Group 2 SGS Anh Thu TH true milk PDF

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####### MKTG 1421 - CONSUMER PSYCHOLOGY AND BEHAVIOR ####### SUSTAINABLE CONSUMPTION PROJECT **Lecturer: Nguyen Anh Thu  Group 1 - SEM B 2018 ** Vu Pham Nha Thu - S3712379   Ngo Tran Thuc Anh - S3695429  Tran Kha Doanh - S3730082  Diep The Huy - S3678710 ...

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 MKTG 1421 - CONSUMER PSYCHOLOGY AND BEHAVIOR SUSTAINABLE CONSUMPTION PROJECT             

Lecturer: Nguyen Anh Thu Group 1 - SEM B 2018 Vu Pham Nha Thu - S3712379 Ngo Tran Thuc Anh - S3695429 Tran Kha Doanh - S3730082 Diep The Huy - S3678710 Nguyen Hoang Viet - S3557731 Nguyen Cao Hoang Linh - S3634558  

Sustainable Consumption Project MKTG1421

Table of contents Executive summary

3

Introduction 1.1. Nature of the company

4 4

1.2. Product 1.3. Competitors 1.4. Target market 1.5. Positioning map Stimulus for the company/the store/the product/the brand 2.1. Online advertising 2.2. Stimulus of brand/product 2.3. Events/contest

7 8 8 11 13 13 18 20

Internal Influences

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3.1. Learning

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3.1.1. Condition Learning 3.1.2. Cognitive Learning 3.2. Motivation 3.3. The Components of Customers’ Attitude 3.3.1 Cognitive Components 3.3.3 Behavioral Components 3.4 The attitude-change strategies: 3.4.1 The strategies of changing cognitive component: 3.4.2 The strategies of changing behavioral component: External Influences 4.1. Culture Influence 4.2. Demographic 4.3. Group Influence

24 25 25 29 29 31 32 32 34 35 35 37 39

Recommendation

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Appendix

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Reference list

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Executive summary TH true milk is a favorite milk brand, which is well known as the fresh milk with organic ingredients grown by themselves. Recently, TH true milk also launches the new product is TH true ice-cream so as to compete with others rivals such as Vinamilk, Dutch Lady, Nestle. Therefore, TH true milk is trying to shift itself to be the most quality fresh milk that provides the natural flavor and 100% organic, which is illustrated in the positioning map. TH true milk has implemented 3 chief stimulus which is online advertising, the stimulus of brand/product and event/contest. In the online advertising, TH true milk mainly focuses on the Facebook fan page, organize with prizes for the customer to get the promotion. Moreover, it also has the eco-friendly event to purchase empty boxes and bottles of milk for a canvas bag. In the stimulus of brand and product, TH true milk uses only 2 main color which is green and light blue to make the customer feel fresh and natural when they see TH true milk products and advertising. TH true milk has 2 main charity event, which is annually for students and kids over the country, they collaborate with schools to provide unprivileged students the most quality and comfortable study environment and lifestyle. Besides, the internal influences are starting with the learning stage. This stage will analyse the condition learning, both classical (TH true milk charity event and game show), operant conditioning (promotions “buy 8 get 1” and purchase empty boxes, bottles for a canvas bag), and cognitive learning including Iconic rote (the company slogan and theme color want the customer to remember the brand as the most natural of Vietnamese dairy). Furthermore, the motivation part is applying the McGuire theory to show how TH true milk gets into their customers’ awareness of the natural milk with organic ingredients. Cognitive, affective and behavioral components in the attitude part are used to how the brand image effect to customers’ consensus. In the last part of internal influence, the attitude-change strategies will be included as the supporting idea for TH true milk to reconsider their cognitive and behavioral component. Last but not least, the external influences is successfully applied by TH true milk. Specifically, they exploit Vietnamese culture influences (humor vs seriousness, adult vs child, problem-solving vs fatalism, status vs performance). At the same time, TH true milk main target customer is middle age people who are most parents and the consumer will be teenagers (12-18) and kids (5-12), the income will be the focus in the middle to high as the parents are willing to pay for the quality milk for their children. At the same time, the group influences are including primary groups

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(co-workers, friends, family members), secondary groups (colleagues, members of social groups), strategy - informational (social media group, Facebook fanpage), and strategy - word of mouth. Overall, utilizing the external influences, TH true milk has done well in targeting the right segmentation of customers and consumers, exploiting Vietnamese culture to set prices, perfect timing to release the new product collection, attractive advertising and also apply the effective strategy of group influences to increase their reputation. Finally, for the recommendation, TH true milk should apply the level 4 in Maslow’s theory to motivate more customers to purchase their milk items. On the other hand, they also need more special and unique strategy for their branding so as to impress their potential customers and outstanding in the dairy market of Vietnam.

