MARKETING SOLUTION OF FRIESLANDCAMPINA VIETNAM FOR

OVALTINE BRAND TO INCREASE THE MARKET SHARE IN VIETNAM

MARKETING MANAGEMENT
Phan Bich Phuong - 18110022 Marketing Management

Contents
I. Background information about Friesland Campina Vietnam (FCV) and Ovaltine a famous
brand of FCV in Vietnam ....................................................................................................... 2
II. Marketing strategy for Ovaltine before 2018 ................................................................ 3
2.1 Segmentation ................................................................................................................ 3
2.2 Targeting market: ......................................................................................................... 3
2.3 Marketing differentiation: ............................................................................................. 3
2.4 Positioning................................................................................................................. 4
III. Marketing Mix before 2018 .............................................................................................. 4
3.1 Products: ......................................................................................................................... 4
3.2 Price:............................................................................................................................ 5
3.3 Place............................................................................................................................. 5
3.4 Promotion..................................................................................................................... 6
IV. Evaluation about the marketing activities of Ovaltine for many years doing business in
Vietnam before 2018 .............................................................................................................. 6
V. SWOT Analysis .............................................................................................................. 7
VI. Alternative solution of FCV and Ovaltine in marketing since 2018 ................................ 8
6.1 Marketing strategy and marketing mix solution .......................................................... 8
6.2 The pros and cons of the solution............................................................................ 10
VII. Recommendation for adoption and the outcomes I expect to occur as a result of adopting
this solution. ........................................................................................................................ 11
Reference list .................................................................................................................... 13
 Phan Bich Phuong - 18110022 Marketing Management

I. Background information about Friesland Campina Vietnam (FCV) and

Ovaltine a famous brand of FCV in Vietnam
Friesland Campina Vietnam (FCV) is the Joint stock venture between Pro- trade (Binh Duong
Export- Import Company- Vietnam) –and Royal Friesland Campina (Top company in Holland
in producing and distributing Milk and others consumption products in the world for more than
140 years).
Friesland Campina firstly appeared in Vietnam since 1924 under the distribution of Saigon
local importers however, till 1994, Friesland Campina officially imported and distributed by
Vietnam Foremost (Joint stock company between Friesland Foods and Pro- trade) and in 1995,
the factory Foremost was constructed in Binh Duong with the amount of investment capital
was up to 30 million USD. After more than 20 years of development, now FCV becomes one
of the top companies in the Milk production and distribution in Vietnam market. In terms of
five main categories of Milk, Powder Milk, water milk, Yogurt, condensed milk, soymilk, FCV
accounted for 22% of market and rank No.2 after 50% market of Vinamilk and followed by
Nestle witt 15% and TH True Milk with 11%
FCV provides variety of high-quality milk products with many famous brands such as Dutch
Lady, Friso, Yomost, Fristi, Completa and creates employment for more than 10 thousands
labors of Vietnam’ local citizen as well as taking part in many other activities for enhancing
the society’s value.

Revenue of Milk companies in 2018 Average milk consumption per capita

Source: Kantar World Panel - 2017

Source: Euromonitor

Currently, Vietnam’s milk consumption is increasing impressively year by year from 5 Kg/
person in 2007 to 20 Kg/ Person in 2015, and it is predicted that this number will go up to
nearly 30 Kg/ Person in 2020. In this number, the water milk accounted nearly 50% of the
market, the water milk market is one of the most beneficial market Thus, the milk market of
Vietnam is quite potential and becoming more and more competitive because of the bright
future prospects of milk consumption increase. At the same times, according to the report
“FMCG monitor of Vietnam launched in 2017 of KANTAR WORLD PANEL, the
consumption of Cocoa and Chocolate – barley milk/ drink experienced an increase of averagely
10% per year.
FCV Vietnam has 5 main categories: Water milk DUTCH LADY, Formula Nutrition Dutch
Lady, Yogurt Dutch Lady, Water Yogurt Fristi and Cocoa Oat Milk Ovaltine and condensed
milk - Dutch Lady. Nutrition Barley & Cocoa Ovaltine Milk is one of famous key brand of
Ovaltine in terms of Nutrition Barley & Cocoa drink since the first time FCV began doing
business in Vietnam to now, Ovaltine is quite popular in Vietnam market. However, the sales
Phan Bich Phuong - 18110022 Marketing Management

