Topic research: “Customer and Vinamilk advertisement on TVT3 in 2009”

Topic research: “Customer and Vinamilk advertisement on TVT3 in 2009” Student: Ta Hoang Linh Student’s ID: CQ501481 Introduction Abstract: The report contains the investigation of how the two advertisements: 100% fresh milk and V-fresh affect the customers when they saw them on the VTV3. the research will be divided in to two parts, the first part is to investigate the preference of customers when they watch these commercial, the second part is to research the sales of Vinamilk in 2009. I think this way of research will let you see carefully and it is comparative between the attention of customers on TV advertisement and the change in sales. Background: In the fourth quarter of 2008, the news that spread through the nervousness of the consumers was about the dairy products made the consumer suspected the quality of these products. Firstly, the buyers worried when there was a piece of news mentioned the milk powder that produced in china has a chemical called Melamine. Some of companies in China tended to be producing for profit so in order to increase the profit per product, these companies used the chemical called Melamine. Melamine is extracted from coal, the industrial chemical commonly used in the manufacture of plastics, fertilizer, fire resistant fabrics, dyes and household products. Major element in its composition is nitrogen (up 66%). Although no nutritional value, but it is usually given to raw milk to increase protein content, by the method of assessment in milk protein content is often based on the percentage of nitrogen in the product. Experts confirmed the chemical structure of melamine makes it easy to pass the devices analyzed. When in the body, melamine causes kidney stones and urinary calcium tube. Thus, the milk powder products contained melamine as yogurt; ice cream ... can also cause disease. In Viet Nam, after the news was spread the Ministry of Health had verified all companies, at the end result that 23 brands of dairy products contained Melamine, the echo of the news prolonged till 2009. Nevertheless, at the same time, in 9th October 2008, the Environmental Police of Division Police in Tien Giang province give the sample of product of Vinamilk to the lab when heard the feedback of the customer named Nguyen Cong Phuc and result that in the sample had 7 bacteria and 4 of them were exceed the standard. This news had affected the Vinamilk image which it was built in the customer thought. These 2 things were the most affected news during the late 2008 and 2009; consumer’s choice in 2009 changed much compare with 2008. For example, the customer’s behavior till 2008 preferred cheap one, buyers tended to buy things without Realize the quality of dairy products. However, when the scandal of San Lu Company in China happened, then the Ministry of Health published the list of dairy brands whose products had Melamine, the habits had changed. Now buyers tend to buy products with certificated standard quality. These scandals happened in the late 2008 there is no doubt that in 2009; dairy companies had to surfer the bad effects. Buyers were so doubtful and suspect the quality of the product. Customers’ purchase power was decreasing. Vinamilk, the largest and powerful company in term of dairy products during 2009 had to experience those effects too. And in 2009, Vinamilk presented 2 new types of dairy products, the first product was “100% fresh milk”, the second one was “vfresh”. Company knew the difficulties in 2009 so that the promotions of the new products were extremely necessary because Vinamilk understood very well the effects of advertising on consumers. The role of a good advertisement is to informing them about product and services and influencing their attitudes, beliefs, and finally their purchase. This research follows the idea how customer response to advertisement of Vinamilk about those two brands name, or how effective these commercials were. The topic of this research is: “Customer and Vinamilk advertisement on TVT3 in 2009”. Rationales Today, there are mass of advertisements in every channel on TV. Because that option of advertising is the quickest and easiest way to reach the potential customers. In order to have the advertisement on TV screen, businesses has to pay VTV3 a lot just for a 30-second advertisement. It is important to business to evaluate the effectiveness of the advertisement toward the customers. The main purpose of this research is to define the affections of Vinamilk’s advertising during 2009 toward the buyers. Because of the limitation of knowledge so that this paper will include only two of those advertisements. They are the advertisement of 100% fresh milk and vfresh’s advertisement This research was conducted in order to know how effective the Vinamilk’s advertisements on TV are in the year of many dairy scandals. 1.4 Research question: 1, How did customers response toward Vinamilk’s commercials on VTV3 in 2009? (In this research question, I only focus on 2 advertisements which have been recommend in the background part of this report) 2, How did the responses affect Vinamilk sales and market share in 2009? 