1. Introduction 1.1. Nature of the company TH group was established in 2010 and is located in district Tan Binh, HCMC. TH true milk is an organization specializing in milk product in Vietnam such as fresh milk, yogurt, and ice-cream. With the slogan “ True Happiness” or “ Fresh Milk”, TH true milk create a phenomenon in Vietnamese customer and make the consumer trust them in the short time because TH group is the first company milk in Vietnam applies the most modern technology in milk industry that imported in foreign countries. On the other hand, TH group is the first brand milk in Vietnam breed a cow by themselves. Moreover, TH group has the fields of corn, sunflower seed, walnut to make the organic food for their cow (New.zing 2015). Control Union certificate TH true milk is the first organic milk brand company from Vietnam compliance all procedure of Europe Standard (Dantri 2017).

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Overview of TH True milk farm in Nghia Dan (Nghe An)

 Inside the farm of TH True milk  

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            The overview inside of TH True milk's factory 

Applying the new modern method for cropping 

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1.2. Product Although launched in 2010, TH true milk gets the trust of many Vietnamese customers. According to Brands Vietnam (2013), 85% customer after buying the products of TH true milk, they want to come back and become the loyal customer of TH in the future. Moreover, the product has been checked in the National Institute of Nutrition, announced good weight loss effect and suitable for Vietnamese ( Ven 2015). In July 2014, TH true Yogurt was launched for the children over 1 year old, with the two special from Denmark are TH.acidophilus and TH.paracasei (TH milk 2015). In the beginning of 2018, TH group continues to launch the new product is TH true ice-cream with the slogan” No food addictive”.

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1.3. Competitors Since the launch of TH true yogurt and TH true ice-cream, the company has confirmed its brand in the Vietnam market but TH true milk has many competitors in Vietnam’s market such as Vinamilk, Dutch Lady, Nutifood, Nestle or Milo. Hai maintains that Vinamilk continues to lead the fresh milk industry in Vietnam and Vinamilk occupied nearly about 50% market in Vietnam (2018). Dutch Lady and Nestle also followed with the increase in the market share and the consumer’s preference in Vietnam. Therefore, TH group has to expand the market value and improve their product in the future to catch up with Vinamilk, Dutch Lady or Nestle.

1.4. Target market   

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1.5. Positioning map Since price and quality are the main concern when the customer comes to buy a milk product, these attributes are used to determine the position of TH true milk in the milk category.

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             Regarding to the positioning map, TH true milk is positioning itself to be the top milk brand in the section of high quality with high price. Moreover, in 2018, the average price of TH true milk products (36.000 VND) is about 10.000 VND higher than Vinamilk - the main competitor (big.vn 2018). TH true milk is certificated by Control Union as the first organic and fresh milk in Vietnam and its product also exported to Asian countries. Therefore, TH true milk is gradually changing itself into a premium milk brand for middle-class customers.

2. Stimulus for t he company/the store/the product/the brand 2.1. Online advertising Stimulus

1:

Youtube

advertisement

(Accessed

5th

September

2018)

(https://www.youtube.com/watch?v=HSfVt9cTW9Q) 

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   Stimulus 2: Th True Milk Home page website (Accessed 5th September 2018)

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  Stimulus 3: Facebook fan page with minigames to get the promotion (Accessed 5th September 2018)              

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  Stimulus 4: PR articles reviewing TH true milk is the first milk brand using their own organic ingredients, raising the eco-friendly campaign and increasing their reputation with the certificate by World Food Moscow (Accessed 5th September 2018). 

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 Another PR articles reviewing TH true milk is a 100% Organic milk on Dantri.com.vn

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  Stimulus 5: The promotion event of trending the TH milk box for the eco-friendly canvas bag is being held on the official Facebook fan page. Change Empty bottle, a box for a Canvas bag.                      

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2.2. Stimulus of brand/product Stimulus 6: Outlets of TH true mart (Accessed 5th September 2018)

 TH True Mart store design.

 TH True Mart store design.

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  Stimulus 7: Product Packaging of TH true milk is easy recognized by using the bright tone of blue and white as the main color which is represented by the sky (Accessed 5th September 2018)

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2.3. Events/contest Stimulus 8 : The charity program “Sua hoc duong - Vi tam voc Viet” “Sua hoc duong - Vi tam vo Viet" is organized annually since 2016 for unprivileged children at schools nationally. The charity program is first to run in 17/19 urban districts of Nghe An province and successfully in helping thousands of unprivileged children.      