and distribution of Ovaltine decreased and the market share decreased because of the increase
in the number of competitors in milk industry with variety of products.
In Vietnam ‘s market, in terms of Nutrition Barley & Cocoa drink, currently Nestle and FCV
are both companies lead the market and no other competitor has the same products. It can be
said that Ovaltine and Milo from Nestle are not only the competitors of each other in the world
market, but also in Vietnam market, especially in the market of Barley and Cocoa Milk. In
Vietnam, currently MILO keeps the first position and followed by the high competition of
Ovaltine. MILO is a key brand of Nestle which has the large contribution for the market share
in terms of Cocoa and Barley Milk
For the first period in the market, Ovaltine accounted the majority of the market, however, after
WTO and the increase of competition due to the increase in the number of firms, thus the
market share of FCV as well as Ovaltine went down compared to before

Market share of Nestle and FCV

Source: Daily Global.net

II. Marketing strategy for Ovaltine before 2018

2.1 Segmentation
- Geographic: Ovaltine has appeared in many cities and province of Vietnam and, from
cities to rural areas, however, in the cities the consumption of Ovaltine is much higher
compare to rural areas.
- Demographic: Age in 6 -15 years old
2.2 Targeting market:
Ovaltine is focus on group of consumers who are kids in primary and secondary school
2.3 Marketing differentiation:
- Products: This is one of the products that make FCV becomes different from the others
competitors ‘s brand as Vinamilk or TH True milk. Ovaltine is the products is made from the
combination of milk, Barley’s nutrition and Cholin to support for brain ‘s development of kids,
further more this also provide lots of Vitamin D3 which help kids’ body to absorb Calcium and
other necessary vitamin and mineral effectively. The products is produced based on the
standard of Holland. Ovaltine is a global famous brand. Ovaltine is produced based on the
international standard of Dutch Lady mother ‘s company who experienced more than 145 years
working in Milk industry. FCV also has their own cow farm which provides large quantity of
milk for their products, the cow is raised and taken care in many developed countries as Holland
and Newzeland….
- Price: Price of product Ovaltine is around 5% lower compared to main competitor as Milo
Phan Bich Phuong - 18110022 Marketing Management

- Service:
FCV possesses a very professional and updated communication website with all customers to
provide the necessary information not only Ovaltine but also the other products of FCV from
the promotion information, marketing activities as well as public the society’s contribution of
FCV for Vietnam which help consumer and Non consumer to approach the information about
FCV and Ovaltine
- Employee:
Besides, FCV also distributes products through the strong distribution network with the force
of smart and knowledgeable employees. In FCV, most employees have background and high-
level understanding about the nutrition and milk industry, FCV spend lots of budget in fostering
and enhancing the capability of their employee force.
2.4 Positioning
- High quality products and reasonable price
- Compared to Milo, Price is lower but the quality probably the same
III. Marketing Mix before 2018
3.1 Products:
- Logo: Logo of Ovaltine is used as the same as other Ovaltine version in many other countries
of Friesland Campina. This logo indicated that Ovaltine is the Global Brand name, and every
consumer can realize the products even where they buy the product.

