THE MINISTRY OF FINANCE
UNIVERSITY OF FINANCE AND MARKETING
*******

CLASS: CLC_20DMA10
Instructor: Master Đặng Huỳnh Phương
1. Nguyễn Trần Như Quỳnh (Leader)
2. Phan Ngân Hà
3. Nguyễn Thu Hiền
4. Nguyễn Tâm Như
5. Trần Phi Yến
HO CHI MINH CITY, JULY 2021
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SUMMARY
I. INTRODUCTION ABOUT TRUE MILK .............................................................................................4
1.1. Overview of the dairy market ..........................................................................................................4
1.2. Introduce TH True Milk...................................................................................................................6
1.2.1. Formation....................................................................................................................................6
1.2.2. Vision ...........................................................................................................................................6
1.2.3. Mission ........................................................................................................................................7
1.2.4. Core values ..................................................................................................................................7
1.2.5. Development Goals.....................................................................................................................7
1.2.6. Organizational structure ...........................................................................................................8
II. TH True Milk’s marketing environment ..............................................................................................8
2.1. Internal marketing environment .....................................................................................................8

2.1.1. Finance ........................................................................................................................................8
2.1.2. Human resources ........................................................................................................................9
2.1.3. Marketing....................................................................................................................................9
2.2. External marketing environment ....................................................................................................9
2.2.1. Macro environment ....................................................................................................................9
2.2.2. Microenvironment....................................................................................................................11
III. TH TRUE MILK's STP STRATEGY ANALYSIS ..........................................................................13
3.1. Market Segment ..............................................................................................................................13
3.1.1. Market segmentation by geographical location .....................................................................13
3.1.2. Market segmentation based on demographics ......................................................................13
3.1.3. Market segmentation by consumer behavior ........................................................................14
3.2. Define target market .......................................................................................................................14
3.3. Target market positioning ..............................................................................................................15
IV. TH TRUE MILK'S MARKETING MIX STRATEGY ...................................................................16
4.1. TH TRUE MILK'S PRODUCTS STRATEGY ............................................................................16
4.1.1. Core benefits .............................................................................................................................16
4.1.2. Product portfolio ......................................................................................................................16
4.1.3. Brand .........................................................................................................................................17
4.1.4. Packaging design ......................................................................................................................17
4.1.5. Product quality .........................................................................................................................18
4.1.6. Effectiveness of product strategy ............................................................................................20
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4.2. TH TRUE MILK'S PRICE STRATEGY .....................................................................................20
4.2.1. Valuation ...................................................................................................................................21

4.2.2. Market penetration strategy....................................................................................................22
4.2.3. Price adjustment strategy ........................................................................................................23
4.3. DISTRIBUTION STRATEGY OF TH TRUE MILK .................................................................23
4.3.1. Distribution channels ...............................................................................................................24
4.3.2. Choosing members of the distribution system .......................................................................26
4.3.3. Managing and motivating members of distribution system .................................................27
4.3.4. Marketing channel membership rating: ................................................................................27
4.3.5 TH True Milk's supply chain ...................................................................................................28
4.4. TH TRUE MILK'S PROMOTION STRATEGY .......................................................................30
4.4.1 Advertising .................................................................................................................................31
4.4.2 Direct Marketing .......................................................................................................................31
4.4.3 Sales promotion .........................................................................................................................32
4.4.4 Personal selling ..........................................................................................................................33
4.4.5 Public relations ..........................................................................................................................34
V. OFFER ...................................................................................................................................................35

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I. INTRODUCTION ABOUT TRUE MILK
1.1. Overview of the dairy market
Vietnam is a fertile market for domestic and foreign dairy companies. Increasing population
along with changes in nutrition has increased the demand for milk. Besides the big names
in the country, many foreign milk brands have also entered, creating quite strong
competition.
The COVID-19 epidemic has had a great impact on the production and business activities

of enterprises. However, dairy businesses seem to be less affected by this "storm". Closing
2020, the dairy industry increased by 19.1% in market capitalization, better than the VNIndex (14.9% in 2020). From the bottom on March 24, 2020, the dairy industry increased
sharply by 60% but still lower than the recovery of the whole market of 67.5%, recorded in
the report of SSI Research.
According to SSI Research, domestic demand for dairy products was less affected by
Covid-19, only down -6.1% in value compared to a decrease of -7.5% for consumption of
consumer goods (FMCG) in the first 9 months of 2020 and the country's nominal retail
sales growth is 4.98% (GSO, 2020).
• Potential
Vietnam is considered as a potential dairy market. Because Vietnam is a country which has
population growth, young population structure with a high population growth rate of about
1.2%/year, GDP growth rate of 6-8%/year, per capita income increasing by 14.2%/year.
These factors combined with the trend of improving the health and stature of the
Vietnamese people make the demand for dairy products always keep a high growth rate,
forecasted to reach 9%/year in the coming years next.
According to Phu Hung Securities Joint Stock Company (PHS), contrary to the negative
impact of COVID-19 on the global economy as well as in Vietnam, the consumption value
of milk and dairy products in Vietnam is still high, strong growth, even stronger than before
the epidemic in 2020. Specifically, milk consumption in urban areas grew by 10% while in
rural areas it grew by 15%.
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Forecast for 2021, SSI Research estimates single-digit revenue growth in 2021, based on
the assumption: The Covid-19 epidemic will be under control by mid-2021: There will be
no more social distancing around the world. The country and overall dairy consumption

should recover from its 2020 low of 7%.

