Global strategy of vinamilk how vinamilk succeed in the international market

Global Strategy of Vinamilk How Vinamilk succeed in the international market ? We are group 8 Phan Thi Thu Thao Do Thi Thanh Tuyen Nguyen Thuy Truc Linh Nguyen Khanh Minh Chau Table of contents 01 The.

Global Strategy

of Vinamilk

How Vinamilk succeed in the

international market ?

We are group 8

Phan Thi Thu Thao Do Thi Thanh Tuyen Nguyen Thuy Truc Linh Nguyen Khanh Minh Chau

BRIEF INTRODUCTION

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY

LEADING NUTRITION GROUP IN

VIETNAM

CEO&FOUNDER: MAI KIEU LIEN

VISION: to become a world grade brand

in food and beverage industry, where people put all their trust in nutrient

and health products.

WORLD’S TOP 40 DAIRY PRODUCERS

WORLD’S TOP 40 DAIRY PRODUCERS

CEO&FOUNDER: MAI KIEU LIEN

PRODUCTS FOR HUMAN

GLOBAL OUTREACH: ~ 60 COUNTRIES

& TERRITORIES

LEADING NUTRITION GROUP IN

VIETNAM

I EXPORTING

Which market in the

early days ?

Lack of big dairy producers Great

demand

MIDDLE EAST EXPORTING

- 2010-2015, Vinamilk sales growth

- at Gulfood Fair 2016 Vinamilk signed

a $12.5M contract to export baby milk

powder products

II

JOINT VENTURE

Which country is its first

?

JOINT VENTURE

MIRAKA Milk Factory in New Zealand

- High – quality material area

- Stable political economy system

- First step to enter European market

JOINT VENTURE

MIRAKA Milk Factory in New Zealand

- 8/2011, Miraka went into operation

- 2010-2015, Vinamilk increased its

ownership from 19,3% to 21,83%

=> Provide huge financial support for later foreign projects

- 2014, Miraka earned $164 million in revenue , a year-on-year rise of 51%

III

WHOLLY OWNED

SUBSIDIARY

Driftwood Dairy Holding Corporation

- Fast economic growth

- Advanced technology, educated workforce

- World largest market

- Benefits of making things in the US

THE US MARKET

Driftwood Dairy Holding Corporation

Angkor Dairy Factory Vinamilk Europe Spólka Z Ograniczona

Odpowiedzialnoscia (Closed)

The key factors

to success

02

Speaker: Nguyen Khanh Minh Chau

Maintaining the NO.1

position in Vietnam market

BECOME

ONE OF THE 30

LARGEST DAIRY COMPANIES

IN THE WORLD

How did Vinamilk achieve that goals?

1 Understand the world economy and market

● The dairy market is currently relatively

saturated

areas => not much space for expanding

its market share

Domestic market:

1 Understand the world economy and market

● Global demand for dairy is expected to

increase by 2.5 percent - Deloitte

● During Covid 19 pandemic:

Demand for products from nature,

plant-based continue to grow as consumers

The word market:

1 Understand the world economy and market

● Today international trade is a

fundamental and essential part of

economic activity.

● Lower barriers to trade and investment

=> foster foreign market entry to

recover from Covid-19 pandemic.

The word economy:

IT’S TIME TO GO

2 Appreciate culture differences

UNDERSTANDING

The market’s diverse needs

is the crucial foundation of R&D

2 Appreciate culture differences

Ridielac infant cereal with

vitamin A help African children tackle

the challenge of vitamin A deficiency

2 Appreciate culture differences

Vinamilk x VinaKorea Co., Ltd.

Vinamilk's soymilk is exported to

South Korea due to the trend

using soy-based nut drink

products in this country.

3 Significant investment for global expansion

3 Significant investment for global expansion

Vinamilk has three factories in the U.S., New

Zealand, and Cambodia

Angkor Milk

Cambodia factory

3 Significant investment for global expansion

Vinamilk Farm

in Laos

3 Significant investment for global expansion

Vinamilk x Del Monte

a leading producer and distributor

of F&B products in the Philippines

Vinamilk's exports increased 7.4%

to 5,561 billion VND in 2020 thanks to its first batch

of Ong Tho condensed milk exported to China

International Achievements

Mercury is the closest planet to the Sun

2000

1995

Despite being red, Mars is actually a cold place

The solutions

03

Speaker: Nguyen Thi Truc Linh

Phan Thi Thu Thao

V inamilk’s approaches for international business

environment

countries.