And Milo is also the same, Milo Logo also indicates their global brand. In the world market,
people can see many competitions among these two-brand logos.
- Kind of products:
Ovaltine Powder, Ovaltine water milk but in this writing I would like to focus on the water
milk which contributes the largest revenue for Ovaltine brand
- Service:
All products on a whole and Ovaltine in specific is indicated through the website:
http://www.dutchlady.com.vn/.
In the website, there are many information provided including the general information about
products, promotion, coming soon products as well as the certification of product safety of the
government
In the website, the consumer can easily to search the information and give the feedback about
the products to the manufacturer
Phan Bich Phuong - 18110022 Marketing Management

Advantage, Ovaltine inherited the benefit of the distribution system of FCV, however, when
the number of products has increased, but the quantity of salesmen who take care of the
products is quite limited, thus this raised many problems relating to quality of products (when
the number of products increase, the salesmen probably can not ensure the quality of
shop/retailer’s caring service)

3.2 Price:

Price of Ovaltine compared to competitor MILO is 15% lower, this is one of the
advantages of Ovaltine help them easily approach the customer
Ovaltine - Socola case 110ml (Bundle 4 case) price 17.500đ
Ovaltine vị Socola case180ml (Bundle 4 cases) price 25.500đ
Ovaltine vị Socola case 110ml (box 48 cases) price 210.000đ
Ovaltine vị Socola 180ml (Box 48 cases) price 304.000đ
When compared to Milo:
Milo vị Socola hộp 110ml (Bundle 4 case) Price18,000
Milo vị Socola hộp 180ml (Bundle 4 case) Price 26,000đ
Milo vị Socola case 110ml (box 48 cases) price 215.000đ
Milo vị Socola 180ml (Box 48 cases) price 310.000đ
The advantage of price of Ovaltine is that, each unit of Ovaltine has comparatively lower than
MILO which is an advantage for Ovaltine in approaching more to consumers as well as the
shop owner and dealers, retailers.

3.3 Place
Traditional Modern
channel channel

FCV FCV
2 Factories

4 whole sales Convenient

Wholesales Supermarket
store
8 ware houses

70 Dealer
Dealer
In 60 provinces

75,000 stores Store

The distribution system of FCV has almost no difference from the other FMCG companies in
Vietnam market. Ovaltine is distributed through the network of 75,000 stores over Vietnam.
Phan Bich Phuong - 18110022 Marketing Management

However compared to Vinamilk and Nestle, the distribution of FCV seems to be weaker. The
number of dealers and quantity of sales and supervisor of FCV in distributing is less than the
other companies in the same industry as Vinamilk and Nestle. The coverage of the FCV in
store and retailer is also far smaller than competitors, the number of stores having the
appearance of Ovaltine is just only 55,000 stores compared to 75,000 stores of MILO- Nestle
(Kapal Report-2017).
The coverage of Ovaltine in the rural areas is weak and far smaller than Milo, because FCV
has not invested much on the distribution system in rural, meanwhile now in the rural areas,
the consumption has the upward trend

3.4 Promotion

Ovaltine appeared in Vietnam Market for many years and invested large amount of money in
terms of Marketing activities however they always left behind compared to MILO.
- TVC and online advertisement
Ovaltine is advertised on many media means with the purpose to makes the customer think
about the quality and price of products, and by doing that, Ovaltine can take the belief and
loyalty of consumers. And in every TVC, we always see the fresh, fun and active feeling as a
concept of Ovaltine.
In each clip, Ovaltine also provides the image about gift of Ovaltine. At the same times, in
point of sales, FCV also provides these gifts for customer which will influence to the decision
of the parents
- Promotion for point of sales
Besides Ovaltine also has some promotion for point of sales, products display campaign for
shops
- Public relation
Scholarship for poor students in schools
IV. Evaluation about the marketing activities of Ovaltine for many years doing
business in Vietnam before 2018
However, for many years with no breakthrough in advertising, Ovaltine seems to be weak when
MILO is going up year by year with many intelligent campaigns pull many consumers to realize
the position and target customer of Milo clearly by their advertisement, furthermore, with the
effective distribution system, MILO appeared densely in point of sales and having the good
corporation with dealers in distributing the products even their price is higher than Ovaltine
Level of recognition (top brand of Mind – in terms of water milk)

Sum of level of Recognition with the

1st recognition
recognition support

Source: Vinaresearch -2018

Phan Bich Phuong - 18110022 Marketing Management

Level of recognition (top brand of Mind – in terms of water milk) – in Ho Chi Minh and Ha Noi