1.5 Research method: This research based on two types of data: Primary data and second-hand data. Primary data use the survey method. The population of this research is the students from Intake 50 Advance program. The survey questions will be answered by a population of 56 students. The type of survey question is multiple choice questions. Surveys spread out are 56 copies of survey questions. Surveys collected are 56 copies. Survey questions are stored in Appendix part of this report. Second-hand data are information on the Internet. The address on the Internet of Vinamilk is . Company has very detailed financial statements since it became Joint Stock Company and listed on the stock market. II Major finding: Research question 1: How did customers response toward Vinamilk’s commercials on VTV3 in 2009? The commercials this report includes are “100% fresh milk” advertisement and “vfresh” commercial. +The advertising is very important and vital part of a successful business. Advertising can be of any kind, some of the popular forms of advertising are: Print Media Advertising: This is the advertising in which we promote the business through Newspapers, Magazines, Journals and books. This advertising covers all of people who are related directly or indirectly with above said media. This is very popular form of advertising as print media is very important. We can further categorize the print media (newspapers) into Entertainment, Careers, Classifieds, technology (Computers, Electronics, defense), Real Estate, Lifestyles, Comics and much more. It also includes hoardings and banners. Television: TV is a very popular platform for advertising. It covers nearly all kind of audience and of all genders. Internet: The newest and increasingly getting popular form of media is internet. As it is the widest platform for the advertisers. It covers everything from a needle to a ship. These days more and more companies are focusing on advertising through internet. Internet advertising comprises of websites, portals, gadgets, feeds and search engines. With help of advertising the business firms publicize their businesses to make it more popular and to create brand awareness. Advertising help them in increasing revenues which directly increases the profit of the companies. Many companies are having separate departments for advertising. The function of these departments is to make plan and make budgets for advertising. Advertising helps in forecasting sales of a company. If the company spends more on advertising then definitely the people will be more aware about the brands of the company. Impact of Television: We live in a culture bombarded with promotional messages. Studies differ on the number of ads seen by the average American, but researchers cite from 850 to 3,000 ad messages experienced daily. These messages come from traditional sources like TV and newspapers but also on coffee cups, bill inserts catalogs, T-shirts and the like. The competition for the eyes and ears of the American consumer is fierce. Getting attention fosters the awareness that is the first rung of the advertising action hierarchy. It is so very critical to creating sales of an advertised product. Medium Properties: Television has the properties of sight; sound and motion that traditionally set it apart from other media such as radio (sound only) or print (sight only). With its three-pronged assault on its viewer's senses, TV is able to create broad awareness for a product. Television is considered a mass medium because of the numbers of people it reaches. Pervasiveness of TV: National broadcasters like VTV3, VTV2, VTV1 and VTV4 reach more than 87% of households in Vietnam have TV. Television reaches more than 94% of the country's population, a huge potential audience for a television commercial. But even TV's mass audience gets segmented as viewers fragment along age, gender and racial groups to watch particular networks, channels and programs. Effectiveness of TV Ads: The actual impact of an individual television ad depends on the kind of product being advertised. Some product categories are just naturally more interesting than others. More important is the creativity of the message itself. This is where specialists in television advertising truly earn their paychecks as it is their job to create ads that break through the clutter of television advertising, get attention, and communicate its unique selling proposition and so position the product for a sale. Television advertising has established a pantheon of highly regarded brands and brand icons like Coca-Cola, Pepsi-cola… Television Broadcasters: All national broadcasters have affiliated local stations. Local broadcast stations have some autonomy in program lineup, especially during the daytime and late-night periods. Local news is the bread and butter of local TV. Local stations have their own inventories of local ad units for sale and are given a share of some time slots available in prime-time programming for local ad sales. Buying local ads might provide a savings over national ad prices in the same TV program.Cable television advertising brings a new level of audience targeting and cheaper advertising costs. Cable TV practically invented the long-format commercial known