Launched fresh milk products for TH school MILK...3Picture 3 Launched TH true NUT premium nut milk...4Picture 4 Groundbreaking ceremony of Thanh Hoa high-tech dairy farming and milkproce
OVERVIEW OF THE COMPANY
About the business
TH Food Chain Joint Stock Company
Trading name: TH Joint Stock Company
Located at 166 Nguyen Thai Truong Street in Quang Trung, Vinh City, Nghe An Province, our office is easily accessible Additionally, we have a Hanoi office situated on the 2nd floor of the North Asia Building at 09 Dao Duy Anh Street, Phuong Mai Ward, Dong Da District, Hanoi.
Ho Chi Minh City Office: Tower B, 6th Floor - Viettel Building 285 Revolution August, P.12, District 10, HO CHI MINH CITY
Picture 1 Logo of TH True Milk.
(Source: https://www.tryandreview.com/id/brand/th-true-milk-vietnam)
History of formation and development
Founded in 2008, TH True Milk Company embodies the concept of "True Happy," reflecting the brand's commitment to quality and customer satisfaction While many associate the name with the English meaning of happiness, others believe it honors the company's founder, Mrs Thai Huong.
In 2009, the TH True Milk program was launched, incorporating advanced Israeli beef cultivation techniques and selecting from a diverse range of New Zealand cow breeds This strategic approach has led to substantial growth in the company's business.
The business is currently a market leader in the production of fresh milk that is
TH True Milk has significantly expanded its operations by nurturing a herd of up to 45,000 cows, ensuring high-quality dairy production The brand launched its products to consumers in December 2010, and by 2013, it achieved impressive financial success, generating an estimated total revenue of 6,000 billion VND, with a net income of 3,000 billion VND for that year.
"By 2015, the TH True Milk factory will achieve sales of 3,700 billion VND, and TH True Milk will account for 50% of the fresh milk market," Ms Thai Huong said in
In 2010, the CEO of TH True Milk made a statement perceived as "arrogant" due to Vinamilk's dominance in the Vietnamese milk market However, with its swift business growth, TH True Milk demonstrates the potential to realize the ambitious claims made by Ms Thai Huong.
And after the success of the TH True Milk project, the business has also invested in many other projects such as:
Growing medicinal herbs for the purpose of processing high-end TH herbals for the US market
Clean fruit and vegetable brand FVF
In Moscow, Russia, a state-of-the-art dairy farm has been inaugurated, marking the first phase of a significant project to establish a high-tech dairy cow complex This ambitious initiative aims to revolutionize milk processing and is projected to cost up to $2.7 billion Additionally, there is a growing trend in cultivating medicinal herbs to create premium TH herbals for the lucrative US market.
Company Size
TH True Milk has quickly established itself as a leader in the Vietnamese dairy market, offering over 70 fresh milk-based products The company's commitment to delivering clean and high-quality products has been central to its mission, ensuring consumers receive the best in dairy.
TH Group's dairy farm in Nghia Dan district, Nghe An, was officially recognized by the Asian Record Organization in 2015 as "Asia's largest centralized dairy farm with CNC application." Spanning an impressive 37,000 acres, TH has been at the forefront of dairy farming innovation.
Since October 2009, the "Concentrated Dairy Farming and Fresh Milk Processing on an Industrial Scale" project has been underway, with a total investment of $1.2 billion Now, at the halfway point of the project, significant progress has been made in advancing dairy farming and milk processing capabilities.
Since October 2009, a project focusing on concentrated dairy farming and industrial-scale fresh milk processing has been implemented over an area of 37,000 hectares, currently housing a total herd of 45,000 cows.
The TH Group is investing in a state-of-the-art clean fresh milk processing factory, the largest in Southeast Asia, to ensure a closed-loop process in cow raising and milk production Equipped with the world's most advanced machinery, TH True Milk experienced a significant growth of approximately 22% in volume and 30% in revenue as of November 2018 The brand has successfully captured over 40% of the fresh milk market share in urban retail channels.
Since 2017, TH Company has experienced remarkable growth, with net profits rising from 319 billion VND in 2017 to 450 billion VND in 2018 Over four years, from 2014 to 2018, the company's net profit surged by a factor of 15, significantly exceeding leadership projections by achieving sales surpassing 7,000 billion VND in 2018 This success is largely attributed to the booming market for fresh milk products, which has led to a dramatic increase in domestic milk production Consequently, the reliance on imported powdered milk for reconstitution has decreased from 92% in 2008 to over 60% today.
Achievements
Picture 2 Launched fresh milk products for TH school MILK.
In 2010, Vietnam welcomed its first "woody" cow and celebrated the groundbreaking of the TH clean fresh milk factory The following year marked the launch of TH true MILK and the opening of the first TH true mart stores in Hanoi and Ho Chi Minh City By 2012, an international symposium on milk was held, leading to the introduction of fresh pasteurized milk products with dietary additives In 2013, TH expanded its offerings with TH true YOGURT and inaugurated its clean fresh milk factory The company launched home delivery services in 2014 and introduced the TOP KID formula for children aged 2-6, alongside TH school MILK By 2015, TH achieved a record for the largest cluster of high-tech dairy farms in Asia and launched several innovative products, including TH true MILK pasteurized fresh milk and award-winning SCHOOL - MILK - TOP KID products The year concluded with recognition at the Moscow World Food Fair, where TH won multiple gold and silver medals.
