Analysis of TH true Milk's Marketing Strategy

As of July 2023, TH true Milk has seen a growth of 61.5% compared to the previous month, with total sales estimated at 8.7 billion VND and a production volume of 35.8 thousand units. These successes affirm the brand’s position as one of Vietnam’s leading dairy brands. Besides effective business strategies, TH true Milk’s marketing strategy is also noteworthy. Let’s explore this strategy in detail with Kamereo!

TH true Milk's Marketing Mix Achievements — *TH true Milk’s Marketing Mix Achievements*

Introduction to TH true Milk Brand

Before diving into TH true Milk’s marketing strategy, let’s learn about the company and its product lines on the market. This will give you a comprehensive view of the brand.

Overview of TH Milk Food JSC

With financial backing from Bac A Bank, TH Group has grown into a leading producer in Vietnam. The group provides natural-origin clean food, including fresh milk, meat, vegetables, seafood, and more, all meeting international safety standards.

On February 24, 2009, TH Milk Food JSC was established, becoming the first company under TH Group. To develop its milk market share, TH Milk Food JSC invested in high-end management systems and a closed, standardized production process. This process includes grass planting, barn construction, feed processing, veterinary management, production, packaging, and distribution.

Moreover, TH’s barns use the most advanced farming technologies, with dairy cows imported from renowned countries like New Zealand, Uruguay, and Canada to ensure high-quality milk production.

*TH Dairy Food Joint Stock Company invests a lot from input to output*

TH true Milk’s Product Lines

TH true Milk is known for its dairy products but also offers various other popular products. Here is the current product portfolio:

Sterilized Fresh Milk: Pure sterilized milk made from 100% fresh cow’s milk, sweetened and unsweetened varieties, strawberry, and chocolate flavors.
Cheese and Butter: Mozzarella cheese sticks, natural unsalted butter.
Beverages: TH true Milk Juice, fruit milk juice, TH true Milk RICE rice water.
Pure Water
Ice Cream: Cones, bars, and tubs.
Japonica FVF Rice

*TH true Milk is offering many product lines*

TH true Milk’s Marketing Mix Strategy

Despite challenges and competition in the Vietnamese milk market, TH true Milk has successfully attracted consumers and increased sales revenue, thanks in part to an effective marketing mix strategy.

Product Strategy of TH true Milk

TH true Milk has adopted a product diversification strategy while continually improving quality to meet high consumer demand. The company invested in world-class technology and an entirely natural supply chain, ensuring truly fresh and pure milk. The packaging also uses modern Tetra Pak technology from Sweden, catering to Vietnamese consumers’ preference for carton milk.

*TH true Milk invests heavily in product quality and packaging*

Pricing Strategy of TH true Milk

TH true Milk employs a skimming pricing strategy to position its products as premium and leverage consumer perceptions of quality.

Psychological Pricing

From its market entry, TH true Milk has positioned itself as a high-end brand with premium pricing to reinforce the association between price and quality. Prices at TH True Mart stores and on TH true Milk’s e-commerce channels are higher than in supermarkets and other retail stores to ensure channel member benefits.

*TH true Milk sets high product prices commensurate with quality*

Skimming Pricing

Entering a market dominated by established brands like Vinamilk, TH true Milk adopted a skimming pricing strategy to ensure profitability and position its products as premium. As the economy grows and income levels rise, TH true Milk’s target customer base expands, contributing to its long-term success.

Distribution Strategy of TH true Milk

TH true Milk has developed an extensive distribution network nationwide, collaborating with major supermarkets for better consumer access. The TH True Mart chain includes 27 stores in Hanoi, 24 in Ho Chi Minh City, and many more across other provinces, all with modern facilities ensuring the best product preservation.

*TH true Milk has a wide distribution system nationwide*

Promotion Strategy of TH true Milk

A key element of TH true Milk’s marketing success is its promotional strategy, featuring effective communication messages and diverse advertising channels.

Communication Message

The main message is “Truly Natural,” emphasizing the natural purity of TH true Milk’s products. The brand also promotes secondary messages focusing on physical benefits and improving health and appearance.

TH true Milk brings the message "truly natural" — *TH true Milk brings the message “truly natural”*

Advertising Channels

TH true Milk uses various advertising channels to convey its message:

TV commercials on VTV3, VTV1, VTV6, SCTV2, HTV7 during prime time.
Ads in newspapers like Phu Nu and Tuoi Tre targeting women and professionals.
Outdoor advertising, banners, and bus ads.

*TH true Milk conveys messages on many different advertising channels*

Public Relations

TH true Milk’s PR strategy focuses on social and community activities, especially those related to children and the underprivileged. Notable programs include sponsoring “Con Da Lon Khon,” “Luc Lac Vang,” and charity initiatives like “Cung Hoa Nhap Yeu Thuong,” as well as scholarships for underprivileged students with “Ngay Khai Truong – Tam Voc Viet” and the TH Kids Painting Contest.

