Introduction
The Soy Milk market, valued at approximately 5kB VND, is currently facing a period of stagnation. As consumer preferences shift towards other alternatives, the demand for soy milk has begun to shrink. Market leader Fami currently holds a dominant 81% market share, leaving Soya with only 5.7% of the market. The rapid growth and innovation that once fueled Soya’s rise have since slowed, making it crucial for the brand to address the current challenges in order to grow.
The issue lies in Soya’s outdated image. It suffers from a poor perception, particularly among male consumers and teenagers, who associate the product with side effects or low quality. Additionally, the market has seen little innovation from big manufacturers, which has led to a lack of excitement and fresh communication about the category.
In this article, we will present a strategy to reverse Soya’s decline, focusing on winning the women’s market by differentiating the brand from Fami with a new proposition centered around beauty and wellness.
1. The Shrinking Soy Milk Market and Its Challenges
Market Insights
The Soy Milk market, with an estimated value of 5kB VND, is heavily dominated by Fami, which controls over 80% of the market share. Soya, despite being the number one brand, holds only 5.7%, struggling to keep pace. The market has seen little innovation or fresh communication for several years, leading to stagnation. As a result, consumers are turning to alternative products to meet their needs, leaving the Soy Milk category in a precarious position.
Soya’s Challenges
- Perception Barriers: Soya is battling negative perceptions that include an “old school” image, cheap pricing, and concerns about side effects, particularly among male consumers and teenagers. These perceptions have been hard to shake off, despite the brand’s nutritional benefits.
- Consumer Needs: While Soya offers a familiar, soothing taste and a sense of emotional comfort, it no longer resonates with the changing needs of modern consumers. The demand for beauty, wellness, and self-care is rapidly growing, but Soya has not adapted its offerings to these evolving preferences.
2. The Need for Differentiation: How to Compete with Fami
Market Leader Fami
Fami remains the market leader, but its communication and product offerings are based on outdated messages centered around basic nutrition, such as calcium. This creates a significant opportunity for Soya to differentiate itself by embracing emerging trends like beauty, wellness, and self-care—areas where Fami is falling short.
Targeting Women
Soya can carve out a distinct position by targeting women as the primary consumer segment. Women are increasingly interested in products that deliver not only nutritional benefits but also beauty and wellness advantages. This presents a high-value segment for Soya to target, especially as more women seek out products that offer both indulgence and functionality.
By focusing on concepts like inner beauty, self-indulgence, and holistic wellness, Soya can build a deeper emotional connection with women. These attributes are more aligned with modern consumer values, especially in the context of personal care and self-empowerment.
Opportunity for Innovation
With minimal innovation from competitors in recent years, Soya has a golden opportunity to introduce new products and marketing campaigns that directly address the desires of today’s consumers. By positioning Soya as a premium, beauty-focused beverage, the brand can attract a more diverse and engaged consumer base.
3. Consumer Insights: Understanding Needs and Motivation
Soy Milk Consumer Needs
- Functional: Soy Milk provides a soothing, familiar taste that is comforting for many consumers.
- Social Image: For some, Soy Milk is associated with traditional, nostalgic memories, representing comfort and familiarity.
- Emotional: Soy Milk also offers emotional fulfillment, delivering a sense of being cared for and secure—a feeling of protection that resonates deeply with consumers.
Changing Consumer Preferences for Milk
- Healthy Refreshment: More and more consumers are searching for healthy, refreshing beverages that fit seamlessly into a modern, wellness-driven lifestyle.
- Emotional Bond: To truly stand out, brands must form deeper emotional connections with consumers. They are looking for products that make them feel empowered and nurtured, not just healthy.
- Nutrient Provision: While health is a major concern, it’s no longer enough to simply offer a nutrient-rich product. Emotional and self-care elements must be incorporated into the product offering.
- Self-Indulgence and Recharge: Today’s consumers, particularly women, are increasingly seeking products that allow them to indulge in a moment of self-care. These products go beyond basic nourishment—they offer a sense of beauty, wellness, and a chance to recharge.
4. Crafting a Distinct Communication Strategy
New Communication Platform
Soya’s messaging must evolve to focus on Beauty & Wellness, transforming the product from a functional drink into an essential part of a holistic wellness routine. By aligning the brand with concepts of self-care and inner beauty, Soya can resonate with women who are looking for more than just a beverage—they are looking for a lifestyle product that nurtures their health and beauty.
The core message will revolve around “Nutrition for Inner Beauty”, positioning Soya as the ideal drink for women seeking to nourish their bodies and enhance their natural beauty. This message will differentiate the brand from competitors, appealing to women’s desire for both indulgence and wellness.
The Power of Phytoestrogens
Soya should emphasize Phytoestrogens as a key differentiator in its product communication. Phytoestrogens have a range of benefits, particularly for women’s health, including promoting hormonal balance and improving skin health. This natural component will give Soya a strong reason to believe (RTB) in comparison to the outdated, nutrition-focused messaging used by competitors.
New Labeling and Branding
To reflect the new positioning, Soya must introduce a fresh, modern label that conveys the brand’s commitment to women’s wellness. The new design should appeal directly to women, showcasing beauty and nutrition in a way that feels fresh, elegant, and premium. The labeling should be distinct, moving away from the traditional, “old-school” image and embracing the contemporary values of self-care and holistic health.
5. Growth Initiatives: How to Achieve the 15% Volume Uplift
Distribution Expansion
To fuel growth, Soya must expand its distribution network significantly. Focus should be placed on increasing retail presence in the North and Central regions of Vietnam, targeting a doubling of retail outlets by 2023. In addition, expanding into Modern Trade (MT), which contributes 20% of the Soy Milk category’s sales, is essential. By tapping into MT and securing 5,000 outlets nationwide, Soya can significantly increase its market visibility and sales.
Product Innovation (NPD)
In addition to distribution, Soya must introduce a premium product variant that appeals to the beauty and wellness needs of women. This could include adding ingredients such as collagen or offering exciting new flavors to position Soya as a luxury drink. This premium line will attract not only existing Soy Milk drinkers but also consumers from outside the category, broadening the brand’s reach.
6. The Number 1 Soya Manifesto: Empowering Women Through Nutrition and Confidence
Brand Mission
Soya is more than just a beverage—it’s a movement towards empowering women. We believe in the inherent strength and capability of women, and our mission is to help women feel confident, radiant, and beautiful by nourishing them from the inside out. Soya is committed to improving women’s wellness and making them feel their best, both physically and emotionally.
Holistic Wellness
At Soya, we believe that wellness is not just about the body—it’s about nurturing the spirit as well. Through our products, we provide the nutrients women need to feel their best, inside and out. By focusing on self-indulgence, inner beauty, and holistic health, Soya helps women unlock their full potential and feel confident every day.
Conclusion
To compete effectively with Fami and increase market share, Soya must reposition itself as a beauty and wellness brand, focusing on the emotional and self-care needs of women. By innovating its communication, expanding distribution, and launching new premium variants, Soya can differentiate itself in the crowded Soy Milk category and achieve a 15% volume uplift within the next four years.
Soya has a unique opportunity to change the way women view nutrition and beauty. By connecting the product to holistic wellness and self-indulgence, Soya can own the beauty and wellness space, reinvigorate the Soy Milk market, and lead a transformation in consumer perceptions.
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