1 Bronze awards. ˗ 11/17/2015 Launching of TH true Yogurt Sterilized Drinking Yogurt - TOP KID.
Picture 3 Launched TH true NUT premium nut milk
TH has made significant strides in the dairy industry, winning three awards at the Gulfood Dubai Fair on February 21, 2016, and commencing its dairy farm complex in Moscow province, Russia, on May 18, 2016 The groundbreaking ceremony for another dairy farm in Kaluga province took place on October 18, 2016, and shortly after, TH was recognized as the best dairy farm in Vietnam by Vietstock By the end of 2016, TH launched several products, including TH true BUTTER and TH true CHEESE, and was awarded a gold cup for its organic dairy farm In 2017, TH continued to innovate with the introduction of TOPTEEN sterilized drinking yogurt and TH true MILK Organic fresh milk, among other products The company also initiated high-tech dairy farming projects in Ha Giang and Phu Yen, and inaugurated its first dairy farm in Moscow on January 31, 2018 Notable product launches included TH true NUT premium nut milk and TH true ICE CREAM made from pure fresh milk In 2018, TH commenced operations at its milk processing factory in Kaluga, Russia, and received the "National Brand" logo for the third consecutive year The inauguration of the Nui Tien clean water, fruit, and herbal factory on February 27 marked another milestone in TH's commitment to quality and innovation.
2019 The 2nd class Labor Medal was awarded to him. ˗ The Thanh Hoa high-tech dairy farming and milk processing plant was officially launched on May 8, 2019.
Picture 4 Groundbreaking ceremony of Thanh Hoa high-tech dairy farming and milk processing project.
The initiative to establish a high-tech dairy farming cooperative aims to support farmers in Thanh Hoa On April 25, 2019, a cooperation agreement was signed with Wuxi Jinqiao Group, known for owning China's largest commodity hub Subsequently, on October 25, 2019, the organization became a co-founder of the Vietnam Business Alliance for the Environment By February 2, 2020, the project imported 4,500 high-yielding HF cows from the United States, with a goal to reach a total of 70,000 cows by 2021.
Product
TH True Milk Company offers a diverse range of products, including purified drinking water, carbonated soft drinks, and nutritious milk However, its cow's milk products are particularly popular and widely recognized among consumers.
The best-selling TH True Milk milks on the market include:
TH True Milk pasteurized fresh milk
TH True Milk pasteurized fresh milk
TH True Milk yogurt: Fruit, aloe vera, blueberry, durian, passion fruit, …
TH True Milk Drinking Yogurt: Strawberry, orange, blueberry flavor, …
TH True Milk nut milk: Almonds, macadamia, brown rice, walnuts,…
Picture 5 Types of TH True Milk’s product
(Source: https://www.thmilk.vn/category/khuyen-mai/)
Picture 6 TH True Milk's refreshing fruit drink
(Source: https://ngheandost.gov.vn/nghien-cuu-kh/ung-dung-cac-tien-bo-khkt-va-cong- nghe-vao-san-xuat-cay-an-qua-1786.html)
MARKET ANALYSIS
PEST
Food safety regulations are stringent, with oversight from the National Assembly's Committee on Science, Technology, and Environment, which conducts reality checks on food safety practices at TH Group's farm Additionally, a stable political environment supports the company's growth and business development.
The State promulgates many preferential and supportive policies for the dairy industry
The terms, conditions and content of the website are governed by the laws of Vietnam and the competent courts in Vietnam.
Intellectual property rights are recognized by Vietnamese copyright law and international conventions
Picture 7 Ground-breaking ceremony of the farm focusing on high-tech application
TH True Milk áp dụng công nghệ tiên tiến nhất thế giới tại dự án sản xuất sữa lớn nhất đồng bằng sông Cửu Long Dự án này không chỉ nâng cao chất lượng sản phẩm mà còn đảm bảo quy trình sản xuất bền vững Với việc sử dụng công nghệ hiện đại, TH True Milk cam kết cung cấp sữa tươi nguyên chất, an toàn cho sức khỏe người tiêu dùng Đây là bước tiến quan trọng trong việc phát triển ngành sữa Việt Nam, đồng thời góp phần thúc đẩy kinh tế địa phương.
By 2018, TH True Milk experienced a significant growth of 22% in output and 30% in revenue, solidifying its position in the retail market Currently, TH True Milk holds a commanding 40% market share in the inner city's retail channel segment.
Vietnam's economy is gradually developing, creating favorable conditions for domestic milk consumption
Reducing import tax on dairy products, thereby positively impacting the increase in dairy products imports.
Picture 8 Milk market structure of TH True Milk
(Source: https://doanhnhanduongthoi.com/5-ap-luc-canh-tranh-cua-th-true-milk-91-
TH True Milk boasts an impressive brand awareness index of 85%, with a leading awareness index of 27% and a loyalty index of 29% This strong presence establishes a meaningful connection with consumers, reinforcing the brand's position in the market.
People's living standards increase, creating favorable conditions for the development of consumer products, especially dairy products
The demand for improved and guaranteed health of consumers increases.
Children's demand for milk is increasing
Vietnamese people do not have the habit of drinking milk.
Picture 9 TH True Milk's customers (Source: https://ngaymoionline.com.vn/th-true-milk-tran-quy-me-thien-nhien-tu-tung- chi-tiet-nho-8753.html)
TH dairy farm system is applying Israeli dairy farming technology.
TH True Milk owns machinery and technology of developing countries in the dairy industry such as New Zealand, Israel
Using electronic chip to wear foot (Pedometer) to manage cows.