• Competitive reality
The fact that many milk brands appear together has created considerable competition. To
sell products, businesses are constantly coming up with new strategies.
It is estimated that by the end of 2020, Vinamilk still holds the highest market share in the
dairy industry with 43.3%. If including Moc Chau Milk, these two businesses account for
more than 45% of the market.
Moc Chau are said to have a makeover after returning to Vinamilk, Moc Chau milk's net
profit in the first 9 months of 2020 increased by 68%, while IDP reached VND 151 billion
in net profit in the first half of last year, compared with VND 113 billion in 2019.
Nutifood is also targeting the liquid milk segment with bold plans, including the
cooperation with Hoang Anh Gia Lai (HAGL) to build a raw milk area with nearly 120,000
dairy cows, capable of supplying 1 ,2 million liters of milk/day. However, until now, the
above cooperation program has not been as expected, so the amount of fresh milk sold by
Nutifood is quite limited, because the company's cow farming area has only reached a few
thousand cows, low compared to other companies. Currently, Nutifood accounts for 7.2%
of the dairy market.
Right from its inception, TH True Milk has set a goal of capturing 50% of the fresh milk
market by 2020. The Group withdrew $1.2 billion from its “wallet” as well as many human
resources to build a cow farm project. Asia's largest dairy factory and the largest dairy
factory in Southeast Asia. Focusing on new product lines has helped TH True Milk to
develop. Only 5 years after the launch of the first product, by 2015, TH true Milk is the
enterprise that owns the largest dairy herd in Vietnam with a herd size of up to 45,000
heads, on a farm area of 8,100 hectares, concentrated in Nghe An. As of 2020, TH True
Milk accounts for 6.1% of the milk market share in the country.
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Competition in the dairy industry tends to become increasingly fierce when large
companies expand their scale through M&A and more competitors enter the market. Masan
has just launched new products, while Vitadairy seems to be growing fast in the powdered
milk segment.

Dairy Market In 2020 – Source: Euromonitor, SSI

1.2. Introduce TH True Milk
1.2.1. Formation
TH True Milk Company, whose full name is TH Milk Food Joint Stock Company, belongs
to TH Group - was established under the financial advice of Bac A Commercial Joint Stock
Bank. Entering the Vietnamese market since 2010, the company always aims to produce
the most authentic “fresh milk” products. Although it has only been born for 12 years
(according to 2020 data), TH True Milk has achieved many proud achievements. In 2013,
the company inaugurated a clean fresh milk factory with a capacity of 500,000 tons/year.
Dairy cows are raised according to high technology standards, with more than 45,000 cows
carefully selected from New Zealand, Australia, Canada,etc.

1.2.2. Vision
TH Group aspires to become “Vietnam's leading manufacturer” in the clean food
industry of natural origin. With serious and long-term investment combined with the
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world's most modern technology, TH decided focused on becoming a world-class food
brand trusted by everyone, loved by everyone and proud of the nation.

1.2.3. Mission
With the spirit of being close to nature, TH Group always tries its best to nourish
Vietnamese body and soul by providing food products derived from nature - clean, safe,
fresh and delicious. nutritious. The aspiration is called Vietnamese stature, wishing to
improve the physical and intellectual capacity of the Vietnamese people and for the future
of the generation of Vietnamese children to have a clean, safe and nutritious source of
nutritious milk from nature.

1.2.4. Core values
With the slogan “True Happiness” - True Happiness, “Let's make the best milkshake
with a mother's heart and heart” and always stick to the 5 core values that have brought
consumers closer to TH.
• For true happiness
• For public health
• Completely from nature
• Environmentally friendly – Out-of-the-box thinking
• Harmonize interests
In the context of the domestic dairy industry being confused with the concepts of “remixed
powdered milk” and “fresh milk” for profit, the clean fresh milk TH True Milk has opened
a breakthrough path, laying the first bricks, the foundation foundation for the clean fresh
milk production and processing industry in Vietnam. “With TH True Milk, the strength
of a brand is the core value that we are striving for “For the health of the
community””.

