i


STATEMENT OF AUTHORSHIP

FINAL PROJECT NAME
BRANDING STRATEGY OF DUTCH LADY IN VIETNAM
STUDENT NAME
PHAM NGOC HIEN
PHAM XUAN VINH

Declaration and Statement of Authorship
1. We hold a photocopy of this final project which can be produced if the original is
lost or damaged.
2. This final project is our origin work and no part of it has been copied from any
other student’s work or from any other source except where due acknowledgement
is made.
3. We have not previously submitted this work for any other course/ unit
4. We give permission for our work to be scanned for electronic checking of
plagiarism.
5. We give permission for a copy of our marked work to be retained by the
Department for review by external examiners

ii


ACKNOWLEDGEMENT

In order to finish our final project, we have received a lot of kindly support and precious
contribution from many people.
First of all, I would like to send our big thank to Prof. Serge Bywalski, our tutor, for his
dedicated instruction and constructive feedback so that we can go through all phases of this
final project smoothly. We also would like to say thank to Prof. Alain who has give to us
the critical comments and improvement in order to make our project better.
We are also very grateful to Solvay - ULB Vietnam, Education management Admin for
giving us the full information and feedback during the course.
Next, our thankfulness goes to our boss, our colleagues and our friends who support and
give us valuable ideas and insights.
The last but not least, we would like to express our love and our appreciation to our family
who are always beside and support us in term of spirit as well as material.
Thanks to this final project, we not only achieve the applied Marketing knowledge, but also
get more overview the dairy market and how to build the brand in dairy field as well.

Ho Chi Minh, March, 2013
Pham Ngoc Hien & Pham Xuan Vinh













iii


LIST OF ABBREVIATION

BUMO - Brand used most often
CAGR - Compound Annual Growth Rate
DDP - Dairy Development Program
DKY - Drinking yogurt milk
DL - Dutch Lady Vietnam
FCV - FrieslandCampina Vietnam
FMCG - Fast moving consumer goods
IFT - Intermittent feeding trajectory
P4Ws - Purchase for 4 Weeks
RTB - Reason to believe
SCM - Sweetened condensed milk
TOM - Top of mind
TOM ad - Top of mind advertisement
TVC - TV commercial
UTH - Ultra high temperature milk
VNM - Vinamilk
WOM - Word of mouth













iv


LIST OF FIGURES
Figure 1: Average income of Vietnamese in 5 main cities 4
Figure 2: Contribution of the Dairy Market 6
Figure 3: Drinking Usage Panel 7
Figure 4: Annual Growth rate of Dutch Lady 8
Figure 5: Dutch Lady UHT sales contribution by region 8
Figure 6: Segmentation mapping 10
Figure 7: Monthly TOM brand awareness liquid milk 12
Figure 8: Monthly TOM Ad awareness liquid milk 13
Figure 9: Brand consumed P4Ws liquid milk 13
Figure 10: Dutch Lady Brand image 14
Figure 11: Brand Character and Image of Vinamilk 16
Figure 12: The growth of categories drinking 22
Figure 13: Factors to affect consumer to purchase a FMCG product 23
Figure 14: The evaluation of environment concerned when purchase a FMCG product 24
Figure 15: The evaluation of charity concerned when purchase a FMCG product 25

Figure 16: Ansoff's Matrix 26
Figure 17: Porter Generic Strategy 1985 28
Figure 18: Happy Cow Milk mapping 31
Figure 19: Pricing Strategy 32
Figure 20: Three level of product 34
Figure 21: The Dairy Market Volume and Value 50
Figure 22: The Market Share of Dairy Market in Value and Volume 51
Figure 23: The evaluation of food safety when decide to buy 52
Figure 24: The react of consumer if product manufacturing negatively affects the environment 52
Figure 25: Maslow Hierarchy 1943 53
Figure 26: Media strategy Model 53








v


LIST OF TABLES
Table 1: Vietnam Long-term Macroeconomic Forecasts 4
Table 2: Selected Asian Economies: Real GDP and Consumer Prices 5
Table 3: Market share of Dutch Lady and Vinamilk in Value and Volume 15
Table 4: The drinking habit by age 20
Table 5: The drinking habit by region 21
Table 6: The drinking habit by income 21
Table 7: Population by Sex and by Age group in 2011 54

