Applying modern measurement and control technology of Simen, Danfoss, Grundfoss Products are manufactured according to Organic and Global GAP standard.
Picture 10 Electronic chip to wear foot (Pedometer) for cows
(Source: https://nhadautu.vn/sua-th-sua-tuoi-cong-nghe-40-d15483.html)
TH True Milk strategically segments its market by analyzing population density and product consumption rates, prioritizing distribution in major urban areas The brand places a strong emphasis on catering to all customer demographics, particularly children, young adults, and families with stable incomes Additionally, TH True Milk targets health-conscious consumers by segmenting the market based on customer buying behaviors that reflect an interest in health and wellness products.
TH's products cater to all age groups, with a primary focus on customers aged 15-35, who are predominantly young individuals or families with steady incomes The brand places significant emphasis on married female customers, recognizing that they often make purchasing decisions for their households.
TH True Milk is a leading dairy distribution company in Vietnam, specializing in direct B2C sales The company has established a comprehensive retail network across the country, ensuring direct access to consumers through various outlets such as grocery stores, convenience stores, and supermarkets.
TH Group views Singapore as a significant and promising market within ASEAN Over the years, the company has engaged in numerous trade promotion activities, achieving substantial progress In 2021, TH partnered with L'earth Group, including L'earth Singapore and L'earth Vietnam Co., Ltd., to expand its reach into Singapore and Malaysia This collaboration laid the groundwork for a memorandum of understanding with trading partners in Singapore, beginning with HAO Mart As a result, TH Group has successfully launched over 30 product lines in the Singapore market.
SWOT
Ms Thai Huong, the founder and Chairman of the strategic board of TH true Milk Group, has successfully introduced the TH true MILK brand to the market, earning high consumer appreciation By 2016, the brand offered 55 varieties and captured over 50% of Vietnam's fresh milk market share As a pioneering Vietnamese entrepreneur, she was the first woman to implement clean fresh milk technology in the country, establishing a closed production chain that ensures quality from green pastures to clean milk cups, utilizing advanced technology for nutritious fresh milk.
Recognized for her exceptional leadership, she was named one of Forbes' top 50 most powerful businesswomen in Asia in both 2015 and 2016 In 2016, she received multiple prestigious awards, including the Gulfood Outstanding Achievement Award in Dubai for her significant community contributions, the Top 20 Most Influential Women in Vietnam by Forbes Vietnam, the ASEAN Typical Businesswoman Award, and the Global Trade Ambassador Award from the Los Angeles Women's Business Association in the USA.
Advantages in terms of personnel
Employees possessing advanced technical skills, such as filling machine operators and maintenance technicians, are essential for efficiently managing modern technology platforms Their ability to quickly learn and assimilate information makes them invaluable in today’s rapidly evolving industrial landscape.
Employees who are able to manage and operate: Sales supervisors, supermarket channels, TH True Mart stores,
Employees who can locate talent, manage human resources, and assess prospects include: Specialist in human resource development and recruitment
The company employs around 900 Vietnamese workers across various departments, offering a minimum salary of 3.2 million VND per employee To enhance their skills, experts and farmers provide training on Israeli dairy farming techniques.
Bac A Bank is a reliable source of capital.
A state-of-the-art dairy farming and milk processing initiative is underway in Hoa Thuan border town, Quang Hoa district, Cao Bang province, with a total investment of 2,544.5 billion VND This project aims to establish a concentrated livestock farm housing a dairy herd of 10,000 heads, alongside a milk processing facility capable of producing 49,000 tons of milk per year.
A groundbreaking dairy farming and high-tech milk processing project is set to launch in the communes of Vinh Gia and Vinh Phuoc, located in the Tri Ton border district of An Giang province Once fully operational, this initiative will become the largest high-tech, closed-process dairy project in the Mekong Delta, featuring a concentrated cow population and a substantial investment of 2,655 billion VND The facility will include a clean, fresh milk processing plant capable of producing 135 tons of milk daily, serving a herd of 10,000 cows.
Sales and profits are constantly increasing over the years
If TH's net profit in 2014 was 27 million dong, it more than doubled in 2015, reaching
130 billion dong in 2016 Starting in 2017, TH's tremendous growth pace continues In
In 2017, TH reported a net profit of 319 billion dong, which increased to 450 billion dong in 2018 Notably, when comparing 2018 to 2014, TH's net profit surged 15 times over just five years This figure represents net profit before accounting for depreciation, reflecting the group's investment expenditures that have been offset by asset depreciation.
In 2018, TH achieved a remarkable income milestone of over 7,000 million VND, exceeding Ms Thai Huong's initial expectations This success was driven by the outstanding growth of their fresh milk products The brand positioning of TH real MILK, often associated with the term "true," reflects Ms Thai Huong's commitment to delivering quality, which has now become a reality.
In 2020, TH Group, supported by Bac A BANK, significantly expanded its dairy operations by importing thousands of high-yielding Holstein Friesian (HF) cows from the US to Vietnam This strategic investment has increased the herd size to 45,000 dairy cows, with projections to reach 70,000 by the end of 2021.
The TH dairy farm system leverages advanced Israeli dairy technology to enhance cow management, accurately identify estrus, automate milking processes, ensure milk quality, facilitate early mastitis detection, and prevent illnesses among the herd.