1.2.5. Development Goals
Carrying out the project of raising dairy cows in concentrated barns and processing milk

with a scale of 1 billion 200 million USD with 137000 dairy cows on 37000 hectares of

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land. Meet 50% of the demand for dairy products of the domestic market, become the
leading supplier of clean milk and pasteurized fresh milk in Vietnam.
Launched TH True Milk pasteurized fresh milk, at the same time expanding the production
of products made from fresh milk.
Launched a retail chain of TH true mart specializing in providing fresh and clean products
from TH farms such as pasteurized fresh milk, TH True Milk yogurt, beef, seafood, fresh
vegetables and fruits,etc. TH true mart strives to become a chain of convenience goods
providing clean, safe and high-class food to consumers.
On September 18,2020, in Kon Tum province, TH Group held the Groundbreaking
Ceremony of a concentrated dairy farming project with a high-tech industrial scale in Mo
Rai border commune, Sa Thay district. The project is the next step in the roadmap to build
a map of TH True Milk milk that is spread across the country with farms in Nghe An, Ha
Giang, Phu Yen, Thanh Hoa and soon An Giang and Cao Bang, with the goal of by 2025,
the total number of concentrated dairy cows in cooperation with farmers will reach 400,000
heads to expand the TH true mart store chain nationwide to meet people's needs.

1.2.6. Organizational structure
TH Food Chain Joint Stock Company (distribution)
TH Dairy Food Joint Stock Company (farm)
TH Milk Joint Stock Company (factory)


II. TH True Milk’s marketing environment
2.1. Internal marketing environment
2.1.1. Finance
TH received capital resources from shareholders, loans form BIDV and Vietnam Bank
(VDB), Nghe An branch and Maritime Bank. TH True Milk also received investment
advice from Bac A Bank where Ms. Thai Huong is the executive manager. This bank used
to be a shareholder, holding 7% of TH True Milk’s shares according to a report 2014. In
addition, TH Group is also supported by the Israel Government with an investment package
which worth 100 million USD and the charter capital of TH is 3.800 billion VND.
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2.1.2. Human resources
TH knows that people are a valuable asset and also a decisive factor for the sustainable
development of the business. Therefore, TH always focuses on investing in people. The
working environment is always professionalized by an international - class team and the
exchange between many foreign experts. TH also focuses on training talents to do the work
in the best way. Thanks to the intensive courses, always updating knowledge, equipping
with modern technology to help employees follow the trend of the times.

2.1.3. Marketing
Through many forms such as advertising on TV, newspaper, posters at agents, distribution
centers, company website or products launch programs or community charity programs, Th
all promote their image and information about the element “clean milk” which is safe for
people’s health.


2.2. External marketing environment
2.2.1. Macro environment
• Legal and political
Vietnam is under the socialist regime, has a stable political environment and the legal
system is increasingly improved to create conditions for businesses including TH True
Milk. According to Decree 38/2019/2019/ND-CP, the general minimum salary is 1.490.000
VND/month, so a rise in the salary of employees will increase the purchasing power of the
whole country. However, it also makes TH True Milk have to increase costs because of
increased salary fund.
• Economic environment
Globalization and international economic integration are deepening, especially when
Vietnam’s accession to the WTO brings many opportunities for many businesses to cooperate with foreign partners including the dairy industry. The price of dairy products in
the world tends to increase which creates competitive conditions on prices for Vietnamese
dairy enterprises and moves towards expanding overseas market. At the same time,

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domestic repair businesses have the opportunity to interact with new, more advanced
technologies to perfect themselves in a competitive environment.
One of the positive indicators of the dairy industry in the past year was the increased profit
margin. Overall, the COVID-19 pandemic has impacted milk global demand, keeping the
price of dairy raw materials low in 2020, especially the price of Anhdryous (-23% over the
same period). In addition, low oil process help reduce packaging and transportation costs.
These factors support the gross profit margin of dairy companies. WB forecasts Vietnam's
GDP growth is expected to reach 6.6% in 2021, although the WB is 0.2% lower than the

forecast of 6.8% made at the end of 2020 due to the effects of the COVID-19 outbreak, but
the WB still confirmed that this is the highest growth rate forecasted for countries in the
ASEAN region, the average income of people is stable, leading to an increase in
consumption demand for food products, including milk. This is an advantage for TH True
Milk to develop day by day in the COVID situation. Despite the ability to compete on price,
Vietnamese dairy enterprises face difficulties in product quality with foreign enterprises.
Many Vietnamese consumers accept a set price of more than 200% to use imported milk.
• Technological environment
Modern machinery systems, modern farming equipment inside the largest concentration of
high-tech dairy farms in Asia in Nghe An. The cows in TH farm are completely imported
from famous countries with clear pedigree, ensuring the best milk flow, not only that, the
cows here are fitted with chips to monitor health and growth, barn system with wind and
air conditioning to ensure the best living conditions. In order to keep the closed process in
cow raising and milk production, TH Group invests in building TH clean fresh milk
processing factory. This factory has the largest scale in Southeast Asia with the most
modern equipment and machinery in the world.
• Socio-cultural environment
The level of culture is increasingly improved, the speed of development, consumers
gradually become more aware of the importance of health, pay more attention to nutrition,
and drinking milk becomes a habit and becomes a habit very popular. The demand for milk
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of Vietnamese people is increasing day by day. Therefore, since its inception, TH True
Milk has affirmed in the market with the brand “clean milk” to meet the needs of customers.
• Natural environment

With the criterion of keeping the essence of every drop of milk intact, producing dairy
products and being environmentally friendly along with the application of high technology
in production to offer healthy products that are suitable for human consumption
environment is the orientation of TH True Milk.

