March 8, 2022
Price differentiation among baby milk powder brands
We believe that the supply chain from manufacturers to Consumers could be shorter and even be directly, without valueless intermediary. We want to bring products from manufacturers directly to Big Wholesalers, Supermarket chains or even Directly to its targeted consumers. We want offer the most profit to supply chain and at the same time offering highest value possible to the end-users.
Therefore in 2011 VIEC was found to serve this idea. In 2017 we have accomplished to bring products directly from factory in the Netherlands to Vietnamese consumers via cross-border e-commerce in less than 10 days. Besides, many manufacturers have found their markets in Vietnam as well as in the Netherlands via VIEC.
Contact us for more information and opportunities.
Chúng tôi tin rằng chuỗi cung ứng từ nhà máy đến người tiêu dùng có thể được tinh giản và trực tiếp hơn, bỏ qua toàn bộ trung gian không quan trọng. Do đó, vào năm 2011, VIEC được thành lập để hiện thực hóa ý tưởng này, rút gọn và tối ưu hóa chuỗi cung ứng, tăng lợi nhuận trong chuỗi và quan trọng nhất là tăng giá trị sản phẩm cho người dùng. Bởi người tiêu dùng sẽ quyết định giá thành và tuổi đời của sản phẩm.
Cty VIEC tại Hà Lan sẽ song hành cùng doanh nghiệp của bạn để đưa sản phẩm đến tận tay người mua lớn, như Tổng Thầu, Các Chuỗi Siêu Thị hoặc thậm chí giúp doanh nghiệp của bạn Mở Riêng Một Của Hàng giới thiệu và kinh doanh sản phẩm ngay tại Hà Lan. Với lợi thế về vị trí địa lý, hơn 11 năm kinh nghiệm, thông thạo văn hoá và ngôn ngữ. Sẽ giúp doanh nghiệp bạn phát huy được 2 yếu tố quan trọng trong kinh doanh: Nhất Cự Ly – Nhì Tốc Độ.
Hãy liên lạc với VIEC để có thêm thông tin mà bạn cần. Chúng tôi luôn sẵn lòng hỗ trợ.
Wij zijn van mening dat de toeleveringsketen of gekend als Supply Chain van fabrikant tot consument korter en zelfs direct zou kunnen zijn.
VIEC is in 2011 opgezet om dit idee te dienen. We willen fabrikanten rechtstreeks met groothandels te verbinden tussen Vietnam en Nederland, zodat de supply chain efficiënter wordt, meer waarde en winst wordt toegevoegd aan de hele supply chain en vooral voor de consumenten.
Wilt u uw producten rechtstreeks aan Vietnamese Groothandels, Supermarktketen, of rechtstreeks aan consumenten offeren? We kunnen u ondersteunen.
Neemt u contact met ons op.
Instead of “one-size-fits-all” products, Dutch producers provide baby milk powder in different stages, with the most dynamic segment being for babies aged 0 to 10 months.
Those types of infant milk powder are categorized to meet every child’s dietary needs and ensure that they grow healthily at their own pace.
Therefore, each stage of the formula has a specific combination of fats, proteins, vitamins, and carbs that is tailored to each child’s developing stages.
To be specific, there are currently two main groups: Number 1 infant formula milk for babies aged 0 to 6 months and Number 2 for 6 to 10 months.
Besides, another way to categorise those products which appear more popular among most customers is the division of standard and premium.
Some major infant formula brands, like Nutrilon, Aptamil,… price their product from €16 – €20 per 800g can, which might make you think that some are better than others.
The standard brands, like Etos baby, Kruidvat, AH, in contrast, is accessible at €7 to €10 per 800g can
So, what lies behind such a price difference?
Baby formula is one of the most tightly regulated food products in Europe, with terms related to the nutrients and vitamins and imposed guidelines on how the formula is manufactured, packed, and labelled described in the Standard EU Formula. All of those materials involved in the manufacturing process must follow recommended dosage controlled by European Food Safety Authority.
To be specific, the first type of formula for infants from 0 to 6 months must follow the standardisation from EU strickly. Certain nutrients, such as DHA, AA, GOS, along with some additional minerals and vitamins, must be present with a stated proportion to qualify for a position on the supermarket shelves under the inspection of the European Union. Besides, advertisement on this product range is prohibited.
However, from number 2 or follow-on milk powder (for babies from 6 months to 10 months), different brands may add some extra nutrition elements to identify their clear separation from the remaining players. But, as we’ve seen, the ingredients of proven benefit are the same across the board.
So, what marks the border between Standard and Premium?
The answer is by adding some extra nutritious ingredients and some flavours, with a huge investment budget. This will mark up the product’s price. However, the quality differentiation is not necessarily big between the Standard and the Premium ones.
Let’s dig deeper into that
“Usually, customers are unaware of the factors involved in pricing a product or service, such as the actual or estimated costs of production,” Investopedia writes. In such a competitive market that every brand is racing to draw the customer into their store, consumption is driven not so much by the actual cost of a paid-for product but mainly by its perceived cost. In other words, a product’s intrinsic properties don’t matter, nor does the cost to create it. What truly matters now is how the customers perceive the value of a product.
Marketers and advertisers understand this rule, and they have taken the most advantage of pricing strategy in marketing. They apply something called Halo Effect as a Persuasion Strategy. They know that by associating a product with something (or someone) attractive, they could raise the perceived value of the product as well.
In this case of baby milk powder, the marketing of infant formula company involves attempting to emphasize qualities such as its aesthetic design, accessibility, or convenience to maximize its perceived value, which in turn persuades mothers that it is worth investing more money into those seemingly-good properties. It is not hard, not to say effortless to understand that those marketing practices all derive from an actionable insight of every mom‘s best wish for their child. And established formula brands often present themselves with attractive packaging, modern design, viral campaigns, and sponsorship for nutrition seminars targeting high-income parents, etc… Therefore, they can position the product high in the market, and determine how the consumer perceives their baby milk powder. As a result, the customers are willing to pay more for goods or services that they attribute to high specifications, especially for the sake of their children. This has repeated as a circle impacting the lenses through which we evaluate the high-priced baby milk powder that we may not even be aware of.
Now you know what differentiates premium baby milk powder from the rest of the categories in Europe. As we’ve mentioned, the ingredients of superior benefits mainly depend on their marketing budget.
Then, which aspects of baby milk powder do you feel contribute the most heavily to your purchase decision: the true quality or ingenious advertising ideas?
From VIEC’s vision, we commit to providing you just the correct information via our commercial representative service so that you and your customers will be able to work directly with each other in the most efficient supply chain, where intermediaries will be cut off if they add no value to the chain.
We are proud to bring OLLA, a Dutch infant milk powder to Vietnamese consumers successfully.
If you seek customers in Vietnam or in The Netherlands to start your business, let’s call VIEC for more advice. If you still haven’t got the result after contacting customers in Vietnam or in the Netherlands, let us take it over and bring the result you want.
Based on our over-11-year experiences in promoting the bilateral trade between Europe, mainly the Netherlands and Vietnam, VIEC is proud to become a trustworthy partner of both manufacturers and end consumers in the two countries.
We thrive out of a commitment to ensure customer satisfaction and add more value to end-users by cutting down unnecessary intermediaries and mitigating costs and risks emerge.