The farm utilizes advanced Amiad water filtration technology to ensure clean and secure water for cows An automated milking system is meticulously monitored to uphold stringent security and sanitation standards The milk is then transported to a central storage tank through a cold pipe system, maintaining a consistent temperature of 2-4 degrees Celsius until it is delivered to the factory via a refrigerated tank truck.
Asia's largest fresh milk facility boasts state-of-the-art machinery from G7 countries and Europe, ensuring top-tier production quality The entire operating system adheres to ISO 9001 standards, while all products are manufactured and maintained in compliance with ISO 22000 regulations, meeting stringent food safety and hygiene requirements.
The advantage of clean milk brand.
The top awareness index of TH true MILK (Top of Mind - TOM brand awareness) is
A recent report by an international market research group reveals that TH true MILK is the leading brand in the dairy sector, with 27% of consumers identifying it first when thinking of milk The brand boasts an impressive overall awareness rate of 85%, while its loyalty index stands at 29% This indicates that out of every ten consumers, approximately three are loyal customers who are enthusiastic about and willing to engage with the brand, according to the online newspaper Communist Party of Vietnam.
In 2020, TH Group has 4 product groups awarded with national brand titles including
TH true MILK offers a range of products including fresh milk, pasteurized milk with TOP KID formula, school milk, and TH true YOGURT, all made from clean, fresh milk sourced from TH farm Since its inception in 2009, TH has committed to the core value of "For the community's health," focusing on producing high-quality, natural milk products The company actively engages in community initiatives, such as establishing dairy farms and factories to create local jobs, enhance agricultural efficiency, and has donated millions of glasses of milk to those in need.
Because of the inadequate waste treatment infrastructure, the communities close to the industry are polluted.
People in Nghia Lam commune, Nghia Dan district, Nghe An province are currently experiencing three major concerns caused by TH True Milk farm:
Air pollution is significantly impacted by various factors, including the unpleasant odors emanating from cow farms, feed processing areas, and waste treatment facilities Additionally, dust generated by factories, freight vehicles, and litter further exacerbates the air quality issues, highlighting the need for effective pollution management strategies.
BUILD A SALES TARGET
The base built the target
TH Group proudly ranks among the top 10 honored enterprises, with two of its products receiving the prestigious Gold Brand award Since its launch in 2009, TH true milk has revolutionized the fresh milk market in Vietnam through advanced industrial technology and a commitment to leveraging the country's natural resources As of March 2021, TH true milk has captured 30% of the fresh milk market share in retail channels, positioning it just behind Vinamilk and establishing a strong competitive presence.
TH True Milk stands out in the market by promoting its "clean milk" concept, emphasizing public health and consumer well-being The brand focuses on natural ingredients, enhancing immunity, and ensuring health benefits, all while utilizing the most advanced production processes that meet international quality standards.
3.1.2 Actual resources of the business
TH Milk Food Joint Stock Company, known as TH True Milk, prioritizes resource quality and has experienced rapid growth in both size and human resources The company's workforce is a blend of local and international talent, with key positions held by foreign experts, including the company president In addition to a team of top management professionals, TH True Milk also employs skilled personnel directly involved in production, ensuring high standards in its operations.
3.1.3 The results of the sale in the past.
The Vietnam Dairy Association (VDA) projects that per capita milk consumption in Vietnam will rise from 15 liters per year in 2010 to approximately 28 liters per year by 2020.
Table 2 Table of figures on sales and profit 2016-2018
From 2016 to 2017, TH True Milk experienced significant growth, with sales rising from 3,800 billion VND to 11,220 billion VND and profits increasing from 130 billion VND to 319 billion VND However, in 2018, sales slightly declined to 9,810 billion VND, while profits continued to grow, reaching 450 billion VND As of now, TH True Milk has not disclosed its sales and profit figures for 2019 and 2020, but it is anticipated that profits may have decreased during these years due to the adverse effects of the Covid pandemic on the market.
Vietnam's current milk and dairy product consumption is average compared to neighboring countries, with per capita output at 25-28 liters per person per year—approximately four times lower than the global average and 40% less than countries like Singapore and Thailand This indicates significant growth potential for milk consumption in Vietnam According to a Kantar Worldpanel report, the demand for milk and dairy products is expected to rise sharply, driven by a young population and increasing income levels, with projected growth rates of 7% to 8% annually from 2020 to 2025.
Target sale in the future
Table 3 Expected sales in products
Expected sales in customer (Billion VND)
77 Direct stores 0.12 24 10.8 13.2 Online stores 0.16 36 16.2 19.8 Wholesaler 31
Table 4 Expected sales in customer.
Organize sales activities
Sales force
When designing sales organizations, it's essential to determine the number of salespersons required to effectively serve both existing and potential customers The expansion of stores necessitates hiring additional sales staff To evaluate the sales generated by adding one more salesperson and to assess workload, we employ workload methods.
Step 1: Compute Total Number of Calls to Current Customers
Category of account Number of accounts Calls per years Total calls
Step 2: Compute Total Calls made per Salesperson
Salespersons will average 4 calls per day 4
Salespersons will work outside office 5 days per week 5
Salespersons will work 45 week per year 45
Sales calls per year for each salesperson 4 x 5 x 45 = 900
Step 3: Compute Total Number of Salespersons
Sales calls to service Existing Accounts 2526
Sales calls Made per salesperson 900
Adjust for other workload Factors
20 percent to call upon new customer and 10 percent for customer service duties
= 30 percent, 2.85 / 0.7 ~ 4,07 salespersons needed to service existing customers, call on new customers and provide customer service
TH True Milk fosters a professional work environment centered on customer value, offering numerous career development opportunities In today's digital age, finding suitable jobs has become easier through various online platforms, including the TH True Milk website and job search sites like timviec365.vn, vieclam.com, and topcv.com The company primarily seeks to fill positions in business roles and production jobs, including dairy sales staff, market development specialists, sales personnel for retail chains, dairy farm engineers, and factory workers.
