HOA SEN UNIVERSITY
FALCUTY OF ECONOMICS AND BUSINESS PRODUCT MANAGEMENT FINAL SEMESTER REPORT TH TRUE MILK NEW PRODUCT PLAN GROUP MEMBER: 1.
Nguyễn Hoàng Thanh Mai – 21109075 2.
Đỗ Thị Kim Liên – 22013744 3.
Nguyễn Hương Thịnh – 22001136 4.
Lê Trần Nhã Uyên – 22000134 5.
Huỳnh Thế Vinh – 2193643 6.
Trần Văn Thành – 2191065
Lecturer: Duong Dinh Quoc Class: 0200 – 1296 Semester: 2233
Ho Chi Minh City, June 20, 2023
CONTRIBUTION PROPORTION Full Name Student ID No. % of contribution Đỗ Thị Kim Liên 22013744 100% Nguyễn Hoàng Thanh Mai 22109075 100% Trần Văn Thành 2191065 25% Nguyễn Hương Thịnh 22001136 100% Lê Trần Nhã Uyên 22000134 100% Huỳnh Thế Vinh 2193643 100% ACKNOWLEDGMENT
We would like to express our heartfelt appreciation to Mr. Duong Dinh Quoc, our
wonderful lecturer in the Product Management class. We are truly grateful for his continuous
support, guidance, and wealth of knowledge throughout the course. His approachable nature and
passion for teaching made the learning experience enjoyable and engaging. We would also like to
extend our thanks to our classmates for their valuable contributions, collaborative spirit, and
insightful discussions that helped shape our paper. This work wouldn't have been possible without
the collective efforts and support of everyone involved. Thank you all for making this learning
journey memorable and rewarding. TABLE OF CONTENTS
PHASE 1. OPPORTUNITY IDENTIFICATION .......................................................... 7
1.1. Business Overview ................................................................................................. 7
1.2. SWOT Analysis ...................................................................................................... 7
1.2.1. Strengths ........................................................................................................... 7
1.2.2. Weaknesses ....................................................................................................... 7
1.2.3. Opportunities ..................................................................................................... 8
1.2.4. Threats ............................................................................................................... 8
1.3. Reasons to develop new product ........................................................................... 9
1.4. Advantages and disadvantages of each type of product development ............ 10
1.4.1. New-to-the-world products ............................................................................. 10
1.4.2. New-to-the-firm product ................................................................................. 10
1.4.3. Additions to existing product lines ................................................................. 10
PHASE 2. CONCEPT GENERATION .......................................................................... 11
2.1. New-to-the-world product .................................................................................... 11
Milk tablets ............................................................................................................... 11
2.2. New-to-the-firm product ...................................................................................... 11
2.2.1. Roasted coffee ................................................................................................. 1 1
2.2.2. Condensed milk .............................................................................................. 12
2.3. Additions to existing product lines ..................................................................... 13
2.3.1. Greek yogurt ................................................................................................... 13
2.3.2. Formula milk for babies aged 1 to 2 years ...................................................... 13
2.3.3. Triangle foil packaging of processed cheese .................................................. 14
PHASE 3. CONCEPT EVALUATION ......................................................................... 15
3.1. Overview Evaluation ........................................................................................... 15
3.2. Scoring Model ....................................................................................................... 16
PHASE 4. PRODUCT DEVELOPMENT ........................................................................ 19
4.1. Difficulties and risks in manufacturing the new product ................................. 19
4.2. Product testing ..................................................................................................... 19
4.2.1. Alpha test ........................................................................................................ 19
4.2.2. Beta Test .......................................................................................................... 20
PHASE 5. PRODUCT LAUNCHING ............................................................................. 21
5.1. Detailed description of the new product ............................................................ 21
5.2. Product Strategy .................................................................................................. 21
5.2.1. Product positioning strategy ........................................................................... 21
5.2.2. Product Differentiation Strategy ..................................................................... 22
