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 4 1. Nature of the company 4 1. Positioning map 11 Stimulus for the company/the store/the product/the brand 13 2. Stimulus of brand/product 18 2.
Events/contest 20 Internal Influences 24 3. The Components of Customers’ Attitude 29 3.4 The attitude-change strategies: 32 3.1 The strategies of changing cognitive component: 32 3.2 The strategies of changing behavioral component: 34 External Influences 35 4. Group Influence 39 Recommendation 40 Appendix 41 Reference list 54 1 Sustainable Consumption Project MKTG1421 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 2 Sustainable Consumption Project MKTG1421 (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. 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. Control Union certificate TH true milk is the first organic milk brand company from Vietnam compliance all procedure of Europe Standard (Dantri 2017). 3 Sustainable Consumption Project MKTG1421 Overview of TH True milk farm in Nghia Dan (Nghe An) Inside the farm of TH True milk 4 Sustainable Consumption Project MKTG1421 The overview inside of TH True milk's factory Applying the new modern method for cropping 5 Sustainable Consumption Project MKTG1421 1.
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. In the beginning of 2018, TH group continues to launch the new product is TH true ice-cream with the slogan” No food addictive”. 6 Sustainable Consumption Project MKTG1421 1. 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. Target market 7 Sustainable Consumption Project MKTG1421 8 Sustainable Consumption Project MKTG1421 9 Sustainable Consumption Project MKTG1421 1. 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. 10 Sustainable Consumption Project MKTG1421 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. 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.
Stimulus for t he company/the store/the product/the brand 2. Online advertising Stimulus 1: Youtube advertisement (Accessed 5th September 2018) (https://www.com/watch?v=HSfVt9cTW9Q) 11 Sustainable Consumption Project MKTG1421 Stimulus 2: Th True Milk Home page website (Accessed 5th September 2018) 12 Sustainable Consumption Project MKTG1421 Stimulus 3: Facebook fan page with minigames to get the promotion (Accessed 5th September 2018) 13 Sustainable Consumption Project MKTG1421 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). 14 Sustainable Consumption Project MKTG1421 <http://cafef.vn/sua-tuoi-huu-co-th-true-milk-organic-doat-giai-cao-tai-trien-lam-th uc-pham-the-gioi-world-food-moscow- chn> Another PR articles reviewing TH true milk is a 100% Organic milk on Dantri.vn 15 Sustainable Consumption Project MKTG1421 <https://dantri.vn/kinh-doanh/th-true-milk-organic-san-pham-nho-buoc-di-lon- cua-nganh-sua-viet-nam- htm> 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. 16 Sustainable Consumption Project MKTG1421 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. 17 Sustainable Consumption Project MKTG1421 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) 18 Sustainable Consumption Project MKTG1421 2. 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. 19 Sustainable Consumption Project MKTG1421 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. 20 Sustainable Consumption Project MKTG1421 <http://suahocduong.vn/th-true-milk-tiep-tuc-dong-hanh-cung-sua-hoc-duong-tai- nghe-an.html> 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.vn/Home/NewsDetail/6) 21 Sustainable Consumption Project MKTG1421 “Vietnam Brainiest Kid” homepage website 22 Sustainable Consumption Project MKTG1421 3.
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.