2.2.2. Microenvironment
• Customer
TH True Milk always brings consumers quality products, fresh, intact with the essence of
nature, suitable for all customers. According to a recent study in 2021 by ADM Outside
voice, 77% of consumers tend to find ways to improve their immune system, fresh milk,
yogurt, cheese increased sharply due to the increase in people's income and more focus on
health in the current COVID situation. This is an advantage for TH True Milk because TH's
products are guaranteed to be clean milk of international standards, without preservatives
but still retain the maximum nutrients. TH True Milk's target customer groups are parents
with children from 0-7 years old, teenagers aged 8-19 years old. This is a group of
customers with relatively diverse consumption needs, they pay much attention to product
quality, nutritional value, reasonable price and account for a high proportion. Or other
subjects in urban areas, big cities people care a lot about the health of themselves and their
families. In addition, TH sub targets international customers, TH has conquered many
fastidious markets such as Russia, China and ASEAN countries.
❖ Competitors
• Current competitors
When TH True Milk decided to enter the market in 2009, there were many dairy brands
both at home and abroad that were known by many consumers such as Vinamilk,
Dutchlady, Abbott,etc. In which, Vinamilk is currently the leading enterprise in the dairy
processing industry. In 2020, Vinamilk holds the highest market share in the dairy industry
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with 43.3%, Dutch Lady with about 15.8% market share, the rest belongs to smaller
companies. Although TH True Milk was born later, the growth rate is very strong, rising to
the 3rd position in the dairy market share.
• Potential competitors
Beverage companies such as Suntory Pepsico, Tan Hiep Phat, etc. or cereal brands such as
Kellog's, Nutritional Nutifood, etc. may reduce the market share of liquid dairy products.
❖ Suppliers
The raw materials to produce fresh milk are mostly supplied by TH True Milk
• TH Farm
TH owns a dairy farm with an area of 37,000 hectares of fertile basalt red soil in Nghia Dan
- Nghe An, using modern technology and advanced breeding methods. Each of these
clusters has about 15,000-17,000 dairy cows. TH farm's cows are imported from the US,
Australia, Canada, New Zealand, etc, with clear pedigree to produce the best milk, ensuring
the content of fat, protein,etc in milk. Besides, the source of feed for cows is extremely
diverse such as corn, American sorghum, Mombasa grass, Mulato grass, soybean pods,
purified water, etc.
• Packaging
Currently, TH True Milk pasteurized fresh milk products are using packaging of Tetra Pak
(Sweden) and SIG Combibloc (Germany), both of which are produced on modern and
advanced technological lines top in the world.
❖ Marketing intermediary
Customers can easily buy TH True Milk's products. The system of warehouses and
convenient storage brings products to intermediary agents and sells them in supermarkets
such as Big C, Coopmart, etc. Especially the TH true mart supermarket chain system
spanning the country, TH wants to bring products to consumers in the fastest way, ensuring
safety, product quality is the best. Along with that, we regularly organize product launch
seminars to bring products closer to customers.

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III. TH TRUE MILK's STP STRATEGY ANALYSIS
3.1. Market Segment
3.1.1. Market segmentation by geographical location
Based on population density and consumption habits, it is divided into 2 groups: urban and
rural
• Urban
The population in this area in 2019 is 33,059,735 people, accounting for 34.4% of the total
population of the country and is on the rise. With the feature of high population density, it
is convenient for distribution and consumption of goods. The income of urban people is
also higher, so they care about health and often use milk for the whole family. They are
often loyal to the products they have chosen and trusted before. Experts say that the
dynamics of the dairy industry in 2020 mainly comes from people's sense of health care,
especially urban consumers. With a wide consumer network, especially in urban areas,
more and more consumers choose to buy TH True Milk products.
• Rural
The population in rural areas is 63,149,249 people, accounting for 65.6% of the more than
90 million people. Along with the process of urbanization, the consumption gap between
rural and urban areas is shrinking, but in general, it is still lower than that of urban areas.
Milk consumption in rural areas in 2020 will grow by 15%. Whereas consumers in urban
areas look for high-end products, in rural areas, they are loyal to traditional products that
they have trusted and suitable for their income ability. However, people in both urban and
rural areas tend to be more concerned about health, so nutrition and product quality is a big
factor influencing their decision.


3.1.2. Market segmentation based on demographics
Based on age, the market can be divided as follows:
• Age 0-4: This is the age that needs to be supplemented with many nutrients, DHA
for development, but the digestive system is not yet mature, often use specialized
dairy products for ages.
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• Age 5-14: This is the age when young people enter the development process,
need a lot of nutrition for the body, serving the learning and training process.
Age 15-25: This is the age when consumers are more autonomous in making
decision, using product lines that are suitable for dynamism and youthfulness.
Moreover, the purchase decision at this age depends on the quality of the product
and the reasonable price.
• Age over 25: Use calcium supplements for the body, provide enough essential
nutrients, rich in protein and minerals.