5.2.3. Pricing Strategy ............................................................................................... 22
5.2.4. Distribution Strategy ....................................................................................... 23
5.3. Marketing Strategy .............................................................................................. 23
5.3.1. Target audience ............................................................................................... 23
5.3.2. Marketing Plan ................................................................................................ 24
REFERENCES ................................................................................................................ 26 TABLE OF FIGURES
Figure 2-1 Demonstration of milk tablets ......................................................................... 1 1
Figure 2-2 Demonstration of roasted coffee ..................................................................... 12
Figure 2-3 Demonstration of condensed milk .................................................................. 12
Figure 2-4 Demonstration of Greek yogurt ...................................................................... 13
Figure 2-5 Demonstration of formula milk for babies aged 1-2 years ............................. 14
Figure 2-6 Demonstration of triangle foil packaging of processed cheese ....................... 14
Figure 3-1 Overview evaluation table ............................................................................... 16
Figure 3-2 Scoring model table ......................................................................................... 18
Figure 5-1 Packaging of new TH True Milk Greek yogurt .............................................. 21
Figure 5-2 Comparison table of regular yogurt and Greek yogurt ................................... 22
Figure 5-3 Distribution Strategy Hierarchy ...................................................................... 23
Figure 5-4 Mareting plan .................................................................................................. 25
PHASE 1. OPPORTUNITY IDENTIFICATION 1.1. Business Overview
TH Group maintains its pioneering position in the fresh milk industry in the Vietnamese
market and achieves impressive growth numbers in 2022. TH true MILK is accounting for nearly
45% of the market share in the fresh milk segment in the mature market. At the same time, TH
Dairy Joint Stock Company affirms its position in the dairy industry with the evidence of ranking
2nd in the Top 10 prestigious food companies in 2020, the dairy and dairy products industry group. 1.2. SWOT Analysis
Using the SWOT analysis tool (Strengths, Weaknesses, Opportunities, Threats) to analyze
and evaluate TH True Milk dairy company will help us have a more general view. 1.2.1. Strengths
Aided brand awareness: TH True Milk, one of the leading dairy brands in Vietnam, has
built customers’ trust in the product's quality and reputation information.
Innovative and sustainable supply of dairy ingredients: TH True Milk owns a large dairy
farm system, equipped with advanced technology and strict management. This ensures a supply of
fresh milk and high-quality dairy ingredients for the company.
Product diversification: TH True Milk has expanded dairy product lines such as fresh milk,
powdered milk, yogurt, and ice cream, helping to meet the diverse needs of customers. 1.2.2. Weaknesses
High operating costs: Due to the requirement of high-quality input materials and modern
technology, high operating costs lead to the product’s price being relatively pricey, which makes
it difficult to attract low-income customers.
Limited distribution channels: The company mainly focuses on traditional distribution
channels such as supermarkets and convenience stores, which may limit the company's ability to reach potential customers.
Lack of product differentiation: In a fiercely competitive market, TH True Milk faces a
regime that has to differentiate its product from its competitors. Although the company offers a
wide range of dairy and dairy products, it may need to strengthen its exclusive selling points or
create innovative products to stand out. Lacking a strong distinction, customers may view TH True
Milk as just one option among many, making it difficult to build brand loyalty. 1.2.3. Opportunitie s
Growth of export industry: Favorable trade agreements have opened up new markets,
reduced trade barriers, and provided preferential access to a wide range of countries, offering
significant opportunities for domestic companies. The company can take advantage of this
opportunity to expand export markets to increase sales and enhance its brand in the international market.
The increase of online media: TH True Milk can take advantage of the popularity of the
Internet and social media channels to increase product promotion and reach customers online through sales channels.
The great demand for organic dairy products: With the trend of health-conscious consumers
and organic products, TH True Milk has the opportunity to expand its line of organic milk and
yogurt products to meet the growing demand. 1.2.4. Threats
Intense competition: TH True Milk faces competition from other major dairy companies in
the industry, as well as internationally renowned dairy brands.