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 Website of the charity program “Sua hoc duong - Vi tam voc Viet" 

 Hoa Son Elementary School teacher (Do Luong, Nghe An) gives milk to students under

“Sua

hoc

duong”

Program.

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 Unprivileged children drink milk at school Stimulus 9: Gameshow “Chinh phuc - Vietnam Brainiest Kid” is an annually game show for the teenager from 11-14 years old, sponsored by TH True Milk. (http://chinhphuc.vn/Home/NewsDetail/6)

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 “Vietnam Brainiest Kid” homepage website

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3. Internal Influences 3.1. Learning 3.1.1. Condition Learning Classical conditioning Classical conditioning theory involves learning a new behavior via the process of association between two existing stimuli (Pavlov 2010). Firstly, a charity program called “Sua hoc duong - Vi tam voc Viet” was created by the Vietnamese government in 2016 (Stimulus 8). The main purpose of this program is to improve the nutritious status and the stature of Vietnamese people, especially the next generations. As a dairy company, the TH group is one of the core sponsors of that charity program in order to make sure the customers would concern more on the importance of milk and dairy products. Moreover, the TH company is also sponsoring the television game show “Chinh phuc - Vietnam Brainiest Kid” (Stimulus 9). By involving in these events, the TH company wants to announce that this brand could solve the issue of increasing the stature of the Vietnamese young generations. Operant conditioning Regarding the operant conditioning, TH is doing various kinds of advertising on both offline and online platforms. For traditional advertisements, there is a promotion campaign of “Buy 8 Get 1” for TH true yogurt (Stimulus 3). The TH true yogurt would be very supportive in increasing the anti-bacteria system of the consumers and very tasty with the 100% natural flavors of blueberry and vanilla. Moreover, the customers could try the yogurt out in the supermarkets every weekend. For digital marketing, True Happiness is operating a promoting event on the official Facebook fan page. The event is about recycling the used TH milk box and getting a pretty canvas bag in return (Stimulus 5). The company is calling the customers in

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protecting the environment together. By applying the operant conditioning learning, TH true milk is trying to help the customers to be more eco-friendly and more sustainable in the way of consuming products.

3.1.2. Cognitive Learning Iconic rote learning The iconic rote learning is the memorization process about the association between two or more concepts in the absence of conditioning (Carmen 2008). Normally, this learning method occurs in the low-involvement products through repeated advertising. As the dairy company, the TH Company is mainly using the iconic rote learning for the advertisements. To elaborate, the company name of TH stands for True Happiness because the founders want the Vietnamese people to feel happy by providing the best source of natural milk. Moreover, the company slogan is “Truly Natural”, which means every dairy product like milk, yogurt or ice cream is 100% organic and directly selected from nature. The company would like to make the customers to remember the brand as the most natural brand in the Vietnamese dairy industry. Overall Evaluation: It is very important for the eco-friendly organization like True Happiness company to implement the part of Learning. This venture has chosen the accurate types of Learning so as to come up with the best strategy for delivery the key messages to the customers in the form of advertisements. 

3.2. Motivation McGuire theory As a highly reputable brand in term of milk item, TH True Milk applied the consistency motive w  hich helps the brand get into consumers’ awareness of the natural milk. The design team chooses the blue, green and white as a decisive color so as the eco-friendly characteristic is remarkable in the eyes of consumers.

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         In order to help buyers be clear with those TH True Milk products, the brand categorizes its products into many different groups such as fresh milk, healthy beverage, ice cream and butter based on the categorization motive. A  s a customer, TH True Milk is grouped in a high-quality milk brand due to the original and healthy ingredient including in milk. In each group of items, the brand decides one specific color to attach it in the customers’ subconscious.       

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        

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Sustainable Consumption Project MKTG1421

                    As well as the main purpose of making a sign for customers within a big store, TH True Milk using cues motive in form of designing a basic but still catching brand logo. It is also colored in blue to make buyers feel fresh and natural, which gives a cue of the desired image for the eco-friendly milk brand. The brand logo has to be consistent with the company image so as to represent the back-look on the product when they are purchasing.    

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Sustainable Consumption Project MKTG1421

 Regarding consumers, they always need a innovation in the product that they will be loyal to the brand for long-term effect. Understanding clearly that insight of customers, TH True Milk takes advantage of novelty motive to make a brand extension which expands the product line, provides more types of milk in different benefits. Due to the customers’ insight of being afraid of making an incorrect purchase, they base on self-expression motive to choose and rely on the reputable brand to maintain the need of ego-defense. TH True Milk wants to position itself in a high marketplace, the company puts more effort to build a brand image that wins the highest place in Vietnam market in term of milk product. It also exemplifies as a well-known ...