3.1.3. Market segmentation by consumer behavior
Ordinary customers: make up a fairly high percentage, they have quite rich consumer
preferences and can access to a wide variety of milks.
Customers with health conditions: malnutrition, osteoporosis, diabetes, etc.
Customers are interested in clean products suitable for diet and health protection, etc.

3.2. Define target market
Based on the above segments as well as considering the product characteristics, it can be

seen that the target market for TH True Milk dairy products is the segment:
• People living in urban areas
They have full of media channels as well as the ability to access TH True Milk
quickly and effectively. With the average income of urban people, the level of
awareness of product quality and the healthcare needs of themselves and their
families, the fact that they have to spend more money on them a “clean” dairy
product with a slightly higher price on the market is perfectly reasonable and easy
to understand.
• Customers aged 5-14
This is the customer segment that TH True Milk is particularly interested in. Because
this is a growing age, it is necessary to have a source of nutrients, vitamins, DHA,
calcium to absorb. Therefore, the demand for milk at this stage is higher than ever.
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And in order to attract this group of customers, TH has constantly improved and
produced a variety of products to suit different age groups and preferences:
strawberry or chocolate flavored milk, TOPKID formula with accessible, friendly
animated image. However, the special thing is that customers at this age are not
aware of the price as well as the financial capacity, so to make a purchasing decision,
TH must conquer the customers in the next segment.
• Customers aged 25 and over
In this target group, TH aims to gain the trust and confidence of fathers and mothers
as they are the ones who directly make nutritional decisions for their children. If the
customer aged 5-14 years old concern about appearance and taste, these customers
are more interested in the origin, porcelain, quality, nutrition and preference of their

children. Understanding the hearts and aspirations of Vietnamese families, with the
motto “Make a good glass of milk with the mother’s heart” that's why right from the
moment entering the Vietnamese dairy market, TH True Milk has always created an
image for itself as a brand of clean, pure, fresh milk that fully meets international
standards in terms of raw materials as well as production lines to the finished
products, constantly improving product quality to expand more and more market,
conquering more classes of customers.

3.3. Target market positioning
The competitive advantage of TH True Milk is that the input materials are all supplied from
the TH farm, so the quality and production proccess are always assured. TH's business
philosophy from the beginning is not by all means to optimize profits, but to rationalize
benefits, always towards the community, for the benefit of consumers. For each cup "true
natural" milk. Besides the good image of a “green” business, TH True Milk products always
aims for great goals for the future generation of Vietnam. In the past time, these values
have been effectively exploited through the media such as newspapers, TV, etc. The
products that are always emphasized are “fresh, clean, pure” milk.
From the right judgments about the market, TH Milk has declared a common characteristic
of dairy products - that is “clean”. And even though Vinamilk or Dutch milk Lady is also
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clean, the problem is that none of them are aware of the need to declare announce this in
the mass media. TH is the FIRST company to claim they are “clean milk” and they were
one step ahead of their veteran rivals in doing this. The word True “clean” – “Standard”
thus establishes the TH's position and makes a clean milk revolution on the Vietnamese

market.

IV. TH TRUE MILK'S MARKETING MIX STRATEGY
4.1. TH TRUE MILK'S PRODUCTS STRATEGY
4.1.1. Core benefits
With the motto: “Clean fresh milk is the only way”. TH Group has conveyed the best
from nature to consumers. The development of people's living standards and incomes as
well as the increased understanding of the benefits of milk make the demand for a quality
milk source more necessary than ever. Understanding those wishes, TH begins their story
with the desire to rise up titled: For the health of the community. Born in a fiercely
competitive market with more than 500 large and small brands in the same industry, TH
wishes to bring people the most authentic and happiest experiences when enjoying pure and
fresh TH True Milk.

4.1.2. Product portfolio
The fresh milk segment has long been interested and accepted by consumers. This is also
TH's target market with clean, delicious and safe fresh milk. In order to truly own the
position of “Completely from nature”, for more than 10 years, TH has continuously
strived to affirm its position as the leading producer of fresh milk in Vietnam. Continuing
to expand the product ecosystem, TH pioneers in the path of healthy drinks, with all-natural
products, low in sugar or no added sugar, helping to align consumption habits towards
healthier, contributing to improving the mind and body for consumers. TH understands that
expanding the product portfolio is also a way to help TH get closer to every home and every
customer. TH's current dairy product lines:
❖ TH True Milk Pasteurized Fresh Milk
• Pasteurized Fresh Milk - Pure
• Pasteurized Fresh Milk - Less Sugar
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❖ TH True Milk UHT Fresh Milk
• UHT Fresh Milk - Pure
• UHT Fresh Milk - Less Sugar
• UHT Fresh milk - Sweetened
• UHT Strawberry Fresh Milk
• UHT Chocolate Fresh Milk
• Organic Fresh Milk
• TH True Milk A2 UHT Fresh Milk – Pure
❖ Formula Fresh Milk TH TOPKID
• TOPKID Organic fresh milk with natural vanilla
❖ Other products
• Besides focusing on the dairy market, TH also expands its product portfolio such
as nut milk, yogurt, ice cream, butter, drinks, etc.

