(TIỂU LUẬN) global strategy of vinamilk how vinamilk succeed in the international market

Global Strategyof Vinamilk How Vinamilk succeed in the international market ?... CEO&FOUNDER: MAI KIEU LIENLEADING NUTRITION GROUP IN VIETNAM WORLD’S TOP 40 DAIRY PRODUCERS PRODUCTS FOR

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

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY

BRIEF

INTRODUCTION

LEADING NUTRITION GROUP IN VISION : to become a world grade brand

VIETNAM in food and beverage industry, where

people put all their trust in nutrient

and health products CEO&FOUNDER: MAI KIEU LIEN

WORLD’S TOP 40 DAIRY PRODUCERS

CEO&FOUNDER: MAI KIEU LIEN

LEADING NUTRITION GROUP IN

VIETNAM

WORLD’S TOP 40 DAIRY PRODUCERS

PRODUCTS FOR HUMAN

GLOBAL OUTREACH: ~ 60 COUNTRIES & TERRITORIES

I EXPORTING

Which market in the

early days ?

MIDDLE EAST EXPORTING

Politic al

risks

dairy demand

$12.5M contract to export baby milk powder products

JOINT VENTURE

Which country is its first

?

JOINT VENTURE

MIRAKA Milk Factory in New Zealand

- High – quality material area

system

market

MIRAKA Milk Factory in New

WHOLLY OWNED

SUBSIDIARY

THE US MARKET

THE US MARKET

owned 100% of stake.

products and fruit juice

$119m

Driftwood Dairy Holding Corporation

CAMBODIA POLAND

Angkor Dairy Factory Vinamilk Europe Spólka Z

Ograniczona Odpowiedzialnoscia (Closed)

IN THE WORLD

How did Vinamilk achieve that goals?

1 Understand the

world economy and market

Domestic market:

1 Understand the

world economy and market

The word market:

Deloitte

● During Covid 19 pandemic:

Demand for products from nature,

plant-based continue to grow as consumers

1 Understand the

world economy and market

The word economy:

● 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.

IT’S TIME TO GO Global

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

Angkor Milk

Cambodia factory

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

Zealand, and Cambodia

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

2000

Mercury is theclosest planet tothe Sun

1995

Despite being red,

Mars is actually acold place

The solutions

Speaker: Nguyen Thi Truc Linh

Phan Thi Thu Thao

V inamilk’s approaches for international business environment

Export Market

KEY EXPORT

PRODUCTS

● Power Milk ● Soya drink

● Condensed product ● Milk drink

New Zealand Miraka

Holdings

Limited

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

Example:

● In the Korean market: soymilk and milk tea

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

● 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

2020 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

1-6/2021 Vinamilk recorded double-digit growth,

reaching VND

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

Mergers and Acquisitions

❖ Remarkable events

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

Mergers and Acquisitions

Competition from domestic business of target markets

New ZealandThe initial step to Vinamilk global strategy

The world's 8th largest milk producer

Miraka - 1% dairy market shares in 2017

Mergers and Acquisitions

Strict standards to meet, maintain & improve

Prepared a profile includes

information from the farm to thefinal product (cow origin,

veterinary control procedures, sampling, )

All information must be in

English & Chinese

Double standards – European

Organic (EU Organic) and Chinese Organic

Organic fresh milk launched at Shanghai Global Food Trade Show

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

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

Recommendations

Speaker: Do Thi Thanh Tuyen

Understanding of target markets

Pros and cons vs long

run profit

potential

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

● a-strateg ic-move-for-market-expansion-in-south-korea

https://www.vinamilk.com.vn/en/news-events/2114/vinamilk-makes-● 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

● nam-ho at-dong-2020231114235222.htm

https://vietnammoi.vn/vinamilk-dong-cua-cong-ty-con-o-ba-lan-sau-6-● mo-rong-da u-tu-vinamilk-hai-trai-ngot-o-n

https://www.vinamilk.com.vn/vi/thong-cao-bao-chi/1281/lien-tiep-● banking-on-thai- sales-potential

https://www.vinamilk.com.vn/en/news-events/1338/vinamilk-● company-35 853.html

https://vir.com.vn/vinamilk-raises-stake-in-new-zealands-miraka-● xuat-ngoai-d au-tien-cua-vinamilk

for listening to our presentation.

Feel free to ask us if you have

any questions.