Ho Chi Minh City University of Economics and Finance Faculty of Economics MIDTERM REPORT Customer Relationship Management Topic Analyze and design CRM of Vinamilk Lecturer N T N Dung Class A10E No Ful[.]
Trang 1Ho Chi Minh City University of Economics and Finance
Faculty of Economics
MIDTERM REPORT Customer Relationship Management Topic: Analyze and design CRM of Vinamilk
Lecturer: N.T.N.Dung Class: A10E
No Full name Student ID Tasks % contribution of the task to the
overall task
Evaluation of task results
6
7
Total: 100%
Trang 2About Vinamilk 3
I Customers of Vinamilk 5
1 Customers and customer classification 5
2 Customer identification In order to identify customers of our company, the software system, in addition to collecting basic information about the customer, needs to collect the following data: 5
3 Interaction with clients 5
4 Serving the needs of customers 5
5 Criteria for selecting technology for Vinamilk's CRM 5
a Customer classification 5
b Information on customer requirements 5
II Vinamilk's customer network management 5
1 Relationship with suppliers 5
III Customer retention and development in CRM 6
1 Customer retention Strategy 6
1 Customer Relationship Development Strategy 6
3 Software application to support Vinamilk 6
IV Evaluate customer retention and development strategies 7
1 Achievements 7
2 Information is integrated through SAP CRM software 7
3 Limited 7
V Design new CRM for Vinamilk 8
1.Subscription Model 8
2.Subscription Model Works 8
3.Structure 9
4.Participation 9
5.Payment function 10
6.Contact the sponsorships 10
7.Cost and revenues 10
h
Trang 3About Vinamilk.
Vinamilk, formally the Vietnam Dairy Products Joint Stock Company (Vietnamese: Công
ty Cổ phần Sữa Việt Nam) is the largest dairy company in Vietnam Based on the UNDP
2007 Top 200 largest firms in Vietnam report, it was also the 15th largest company in Vietnam and formerly the most valuable public company listed in Vietnam.
The company was established in 1976 as the state-owned Southern Coffee-Dairy
Company, to nationalize and take over the operations of three previously private dairy factories in South Vietnam: Thống Nhất (belonging to a Chinese company), Trường Thọ (formerly owned by Friesland Foods, best known for its production of condensed milk that was widely distributed across the South) and Dielac (Nestlé).
The main business activities of this company include processing, manufacturing and trading fresh milk, canned milk, powdered milk, nutritional powder, yogurt, condensed milk, soy milk, beverage and other products other dairy products Vinamilk's products are also exported to a number of countries such as Cambodia, the Philippines, Australia and some Middle Eastern countries
Vinamilk Dairy Products Co., Ltd provides more than 250 different types of products in the following main industries:
+ Fresh milk brands: ADM GOLD, FLEX, Super SuSu
+ Yogurt brands: SuSu, Probi ProBeauty
+ Infant and adult milk powder: Dielac, Alpha, Pedia Grow Plus, Optimum Gold, Ridielac nutritional powder, diabetes specific Diecerna, SurePrevent, CanxiPro, Mama Gold.
+ Condensed milk: South Star, Mr Shou.
+ Cream and cheese: Subo yogurt cream, Delight cream, Twin Cows cream, Little cream, Little cream Oze, Night cheese.
+ Soybean milk beverage: Vfresh juice, ice bottled water, GoldSoy soybean milk.
+ Vinamilk powder: Ridielac Gold, Optimal Gold, etc.