Source: Vinaresearch -2018

In the brand top of mind, Ovaltine rank No.7 meanwhile Brand MILO of Nestle rank No.3 in
total Vietnam market. Besides, in Ha Noi, Ovaltine rank No.7 mean Milo Rank No.3, in Ho
Chi Minh, Ovaltine even rank No.10 while Milo rank No.9
For many years, when it comes to MILO campaign’s advertisement, their concept and the way
they convey the concept, message and the way they communicate with the customer is aligned
with their brand ‘s story in a professional, meaningful and strategical way. Marketing campaign
of MILO always go along with many activities in primary and secondary school, for example,
physical ‘s event organization
However, about Ovaltine, there is no clear action relating to what they claim on the advertising,
Ovaltine actually emphasize on price as the key point to help them to expand their coverage as
well as increasing the market share.

V. SWOT Analysis
- STRENGTH
 Products is manufactured based on international standard
 Large investment capital, focusing on infrastructure construction.
 Many years working in milk industry
 The coverage and distribution in the urban area is quite good compared to rural areas
 High quality of human resource, who has trained to capture the deep knowledge about
basic milk nutrition
 Price of Ovaltine is lower than Milo
- WEAKNESS
 The price segment is not diversified.
 Stock keeping unit is not diversify
 Distribution channel is weak in rural area
 In Ho Chi Minh, Ha Noi and Vietnam market the brand awareness is quite low
compared to competitor in Milk industry, the brand awareness of Ovaltine ranked low
position compared to main competitors as Milo of Nestle
Phan Bich Phuong - 18110022 Marketing Management

- OPPORTUNITY
 International cooperation and investment attraction are promoted.
 Local government care much about enterprises
 Abundant human resources.
 Market demand for nutrition drink is growing strong in the cities
 People, kids care much about nutrition drink
 Communication and technology factors affect consumer behavior
- THREAT
 Human resources in Vietnam are diversified and cheap but their qualifications are not
high.
 The number of competitors in the market is increasing.
 Enterprises must commit to protecting the sustainable development

VI. Alternative solution of FCV and Ovaltine in marketing since 2018

After those problems relating to marketing activity, in 2018 OVALTINE has launch a really
impressive marketing campaign

6.1 Marketing strategy and marketing mix solution

- Target customer: The target market is also the same as before with the age from 6-15 years
old
- Position:
Keep following the position lower price with very high-quality products
- Products:
In 2018, Ovaltine comes back with the new version of Ovaltine which contains additional
nutrition, Vitamin and mineral in the products
- Prices:
Keeps the same as before
- Place: They now following the old distribution adopted for a long time with the smaller
number of dealers and wholesalers for consumers. When the market size increase, it is
necessary to adjust the distribution system to be appropriate for the development of
market
- Promotion
With the purpose of enhancing the brand awareness for Ovaltine, FCV has a really brilliant
campaign in 2018-2019 named: “CHẲNG CẦN VÔ ĐỊCH, CHỈ CẦN CON THÍCH”
This special campaign is considered as” Coat-tail marketing” (marketing phục kích) - which is
the act of appropriating or taking advantage of another brand's campaign or activity to increase
awareness of their own brand.
In 6- 2018, MILO aired the TVC with the message : “Milo, thức uống dinh dưỡng cho nhà vô
địch”. After that in 9-2018, before new academic year, Ovaltine launched the campaign in a
hidden way to against the concept of MILO with slogan:
”Chẳng cần vô địch chỉ cần con thích”
Phan Bich Phuong - 18110022 Marketing Management

The Pano of Ovaltine was put almost in front of the Pano of Milo in Nam Ky Khoi Nghia
Crossroad with the hands is point ahead to the Pano of Milo with the Slogan “ Nhà Vô Địch
làm từ Milo”