Changes in dairy regulations: Any change in new regulations related to milk and dairy
ingredients may affect the company's production and business. Changes in labeling regulations,
health claims, or food safety standards could require adjustments in production processes or
product formulations, potentially impacting TH True Milk's operations and profitability.
Consumer Requirements: Changes in consumer needs and preferences can impact the reach
and marketing of TH True Milk products. TH True Milk needs to stay attentive to evolving
consumer preferences, such as the rise of plant-based alternatives or changing health and wellness
trends, to ensure its products remain relevant and appealing to its target customers.
1.3. Reasons to develop new product
Despite having achieved great success in the Vietnamese dairy market, the company still
recognizes the need for continued development of new products. There are several reasons for this decision.
First, customers need to change constantly. Customers are increasingly interested in
product quality, nutritional value, and added elements such as lactose-free milk, reduced-fat milk,
or milk with natural ingredients. To meet this demand, TH True Milk needs to develop new
products that meet customer requirements.
Second, the development of new products expands markets and reaches new customers.
By focusing on baby milk, functional milk for the elderly, or high-quality milk for export markets,
TH True Milk can diversify its product portfolio and create new business opportunities.
Third, technology and production processes are continuously advancing in the dairy
industry. New product development means adopting more modern technology and manufacturing
processes, improving quality, and improving efficiency. TH True Milk can leverage these advances
to provide higher-quality milk and strengthen its competitiveness.
Fourth, the dairy industry is full of competition. To maintain its position and compete, TH
True Milk needs to constantly develop new products to attract and retain customers in a fiercely competitive environment.
Finally, technical developments and market trends are constantly advancing. By
developing new products, TH True Milk is able to take advantage of technological advances and
meet new regulatory requirements for food safety, from using organic ingredients to responding to trends. latest consumer.
In summary, despite its success, new product development remains an important factor for
TH True Milk to stay competitive in the dairy industry. Meeting customer needs, expanding
markets, improving production technology, and taking advantage of technical advancements and
new market trends are the main reasons why the company is constantly developing new products.
1.4. Advantages and disadvantages of each type of product development
1.4.1. New-to-the-world products
Introducing a new-to-the-world product has advantages such as market pioneering and
accessing untapped customers. Being the first in the market provides a competitive edge without
direct competitors, while the novelty generates curiosity and interest. By addressing unmet needs,
companies create fresh customer value and protect their intellectual property rights. However,
there are drawbacks to consider. Developing a new product incurs high costs for research and
testing, which can strain financial resources. Furthermore, the absence of predecessors or direct
competitors makes it challenging to gauge market acceptance, raising uncertainty regarding
consumer adoption. In summary, launching a new-to-the-world product brings advantages like
market pioneering, accessing new customers, and generating curiosity, but businesses must
navigate the high costs and uncertain market acceptance associated with such ventures.
1.4.2. New-to-the-firm product
Introducing new products brings advantages like an expanded product portfolio, leveraging
existing infrastructure, and creating a competitive edge. However, there are drawbacks to consider.
Market risk arises as the new products must compete with established predecessors. Additionally,
the development time tends to be long as adjustments are needed to meet customer expectations.
In summary, while new products offer benefits, such as portfolio expansion and leveraging
resources, businesses must be cautious of market challenges and extended development timelines.
1.4.3. Additions to existing product lines
Introducing new products into the market brings advantages such as the opportunity to
diversify product lines and utilize existing distribution systems, which can help reduce costs.
However, there are potential disadvantages to consider. One risk is associated with brand image,
as a new product that fails to meet desired quality standards may negatively impact the perception
of the previous products. Additionally, there can be internal competition among the existing and
new products for advertising and marketing resources. Careful consideration of these factors is
necessary to ensure successful product launches and mitigate potential challenges.
PHASE 2. CONCEPT GENERATION
2.1. New-to-the-world product Milk tablets
The tablets are created by compressing a mixture of colostrum powder and other
ingredients into a solid milk capsule. These capsules are then coated with a smooth outer layer and
break down in the digestive tract. This product offers a convenient solution for mothers who need
to prepare milk for their babies while on the go.