vi


LIST OF PICTURES

Picture 1: 15 Years of Dutch Lady in Vietnam 2

Picture 2: Product Portfolio 3
Picture 3: Some communication materials of Vinamilk 15
Picture 4: The TV Commercial of Vinamilk 17
Picture 5: The Print advertisement of Vinamilk 18
Picture 6: Out of Home advertisement of Vinamilk 19
Picture 7: Brand activation of Vinamilk 19
Picture 8: The American Humane Certificate 29
Picture 9: The Design of Happy Cow Milk bottle 35
Picture 10: Illustration of Happy Farm online game 45




















vii



LIMITATION
Dutch Lady is well-known brand in the world which has a wide-range of data and
researches in many different analysis, therefore, in our report, deal to the scope of work, we
would like to discuss the case of Dutch Lady’s communication in Vietnam only.We also
want to analyse the branding strategy of Dutch Lady in our point of view instead the whole
marketing activities.

Besides, the Vietnamese dairy market is quite competitive with many different rivals both
of local and global; hence, based on the current market share and performance of Dutch
Lady Vietnam, we have just picked out Vinamilk as our key competitor to analysis and
skip for the other rivals.

Furthermore, after analysis on the current performance of Dutch Lady, we have found
some findings and given the feasible recommendations. There are two strategies that DL
can apply for short-term and long-term development. Each of strategy would be used for
each different branding plan for DL. Due to the limitation of this project, we would focus
only on building a branding plan for launching the “Happy Cow Milk” concept.

Moreover, in order to make this report more visual and attractive, the using images,
pictures, and photos has been collected from the Internet and usage for illustration purpose
only.
Finally, this report has been written in English which is not the primary language of the
team researchers. Therefore, sometimes, the readers could be found some parts, and
sentences which are difficult to understand and not clear about the point of view, please
notice to us for further improvement. It would be our pleasure to make it clear and update it
for later.















viii


TABLE OF CONTENT
EXECUTIVE SUMMARY 1
1. INTRODUCTION 2
1.1. Overview about Dutch Lady Vietnam 2
1.1.1. Background of Dutch Lady Vietnam 2
1.1.2. Product portfolio 2
1.2.2. The current Dairy Market 6
1.3. Findings 9
2. DUTCH LADY AND 3C ANALYSIS 9
2.1. Company 10
2.1.1. Segmentation and target consumers 10
2.1.2. Dutch Lady current performance 12
2.1.2.1. Branding performance 12
2.1.2.2. Findings 14
2.2. Competitors analysis 14

2.2.1. Current performance of Vinamilk 14
2.2.2. Brand performance Vinamilk 15
2.2.2.1. Brand Characteristics 15
2.2.2.2. Branding Strategy 16
2.3. Consumers insight 20
2.3.1. How the customer consume Dairy product 20
2.3.2. Vietnamese Perception trend 22
2.3.2.1. Being Cleaner and Greener 22
2.3.2.2. Being responsible 24
3. RECOMMENDATIONS 26
3.1. Happy Cow Milk concept 28
3.2. Targeting customers 29
3.3. Positioning 31
3.4. Pricing strategy 32
3.5. Product description 33
3.5.1. Core benefits 33
3.5.2. Actual product 33
ix

3.5.3. Augmented product 34
3.6. Packaging 34
3.7. Communication 35
3.7.1. Tone of voice 35
3.7.2. Communication plan for 2 years 37
3.7.2.1. Pre-launch Stage 37
3.7.2.2. Launch Stage 39
3.7.2.3. New product line extension launching 47
4. REFRENCE LIST 49
5. APPENDIX 50
5.1. Appendix 1: List of figures 50