as Infomercials, which even national broadcasters use to sell available time inventories, especially late night. VTV3 a TV channel broadcasts sports information, entertainment and economic information of Vietnam Television Station. This is a popular TV channels in Vietnam with the type of program can serve diverse entertainment needs of audiences of all ages. Although VTV3 hasn’t make any research about viewer rating but it’s obviously that the rating is very high due to 2 reasons Firstly, VTV3 is the channel of entertainment, sport, film, talk show, games… The pie chart above showed the percentage based on the number of people and their habit of watching VTV3 clustered in 4 categories: daily watching, 4-5 times per week, less than 4 times per week and never watch. There is 46% of the research sample frequently watch this channel which means major of the sample consider VTV3 is their favorite channel. 34% of them said that the frequency of watching VTV3 is 4-5 times a week. 14% rarely watch this channel and only 6% never watch VTV3 It is obviously that VTV3 is one of the most successful TV channel in Vietnam. Broadcasted officially since 31/3/1996, part of VTV (Vietnam Television). Till 2010, VTV3 is the first choice of every household in this country. The reason is the content of the channel can satisfy all hobbies of viewers. Children can find their entertaining TV shows in 4pm to 5pm, it’s just the time children come back home for a long day studying and at 4 to 5pm is the time for them to relax. For adults, there are many film, TV shows, games shows, sport… Moreover, the time frame of each show is very fit for the family. At 7pm, when all members in a family gather together, having dinner is the time for news, weather forecast. At 8pm, when the dinner is done and family sit together and watch film. Golden hour is the term which means a period of time when the number of people expected to watch the channel is the highest. In 2009, the golden hour is between 8pm and 9pm. However, the time 7pm to 8pm is often have the same amount of viewers as the golden hour because news of this day would be summarizing at this time. Further more, advertisements which broadcast at these time also have to paid higher price because the + “100% fresh milk” advertisement Description (Company intention of 100% fresh milk advertisement): The commercial presents a view of nice and clean green field. Where a class of cows marching and the slogan of this product appear: “100 percent fresh milk”. The melody was great and memorable. The image of cute cows impressed the audiences. You can see for yourself by follow this link: In order to be objective we have investigated more and due to the theory in MKTG (the book for marketing learner), 100% fresh milk ad is categorized in production advertising; its type was competitive advertising. Firms use this type of advertising to influence the demand for a specific brand. In this type, the promotion becomes less informative and appeals more to emotions during this phase. Advertisements may begin to stress subtle differences between brands, with heavy emphasis on building recall of a brand name and creating a favorable attitude toward the brand. In this advertisement, the information in this advertisement was not informed, however, the emotion of this advertisement was emphasized. In detailed, the joy of drinking Vinamilk’s products appeared on cows’ face. The competitive thing that against other product is the liquid milk contain in the box is 100% pure fresh milk. We have heard about two dairy scandals were the toxicant named melamine in Chinese milk powder and the case of misusing the term fresh milk. Because of that, was the milk used in liquid milk real fresh milk or not was the customers’ prior doubt. Vinamilk needed to emphasize the brand Vinamilk in customers’s mind so that they chose the name of the brand was 100% fresh milk. The meaning of this was they need the customers knew that their product did not have toxic substance. Youtube.com, the popular website for uploading and watching videos and when the commercial of 100% fresh milk was uploaded, it has reached 447528 views that was a large number and it showed that how popular this commercial was in 2009. Many television advertisements feature catchy jingles (songs or melodies) or catch-phrases (slogan) that generate sustained appeal, which may remain in the minds of television viewers long after the span of the advertising campaign. In order to define which good advertisement is or what is bad advertisement the target should be focusing on feedback of TV audience about the melodies and the slogan of an advertisement. For this purpose of research, in the survey which I have spread I have question 54 individuals for the melodies and slogan of this advertisement. The result has been calculated and post on the bar chart below The statistic has proved that over 60% of the samples’ answer in this survey question about the melody in 100% fresh milk advertisement was good. 30% of them thought it were very good and memorable; nevertheless, 34% of them said that it was quite good. Dam Thi Thuy Van, student from HAUI (Hanoi University of Industry) university, when I asked her a question: “how do you feel about this melody?” and she said: “the melody is very interesting and when they played this commercial on VTV3, I sang it all days”. However, 27% of them thought the music was normal and only 9% of them hate it. Some offensive feedback claims that the music was ridiculous with an image of cows. Other supports the response of nice-catching-song defense that the target of this advertising was the kids and young customers so that they designed the appeal of the advertising funny and a litter fiction in this ad. Because of this, they decided the catching jingle of this advertisement made of the funny melody and it image of the cows which are look very funny too, they even can talk and sing. As we have discussed so far, the melody of 100% fresh milk ad had made a great good impression in the audience heart and that was the first advantage of selling product because music is the most effective way to impress the audience. But, together with the music, what can customers see is also affect them. The image of the cows marching and singing in the intention of Vinamilk was to lay stress on the slogan they need customer understand. In my investigate, 34% of people like this image, they thought it was creative and need only 34% of the viewers like this image means 34% of the customers remember Vinamilk product and that can be concluded in theory the probability that buyers choose 100% fresh milk products will be higher than others brand. In this bar chart below you will see the preference level of this advertisement’s image where number 1 present preference at the highest level and 5 is the lowest level These numbers are calculated base on the percentage of people who chose each category of level of preference. People chose level 1 and 2 shows that they really like or this advertisement’s image left a positive position in customers’ mind and we can conclude that 61% of the sample like this commercial’s video. Also we can indicate that there are 61% of the people are more likely to buy 100% fresh milk products when they go to a dairy store. Although there was 12% of the proportion got a bad attitude toward this image, however, 12% is considering a small number compare with the proportion of people who interested. For the first advertisement that I research, my investigation can be concluded the commercial video that Vinamilk created in order to promote 100% fresh milk is succeeded in term of making customers remember the brand name of this product. ”Vfresh” commercial: Description: As we analyze the 100% fresh milk commercial, this type of commercial was production advertisement, and classified in competitive advertising. The story in this commercial was the couple, which the male was a chicken and a female was a duck, they fall in love with each other and stopped by their family. They decided going to the marsh and suicide with the assistant of the crocodile. But the crocodile was touched by their love and cry with real tears. And then the slogan appeared, as similar as the 100% fresh milk advertisement, the slogan in this advertisement related to the term real. To get more detailed, please follow this link: Feedback from viewers Melodies Melodies-jingle is the thing that we consider to determine either successful or unsuccessful of the advertisement. The art of catching audience attention in TV commercials or radio advertisement are the same, however, in radio they focus on jingle the most. Jingles are based on the idea of creating an audio-only environment and placing the listener inside of it. A typical radio spot features a professional voice-over artist reading descriptive copy over an appropriate bed of background music. Important information may be repeated several times over the course of the spot, such as contact phone numbers, addresses, website URLs, or a geographical reference. As one spot of radio advertising ends, another spot begins and the process continues until the program resumes. We learned here that a good commercial is not necessarily one you'll remember. It's the one that makes you spend.Below are some other positive reasons to use radio:Affordable -- when you compare spot to spot, radio tends to be one of the least expensive media out there. However, one spot is not going to do it. To reach your target market, you need to purchase several spots. That's why radio can also turn into one of the more expensive media.People tend to buy from people and businesses they know and trust. Hearing your voice helps them feel as if they know you. These psychological aspects may be another reason to consider running a few radio ads in local market. These attributes using radio advertisement somehow right for TV advertising but some attributes are different. The big difference is, TV advertising using both music and image to impress the audience, so there no need to remind the viewer the course of the spot. However, the way of attracting attention of audience for both of the two ways of the media was nearly alike. As the first advertisement that I have investigated, this advertisement will have two aspects to research. The first one was feedback about the jingle of the V-fresh products; the second was the feedback about the slogan of this