4.1.3. Brand
TH stands for two words “True Happiness”, True Milk is clean milk. Through that, TH
True Milk wants to convey its sacred mission of bringing cups of milk from green pastures
and modern technology at TH farm. It is also giving sincere feelings to consumers through
the most “true” product line from nature, preserving the essence of every drop of milk. It is
also because of those humanistic meanings and the easy-to-remember, impressive name,
associated with the outstanding characteristics of the product, that TH gradually asserts its
“happy” milk brand in the hearts of the public.

4.1.4. Packaging design
TH True Milk is using the packaging of Tetra Pak (Sweden) as the world's No. 1 supplier
of UHT packaging along with Combibloc (Germany) packaging to meet the increasing

consumption of consumers. Both types of packaging are manufactured on the most modern
and advanced lines today. In general, apart from some differences in form, the contents of
both types of packaging are still guaranteed according to certain standards.
• Shape: rectangular box
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• Sizes: 110ml, 180ml, 450ml, 500ml, 1L
• The top of the box: product shelf life
• Box body: user manual, product information
• Appearance: main tone is blue, simple image (sky)
In order to ensure the source of packaging for the dairy factory to meet the large
consumption of consumers, TH simultaneously uses these two suppliers.
The products using these two types of packaging are similar in terms of image, information
content on the package, price, packaging quality in preserving milk, actual volume, product
quality is completely the same, fully comply with the standards that TH has announced to
customers and is licensed by the regulatory agency for circulation. However, there is a
slight difference in appearance because the two suppliers use different production
machines.
Visually, the Combibloc box looks shorter and larger, but the actual volume inside is
unchanged compared to the Tetra Pak box. It is also easy to see that the back seam of Tetra
Pak packaging is in the middle, while that of Combibloc is at the edge of the milk carton.
Corresponding to this back weld, the place of the suction cups of the two types is also in
different positions. In addition, can be seen on the milk box with the logo with the name of
the packaging manufacturer, this is the best way to distinguish the two types of packaging
Tetra Pak and Combibloc.


4.1.5. Product quality
With the desire to bring to Vietnamese consumers clean, delicious and nutritious fresh milk
products, TH considers quality assurance for products a prerequisite in production and
development. TH True Milk is the only brand that owns a closed production process “from
green grass to clean milk” in Vietnam today. TH Milk Food Joint Stock Company has built
a proactive process from input material production, processing and product delivery to
consumers.

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TH TRUE MILK'S MILK PRODUCTION PROCESS
Cow breed: The cows are imported from New Zealand, USA, Australia, Canada... to ensure
the best milk.
• Raw materials and nutrition: TH is completely autonomous in terms of feed
ingredients to ensure the best nutrition for dairy cows: corn, American sorghum,
Mombasa grass. Formula for each group of cows, blending process by advanced
software.
• Water source: The cows drink clean water treated with Amiad technology to ensure
clean and pure water for the cows.
• Farms and herd management: The world's most advanced farm and barn. TH uses
Israeli management technology. Cows are tagged and have electronic chips in their
legs to monitor health status, nutrition and milk production and information is easily
collected and managed.
• Health care: Veterinary center and international standard laboratory are ready to

diagnose, research, prevent and treat cows.
• Milking: The fully automatic milking system is controlled under strict procedures to
ensure the best hygiene and safety.
• Production: Clean fresh milk is transported by cold pipe system to the main tank at
the farm and then transferred to the cold tank, the cold temperature is always
maintained at 2-4 degrees Celsius. TH clean fresh milk factory has advanced
technology at present. world's greatest. The factory's products meet ISO 22000
standards of food safety and hygiene.
With a chain-based production approach from clean pastures, clean farms to clean cups of
fresh milk, it didn't take long for TH True Milk to be well received and trusted by
consumers. Mr. Yu Hoan Chun, general director of Wuxi Jinqiao said, visiting TH farms
in Nghia Dan, Nghe An and seeing first-hand the closed process, high technology of TH,
he believed that TH's products will conquer Chinese consumers. “I have tried the product.
We assess that TH products are of the same quality as products of European and American
countries, which are present on the Chinese market” he said. Not only Wuxi Jinqiao
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International Food City, the General Administration of Customs of China also inspected
TH True Milk's farm in Nghe An, allowing TH Dairy Joint Stock Company to become the
first Vietnamese exporter of fresh milk to China country.
Having won many domestic and foreign awards, TH True Milk is continuously trusted by
consumers and is the pride of Vietnamese people. Most recently, there are awards such as
Bronze "Product of the Year" for TH True Milk Pasteurized Milk at Stevie Awards 2019;
Vietnam National Brand Award 2020, National Quality Gold Award at the national quality
award ceremony and Asia-Pacific International Quality Award 2020.