5.2. Appendix 2: List of tables 54









1


EXECUTIVE SUMMARY
Dutch Lady has emerged as one of the first global corporation to invest in Vietnam in the
very beginning of the Opened Economic. Aiming to set up a strong basement in Vietnam,
Dutch Lady Vietnam has put great effort during 16 years to provide not only the good
quality of dairy products but also improve the physical body of the Vietnamese. The
success of Dutch Lady roots from localizing their products and bringing it closely to
Vietnam consumer.
In this report, team researchers want to find out about the current branding strategy of
Dutch Lady in Vietnam and how it communicate to the Vietnamese consumers. This report
will comprise in 3 parts which is assigned to bring the clear point of view about Dutch
Lady, its key competitors, and feasible branding strategy in the next 2 years.
In the first part, it would provide to the reader about the overview of the Vietnamese diary
market. It also discusses about how potentiality of the liquid milk market and some macro-
economy factor driven this market in the next 3 years.
The second part would examine the current performance of Dutch Lady on the 3C model:
Company, Competition and Customer. The Company analysis discusses about the
segmentation and target customer of Dutch Lady, differently, the segmentation of liquid

milk is based-on the psychology of consumer and their milk consumed behaviour. Besides,
it also examine on the current branding performance of Dutch Lady. Furthermore, in order
to understand clearly about key rivals, the competitor will examine on the branding
performance of Vinamilk which is a key competitive rival. Then, of course, the customer
insights is the key which lead to the success of ay branding campaign, therefore, the team
researcher also want to find out how consumers purchase Dairy product and their
perception trend.
Based-on the below analysis, part three would like to point-out the feasible branding
strategy to Dutch Lady in order to achieve the main objectives for both of short-term and
long-term development: to keep and improve the current position of Dutch Lady in
Vietnamese Dairy market and to explore a new market. Due to the limitation of this
project, the team researchers would only propose the communication plan for Dutch Lady
to explore a new market through 3 stages: pre-launch, launch, and post-launch.


2


1. INTRODUCTION
1.1. Overview about Dutch Lady Vietnam
1.1.1. Background of Dutch Lady Vietnam
FrieslandCampina Vietnam is a joint-stock company which established in 1995 between
Binh Duong Im-Export Company (Protrade) and Royal FrieslandCampina - the leading
company of dairy products in Netherlands with 135 global experiences.
From Grass to Glass
From its start in 1995, Dairy Development Program (DDP) has been run to improve farm
productivity and produce high quality milk. With the dairy management method “from
grass to glass” to ensure product’s quality and hygienic conditions, purchase milk directly
from farmers and pay higher for better quality. Annually, the company has invested US$1
million in the program in training, technology transfer for farmers, the establishment of a

complete controlling system, and encouraging investment in using bio gas system among
others. Hence, DDP is a full system to control the quality of milk from grass to glass well.
FrieslandCampina Vietnam can supply the market with over 1.5 billion units of milk every
year, offering Vietnamese consumers a wide range of quality dairy products and daily
nutrition under brand names Dutch Lady, Friso, Fristi and YoMost.
Community toward
Besides the business development
mission, the company has also committed
to develop the community in Vietnam.
That is to help local dairy farmers to
achieve sustainable dairy farming, offer
consumers a broad range of milk-based
beverages and child nutrition to improve the
nutritional quality and enhance the
nutritional awareness to improve health and stature of Vietnamese people, and raise
education quality in Vietnam with a study encouragement fund through the Den Dom Dom
Study Encouragement Fund, which carries a message saying “Sharing is Happiness”.
1.1.2. Product portfolio
Vietnamese consumers enjoy our products on a daily basis. The DL has a wide-range of
dairy products from powdered milk to ultra high temperature milk (UHT), and from
Picture 1: 15 Years of Dutch Lady in Vietnam
3


yoghurt drinks to sweetened condensed milk. It can fulfil all of the dairy need for the entire
family.
 Dutch Lady Brand used
for powdered milk and
UHT milk. Powdered milk
focus on kids of 1-6 years

old and for mum in
pregnancy. UHT focus on
kids of 5-11 years old only.
It provides nutrition for
kids to be taller, stronger
and smarter.
 Friso is powdered milk for
kids from 1-6 years old and
for mum in pregnancy, Friso
has been positioned as premium lines.
 Yomost is yogurt drink which is focus on young target from 16 to 24 years old. They
concern about beauty in skin and good for digestive tract. Hence they demand to drink
Yomost to be stronger and more beautiful.
 Fristi with funny image attracts kids from 5-11 years old as yoghurt drink to kids.
 Ovaltine which is imported directly in Thailand with powdered milk and drinking milk
for 7-12 year old kids.