Each milk tablet box will contain 16 sachets, and each sachet will consist of 5 cubes. Each
cube can be dissolved in water to make 40ml of instant milk.
Figure 2-1 Demonstration of milk tablets
2.2. New-to-the-firm product 2.2.1. Roasted coffee
The new roasted coffee is made by combining carefully chosen Robusta beans and Arabica
beans sourced from the highlands of Vietnam. These beans are then ground using a special
technique developed by TH True Milk. The aim of this product is to provide coffee enthusiasts
with a unique and modern flavor, setting it apart from traditional coffees.
The final product will be packaged in a paper bag, containing 250 grams of ground coffee.
Figure 2-2 Demonstration of roasted coffee 2.2.2. Condensed milk
Condensed milk holds a crucial place in every Vietnamese household, being a daily
addition to food and beverages for its creamy and flavorful taste. TH True Milk's new condensed
milk utilizes milk as a readily available base to offer consumers a product that is rich in nutrition.
The condensed milk will be packaged in a 380-gram paper box designed to be user-friendly,
making it easier for consumers to tear open the box.
Figure 2-3 Demonstration of condensed milk
2.3. Additions to existing product lines 2.3.1. Greek yogurt
Greek yogurt is renowned for its nutritional value and health benefits. Compared to regular
yogurt, Greek yogurt has a higher protein content and lower carbohydrate content. TH True Milk's
Greek yogurt is enhanced with milk protein for added nutrition.
This product will be packed in a set of 4 yogurt boxes, with each box weighing 100 grams and covered with a foil seal.
Figure 2-4 Demonstration of Greek yogurt
2.3.2. Formula milk for babies aged 1 to 2 years
Formula milk is derived from cow's milk that has been processed to be more suitable for
babies. The cow's milk is transformed into a dry powder for consumers to reconstitute with water.
Formula milk provides infants with the necessary nutrients for their growth and development.
An 800-gram tin box containing the milk powder is accompanied by a measuring spoon weighing 4.6 grams.
Figure 2-5 Demonstration of formula milk for babies aged 1-2 years
2.3.3. Triangle foil packaging of processed cheese
TH True Milk already offers a processed cheese product, albeit in stick form. The new
concept for processed cheese involves a different packaging: an 8-piece triangular cheese
arrangement in a circular box. This new style of packaging aims to provide consumers with greater
convenience and a larger quantity.
The circular paper box consists of 8 pieces of processed cheese, with each piece weighing 15 grams.
Figure 2-6 Demonstration of triangle foil packaging of processed cheese
PHASE 3. CONCEPT EVALUATION
3.1. Overview Evaluation
In concept evaluation, we will implement a concept testing activity to eliminate 3 out of 6
concepts. First, we screen and evaluate each concept based on the four following criteria, then
score them with a Likert scale (1 - lowest; 5 - highest) in the table below:
- Availability of equipment and technology: The more requirements of production, the lower the score is.
- The purchasing power of consumers: Based on the market size and the demand of
consumers, the bigger the market size is, the higher the score is.
- Competitive rate: Based on the presence of competitors in the market, the lower the number
of rivals is, the higher the score is.
- Availability of distribution channels: If available channels are more suitable for new
product distribution, then the score is higher.
The results indicate that Milk tablets and Roasted coffee obtained the lowest scores,
primarily due to their high equipment and technology requirements and limited growth potential.
Milk tablets present fewer competitive opportunities, and they possess a significant market
potential since no company in Vietnam currently produces them. Consequently, introducing this
product would necessitate acquiring entirely new equipment, adopting suitable formulas for the
Vietnamese market, and exploring alternative distribution channels.
Roasted coffee, on the other hand, represents a promising concept, catering to a sizable
market of homemade coffee enthusiasts. However, cultivating roasted coffee requires nutrient-
rich, sustainable reddish-brown soil found in the Central Highlands of Vietnam, which poses a
challenge as TH True Milk's primary farm is located in Nghe An. Moreover, the roasted coffee
market is fiercely competitive, with well-established brands boasting a longer history in coffee production.