brand. The audio in this advertisement is quite good in my opinion. But the research show that it wasn’t. The bar chart below shows us feedback of customers about this advertisement melody and the majority is 49% of the people who asked about this advertising said the audio was normal. Can we conclude that it was a failure in promotion of this brand? The answer is not yet; catching jingle is one of the aspects that we need to consider in determining the success or failure of an advertisement. Slogan Advertising slogans are the most effective means of drawing attention to one or more aspects of a product or products. Typically they make claims about being the best quality, the tastiest, cheapest, most nutritious, providing an important benefit or solution, or being most suitable for the potential customer. At the start of World War I a famous poster called on young British men to volunteer and serve their country as expressed by one of Britain's foremost soldiers, Lord Horatio Kitchener. The famous slogan "Your Country Needs You" was heard around the world. Still today America uses a variation of this slogan "Uncle Sam needs you", or "The Army needs you". Advertising slogans often play a large part in the interplay between rival companies. An effective slogan usually: states the main benefits of the product or brand for the potential user or buyer implies a distinction between it and other company's products makes a simple, direct, concise, crisp, and apt statement is often witty, if it is required as not all advertising slogans are meant to be witty adopts a distinct personality of its own gives a credible impression of a brand or product makes the consumer feel good makes the consumer feel a desire or need is hard to forget - it adheres to one's memory (whether one likes it or not) Advertising slogans are usually written by professional writers. Advertising slogans are subject to ethical constraints and are often viewed by official bodies, such as the Advertising Standards Authority in the UK, or the European Advertising Standards Alliance who claim to have a responsibility to the public good and whose decision making follows an Advertising Code. Similar organizations exist in Canada, Ireland, New Zealand, Australia, South Africa, as well as other countries. The slogan in this advertisement was “truth is best” in the time when consumers’ major doubt and always ask a question: “what was this product I drink of eat is produced at right standard or not?” This slogan will break this doubt because they promote this product by it source of production; it was produced by true fruit and true milk, and so that customers will assure that the things they going to drink is safe and even good for them. In this situation, the company has made a good slogan because of reasons below: First, it has stated the main benefits of V-fresh for the potential user or buyer and the benefit is it the truth and there is no toxic substance use to produce it. Next, it also implies a distinction between it and other company's products, non of any brand in term of fruit juice with milk have the same thing that they are promoting this item and it focus on the production procedure of V-fresh which is follow the standard and no toxicant. Also, it makes a simple, direct, concise, crisp, and accurate statement. “Truth is best” only 3 words that indicate the message he company need to deliver to the customers. Further more, it is often witty, if it is required as not all advertising slogans are meant to be witty. Nevertheless, it adopts a distinct personality of its own and the distinction was the quality of V-fresh, it is true fruit, true milk so that the quality is true. Next one, it gives a credible impression of a brand or product. Finally, it makes the consumer feel good, makes the consumer feel a desire or need and is hard to forget - it adheres to one's memory (whether one likes it or not). However, we need to ask the customers in order to define the last reason. In purpose of investigate the preference of customers toward this slogan, we have a question: “did they like this advertisement’s slogan?” the answers were collected and subjected into categories. There are 4 types of preference: really like, like, normal and dislike As the bar chart showed us, 36% of people really like this slogan and only 12% of them hate it. In two aspects that we have researched, we can conclude that the V-fresh advertisement was a good TV advertisement as the 100% fresh milk commercial. But, the preference of watching the 100% fresh milk advertisement is higher than V-fresh. You can see the views between 2 advertisement and compare. 