharmacies3.9 Price determinationCan 400g $10.90Can 1000g $ 21.50Marketing implem entationACTIVITIEScalendar month 1MONTH 2MONTH 3MONTH4MONTH 5MONTH 6MONTH7MONTH8MONTH9MONTH10MONTH11MONTH12PICI. Market analysisBN1. Marketing researchQH2. Set a budgetTT3. Training staffBTII. Product activitiesNT1. Finalize in developmentCT2. Production runsMKIV. Distribution activitiesQM1. Shipping to warehousesHN2. Shipping to retail storeGC3. 5% quantity discountBVV. Promotion activitiesGE1. Newspaper advertisingEL2. TV and radio advertisingMP3. Billboard advertisingNATo get the success in doing this marketing strategy, Vinamilk will implement the first year of this marketing plan as follows4. In store POS displayLO5. SponsorshipBTDirect telephoneELSend business e-mailSADoor to door activitiesCOBuy 1 get 1 Dielac Sure protection tag endPMLoyalty programPM10% discount full packHDFinancial statementsgross revenue FORECAST IN THE FIRST YEARSALES FORECASTJANFEBMARAPRMAYJUNEJULYAUGUSTSEPOCTNOVDEC social unit SALES100150300280250500600400350380500550UNIT PRICES (AUD)1,5001,5001,5001 ,5001,5001,5001,5001,5001,5001,5001,5001,500SALES (AUD)150,000225,000450,000420,000375,000750,000900,000600,000525,000570,000750,000825,000DIRECT UNIT COSTS 35% (AUD)525525525525525525525525525525525525DIRECT COST OF SALES (AUD)51,00077,250156,000145,500129,750261,000313,500208,500182,250198,000261,000287,250FINANCIAL work out IN 1 YEARMARKETING BUDGET1ST QUARTER2ND QUARTER3RD QUARTER4TH QUARTERYEAR TOTALADVERTISINGNewspaper1,2591,6841,5931,7486,284Television10,57411,92812,45613,94548,903Bus station5846738947212,872Point of