TH True Milk Company recognizes that its employees are its most valuable asset, playing a crucial role in the business's development Each position within the company has specific skill requirements that applicants must meet, as these skills are essential for job performance Additionally, the company provides further training to enhance these skills once employees begin their roles.
Training: ˗ Step 1: Determine the value of the training to the employee and the company as a whole
Periodic training for employees is essential to enhance their responsiveness to sales trends, ultimately benefiting the company in the long run The first step is to identify the specific training needs within the organization.
The company must implement a comprehensive training program for new and underperforming salespeople to enhance their skills and improve revenue Key areas of focus include sales techniques, effective communication, complaint resolution, and customer care By investing in this targeted training, the company can mitigate revenue loss and boost overall sales performance.
The training program, designed with insights from top salespeople and senior sales managers, focuses on enhancing employees' communication, sales, complaint handling, and customer care skills By boosting their confidence in customer interactions, the program aims to increase sales by 15% while improving overall customer care performance.
Staff will be trained in skills within 2 weeks The result will evaluated based on employee turnover in the first 3 months.
The company's incentive policy includes a salary structure where 60% is the base salary, complemented by a 10% travel allowance, 10% for other allowances like meals and phone calls, and a 20% commission based on the employee's contributions to the business To further motivate employees, the company offers a 13th-month salary for those who remain with the organization for at least one year, encouraging long-term commitment and loyalty.
Bonus policy: Every month, based on the work results of employees, the company has a reward policy for individuals who achieve the highest revenue
At the end of each financial year, the company implements a reward policy that recognizes individual achievements based on monthly evaluations and overall business results This bonus structure is designed to be specific, detailed, and equitable for all employee levels.
Purpose: ˗ Motivation to work. ˗ Create a healthy emulation environment for employees to develop their full potential, promote the Company's strong development
Other incentive policies: Besides the basic salary and bonus policy, the company needs to have other promotion policies to support and encourage employees to work better such as:
The Company implements an annual vacation policy that includes field trips for all employees, aimed at enhancing comfort and rejuvenating their workforce These trips foster motivation by encouraging relationship building, facilitating learning, and sharing experiences, ultimately creating a collaborative environment that boosts overall work efficiency.
Health care policy: In addition to 2 types of compulsory insurance (health insurance, social insurance), the company will organize periodical health checks for employees once a year.
Various welfare policies encompass support for significant life events, including allowances for birthdays, funerals, weddings, and illnesses, as well as transportation subsidies for returning to one's hometown Additionally, there are gifts and bonuses provided during holidays and Tet, along with study promotion rewards for children at the end of the school year.
International Children's Day, Mid-Autumn Festival. ˗ Policy regime based on seniority of work. ˗ Cultural - Physical - American movements organized by the company on festivals Support for travel expenses, subscription packages.
Direct store
Despite low growth rates in various industries, the dairy sector continues to experience stable growth Milk remains a vital product for daily life, serving as a cornerstone for maintaining this growth.
TH True Milk has established a comprehensive distribution network across 22 districts in Ho Chi Minh City, ensuring that each district is served by at least one store Each store, spanning approximately 40-45m², is equipped with modern storage systems and facilities to maintain product quality The uniquely designed TH True Mart stores not only showcase the brand's products but also enhance the overall customer experience, reinforcing the brand's commitment to quality and innovation.
As districts continue to develop and the population grows, TH True Milk is expanding its presence with stores appearing throughout the region To cater to increasing customer demand, the company plans to add 1-4 new stores in large and densely populated areas.
To establish a store in specific areas, a resolution is required The anticipated store will cover an area of 40-45m², serving both as a display space for products and a storage warehouse The ideal locations are densely populated neighborhoods, with a preference for premises situated away from the main road system.
Before expanding our store locations, it's essential to assess the milk demand in various regions In high-density residential areas, such as Districts 3, 4, Binh Thanh, and Binh Tan, we plan to open 2-3 additional stores Additionally, we will establish 1-2 stores in less populated areas, including Can Gio and Nha Be districts.
The bottom panel expresss the prejudice of quarter 3 and quarter-4 along with the size of the expected store will open them in each area:
Table 6 Statistical tables of expected sales in 3 & 4 quarter rd th
Agents, wholesalers and retailers
For agents, wholesalers and retailers:
For orders under VND 5,000,000, the business offers a 50% discount on delivery fees, while for orders exceeding VND 5,000,000, the business covers the full transportation cost.
For orders totaling 500,000 VND or more, the business offers free shipping within a 3km radius For deliveries beyond this distance, customers will receive a 50% discount on the freight charges.
For agents, wholesalers and retailers:
- Pay by e-wallet (Vnpay, Zalopay, Momo, ) because other forms of payment by e-wallet will have many discount codes to attract customers.
For agents, wholesalers and retailers
Discount: The discount rate depends on the product value, ranging from 1-4% and +5,000VND/product (exhibition fee)
For agents, wholesalers and retailers
For products with expiry date, enterprises have 2 options:
Support to sell for agents, whosalers/retailers quantity of milk for customers who need to consume a large amount of milk during the day.