100% fresh milk got over 500000 views but V-fresh only got nearly 12000 views. Research question 2: How did the responses affect Vinamilk sales and market share in 2009? The sales of Vinamilk have seen a dramatic increase in the year 2009 with the growth rate of 29% in comparison with the corresponding period last year, of which the local sales have increased by 35% while the export turnover has slightly decreased by 0.8% compared with that of the year 2008. From its equitization in November 2003 to now, the sales of Vinamilk have experienced an average growth rate of 21%/year. This is the first time total sales of Vinamilk have reached a record of over VND 10,000 billion and its profit also has got the highest amount ever before. This is also the first time when Vinamilk has contributed to the State’s budget over VND 1,000 billion. In the year 2009, Vinamilk continues to be a leader in the dairy market in Vietnam. Over time, products of Vinamilk have obtained growing trust and become a favorite brand of consumers. All the lines of products have experienced an exceptional and sustainable growth. Total sales reached an increase of 29.3%, of which local sales seen a growth of 34.6%. The distribution network has been strongly reinforced and developed. The company has reached targets of both sales volumes and profits set out by the Shareholder’s Meeting at the beginning of the year. The broad range of Vinamilk’s dairy products is divided into the 6 groups, in which, four first groups are the key products lines, contributing over 95% to the total sales of the Company. • Group of powdered milk and infant cereals • Group of condensed milk • Group of liquid milk • Group of yogurt, ice-cream and cheeses • Group of fruit juice, soy-bean milk, and purified water • Group of Vinamilk coffee In this report we just need to concentrate on 2 groups which are liquid milk and fruit juice, soy-bean milk and purified water. Liquid milk Liquid milk includes UHT fresh milk and drinking yogurt. This segment of products is the biggest sales contributor to the local sales of Vinamilk with the contribution of 34.6% and sales from these products also grew at the rate of 47.8% as compared with those in 2008. All the liquid milk products are consumed in Vietnam’s market. The competition in the market segment of liquid milk is highly intensive since there are many other local involving players, not mention to some UHT milk product brands imported. In the coming years, liquid milk remains the focus in Vinamilk’s strategy for development. 100% fresh milk take place in the production line of this group Fruit juice, soy-bean milk, purified water The sales of this group are mostly from fruit juice and soy-bean milk products. At the end of the year 2009, the company has launched successfully the line of non-gas beverage products, which are better for health, including marrow squash, orange smoothie, and strawberry smoothie. Although this group of products makes a small portion in the company’s total revenues but it offers a great and strong potential for the company’s development in the coming time. And V-fresh, one of the brands in this group is estimate to be the potential important product in the future. The table gives us the comparison between the performance of Vinamilk in 2 years and we can see the rise in gross sale as well as the profit of Vinamilk. In term of that, the attention of customers in Vinamilk’s products made this rise. And we can conclude the advertising has made this change. I believe that Vinamilk has everything needed to bring its goals come true. For external factors, Vinamilk has a great potential market of nearly 90 million people, 36% of them are under-14-year old children. The people’s income keeps increasing and they now pay more attentions to healthy products. Consumers today have trends to use products of reliable branded and recognized names. And promotion has contributed the Vinamilk’s today-success especially the promotion of 2 production items. Because of the attention in company’s product so that gross sales increase. For internal forces, the internal strengths of Vinamilk line in its realized brands, high-quality products and favorite from consumers. III. Conclusion: These two advertisements which is about promoting 100% fresh milk product and V-fresh product of Vinamilk have great impression tin customers’ mind. However, the first commercial I implied has great attention than the second advertisement. But, they both improving the company’s products and lead to a great rise in selling and profit. The research has answered two research questions I need to know, first is the two advertisements had impressed the VTV3 viewers in the positive way. Secondly, the response of viewers has increase the selling of this two product items and the proved was the liquid milk had took place as a major focus of Vinamilk and the V-fresh has estimate as the potential products in the future. IV. Appendix: Chart: 1.2 Survey: Survey How many hour do you watch VTV3 per day? Daily watching 4-5 times per week Less than 4 times per week Never watch 100% fresh milk advertisement (link to this ads: ) Do you like this the melody of this advertisement when you saw on VTV3? Really good and memorable Quite good It was normal The melody was bad What is your idea about the image of this advertisement when you saw on VTV3? Rank from 1 to 5, 1 is the best, 5 is the worst ○ ○ ○ ○ ○ 1 2 3 4 5 V-fresh advertisement (link to this ads: ) Do you like this the melody of this advertisement when you saw on VTV3? Really good and memorable Quite good It was normal The melody was bad What is your idea about the slogan of this advertisement when you saw on VTV3? Really like Like Normal Dislike V. Reference: Charles W. Lamb, Joseph F. Hair, Carl McDaniel. (2007-2008) MKTG