Enhancing consumer perceived quality: a case of Vinamilk infant formula milk powder

Abstract

When global infant formula milk powder market gets a remarkable growth with CARG at 3.0%, especially targeting key emerging country. With the fastest growth rate since 2011, Vietnam’s economy reach 7.08% of GDP in 2018. Then, Vietnam would be a competitive market for infant formula milk powder category with strong competition from domestic and foreign manufacturers. Nowadays, behavior of Vietnamese consumers are changing rapidly due to development of technology and globalization. Vietnam’s IFMP industry has experienced an update trends and changes as the rise of premiumizations and shifting from powder milk to drinking powder milk. Then it is crucial for manufacturers to change in order to meet their target consumer’s need and want. Recent year, sales revenue of powder milk has decreased with CAGR of -2% compare to 2013, while sales revenue of drinking milk powder has gradually increased. Besides, volume share of Vinamilk’s IFMP also has changed among price segmentation. According to the result of in-depth interviews and previous study, this study aims to figure out what the main problem is, validate the main problem, the importance of main problem. This research will explore the cause of the main problem. The findings of research implements that the low level of consumer’s perceived in quality leading to change in sales revenue and volume share. Then the alternative solutions would be suggested to improving the low level of consumer perceived in quality