Trang 5I Customers of Vinamilk
1 Customers and customer classification
- Customers of Vinamilk company: Customers of Vinamilk company are a collection of individuals, organizations wishing to use products or distribute products of the company The bank's relationship with customers is a two-way relationship, creating conditions for each other to coexist and develop
- Classification of customers of the company: including the following groups:
+ Customers are consumers of the company's products, have a need to use and want to satisfy their need
+ Customers are organizations: are distributors, wholesalers, retailers, agents of the company, using the company's products to do the product redistribution function
2 Customer identification In order to identify customers of our company, the software system, in addition to collecting basic information about the
customer, needs to collect the following data:
To be able to collect such information is also quite easy, you can take advantage of the past transaction information that the company has collected, in addition because the company has regularly organize direct contact with customers, organize conferences with customers, collect customer opinions, visit customers through polls
Customer prospect data
Is data not about customers' income but about the environment that exists around the customer, the company's face-to-face prospects and the position of other companies' products, the unique prospects of the industry Can earn by consulting experts, mass media
1.3 Distinguishing customers
The most effective classification should be based on long-term business value, Vinamilk classifies institutional customers based on business value Business value will give us the answer which customer brings the most profit, average profit and least profit now and in the future, as well as the safety and risk that customers can bring Mathematical model of the benefits that customers bring to the company based on past and present transactions for each product type based on a formula
Then Vinamilk company predicts customer needs by quantitative and qualitative methods
Qualitative method: collecting opinions from managers, employees, customers, etc
Quantitative method: based on the business value that customers bring, we can draw trend charts, trends that customers will consume in the future
From there, the company will know which customers are potential customers and then have separate strategies for this customer group
As for individual customers, according to the knowledge and information collected by the group, apart from the official website of the company, the company does not have any software to approach and collect information of customers This individual customer, while the individual customer is the
customer who consumes the final product, and the needs of this customer need to be best understood
Trang 6in order for the company to have responsive strategies to maintain customer loyalty client 1.4
Interaction with customers
The principle of two-way information flow must be ensured in the one-to-one marketing philosophy
It is the creation of a communication channel between the customer and the company Especially, for target customers, it is very necessary to regularly transmit information such as about new products and announcements There are many forms of interaction: face-to-face, telephone, mail, fax, Internet, coupons Rate each weight of the above forms of interaction by giving a score and having a separate coefficient for each form As such, each form of interaction has different pros and cons, and for the target customers, a combination of forms with a high average score can be used Forms with lower scores can be used to collect data from customers who are not among the target customers
=> Vinamilk often uses forms such as direct contact, phone, mail, fax to contact institutional
customers As for individual customers, the company mainly relies on the Internet (ie the company's website) to interact with customers
3 Interaction with clients
The one-to-one marketing philosophy must include the principle of two-way information flow It is the establishment of a channel of communication between the customer and the company It is especially important for target customers to receive information on new products and
announcements on a regular basis There are numerous ways to interact: face-to-face, telephone, mail, fax, Internet, and coupons Each weight of the above forms of interaction is rated with a score and a separate coefficient As a result, each type of interaction has advantages and disadvantages, and for the intended audience, a combination of forms with a high average score can be used Lower-scoring forms can be used to collect data from customers who are not target customers
=> Vinamilk frequently contacts institutional customers via direct contact, phone, mail, and fax In terms of individual customers, the company primarily interacts with them via the Internet (via the company's website)
4 Serving the needs of customers
- Vinamilk provides the market with a wide variety of products
- Building a brand with a foundation of sustainable development - quality - comprehensive
- Always satisfy and be responsible to customers by diversifying products and services, ensuring quality, food safety and hygiene at competitive prices competition, respect business ethics and obey the law
- Since its inception The company has built the widest distribution network in Vietnam and has leveraged to introduce new products such as juice, soy milk, bottled water and coffee to the market
- The company owns a large distribution network across the country, which is a favorable
condition for Vinamilk to bring products to a large number of consumers The product is made from ingredients in accordance with HACCP standards on food safety and hygiene
- Vinamilk's mission is to constantly diversify product lines, expand distribution territories in order to maintain a sustainable leading position in the domestic market and maximize the benefits of the Company's shareholders Vinamilk wishes to become the most popular product
h