1.2. Overview about the Vietnam Dairy Market
1.2.1. The forecast of Macro-factors in Vietnam from 2013f to 2015f
Recently, Vietnam has emergence as one of the most promising and potential market in
Asia with a large and young population which have a steadily growth around 1.18% per
annum. For instance, the population of Vietnam can reach to 94.2 million in 2014f, 95.47%
in 2015f and 96.47 in 2015f. Furthermore, Vietnam also have very young and dynamic age
structure which has more than 56% of the total population are under 30 years old (Table
08). In a marketer point of view the younger of the age structure, the higher of their
Picture 2: Product Portfolio
4


expenditure. Moreover, the forecasted Real GDP during the year 2013f to 2015f also has

increased approximately 1.3 times (Table 2) comparing with 2012f and kept stable at
8.0%.The increasing of GDP leads to the increase of Vietnamese annual income which
would reach to 1.976$ per capital in 2013f and jump to 2.597$ per capita in 2015f.
Table 1: Vietnam Long-term Macroeconomic Forecasts

(Source: Business Monitor International 2011)
To illustrate that according to AC Nielsen research in five main cities of Vietnam: Hanoi,
Saigon, Da Nang, Can Tho, Hai Phong, there is a dramatically increase of the group of
people who has income 4-7 million per month. Moreover, by 2006, the proportion of
people with income higher than 10 million per month has seized a big proportion and still
going up. These proven data could point out a trend of an increasing of a high class people.
Figure 1: Average income of Vietnamese in 5 main cities

(Source: AC Nielsen Database 2009)
To support for this point, according to the IMF report and forecast, for the period from
2011 to 2013f, there is a trend of decreasing the CPI by more 12%, it started with a high
CPI in the beginning of 2011, then it goes down dramatically 8.1% which is nearly 2 times
in 2012f, and steadily declined to 6.2 in 2013f. Therefore, it is foreseeable to believe about
the trend of recession in CPI for the years 2013f to 2015f, which could be a motivation for
5


Vietnamese people to consume more after a while of time for saving. According to Kotler
(2005), when humans’ living standard improves steadily, customer purchasing power and
spending patterns in term of income distribution and change in income are affected
strongly by economic issue. In the other words that, with the increase of Vietnamese
economy and living standard, which would lead to the increase of purchasing power in the
next 3 years.
It can be realised that Vietnam has did really successfully on its recovery after the big
regression in 2008. Although, the inflation could be one of the key invulnerable risks for

the Vietnamese consumption and the economy, it is forecasted at an affordable rate around
4.8% from 2013f to 2015f. Comparing with the beginning of the regression in 2008, there
was a time the inflation rate has reach to 18.1% which made people really concern on
saving and stop buying things.
To sum up, with its potentialities of high population, increasing of disposal income, the
decline of Consumer price, it would be expected a bright future for increasing Vietnamese
consumption and household expenditure for the next period 2013f to 2015f. In the case of
Dutch Lady Vietnam, with these potential Marco-indicators, it is able to believe about the
increase of sale during this period.
Table 2: Selected Asian Economies: Real GDP and Consumer Prices

(Source: IMF, 2011)
6


1.2.2. The current Dairy Market
On overall, the dairy market has proven its potentiality and stability with its stable growth
during seven years from 2005 to 2011 and still be forecasted to increase for the next 3
years. The Dairy market has expanded with the CAGR at 9.7% in Volume and 16% in
Value from 2005 to 2015f. For instance, it is expected to reach 52.8 thousand billion VND
in 2015f (Figure 21). To zoom in the dairy market, the liquid milk has becoming the big
driver of the dairy market both of volume and value shares years after years. Started at
nearly one-third of the dairy market around 27.6%, the liquid milk soon dominates the
market with more 37.3% in 2012 and expected stable growing for the next 3 years 38.4% in
2013f, 39.6% in 2014f and 40.8% 2015f. The increase of Liquid milk share has taken from
the SCM which is repositioning for the low income family. It is a shift in the Vietnamese
consumer behaviour, which is a proven of the changing in their perception and the increase
of middle class in the society.