Product recall = 90% of the product value that agents, wholesalers/retailers have imported.
Once-twice a week Once-twice a month Dealers, wholesalers/retailer s x
• B2B (Business to Business) CRM is understood as the process of managing relationships with customers, helping companies understand the needs of customers.
• Build and maintain relationships with customers
• B2B CRM includes an overall business strategy with Sales, Marketing andCustomer Service data.
E-commerce platforms like Shopee, Lazada, and Tiki offer sellers a vital connection to potential buyers for their products or services By using these platforms, sellers agree to the commission fees charged by these third-party providers Consequently, for each sale or transaction completed, the platform earns a commission from the sale.
What are the benefits of B2B CRM? ˗ Manage contacts easier ˗ Create a better customer experience ˗ Good launch of targeted marketing campaigns
To effectively implement a B2B CRM strategy, start by identifying and categorizing customers to tailor relationship approaches, utilizing software to maintain comprehensive records of interactions Ensure a prompt response to buyer inquiries by building a skilled team capable of addressing customer needs efficiently Listening to customers is crucial; gather feedback to help them recognize the value of your offerings Lastly, focus on the organization as a whole rather than individual clients, aligning your activities with the collective goals of the company to enhance customer attraction and retention.
An example of the most effective B2B CRM methods:
Unilever leveraged multiple channels, including TV, online media, and email, to encourage customers to participate in an online survey for the Dove brand This comprehensive outreach led to the completion of 128,000 surveys, exceeding expectations by 28,000 responses.
Businesses can enhance customer understanding and service quality by leveraging data-driven insights This approach enables employees to work more efficiently and allows sales and marketing campaigns to follow clearly defined stages rather than relying on guesswork Ultimately, these strategies foster stronger relationships with customers and build trust.
For B2C ˗ B2C ((Business to Customer) CRM is a customer relationship management software built exclusively to handle the business requirements of customer- facing businesses. ˗ Mainly exploiting customers' habits and habits.
Benefits of B2C CRM? ˗ Improve customer satisfaction ˗ Attract and retain customers and get leads
To effectively implement a B2C CRM strategy, companies must first identify customer segments based on demographics, understanding their needs, preferences, and financial capabilities to provide tailored solutions Utilizing systems that track customer insights and manage contact information is essential for storing valuable customer data Moreover, integrating multi-channel support is crucial, as over 67% of customers engage through social media platforms like Facebook and Twitter, with 33% preferring these channels for customer care A comprehensive CRM system that encompasses various customer care options, including email, texting, and phone, ensures that B2C businesses can effectively cater to customers across diverse technology platforms.
Marketing activities
The "Strengthening the Future" campaign aims to support families, parents, and children in ensuring that children return to school after the pandemic, fostering their beliefs and enhancing both their physical and mental resilience.
Marketing strategies for the third and fourth quarter
Increased brand recognition TH True milk
• Use online social media advertising channels such as
Stage 1 (first 2-3 months): Run ads as reach (not focused on sales), reaching as many customers as possible.
- This is a form of advertising that does not focus on sales, so the cost is quite low, about 1,500,000 VND (Approach ~ 30,000 people) / Week.
In Stage 2, after customers have been introduced to the product, it's essential to enhance awareness through targeted promotions and advertisements This includes displaying promotional content on Facebook for users who have relevant search histories or are planning to purchase TH Truemilk dairy products.
At this phase, the focus is on consistently promoting products on personal pages to enhance purchasing motivation, with daily costs ranging from 500,000 to 700,000 VND, which can generate approximately 100 orders each day.
• Organize viral events and programs to cover brands on outreach channels.
Collaborating with renowned artists like singer Dong Nhi and Bao Thy, particularly those who are parents, can significantly enhance the visibility of TH TrueMilk products By sharing their experiences and reviews on social media platforms such as Facebook and TikTok, these influencers help to build consumer trust and eliminate doubts regarding the quality of TH TrueMilk.
Conduct marketing campaigns to reach customers and take care of customers.
- Example: Create a form for customers to do surveys before and after buying.
To analyze and evaluate which product their needs use.
Billboard ads This is an early but still effective way to reach potential customers It is easy to see this type of advertisement at large, crowded intersections.
To effectively launch a campaign showcasing TH TrueMilk products, focus on targeting high-traffic locations such as downtown areas, densely populated neighborhoods, and intersections equipped with traffic lights This strategic approach will maximize visibility and reach the intended customer base.
Change customer habits from offline to online.
TrueMilk is offering exciting promotions for customers who order products through their website Enjoy discounts and free delivery on orders over 500,000 VND within a 3km radius For orders exceeding 3km, customers will receive a 50% discount on the delivery fee This promotion is available during the time when support costs exceed 50,000,000 VND.
Partnering with e-commerce platforms like Shopee, Lazada, and Tiki streamlines the purchasing process to just a single click This collaboration leads to a significant increase in orders, leveraging existing customer data and enticing promotions, including free shipping based on order value The service fee for this partnership is 2.2% per product.
To accelerate sales and reduce customer hesitation, implement targeted promotions that encourage immediate action For instance, offer a limited-time deal where purchasing two packs of milk includes a complimentary box of the same product or a small toy for children This promotion should run for 10 days and has a budget of 30,000,000 VND.