Trang 7in all regions and territories Therefore, Vinamilk considers that quality and creativity are Vinamilk's companions Vinamilk considers customers as the center and is committed to
meeting all needs of customers
5 Criteria for selecting technology for Vinamilk's CRM
The effectiveness of the CRM is also shown in the simplicity when customers can exchange
information with the company in any way that customers like, at any time, through any
communication channel , in any language Although customer requests may have to go through complicated internal channels to reach the right department in charge of that product or service, but through the CRM system, Customers will feel like they are communicating with a single entity and receive personalized care Criteria for selecting technology for Vinamilk's CRM include:
a Customer classification
Customer segmentation and analysis are critical Ssoft CRM allows you to categorize customers based on
a variety of criteria, including ownership type, business type, business items, business size, region, and
so on b Information about customer transactions
Customers contact businesses on a daily basis, as do salespeople and marketers Typically, these transactional details are only known to salespeople Ssoft CRM allows you to update and save all
customer transaction information, such as the transaction date, transaction summary, transaction staff, transaction partners, and transaction classification (meeting customers, customers) Customers (visits, phone calls ), status (not done, completed, in progress ), transaction notes
b Information on customer requirements
CRM enables the updating and storing of information about customer product and service needs: what products and services do customers require; what vendors' products and services are currently used and how Furthermore, Ssoft CRM allows you to track your customers' projects and purchase plans: what products and services are expected to be purchased; what the expected cost is; when will you buy
II Vinamilk's customer network management
1 Relationship with suppliers
Vinamilk's primary objective is to establish long-term and sustainable development goals for significant strategic domestic and international suppliers in order to guarantee a steady supply of raw materials that are not only high quality but also high quality at a very affordable price As a result of the
company's evaluation policy, Vinamilk has established long-term relationships with its suppliers
Vinamilk provides financial assistance to farmers in order for them to purchase dairy cows and high-quality milk Furthermore, the company enters into annual contracts with milk suppliers and currently purchases 40% raw milk from the manufacturer Vinamilk has strategically located production plants near dairy farms, allowing them to maintain and strengthen supplier relationships Simultaneously, select milk collection centers in the center to ensure fresh and high-quality milk Vinamilk also imports powdered milk from Australia and New Zealand to meet both quantity and quality requirements Vinamilk's major suppliers include Fonterra (SEA) Pte Ltd, Tetra Pak Indochina, Hoogwegt, and others All of these are global milk production and distribution conglomerates
2 Relationship with investors
Trang 8Vinamilk has established an IR (investor relations) department comprised of personnel with experience
in both finance and public relations (PR) In order to meet the need for information that benefits both parties, IR will disclose business information to investors Because investors will bring the most profits, building trust in the investor world is critical Vinamilk's success, particularly in the field of securities, clearly demonstrates this Vinamilk is now not only one of Vietnam's leading dairy companies, but also a Vietnamese stock market behemoth Listening to investor feedback can help businesses better
understand their customers' feelings
3 Partnership Relationship
Vinamilk's partners include all individuals and groups that affect the survival of the business such as: Customers, suppliers, investors, agents, wholesalers, retailers, competitors , government
organizations,
III Customer retention and development in CRM
1 Customer retention Strategy
a Purpose
This strategy is used to maintain long-term customer relationships because they are the ones who help the business Vinamilk recognizes this and is constantly looking for new ways to satisfy customers With the slogan "Consumers are satisfied, Vinamilk is at ease" the development of this strategy has been accompanied
b Strategy of company
- “Người tiêu dùng hài lòng thì Vinamilk mới an tâm"
Vinamilk always prioritizes product quality The executive boards have always determined that the raw materials used to make the finished product are the most important Vinamilk has since built a factory with high-quality management The company only purchases raw materials that meet quality testing standards, as well as nutritional ingredients, and then sells them on the market In order to accomplish this, the company will send product samples for testing The manufacturing process is also important in the strategy The company has used a "quality management system in accordance with international standard ISO 9001:2000" since 1999 Finally, in order to bring low-cost products to Vietnamese
consumers, the company has cut costs as much as possible The company has a large distribution network across the country, which allows Vinamilk to easily bring products to a large number of
consumers
1 Customer Relationship Development Strategy
a Purpose
Increase the purchasing power of existing customers
b Strategy of company
Maintain relationships with existing customers through product, price, distribution, and promotion through appealing and appealing programs The policies listed below will help Vinamilk's customer development strategy:
- Product strategy
h
Trang 9The company has been developing the most extensive distribution network in Vietnam, allowing it to introduce and expand a diverse product portfolio that includes juice, soy milk, coffee, beer, and so on
- Model, packaging
Consumers today are very concerned with the appearance of the product Vinamilk is constantly