Figure 2: Contribution of the Dairy Market



7



(Source: Internal Data)
To illustrate, according to a research of Kantar Worldpanel about the consumption of liquid
milk among the dairy market in 2010 and 2011, the proportion of liquid milk consumers is
increasing steadily especially the group of kids (4-13 years old) has the highest proportion
of increasing by 6%. It is an evident to believe about the changing of Vietnamese
perception about drinking liquid milk. These changing could be the result of the increasing
of Vietnamese intellectual to integrate with the whole world after the war time. People are
more educated to realise the benefits of drinking liquid milk in the daily activities.
Moreover, their disposal income has increase steadily which make them do not consider
too much on buying liquid milk and storage at home to drink.
Figure 3: Drinking Usage Panel

(Source: Kantar Worldpanel Vietnam 2011)
8


To look deeply in the liquid market, the market is highly competitive with two main market
drivers: Vinamilk (VNM) and FrieslandCampina Vietnam (FVC) which are seized more
than 65% of the whole market. VNM is still the market leader, and FVC is closing the gap.
Therefore, in the content of this report, VNM has been chosen at the key competitors of
FVC in the liquid milk market.

On the general, DL has a positive growth of the liquid milk from 2010 to 2011; however,
its growth is quite low comparing with the Average Growth of the whole Liquid milk

market (UTH milk). For instance, in 2011, DL grow +9% while the whole market is +18%.
The gap between DL and the liquid market is quite big which could be the reason for
falling behind the competition of VNM.

Figure 4: Annual Growth rate of Dutch Lady
(Source: Business warehouse and internal market table Jul 2010)
Figure 5: Dutch Lady UHT sales contribution by region

(Source: Internal Data)

To look more deeply in the sale performance of DL, North is still the biggest but lost 1%
share YTD 2011; it would be a consideration with the penetration of VNM in Hanoi.
Mekong as the 2
nd
and East as the 3
rd
gained 1% share at the expense of Central and
HCM.HCM is one of the key cities in Vietnam, but its contribution was not appropriate
with its potentiality, therefore, it needs more investment on HCM to expand the market.
A 2009
Growth
'09 vs '08
A 2010
Growth
'10 vs '09
A 2011
Growth
'11 vs '10
Total UHT categories ('000 litre) 326,000 116% 384,000 118% 454,000 118%
Total DL UHT ('000 litre) 125,558 120% 142,264 113% 154,796 109%

Pack 180ml ('000 ctns) 10,219 117% 10,874 106% 11,944 110%
Pack 110ml ('000 ctns) 7,011 138% 8,445 120% 9,124 108%
Pack 1litre ('000 ctns) 20 100% 311 285 92%
9


1.3. Findings
To sum up, after examine on the current position of DL in Vietnam, there are some
possible findings, which can be pointed out.
• It has been forecast the next 3 years would be expected a bright future for increasing
Vietnamese consumption and household expenditure especially in the liquid milk
market.
• Vietnam is continuously proved as a very potential market with young population
(below 30 years olds which is accounted 56% of the total population)
• Potentiality for mainstream products with middle income people (4.5 – 7.5 mil/month)
occupying a major part (58%) of the population
• Huge opportunity to grow further in the North region as it is the biggest population
contribution with 40%, followed by Mekong Delta with 20%.
• The current liquid market in Vietnam has a high potential with the growth of +18% in
2011, however, it is not appropriate with the growth of DL liquid milk, which was
around 9% in 2011.

2. DUTCH LADY AND 3C ANALYSIS
The 3C's Model is a business model, which offers a strategic look at the factors needed for
success. It was developed by Kenichi Ohmae, a business and corporate strategist. The 3C’s
model points out that a strategist should focus on three key factors for success. In the
construction of a business strategy, triangle must be taken into account: the Customer, the
Competition and the Corporation (3’C) (Ohmae 2005). Only by integrating these three in a
strategic triangle, a sustained competitive advantage can exist. Ohmae refers to these key
factors as the three C’s or strategic triangle. It becomes important to understand that there

are certain needs that arise from the customer end. They include core benefit or service and
expected product. Recognizing this need the corporation or company offers a basic product.
To cater to their expectations and also to differentiate from competitors who tend to morph
their products, corporations offer augmented products. Also, both the corporation and the
competitors eventually tap the existence of potential product.
10


2.1. Company
2.1.1. Segmentation and target consumers
The segmentation of liquid milk market in Vietnam can be divided by four main target
groups: performers, body shapers, naturalists, and functionalists. They are driven by two
main factors: health concerned, individualistic vs. sociable (social behaviour or social
identity). The segmentation has been defined based on their psychology and behaviour
when consumes liquid milk.
Figure 6: Segmentation mapping