Expanding the Baby formula product line to include formula milk for babies aged 1-2 years
is a suitable proposition. Currently, TH True Milk only offers Baby formula for babies aged 2-6
years. Fortunately, the company already possesses the necessary formulas and equipment for this
product. Additionally, the extended shelf life of the baby formula contributes to cost savings in
terms of transportation, storage, and inventory management. However, the purchasing power for
this particular product segment is relatively low since it covers a short period before consumers
transition to a different product. Moreover, competition is intense, with market leaders such as
Vinamilk and Abott enjoying a larger market share.
Regarding the concepts of Condensed milk, Greek yogurt, and Triangle foil packaging for
processed cheese, these ideas demonstrate strong potential for further development and warrant consideration. Evaluation Baby Triangle foil criteria Milk Roasted Condensed Greek
formula for packaging of (1-5 scale tablets coffee milk yogurt babies 1-2 processed point) years old cheese Purchasing 3 5 5 3 2 4 power Equipment and 1 2 3 4 5 5 technology Competition 5 1 2 4 2 3 Distribution 3 2 5 4 5 4 Channel Total point 12 10 15 15 14 16 Develop? NO NO YES YES NO YES
Figure 3-1 Overview evaluation table 3.2. Scoring Model
We opted to categorize the 12 criteria into five main categories: technical, environmental,
financial, user convenience, and commercial factors.
In terms of weight distribution, we assigned the highest weights to two criteria: product
shelf-life and consistent consumer demand. This decision was based on the understanding that
product shelf-life directly impacts inventory and production cycles, thereby influencing
operational expenses. Moreover, consistent consumer demand significantly affects the potential
purchasing power once the product is launched.
To facilitate the evaluation process, we utilized a 1-3 scale point system, which allows for
ranking the worst, average, and best product within each criterion. Given that these three products
share similarities in terms of the product platform and production techniques, employing a shorter
scale made the evaluation process more straightforward.
The waste treatment criteria encompasses factors such as waste volume, composition,
adherence to local regulations, and desired environmental outcomes. These factors influence the
treatment methods and associated expenses for the company. Similarly, the production of waste
relates to its impact on the environment, whereby a higher volume of waste production poses
greater harm. Therefore, we considered the amount of waste and its impact on the environment.
“Familiar to Vietnamese people” criteria is about how much the product is familiar in daily
use to the consumers. Competitive risk is the potential of the market that the product could face when it is launched.
As shown in the table below, Greek yogurt received the lowest score in technical factors
due to the complexity of its manufacturing process. However, it scored highest in environmental
factors due to its easily treatable waste. Additionally, condensed milk emerged as the most familiar
product among Vietnamese households, followed by processed cheese, while Greek yogurt was
found to be the least familiar. This can be attributed to some individuals perceiving Greek yogurt
as an expensive option and opting for cheaper alternatives. However, condensed milk exhibited
relatively strong competitiveness against other long-established products in the market, whereas
Greek yogurt showcased greater potential for future development.
Based on the results, Greek yogurt obtained the highest total score of 2.12, leading us to
eliminate two concepts: condensed milk and triangle foil packaging for processed cheese. Triangle foil Condensed milk Greek yogurt packaging of processed cheese Criteria Weight (%)
Point Weighted Point Weighted Point Weighted (1-3) point (1-3) point (1-) point 1. Technical Manufacturing 8 2 0.16 3 0.24 1 0.08 factors capability Complicated 10 1 0.1 2 0.2 3 0.3 formula Product shelf- 12 3 0.36 1 0.12 2 0.24 life 2. Waste 6 1 0.06 3 0.18 2 0.12 Environmental treatment factors Trash 6 3 0.18 2 0.12 1 0.06 production 3. Financial Operating cost 8 1 0.08 2 0.16 3 0.24 factors Initial investment 5 1 0.05 3 0.15 2 0.1 cost 4. Easy to use 5 1 0.05 3 0.15 2 0.1 Convenience of customer Consumer- 8 3 0.24 2 0.16 1 0.08 factors friendly price Familiar to Vietnamese 10 3 0.3 1 0.1 2 0.2 people 5. Commercial Consistent factors consumer 12 3 0.36 2 0.24 1 0.12 demand Competitive 10 1 0.1 3 0.3 2 0.2 risk Total point 100 2.04 2.12 1.84 Develop? NO YES NO
Figure 3-2 Scoring model table
PHASE 4. PRODUCT DEVELOPMENT
4.1. Difficulties and risks in manufacturing the new product
The Greek yogurt industry faces challenges that require attention. Key concerns include
ensuring stable nutritional quality, verifying the origin of raw materials, maintaining food hygiene
and safety with strict testing, utilizing high-tech production equipment, and implementing eco-
friendly and attractive packaging. Mitigating risks in the production process is also important.