To maximize profitability, businesses should focus on retaining existing customers rather than incurring high advertising costs to acquire new ones By leveraging historical customer data, companies can create loyalty programs that reward long-term customers and encourage repeat purchases For instance, a loyalty campaign could allow customers to earn points for every purchase, such as accumulating 1 point for every 100,000 VND spent After collecting 10 points, customers could receive a free batch of milk; 50 points could earn them a baby backpack, and 100 points could lead to a donation of a three-wheel bicycle for children This initiative would run for one year or until the gifts are depleted, with an estimated budget of 30,000,000 VND.
Check and evaluate sales activities
Overview - Position - competition
TH True Milk holds a dominant 45% market share in Vietnam's milk industry, with Ho Chi Minh City contributing over 50% of its total sales To maintain and enhance these sales figures, it is crucial to continuously evaluate and adjust strategies at each planning stage While historical data serves as a foundation for forecasting future performance, actual sales can be influenced by various internal factors, such as human resources and technology, as well as external macro and microeconomic conditions Therefore, establishing comprehensive and objective evaluation criteria is essential for adapting to environmental changes and ensuring sustained growth.
Evaluation
For employees, we are divided into three branches: separate staff for B2B customers and employees for B2C customers, and online employees The evaluation criteria will be noted as follows:
Sales Have the expected sales in each period or not? The data for each type is clearly defined in section 3.2
Customer satisfaction and evaluation methods ˗ Through customer reviews and customer satisfaction ˗ Through rating boards and surveys Contact Direct review or surveys
Regular knowledge assessments and training sessions for employees are essential for continuous improvement An appointed expert will meticulously review and evaluate these assessments, collaborating closely with the HR department to enhance the recruitment and training processes.
The staff's Employees, regardless of department, are encouraged to voice opinion their opinions and encourage creativity, giving advantages and disadvantages in the working process.
We evaluate employees across various customer segments using four main criteria, with the first three focusing on external factors Numerous elements can influence sales targets for both locations and individual employees, such as poor store positioning, misidentified target customers, or inappropriate sales target allocations To accurately assess these challenges, it is essential to objectively analyze actual sales data alongside external factors, enabling us to identify issues and develop a reasonable evaluation method.
Customer satisfaction is a crucial metric that blends both objective and subjective elements, and it is widely recognized for its authenticity By leveraging electronic media and advanced technology, businesses can conduct short-term surveys and gather customer reviews to identify areas for improvement While customer evaluations may sometimes be influenced by emotions, these sentiments are vital for understanding trends and needs, enabling the development of effective marketing campaigns Additionally, analyzing employee performance and the effectiveness of training programs helps refine future planning, ultimately fostering a dedicated and skilled workforce.
Sự hài lòng của khách hàng là yếu tố quan trọng phản ánh tính chân thực của dịch vụ, với sự đồng thuận cao giữa khách quan và chủ quan Chúng tôi sử dụng công nghệ tiên tiến để thực hiện các khảo sát ngắn hạn và thu thập ý kiến đánh giá từ khách hàng về những điểm cần cải thiện Mặc dù đánh giá của khách hàng có thể mang tính cảm tính, nhưng chúng cung cấp cái nhìn sâu sắc về xu hướng và nhu cầu của họ, giúp định hướng chiến dịch marketing hiệu quả Thông tin phong phú từ khách hàng sẽ mang lại lợi thế cạnh tranh Đồng thời, chúng tôi cũng sẽ đánh giá hiệu quả làm việc của nhân viên và tính phù hợp của chương trình đào tạo hiện tại, từ đó cải thiện kế hoạch và chương trình tương lai để xây dựng đội ngũ nhân sự chất lượng và tâm huyết.
Periodic tests during company training sessions assess employee knowledge and skills, identifying weaknesses for timely support and development These evaluations also enable the company to reassess its current methods and strategies, ensuring they remain effective and appropriate while facilitating the implementation of alternative strategies when necessary.
Kiến thức và kỹ năng của nhân viên sẽ được đánh giá qua các bài kiểm tra định kỳ, thường được tổ chức trong các buổi đào tạo riêng tại công ty Kết quả từ những bài kiểm tra này giúp phát hiện điểm yếu của nhân viên, từ đó có biện pháp hỗ trợ kịp thời Đồng thời, công ty cũng có thể xem xét lại phương pháp và chiến lược hiện tại để đảm bảo tính phù hợp và hiệu quả, nhằm đưa ra những chiến lược thay thế thích hợp.
The final aspect to consider is the perspective of the employees, as their feedback provides a two-way evaluation that is both objective and clear Employees, especially sales staff, are crucial to a business's growth, serving as the primary point of contact with customers They offer valuable insights into customer needs, product weaknesses, and service quality, making them the face of the company It is essential to listen to and understand their perspectives Retaining talented salespeople is challenging, and empowering them to voice their opinions fosters a sense of freedom and engagement By valuing their input, businesses can retain employees while benefiting from their innovative ideas.
When comparing the new store to the old one, key evaluation factors must be considered, particularly demographic elements such as income, age, and regional development levels For instance, while spending in Hoc Mon may be lower, it cannot be directly compared to the higher expenditure levels in District 1 It is essential to assess both stores within the same market segment and evaluate their unique developments to formulate the most effective strategy.
Sales figures are a reliable indicator of a store's performance, as consistent revenue growth suggests effective operations, efficient staff, and a strategic location Conversely, declining sales signal the need for a thorough evaluation of these factors to implement timely solutions Revenue assessments should align with target sales and KPIs for both physical and online stores In B2B contexts, it's essential to consider staff efforts alongside external competition, as success often hinges on both diligence and a bit of luck.