Pano of Milo Pano of Ovaltine

Poster in school Poster on facebook

Furthermore, on fan page and school board Ovaltine also put the board with the message to
against the message of MILO in a hidden way through the design and the color. We can see
that, While Milo put the green Slogan "The Champion made from Milo", the other side of
Ovaltine with a bigger billboard printed the picture of mother and daughter pointing to the
"rival" side. the words '' There is no need for a champion, only you like is enough ''.
For consumers, it is not difficult to realize the Ovaltine is implying an attack: Milo is
advocating for learning by achievements through the design and color green of the picture
After that, Ovaltine continue to launch the video: Cho điều con thích on facebook and
youtube and on many other famous channel as Kenh14.vn
https://chodieuconthich.kenh14.vn/?fbclid=IwAR3XVWTECEpbL03XKLjCgqRllqj5x3Bmb
_1n9v5MoSwZJL-ZzhDzmEuW6_8
https://www.youtube.com/watch?v=xyv5STcc-O8

https://www.youtube.com/watch?v=xyv5STcc-O8
Phan Bich Phuong - 18110022 Marketing Management

The humane message, emotional way of telling and hitting the right insight of parents is what
makes the success of this short film this time. The short film "For what you like" has received
lots of praise from the audience with 46,000 views on fan page and over 59,000 views on
YouTube. And up to the present time has touched 5 million views on YouTube.

Post on facebook of KOL : Ly Hai Minh Hà Post on facebook of KOL: Đan Lê

The achievement story is transmitted quite strongly and is expressed quite clearly, with the
psychology of being very uncomfortable when being criticized by others is not good, not
achieving high achievement but this is for Vietnamese parents in my opinion are quite difficult
to accept
At the same time, MILO utilize KOL as Minh Ha a hot Mom and Đan Lê – Famous actress
and Hot Mom to share about the emotion and perspective about “Should or should not parents
let the child do what they want to do?” with the hastag: #Lamdieuconthich,#changcanvodich,
chicanconthich
Ovaltine continue to viral the clip through advertising on YouTube and targeted to the audience
who are young even they are not the main customer, however, they shared and discuss about
the drama among Ovaltine and Milo which we push the customer aware about Ovaltine better
Ovaltine choose the time to launch the campaign right the time before new academic year and
attack to the negative side in the message of Milo, in the modern society, parents and children
are suffering from achievement pressure
This campaign with the opposite message to MILO’s message raised a lot of argument and the
interest of many people was got in to the discussion about “Should or should not parents let the
child do what they want to do?”. Definitely, each of discussion both MILO and Ovaltine name
appear on the discussion
6.2 The pros and cons of the solution
For advantage, it is evident that Ovaltine’s creative campaign has gain a lot of attraction from
the consumer who has never known about Ovaltine before. It means that Ovaltine and FCV
have opportunities to sell products to new customers, expanding their own market share. It can
be seen on the Social media front as Google search or newspapers, most of them writes about
“how successful Ovaltine” and the amount of people discussing about Ovaltine is very popular.
Ovaltine is very smart when choosing Social Media as a place to promote and collect a great
deal of talk from customers and the online community.
Phan Bich Phuong - 18110022 Marketing Management