Addressing these challenges will enable the industry to deliver high-quality Greek yogurt that
meets consumer expectations and regulatory standards, catering to the demands of health- conscious consumers.
In the production process of products, it is impossible to avoid unintended risks. Enterprises
need to be meticulous, measure, and record those problems so that they can be remedied quickly
before the product is launched on the market. Some problems in the production process in the line of Greek Yogurt such a : s
- Probiotics are damaged by bacterial colonization during milk fermentation.
- The shelf life is too short, making the yogurt easily damaged during transportation or sale.
- Production and investment costs are too high.
- Packaging stamps are defective and waterlogged during freezing.
- Food safety inspection takes a lot of time.
To address these problems, businesses should prioritize certain measures. Thorough daily
microbiological testing is essential, along with creating a separate area for probiotic cultivation
and having contingency plans for yeast-related issues. Furthermore, using waterproof paper for
packaging and stamps can prevent damage and maintain product quality. Lastly, businesses should
focus on efficient food safety inspections, aiming to minimize unnecessary complications and
consumer costs. By implementing these strategies, businesses can enhance the quality and safety
of Greek yogurt, ensuring customer satisfaction and reducing potential risks. 4.2. Product testing 4.2.1. Alpha test
Alpha testing is the first stage in the product testing process before the product is officially
released. During this phase, the product is tested and evaluated by members of the production
organization to ensure the quality and stability of the product before moving on to the next testing
phase. Alpha testing helps employees participating in the product testing process to detect and
correct errors if any, thereby improving product quality and bringing satisfaction to customers.
After the production phase, the company proceeds with a comprehensive evaluation called
an Alpha test. Initially, the production staff, serving as the first testers, will take note of the
incubation time and assess whether the yogurt is pliable or solidified. They will then send Greek
yogurt samples to the manager for further evaluation. Finally, the product development team will
conduct a comprehensive assessment using the "Black box, white box" technique. They will
experiment with yogurt in different environments, packaging options, and temperatures (such as
using glass jars or refrigeration). This testing process helps the company identify any significant
issues and address them promptly. To comply with regulatory requirements, various versions of
Greek yogurt samples will be submitted to inspectors and food safety experts for certification.
Once certified, the product will be ready to be introduced to the market. 4.2.2. Beta Test
Beta testing is the stage of testing a product on a sample of users (usually potential
customers or stakeholders), to gauge user feedback and perception of the product before the
product is released. officially on the market. Final improvements and adjustments to the product
will be made based on user feedback during the beta period. Beta testing helps to ensure that the
product is developed based on the computing needs of the customer and that subsequent investment can avoid risks.
The subsequent step involves distributing Greek yogurt samples to consumers for testing.
Trial activities will be organized at supermarkets or convenience stores, where customers can
receive these samples. The company may also register booths at exhibitions to promote the new
products and distribute samples to interested customers. Throughout this process, experts will seek
feedback and gather valuable insights about users' perception of the product. Information will be
collected meticulously. During this phase, businesses must carefully observe users' attitudes
toward the company's products. Only through this thoughtful approach can the yogurt product be
perfected to meet users' expectations in terms of quality, affordability, delicious taste, and high nutritional value.