Segment
Functionalists

Performers
Body shapers
Naturalists
Define
(Demo-
graphic)
and
Psycho-
graphic

Functionalists can be
defined as people who
are less concerned on
Health and tend to be
more individualistic.
They consume liquid
milk because of its
basic function such as
convenience, supply
the energy for body,
and thirsty. Most of
them are quite busy
Performers extremely
focus on health-
concerned and tend to be
sociable.
They have a better
financial condition to
choose milk which they
believe that is the best
for themselves, their
family, and children.
They have mid-high
income.
The Body shapers
are at the middle
between
Functionalists and
performance about
the health-

concerned.
They also are quite
sociable.
They are really
concerned their
appearance and
They are
extremely
individualistic
and quite
concerned on
health care.
Highly appreciate
natural
ingredients.
They are middle-
high income
people.
11


with their work and
need to provide energy
to continue doing their
job until have time for
eating.
They have middle
income
They have well-
education to understand

about the benefit of
drinking milk
how the other talk
about their body.
They have mid-
high income.
High education
and
Keen on the
Motivation
for
drinking
liquid milk
(Behaviour)
 Time
saving/convenient
 Thirst-quenching
Hunger buster
 Satiation
 Long run energy

 (Mum) Key for
optimal child
development
(height/intelligence)
 (Mum) To bring the
best to my Children.
 (Adult/Teen) Milk is
regenerating/ good
for my development

 Milk has all that one
needs for physical
and mental
achievement
 Full of calcium
and minerals,
good for the
bones, muscles
and shape.
 Can be used as
a meal
substitute.
 Good for the
skin
 I don’t feel
heavy/ feeling
light and fresh
 Has all the
good things
of nature.
 Nutritious
 Regenerating
 Restoring
 Balancing
 Purifying
Occasion
for use and
desired
effect
RTDM

 In the morning/
before going to
work/ to school
for the energy
 As a meal
substitutes at
times
 When tired
 To
refresh/quench-
thirst


 When the feel tired,
anytime they need
an energy re-boost
(after intensive
activity, after
coming back from
school)
 In the middle of the
afternoon to make a
break and to relax
 When on the go all
day and need
something to have at
hand at office.
 Is an essential
part of my
beauty regime

because it is a
natural beauty
enhance.
 I drink it
before and
after sport.
 On the
morning, as
part of my
daily routine.
 Makes me feel
like I am doing
the right thing
for myself and
 As a part of
my daily
dose of
nutrient.
 Whenever I
feel over-
stressed.
 Whenever I
feel over-
heated.
12


my body.
Brand
imagery

 DL: reliable,
generous,
premium
 VNM: accessible,
friendly, relax,
easy going.
 DL: safe, foreign,
specialist, premium.
 VNM: less quality,
more modernity,
more variety

 DL: quality,
premium,
reliable
 VNM:
appealing for
100%
freshness and
modernity.
 DL: premium
brand with
good milk
from Holland
 VNM:
natural,
100% fresh
milk

Based on the segmentation of the liquid milk consumers, DL has chosen the Performers

Group as its targeted consumers. DL has seen its brand characteristic can meet with the
Performers Group characteristic.
2.1.2. Dutch Lady current performance
2.1.2.1. Branding performance
DL has a really good branding strategy for the liquid milk market. The TOM of DL always
stay at the first position comparing with its competitor such as the VNM. For instance,
when asking a consumer about which brand of liquid milk that they know, there are 56.3%
of the responses (in Feb 2011) will recall the brand Dutch Lady.
Figure 7: Monthly TOM brand awareness liquid milk

(Source: Internal Data)

On the contrast, although DL has the highest TOM brand awareness of liquid milk, it still
falls behind VNM in the TOM Advertisement awareness in the liquid milk market.
13


On the normal condition, when DL has a high TOM of brand awareness, it is possible to
have a high TOM of the other measurements, because the brand awareness is the integrated
of the whole branding strategy and tools. However, in the case of DL, it has highest brand
awareness but has lowered on the advertisement awareness. To illustrate, the chart
bellowed has showed the performance of DL advertisement in the market.