4.1.6. Effectiveness of product strategy
Over 10 years of launching, TH has achieved certain successes. TH True Milk is mentioned
with pride by Vietnamese people - is the milk brand with the most modern cow farm in
Southeast Asia, with a turnover of more than 1 billion USD, is a “clean milk” brand in the
Vietnamese market. With continuous innovation efforts and dedication to improving the
quality of life of Vietnamese people, product lines are always improved in quality as an
answer to the beliefs and expectations of customers. products into a Vietnamese dairy
brand. Besides, TH is also constantly diversifying product categories to reach more
customer segments in the future. TH True Milk's clean fresh milk products have been
warmly received by consumers and highly appreciated by experts. With these good signs,
TH is gradually becoming one of the leading suppliers of fresh milk in the country.

4.2. TH TRUE MILK'S PRICE STRATEGY
Modern society makes people's needs higher and higher, health factors are also focused and
paid more attention. This has promoted the development of nutritional products, especially
fresh milk - an indispensable nutritional product for every family. Besides, price is always
a notable concern because this is a competitive factor and encourages consumers to decide
to choose products. Although coming after the big players in the industry such as Vinamilk,
DutchLady,etc. TH has used its own unique and different skimming price strategy to
penetrate deeply and widely in the market. TH True Milk has quickly created a brand of
“clean milk” with “real” actions, creating true value for the TH True Milk fresh milk

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product line. Above all, TH has contributed to changing the minds of Vietnamese
consumers: drinking milk is not a luxury, it is a way to protect their health and happiness.

4.2.1. Valuation
Right from the market launch, positioning the brand as a high-end product line, TH chose
to sell products at a high price as a ticket to ensure product quality, hitting the consumer's
mind with the success sentence. The saying "You get what you pay for".
TH's milk price at TH true mart chain stores is the consumer-oriented price and the selling
price set by the company. TH True Milk's fresh milk products are diverse with different
prices.
• UTH fresh milk TH True Milk: 33.000 VND/ pack of 4 boxes of 180ml
• TH True Milk UTH fresh milk with flavours: 33.000 VND/ pack of 4 boxes of 180ml
• Natural UTH fresh milk TH True Milk HILO: 35.000 VND/ pack of 4 boxes of
180ml
• Pure UTH fresh milk TH True Milk A2: 21.000 VND/ box of 500ml
• Organic fresh milk TH True Milk Organic: 31.000 VND/ box 500ml
• Pure pasteurized fresh milk TH True Milk: 36.000 VND/ box of 950ml
• UTH fresh milk TH True Milk TH True Milk TOPKID organic: 50.000 VND/ pack
of 4 boxes of 180ml
It can be easily seen that the selling price at the chain of TH true mart stores and the ecommerce channel of TH True Milk is often higher than the price at supermarkets and retail
stores. For example, a batch of TH True Milk 4 boxes of 180ml/box of fresh milk at TH
True Mart store costs 33,000 VND/lot, while at a store like Bach Hoa Xanh, the price of a
similar batch of milk is only 32,500 VND/lot at TH True Milk. supermarkets cost 31,900
VND/pack.
To ensure the interests of TH true mart chain stores and e-commerce channels, TH allows
these channels to sell products at higher prices than other agents and supermarkets. Due to
the characteristics of each sales channel, at consumer stores or supermarkets, retail points
will have promotions and gifts in a short time. The purpose of this job is to attract buyers,
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stimulate consumer demand, so the prices in these channels may be cheaper, customers will
buy products at a more favorable price than buying directly at the chains. TH true Mart
store.

4.2.2. Market penetration strategy
TH True Milk's pricing strategy is a valuable lesson learned in the market penetration
phase. As a latecomer to the piece of cake, there have been many diners, especially big
brands like Vinamilk or DucthLady - the rulers have had many years of experience in the
dairy market in Vietnam. Even so, from the very beginning, TH has always known how to
make a difference through the execution of its unique strategies.
Socio-economic development is growing, per capita income is also increasing. It means
that people have a higher standard of living, more focus on the health of themselves and
their families. The need to use nutritional products such as fresh milk is no longer a luxury
for people. On the contrary, drinking milk has become a common habit and essential need
of people. Grasping this change, TH has used the skimming price strategy as the first step
for its brand. Creating a "clean milk" brand is clearly defined through true stories and the
production process that creates products, hitting consumers' psychology in the relationship
between price and product quality. TH has positioned itself as a premium product line and
sells products at higher prices than other brands such as Vinamilk, Moc Chau Milk, etc.
According to the general psychology of customers, the selling price of products. The higher
it is, the more secure the product will be.
TH True Milk focuses on female customers, from the age of 15 to 35, from 25 to 35, or
those in dynamic and modern urban areas and big cities who care about their health. and
family. These focus groups are usually people with middle income or higher, who have a
need to consume milk, especially premium, safe and quality milk. In addition to ensuring