The graph above is the indicator about the amount of time mentioning, like, share and
interaction relating to Milo and Ovaltine. It can be seen that, around September, at the time
around the campaign launched the number of interactions increased. This result can show the
influence of the campaign on social media to people’s interest
For disadvantage, from the view point of many people, they can think the campaign of
Ovaltine represented the unfair competition and Ovaltine can lose the customers who think this
campaign was a negative campaign. And the efficiency of this campaign just only retains when
Milo keep following their campaigns “Nhà vô địch làm từ Milo”. Once Milo stop their
campaign, the social media ‘s effect will probably go down. It can be seen from the table, the
number of negative interactions also appeared. It means that even Ovaltine can get some
positive results, however, they also have to suffer some critique from the social media
VII. Recommendation for adoption and the outcomes I expect to occur as a result
of adopting this solution.
In my view, I think this campaign is really effective when we measure the brand awareness of
Ovaltine on the social media mean because, Ovaltine has been silent in the market for many
years in the market because of no breakthrough activities meanwhile, Milo had done good jobs
in terms of marketing for consumers
However, the effect of branding will not lead to the sales efficiency if Ovaltine has not had the
appropriate marketing mix for Ovaltine.
First one is the price, even though, The price strategy to distribute and expand the market of
Ovaltine is clear when compared to MILO, however, the distribution system has faced to many
problems relating to human resource ‘s activities or unsuitable channel will lead to that they
can not utilize the cheaper price advantage in expanding the market
The second one is the products, recently, Ovaltine has change and add more nutrition ingredient
into Ovaltine after many years they has only one brand remain the same flavor and the same
ingredients. This step also helps Ovaltine to expand their market to meet the customer’s
demand effectively, and I think Ovaltine should follow the diversification strategy in terms of
products, they should consider to expand more flavor in terms of this products line to approach
more customer who has different tastes
Besides Ovaltine should think to develop more stock keeping unit (SKUs) maybe help Ovaltine
to approach more customer because the customer’s demand is diversified and they want to have
more choices. For example, besides keeping in paper packaging, Milo also develops the SKU
cans:
Phan Bich Phuong - 18110022 Marketing Management

Cans Paper pack

Currently, MILO has their own website to communicate about all activities relating to MILO
brand, however, FCV has not invested in building a new website for Ovaltine, even Ovaltine
and Nutrition and Barley drink now is potential. By executing new website for Ovaltine, I think
they can easily to approach and interact with the customers better
I also recommend that, Ovaltine should build a brand image clear and unique to make the
customer memorize when they think about Ovaltine. Because currently, the Kid- targeted
customer of Ovaltine is interested about the cartoon as Dolphin or Shark or some other cute
animals. This image can raise the preference in the kid, if they prefer, they will ask mom to
buy for them. One success case is Marine Boy of Orion, they have built the character of Shark
and Dolphin to become main character of products. And after that the brand awareness as well
as the sales of Marine Boy have increased a lot (with the support of sales promotion and strong
distribution strategy)

My expectation after adopting this solution of Ovaltine is that Ovaltine can reach the brand
awareness in the key cities equalize to the Milo. And the market share of Ovaltine can increase
especially in the key cities as Ha Noi and Ho Chi Minh.
Phan Bich Phuong - 18110022 Marketing Management

Reference list

https://marketingai.admicro.vn/chien-luoc-marketing-cua-ovaltine-su-im-hoi-lang-tieng-bay-lau-de-
roi-bung-no/
https://marketingai.admicro.vn/chien-luoc-marketing-cua-ovaltine-su-im-hoi-lang-tieng-bay-lau-de-
roi-bung-no/#chien-luoc-marketing-cua-ovaltine-tu-ke-mo-nhat-den-vai-chinh-cua-mot-
8220drama8221
https://marketingai.admicro.vn/chien-luoc-marketing-cua-ovaltine-su-im-hoi-lang-tieng-bay-lau-de-
roi-bung-no/#ovaltine-phat-trien-san-pham-tai-tung-thi-truong-chien-luoc
https://marketingai.admicro.vn/chieu-tro-quang-cao-cua-ovaltine-minh-thich-thi-minh-da-xeo-thoi/
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tu-hiep-dau
http://www.dutchlady.com.vn/san-pham/thuc-uong-cacao-lua-mach-ovaltine.html
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Ha-Lan/
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nao-20180514164933732.htm
https://theleader.vn/tiep-thi-phuc-kich-nhin-tu-cuoc-chien-milo-va-ovaltine-1543546135844.htm
https://vietnambiz.vn/lieu-ovaltineco-the-dong-dinh-vao-tam-tri-khach-hang-mot-thuong-hieu-vi-
niem-vuicua-con-91060.htm
https://www.brandsvietnam.com/17219-Thi-truong-sua-tuoi-Nguyen-lieu-quyet-dinh-thi-phan