Vinamilk: Fruit Juice for Kids in Vietnam

The case starts as Vinamilk brand manager, Nguyen Trong Tan, sets out to launch a new line of fruit juice for children in Vietnam. The company, while relatively new to the juice market, saw this as a huge growth market since, unlike other developed markets, the Vietnamese market did not yet have a juice targeted specifically at children. Nguyen hopes to fill this gap by launching a new product line.

However, Nguyen faces competition from several companies, including international giants Coca-Cola, the maker of Minute Maid; and PepsiCo, the maker of Tropicana Twister; along with local companies such as Tan Hiep Phat Beverage Group. He also needs to contend with high inflation in a marketplace that is more likely to make fresh juice at home than buy a ready-to-drink product from Vinamilk. To add to the pressure, Nguyen’s growth targets for all juice sales are nearly 100% for each of the next two years. How can Nguyen embark on the challenge of creating a new product in a competitive market?

This case can be taught to explain strategies used in new product marketing and in strategy courses focused on growth strategies by exploring the question of whether Vinamilk should enter the market, and if international expansion is viable. Finally, it is well suited for marketing courses on marketing communications, planning and implementation.

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