Be ready for M&A activities & expand strong cooperation with partners.

Driftwood Dairy Holding

Corporation

Miraka Holdings Limited

● In the Korean market: soymilk and milk tea

=>One of South Korean's top imported brands by sales volume

Conducting a wide range of market studies covering all aspects: packaging design, consumer flavor and taste preferences

2.R&D

● E-commerce websites: 11St, eBay and soon on 7-Eleven and GS25 outlets.

● The Vietnam Dairy Products JSC is stepping up R&D to create innovative products enriched with local flavors to satisfy the diverse range of global tastes.

EXAMPLE:

Pros & Cons

Evaluation

Mergers and Acquisitions

❖ Revenue

Vietnam’s dairy industry had negative growth of -6% (AC Nielsen)

Vinamilk recorded growth in export revenue reaching VND

5,56 trillion, up 7,5 percent compared to 2019

Vinamilk recorded double-digit growth, reaching VND

2,77 trillion, up 13,1% compared to 2020 2020

1-6/2021

Mergers and Acquisitions

The first dairy company in

Vietnam to be licensed to export

to EAEU countries

The first batch of Ong Tho

condensed milk to China

3 lines of Vinamilk branded soya

milk and milk tea to Korea

❖ Remarkable events

Mergers and Acquisitions

Competition from domestic business of target markets

New Zealand The initial step to Vinamilk global strategy

The world's8th largest milk producer

Miraka - 1% dairy market shares in 2017

Mergers and Acquisitions

Strict standards to meet, maintain & improve

Organic fresh milk launched at Shanghai Global Food Trade Show

Prepared a profile includes information

from the farm to the final product

(cow origin, veterinary control

procedures, sampling, )

All information must be in English &

Chinese

Double standards – European Organic (EU

Organic) and Chinese Organic

M&A plays A PIVOTAL ROLE in EXPAND DISTRIBUTION

SYSTEM, AND INCREASE BRAND AWARENESS

making Vinamilk THE MOST VALUABLE DAIRY COMPANY IN SOUTHEAST

ASIA

Research & Development

❖ Vinamilk made great journey towards sustainable development

VIETNAM'S TOP 10 SUSTAINABLE BUSINESSES IN 2016

❖ More active in market research activities to gain

advantages over domestic competitors

❖ F&B Trend in Nutrition, Health benefit after economic recession due to pandemic

- Organic milk, application of biotechnology,

- Focus on elderly, the sick, and children segments

TOP 300 MOST DYNAMIC ASIAN COMPANIES

Nikkei Asian Review magazine (Japan) 2016 - 2020

THOROUGH R&D

Vinamilk can CREATE ITS OWN UNIQUE VALUE & MINIMIZE RISKS of international investment

04

Speaker: Do Thi Thanh Tuyen

Pros and cons vs long run profit

potential

Understanding of target markets

Exporting and Joint venture first

International agreements

References ● https://www.vinamilk.com.vn/baocaophattrienbenvung2021/challenging-en.ht

ml#tab-page-3

● https://www.vinamilk.com.vn/en/distribution/export-market

● https://www.vinamilk.com.vn/en/news-events/2114/vinamilk-makes-a-strateg ic-move-for-market-expansion-in-south-korea

● https://www.vinamilk.com.vn/en/outstanding-achievements

● https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/ConsumerBus iness/ie_Dairy_Industry_Trends_and_Opportunities.pdf

● https://vietnammoi.vn/vinamilk-dong-cua-cong-ty-con-o-ba-lan-sau-6-nam-ho at-dong-2020231114235222.htm

● https://www.vinamilk.com.vn/vi/thong-cao-bao-chi/1281/lien-tiep-mo-rong-da u-tu-vinamilk-hai-trai-ngot-o-n

● sales-potential

https://www.vinamilk.com.vn/en/news-events/1338/vinamilk-banking-on-thai-● https://vir.com.vn/vinamilk-raises-stake-in-new-zealands-miraka-company-35 853.html

● https://www.vinamilk.com.vn/vi/thong-cao-bao-chi/1251/chuyen-xuat-ngoai-d au-tien-cua-vinamilk

for listening to our presentation.

Feel free to ask us if you have

any questions.