Doanh số là chỉ số quan trọng để đánh giá hiệu quả hoạt động của cửa hàng Một cửa hàng có doanh thu tăng trưởng ổn định cho thấy hoạt động kinh doanh diễn ra tốt, nhân viên làm việc hiệu quả và vị trí được chọn hợp lý Ngược lại, doanh thu giảm liên tục yêu cầu xem xét lại các yếu tố liên quan để tìm ra giải pháp kịp thời Đối với khách hàng B2B, đánh giá cần dựa vào nỗ lực của nhân viên, nhưng cũng cần lưu ý rằng may mắn và sự cạnh tranh từ đối thủ là yếu tố không thể bỏ qua.
Profits
High sales do not guarantee high profits, as profitability is heavily influenced by cost management Effective planning is essential to maximize sales while minimizing expenses Controlling costs is crucial for generating sales, and analyzing profit across different distribution channels and stores reveals the financial health of each location Despite similar basic costs, discrepancies in expenses among stores prompt an evaluation of underlying issues, allowing for timely corrective actions.
Doanh số cao không đồng nghĩa với lợi nhuận cao, vì lợi nhuận phụ thuộc vào chi phí đầu vào Để tối đa hóa doanh thu và giảm thiểu chi phí, cần lập kế hoạch chi tiết và kiểm soát chi phí hiệu quả Lợi nhuận từ từng kênh phân phối và cửa hàng sẽ phản ánh thực lực tài chính và các vấn đề nội tại của cửa hàng Mặc dù hầu hết các cửa hàng có cùng diện tích và chi phí cơ bản tương đương, sự chênh lệch chi phí giữa các cửa hàng có thể cho thấy những vấn đề cần được đánh giá và khắc phục kịp thời.
Distribution channels
Over 70% of sales originate from B2B customers, making it essential to analyze their consumption patterns from the past to present for accurate future forecasting Evaluating these changes—whether positive or negative—helps identify underlying reasons and develop appropriate strategies While B2C customers require similar reviews, their assessments tend to be more comprehensive In particular, the online market is experiencing rapid growth and fierce competition, necessitating close and continuous monitoring to formulate effective plans.
Hơn 70% doanh số đến từ khách hàng B2B, do đó cần phân tích mức tiêu thụ của từng khách hàng B2B từ quá khứ đến hiện tại để dự báo tương lai chính xác Đánh giá sự thay đổi này là cần thiết để xác định nguyên nhân và lập kế hoạch phù hợp, trong khi khách hàng B2C cũng cần được xem xét một cách tổng thể hơn Đối với khách hàng trực tuyến, thị trường đang phát triển mạnh mẽ và cạnh tranh không kém gì thị trường trực tiếp, vì vậy cần theo dõi liên tục để có chiến lược thích hợp.
Marketing strategy
The marketing campaign is designed around specific KPIs and budget constraints, assessing the achievement of initial goals A detailed analysis of the campaign highlights its primary objective: to enhance brand visibility and expand reach while minimizing costs and maximizing benefits.
Chiến dịch tiếp thị được xây dựng dựa trên KPI và ngân sách nhất định nhằm đánh giá khả năng đạt được mục tiêu ban đầu Phân tích kỹ lưỡng trong chiến dịch cho thấy mục tiêu chính là nâng cao giá trị thương hiệu, mở rộng phạm vi tiếp cận và độ phủ của thương hiệu, đồng thời tối ưu hóa lợi ích trong khi vẫn duy trì chi phí ở mức hạn chế.
The treatment for the risk
The strategy is that happens in the future, and predict there's always been constant change not only internal to the company but also external factors of the business.
To enhance internal resources and technology, we focus on two key areas: expanding direct stores and developing online human resources As employees require new skills, we can efficiently address personnel shortages through training, recruitment, or outsourcing experienced individuals, minimizing recruitment and training costs Similarly, for online sales staff, leveraging existing knowledge through targeted training or hiring is essential Advanced technology plays a crucial role in increasing product value, ensuring customers receive the best offerings.
Evaluating employee performance requires identifying the underlying causes of their effectiveness or lack thereof If deficiencies stem from skills or knowledge, targeted training programs can address these gaps Conversely, if revenue KPIs are unrealistically high, adjustments in coordination may be necessary While internal factors can be managed, external challenges like pandemics, interest rate fluctuations, and inflation present significant obstacles To mitigate these risks, it is essential to maintain a reserve fund and implement a comprehensive risk management strategy that fosters collaboration across departments.
External factors affect the success and failure of the business. ˗ The competition is too strong ˗ The plan is not suitable ˗ Market changes in demand ˗ Technology
Internal factors play a crucial role in developing an effective change plan While it's challenging to anticipate every possible scenario, leveraging historical data allows us to create a foundation for future predictions By maintaining a proactive approach, we can design a flexible and tailored plan that meets evolving needs.
TH True Milk has revolutionized the domestic dairy industry in Vietnam by ensuring the quality of fresh milk processing The company focuses on building a strong brand image through a thoughtfully designed logo and a concise, meaningful slogan Their unique advertising strategies emphasize practical actions that reflect their commitment to producing clean, pure milk sourced from nature As the market evolves, TH True Milk must validate its claims of clean milk while continuing to enhance its brand reputation and promote sustainable practices.
We appreciate your feedback and suggestions for the team, as they will help us address any gaps in the report Your input is crucial for enhancing its effectiveness and ensuring successful practical application.