Hypothesis Statement: “The ‘sport marketing’ strategy will help Vitamilk strengthen its brand image”
Topic Category: Marketing Strategy and Brand Image
Publication: Manager Online
Date: October 25th, 2005
“Vitamilk restructures itself to block Foremost from the beginning and protect its share in soy milk market”.
As the growth rate of soy milk market is very high (21%), there are many milk companies who want to enter this market, for example, Serm Suk, and Foremost. Therefore, Vitamilk restructures itself and plans to do “sport marketing” strategy by focusing on consumers’ lifestyle. The company hopes that its new strategy will strengthen its brand image and protect its share from competitors.
I partly agree and disagree with Vitamilk’s strategy.
Firstly, being an active player who responds to the new threat of Foremost from the beginning is the right thing to do. As Vitamilk is the leader in the market, it shouldn’t sit still doing nothing and be careless about new competitors. Also, it is easier to fight with new competitor from the beginning than to realize later that it steals company’s market share and then start fighting. Secondly, Vitamilk also tries to strengthen itself by restructuring its organizational structure. Only the company, who can properly adapt itself with all changes, will be able to sustain its market positioning.
However, Vitamilk says that its marketing strategy will be more focused on sports. We all know that people who drink soy milk and people who play sports will be healthy, but it’s not related to each other. There are lots of people who drink soy milk and don’t play any sports, and vice versa. Although people know that soy milk can make them healthy, they don’t really know how healthy soy milk can do. As Vitamilk knows the advantages of soy milk that announced by US’s FDA (reduce cholesterol and the risk of getting areca nut cancer), the company better use this information to be in part of their marketing campaign. Although there is possibility that some people who know the advantages of soy milk will come to buy competitors’ brand, more people still go for Vitamilk as it’s leader brand who acknowledge this information to the people.