changing its image in the eyes of customers in order to avoid falling behind For example, when the Tet holiday season arrives, Vinamilk does not hesitate to invest in new packaging, design, and printing to convey the message of spring to consumers
- Vinamilk's product line
Vinamilk offers over 200 dairy products as well as beer, coffee, juice, and other beverages Vinamilk has completely met the consumption needs of customers and contributed to the dispersion risk for the company
- Enhance product quality
Customers are becoming increasingly cautious and demanding of product quality As a result, Vinamilk is constantly innovating technology, improving management, and improving product quality Vinamilk currently has over 250 product categories, all of which are of high quality and have been tested by international organizations, so it easily attracts customers' attention Cooperation with the National Institute of Nutrition is said to be one of the influential strategies for improving product quality
- Investigating new products
Because consumer needs are constantly changing, Vinamilk must innovate in order to survive Vinamilk has recently introduced some very effective new products Weight loss milk, beer, and coffee moment are three of the products
In short, Vinamilk's product strategies have been extremely successful The strategies proposed are based on the market's actual needs Vinamilk values customer trust, so they not only focus on product quality, but they are constantly on the lookout for new technologies and strict production control processes
- Pricing policy
With the current economic downturn, almost every commodity has seen a significant price increase However, Vinamilk believes that the price increase is not a good business strategy Vinamilk will hold out until it can't anymore before adjusting the price Vinamilk's price remains stable, and they are willing to reduce interest or compensate by trading many different product lines in order to share the burden of spending with consumers
- Agency policy
Vinamilk provides incentives to agents in order for them to become close friends and loyal to their products The co mpany's agent system is divided into two categories, the group of dairy producThe company's agent system is divided into two categories, the group of dairy products including condensed milk, powdered milk and the group of ice cream, yogurt and fresh milk products.ts including
condensed milk, powdered milk and the group of ice cream, yogurt and fresh milk products The company advocates broad expansion and does not strictly limit the conditions of agents with the product group of ice cream, yogurt, fresh milk, etc Because these are products sold directly to
consumers, competition is low, and they are not strategic products for the company, so as the port
Trang 10expands its distribution system, the products become more popular Usually for agents, depending on the location and sales location, the company stipulates sales and rewards for agents quarterly and monthly
3 Software application to support Vinamilk
Vinamilk regards a modern IT system as an essential component of the company's long-term business strategy Previous production and distribution management systems were incapable of providing accurate and timely data for production, inventory management, and marketing To solve this problem, management has decided to use SAP CRM Vinamilk has more effectively managed product distribution channels thanks to an IT application
Distribution system administration: The company currently has two distribution channels:
+ Traditional distribution channels (220 independent distributors and over 140,000 retail points) account for more than 80% of the company's output VNM has 14 product showrooms in major cities such as Hanoi, Da Nang, Ho Chi Minh City, and Can Tho to support its distribution network + Modern channels of distribution (such as supermarket system, Metro ) Vinamilk's advantage stems from a network of invested dairy factories spread across the country With 1,400 first-level agents and a nationwide distribution network of 5,000 agents and 140,000 retail points selling Vinamilk's products, as well as other direct distribution channels such as schools and hospitals, supermarkets, and so on
+ Vinamilk has been using the most common modern information technology applications to effectively manage distribution channels in the market, which is the integrated information management program Oracle E Business Suite 11i; Enterprise Resource Planning (ERP) system and application of Customer Relationship Management (SAP) solutions:
+ Oracle E Business Suite 1li system: Officially put into operation from - January 2007 This system connects to 13 locations including headquarters, factories and warehouses nationwide IT infrastructure has been synchronized, standardized and consolidated + Customer Relationship Management (SAP) solution implementation: The SAP CRM system enables Vinamilk's nationwide distribution network to connect to the center in both online and offline modes Vinamilk will benefit from centralized information in order to take timely actions and plan accurately The purpose of collecting and managing dealer sales information is to be able to respond quickly, resulting in higher levels of customer satisfaction Vinamilk's distribution information was primarily collected manually between the company and its agents prior to the implementation of the SAP CRM system Currently, at the main center, an information system for reporting and decision-making for the leadership (Business Intelligence-BI) is in place to manage sales distribution channels and promotional programs Distributors can use the SAP program to connect directly to the system via the Internet By optimizing processes and providing sales staff with all customer information, customers can exchange information with the company in any way they want, at any time, through any communication channel, in any language Very effective approach to Vinamilk's own customers, assisting the company in fully collecting information and customer needs from which it
h