profits, this strategy also strikes consumer trust with images of a high-priced product that
goes hand in hand with quality. Create brand reputation and high-end products in the mind
of customers right from the new stage penetrate the market. Accordingly, on the common
ground in the Vietnamese dairy market, TH True Milk is ranked in the top of high-cost,
safe, reputable and quality milk.
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There is no denying the effectiveness that this skimming strategy brings to TH, but TH also
does not abuse it because it is only really effective and should be applied in the early stages
of the product when it is launched on the market. After the success of this strategy, TH is
increasingly expanding its customer base, exploring lower-income customer segments with
the goal of becoming one of the milk brands chosen by many people, from children to
children. Even adults, the elderly and those on a diet can also use it. It can be said that this
is a long-term calculated step of the marketing - mix strategists of TH True Milk.

4.2.3. Price adjustment strategy
The competitive advantage of TH True Milk is its mastery of natural ingredients. From
model dairy farms, TH always ensures an abundant supply for production, along with a
production process that applies modern and advanced technology to create a rich source of
nutritious milk. clean and quality. Therefore, the company is not affected much by the price
of raw materials from outside the market, does not need to import too much from abroad.
Instead of importing, TH also exports its nutritious “clean milk” to other markets.
Therefore, the price of TH True Milk products will be adjusted when there is an increase in
prices from the general milk market. This means that prices are less volatile, consumers
will have safer choices.


4.3. DISTRIBUTION STRATEGY OF TH TRUE MILK
The establishment and development of the brand of clean fresh milk TH True Milk from
the end of 2010 until now has created a phenomenon in the dairy industry in Vietnam.
Although coming later and facing many “big brands” in the dairy industry such as
Vinamilk, Dutch Lady... However, TH still asserted its position and brand.
TH assumes that product consumption is the most important part of every business. The
ultimate goal of all goods and services is to consume as many as possible in order to make
a profit. As a result, TH has invested in and established a nationwide distribution network
with two primary distribution channels:
• Traditional channel: grocery stores, retail outlets, etc.
• Modern channel: TH True mart stores, large supermarkets, etc.
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In addition, TH Group has effectively developed an online shopping deliver by using
traditional and modern channels. By April 2021, there were 291 TH True Mart locations
throughout Vietnam.

4.3.1. Distribution channels
TH True Milk has designed its distribution channels to bring products/services to customers
in different ways. Each layer of the distribution channel is a marketing middle class that
does some part of the process of bringing products and their ownership closer to the end
user.
Direct marketing channel
As a self-distributing activity of the manufacturer, that helps TH Group to be proactive in

distribution without depending on intermediaries, TH is the only member selling products
directly to consumers in this distribution channel.

TH True Milk

Consumer

• TH true mart stores
The first goal when building TH true mart stores is to promote TH's image to consumers acting as a big showroom with display models “from the meadow to the glass of milk”.
Second, this is a channel to introduce products and sell directly to consumers.
The third goal of this chain is to become a modern chain of distribution stores, specialize
in providing the cleanest, safest, freshest and most nutritious foods.
• Online ordering service
With the motto “bringing the essence of nature to every home”, Home Delivery service
is the result of concerns and continuous efforts to shorten and eliminate intermediate steps
in the process of transporting and distributing, providing consumers with products quickly
and conveniently that keep the essence of nature, fresh, and pure.

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After the customer orders online, the system staff will confirm the order via email or phone
call. The system will choose the nearest distribution center or TH True mart store to deliver
orders to customers within 48 hours.
Up to this point, in Vietnam, there are only a few small units and farms that deliver milk at
home. TH is the first large enterprise interested in eliminating intermediate steps, bringing

milk directly to consumers.
Indirect marketing channel
• Channel level 1

Retailer
(super market,
etc)

Consumer

As a modern distribution channel that TH True milk focuses on, helping fresh milk products
distributed to consumers and nationwide. In addition to taking on the role For production
and supply, TH True Milk also uses the second member who is the retail, supermarket,
grocery, etc. Retailer is a place to sell dairy products directly to hands consumers. TH True
milk products are available in big supermarkets such as Big C, Coopmart, Metro, etc. From
here, products will be sold to consumers at prices set by TH Group, terms of booth rental
costs, profits divided by percentage previously agreed by the parties.
In addition, TH True Milk also uses Key Account channel: used to distribute to customers
This is also the channel that TH's biggest competitor - Vinamilk is applying. This makes
the battle between the two dairy industries becomes more and more fierce.
• Channel level 2

TH True Milk

Retailer

Wholesaler

Consumer


As a traditional distribution channel but operating very effectively, most businesses apply.
TH Group in addition to distributing TH True mart stores to become the company's main
and most important distribution channel, but TH True Milk Consumer Retailers
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