*TH true Milk has many positive PR activities*

Sales Promotion

TH true Milk frequently organizes activities like product sampling, direct discounts, and combo offers to boost sales.

*TH true Milk offers promotions when purchased in combos*

What does TH true Milk’s marketing strategy bring?

The “Join Hands for Vietnamese Stature” campaign has yielded many positive results from both consumers and experts. The campaign’s message called for increased awareness of customers’ health and physique. The results achieved include:

15 ad pages in the campaign
55 posts about TH true Milk events
700,000 views of event information

The “Join Hands for Vietnamese Stature” campaign also exceeded expectations, appearing in 15 prestigious print newspapers such as Lao Động, Pháp Luật & Thời Đại, Thanh Niên, Phụ Nữ Việt Nam, Tiền Phong, etc. Additionally, the campaign was broadcast on nine leading television and radio channels, including VTC1, HTV7, ANTV, VOV, and O2TV.

Furthermore, the event was highly successful in terms of side effects and received awards from event organizations. TH true Milk is also known as a philanthropic brand thanks to the “For Vietnamese Stature” charity fund with over 200 billion VND in contributions, enhancing the brand’s reputation and coverage nationwide. The company’s sales also increased significantly after this campaign.

The "Join Hands for Vietnamese Stature" campaign received many positive reviews — *The “Join Hands for Vietnamese Stature” campaign received many positive reviews*

How does TH true Milk’s marketing activity take place?

Despite achieving certain successes, TH true Milk’s marketing strategy also encountered many challenges during implementation. To understand better, let’s refer to the case study of the TH School Milk product.

Company Background

From the early days, TH true Milk has been known as a brand focused on providing health-beneficial products. This aligns well with the growing demand for milk among consumers.

There are many domestic and international milk brands on the Vietnamese market. However, foreign milk brands are often preferred due to the “foreign preference” mentality. Domestic milk companies primarily focus on commercial factors, producing fresh milk with little attention to the comprehensive development of children.

In this context, TH true Milk pioneered the introduction of the “TH School Milk” product to enhance the physical and intellectual development of school-age children (6-12 years old). The product created a “fever” in the Vietnamese milk market, surpassing competitors.

*TH School Milk is a comprehensive product for children*

TH true Milk’s Marketing Solution

To raise awareness about the TH School Milk product among consumers, TH true Milk implemented the following marketing activities:

Forums and Seminars

To execute the marketing plan, TH true Milk conducted research and clinical trials on the milk product for children with over 3,600 students from the 2013-2014 school year. This activity also helped introduce the product to potential customers.

Seminars allowed experts to provide feedback and contributions to perfect the product. This demonstrated TH’s seriousness in developing new products to meet the needs of young consumers.

Additionally, nutrition seminars helped consumers understand the quality of TH School Milk. It is the only school milk product certified by the Ministry of Health for effectively improving nutrition and micronutrient levels in children’s bodies.

*TH true Milk organized many seminars about the TH School Milk product*

Creating Specialized Content

Thanks to quality control, certification, and large-scale seminars, the brand received positive feedback from many people. TH true Milk also provided consumers with useful information through in-depth articles.

These contents were published on reputable online newspapers such as Dân trí, Cafef, Soha News, Afamily, Giadinh.net.vn, Vneconomy, etc. This enhanced the brand image and helped the product gain natural recognition.

*In-depth articles about TH School Milk appeared on the internet*

Organizing the “Join Hands for Vietnamese Stature” Event

TH true Milk not only focuses on quality but also on the quantity of community activities to expand its influence. The brand organized a series of linked activities to convey a strong message about health for the future generation, specifically children.

Each product from TH true Milk is meticulously prepared, researched, developed, and marketed. National-scale events are frequently organized. A prime example is “Join Hands for Vietnamese Stature” – the first nationwide milk program for preschool and elementary school children. This program aims to enhance the physical strength and stature of children and improve public health.

TH true Milk organized the "Join Hands for Vietnamese Stature" event — *TH true Milk organized the “Join Hands for Vietnamese Stature” event*

Results Achieved After TH true Milk’s Marketing Strategy

Although TH true Milk is not a long-standing brand compared to its competitors, it quickly rose to become one of the leading dairy companies in the Vietnamese market.

TH true Milk received the “Golden Trust Supplier” certification from the Vietnam Enterprise Institute, considered a quality standard for Vietnamese products and services. This encourages enterprises with outstanding achievements and supports consumers in choosing quality products.

Moreover, another remarkable success for TH true Milk is that the Israeli government signed a 100 million USD investment agreement in the company’s dairy project.

*TH true Milk has risen to the top of the leading dairy enterprises in Vietnam*

Conclusion

The above information about TH true Milk’s marketing strategy is essential to know. Despite being a newcomer, the brand has smartly developed strategies to establish a strong position against competitors. Follow the F&B Business Experience section for more interesting information!