Figure 8: Monthly TOM Ad awareness liquid milk

(Source: Internal Data)
Moreover, the P4Ws rate of DL can be seen at first position, comparing with the other
competitors. For some period that VNM has reached more higher than DL. However, on
general, DL has really good loyalty consumers, who are only trust in the value of DL
brand. It is indicated by the chart bellow.

Figure 9: Brand consumed P4Ws liquid milk

14


(Source: Internal Data)
Furthermore, based on the internal data, the brand equity of DL has been closely with its
brand image. There are more than 54% of consumers perceived DL as a brand, which helps
to enhance the children physical and mental improvement.
Figure 10: Dutch Lady Brand image

2.1.2.2. Findings
To sum up, after examine on the current brand position of DL in Vietnam, there are some
possible findings, which can be pointed out.
• The branding position does not appropriate with the sale performance. DL has almost
the highest brand awareness in the liquid milk market, but it seems the consumers
already know about the DL but they really do not want to buy DL in the case they need.
• Moreover, it seems the current advertising campaign of DL does not effective enough
comparing with its own rivals.
2.2. Competitors analysis
2.2.1. Current performance of Vinamilk
VNM is the 1
st
key competitor, very strong on nationwide, it has develop the “fresh milk”
concept. Over the past two years, VNM has become more aggressive and professional in
their marketing approach. Moc Chau and Bavi would be also the key competitor, which has
seized large proportion in the North. And a new emerging competitor, True Milk (TH)
which already shout out loud about the huge investment in fresh milk segment. However,
on general, the sales of DL and VNM have accounted almost the liquid milk market in the
term of market shares and sale. In 2011, VNM has reached 39.27% in Value and 41.34% in

15


Volume, while DL has gained 28.56% in Value and 24.59% in Volume. These two players
have dominated the liquid milk market with approximately 67.83% in value. Therefore,
this report will pick out VNM as the key rival to compete.
Table 3: Market share of Dutch Lady and Vinamilk in Value and Volume






(Source: Internal Data)
2.2.2. Brand performance Vinamilk
2.2.2.1. Brand Characteristics
VNM has targeted the same customers of DL, however, the way VNM approach is quite
different. The branding strategy of VNM has tended to touch the target group by emotional
approach. VNM has generated the human characteristic through its brand. These
characteristics signify brand behaviour through its tones of voice and also the way to
communicate to the target customers. VNM’s character has been defined as being
beautiful, friendly, active, healthy and social. These characteristic has been expressed in its
colour using, image, and music.

Picture 3: Some communication materials of Vinamilk
Through the communication material, it can realise the clearly its brand characteristics.
VNM used the natural photo with the green colour; it would create the relaxation feelings
to the audience and it can recall the origin of product is from nature. The audience can feel
friendly, healthy, and beautiful when they see these materials. The Brand image is the
current view of the customers about a brand. It can be defined as a unique bundle of


Company
2009
2010
2011
Value %
VNM
38.28
39.28
39.27
DL
27.54
27.72
28.56
Volume
%
VNM
41.14
42.3
41.34
DL
25.1
24.22
24.59
16


associations within the minds of target customers. It signifies what the brand presently
stands for. It is a set of beliefs held about a specific brand.
VNM has expressed with full of energetic, diversified image of 100% fresh milk and the

closely approach with funny cow dancing. That leads to the differentiation of character and
image compared with Dutch Lady.
Figure 11: Brand Character and Image of Vinamilk

(Source: internal Data)
2.2.2.2. Branding Strategy
In April, 2007 VNM had first launched fresh milk with heavy communication supports.
From Jul 2008 to May 2012, VNM built brand awareness strongly through the WOW
channel big promotion and relaunch fresh platform. As these activities, they got more
attractive by new image for fresh milk. In 2011, VNM fresh 100% pasteurized is one of a
big evolution for health- oriented consumer. In Feb, 2011 keeping the momentum of fresh
milk, VNM ADM+ milk has been launched with funny cow. After these revolutions, VNM
always could be confident in no. 1 of dairy market with fresh milk, and nutrition.

a. TVC communication
The TVC communication has been used to transfer the concept of “Fresh milk” to the
audience. The concept is saying that “Fresh milk is good but not enough”, it is also demand
more added nutrients.
• Marketing objective: to recruit consumers who want to have fresh milk with added
nutrients and get a trial from them with new concept.
• Target Audience: kids from 4-12 years old and moms from 25-40 years old.