Discussion topic overview of vietnam dairy products joint stock company (vinamilk)

Vinamilk Vietnam Dairy Products Joint Stock Company is a Vietnamese companythat specializes in the production and distribution of dairy products.. The company is the largestdairy company

MINISTRY OF EDUCATION AND TRAINING

I INTRODUCTION 3

II VINAMILK COMPANY 4

2.1 The profile of Vinamilk 4

2.1.1 History of Formation and Development 4

2.1.2 Vision and mission 5

2.1.3 Core value 6

2.1.4 Logos 6

2.1.4.1 Old logo 7

2.1.4.2 New logo 8

2.1.5 Corporate and business strategy 9

2.1.5.1 Development strategy 9

2.1.5.2 Business strategy 10

2.1.6 Vinamilk dairy farm system 13

2.2 Structure 15

2.2.1 Organizational and managerial chart 15

2.2.2 Business field 21

2.3 Operations 22

2.4 Future development 24

III CONCLUTION 26

I INTRODUCTION

When mentioning Vietnamese dairy companies, people will remember Vinamilk first Vinamilk (Vietnam Dairy Products Joint Stock Company) is a Vietnamese companythat specializes in the production and distribution of dairy products It was founded in

1976 and is headquartered in Ho Chi Minh City, Vietnam The company is the largestdairy company in Vietnam and accounts for about 50% of the country’s dairy market.Vinamilk offers a wide range of dairy products, including milk, yogurt, and other related products1 The company has been expanding its sources of ingredients, promotinginvestment, and conducting research on new products to provide optimal nutrition to theVietnamese people In addition to strong domestic distribution with a network of morethan 220,000 sales points covering 13 provinces and cities, Vinamilk products are alsoexported to 43 countries around the world such as the US, Canada, Poland, Germany,Japan, and the Central region East, Southeast Asia Vinamilk's mission is "Vinamilk iscommitted to providing the community with top quality nutrition and quality through our respect, love and high responsibility to human life and society."

 My team wants to give more useful information about Vinamilk that many of usmay not know We have compiled this information through many official sources so thatclass members not only know more about Vinamilk but can learn how to become asstrong as they are today Vinamilk is not just a company but also the pride of Vietnamese people

II VINAMILK COMPANY

2.1 The profile of Vinamilk 

2.1.1 History of Formation and Development 

Vinamilk has a history of over 40 years of formation and development with constantchanges and efforts Despite being present in the Vietnamese market for a long time,Vinamilk's position in the Vietnamese dairy industry has not changed even thoughforeign dairy brands have flooded into the Vietnamese market in recent years

In its over 40 years of operation, Vinamilk has gone through many different stages of development Each stage marked new advances for the company, along with the stability

of a large brand with a long history

Formation period from 1976 to 1986 of Vinamilk 

On August 20, 1976, Vinamilk was officially established with the initial name of theDairy and Coffee Company in the South The company belongs to the GeneralDepartment of Food Industry in the South

In 1982, the Dairy and Coffee Company in the South was transferred to the Ministry

of Food Industry and renamed the Dairy, Coffee and Confectionery Factory I

The renovation period from 1986 to 2003

In 1985, Vinamilk was honored to receive the Third-Class Labor Medal In March

1992, the Dairy, Coffee and Confectionery Factory I, was officially renamed Vinamilk - asubsidiary of the Ministry of Light Industry The company specializes in the productionand processing of dairy products

By 1995, Vinamilk officially inaugurated the first dairy factory in Hanoi

In 1996, Vinamilk partnered with Quy Nhon Frozen Joint Stock Company toestablish the Quy Nhon Joint Venture Dairy Factory

In 2000, Vinamilk was awarded the title "Labour Hero of the Renovation Process”

 by the Government

This is the period Vinamilk developed strongly when a series of milk factories were built Vinamilk has expanded its production scale in all three regions: North, Central andSouth.

The period of equitization from 2003 to the present 

In November 2003, the company was converted to Vinamilk Joint Stock Company.Also in 2003, the company inaugurated additional dairy factories in Binh Dinh and HoChi Minh City

In 2009, the company had developed 135,000 distribution agents, 9 factories, andmany dairy farms in Nghe An and Tuyen Quang provinces

In 2016, the first dairy factory in a foreign country was inaugurated, Angkormilk inCambodia and the milestone marks the 40-year journey of formation and development of Vinamilk (1976 - 2016) to realize the "Vietnam Milk Dream" and affirming its position

on the world dairy industry map In 2017, the Vinamilk Organic Dalat dairy farm, thefirst organic dairy farm in Vietnam, was inaugurated

In 2019, the list was first published by Forbes Asia In particular, Vinamilk is theonly representative of Vietnam in the food industry, stand beside with the big names of the regional economy

In 2021, celebrating 45 years of establishment in 2021, Vinamilk not only becomesthe leading dairy company in Vietnam, but asserts its brand position on the internationalmap The company climbed to top 40 world dairy producers with the highest turnovers(The UK-based Plimsoll Publishing Ltd)

As of today, Vinamilk owns a system of 13 factories across the country This system

of factories allows Vinamilk to develop over 250 types of dairy products in 13 productgroups from condensed milk, liquid milk, powdered milk, yogurt, ice cream, soft drinks,etc

2.1.2 Vision and mission

Vinamilk’s vision is "To become a world grade brand in food and beverageindustry, where people put all their trust in nutrient and health products" Vinamilk always provides people with one of the nutritional solutions according to internationalquality standards, helping all consumers to use and provide delicious, nutritious productsthat bring good value to the health of consumers today Vinamilk is currently leading theVietnamese dairy market and is the most popular brand.

In addition, Vinamilk has affirmed its corporate mission to be: “Vinamilk commits tobring the communities the best-quality nutrition source that conveys our respectability,love and responsibilities for the people, life and society” This is a lofty mission thatVinamilk must truly be responsible for itself, for society, and for humanity to ensure thatthe company will deliver high-quality products to consumers in the best possible way.2.1.3 Core value

Vinamilk aspires to become a product that is loved in every region and territory.Therefore, Vinamilk always believes that quality and innovation are the company'scompanions Vinamilk puts customers at the center and commits to meeting all customer needs The core values of Vinamilk include 5 main values that aim to become the leadingsymbol of trust in Vietnam in the field of nutritional products serving human health:

 Integrity: Vinamilk affirms that it is always honest and transparent in itsinteractions and transactions

 Respect: The value of Vinamilk is reflected in the respect for oneself, colleagues,and the company At the same time, the company promotes respect for partners,cooperating in a spirit of trust and professionalism

 Fairness: Fairness when working with employees, suppliers, or other stakeholders

 Ethics: All employees of the company must comply with and preserve theestablished ethical values according to common standards

 Compliance: Compliance with the law, code of conduct, regulations, and policieswithin the company

The five core values above are considered to be the factors that build the corporateculture, motivate each member to work responsibly, and ensure the quality of output Onthe other hand, they also increase the ability to identify, create a deep impression for consumers about the leading dairy brand.

2.1.4 Logos

The Vinamilk brand is an extremely memorable brand for customers The brandname Vinamilk is composed of two words: Vina and milk Vina is the symbol of Vietnam's victory With the implication, this brand can overcome all hardships andchallenges Milk in English means milk - the brand specializes in providing dairy products such as yogurt, fresh milk,

Since then, the Vinamilk brand has been affirmed as a Vietnamese milk brand This

is a brand name with many profound meanings and great stature

2.1.4.1 Old logo

The Vinamilk brand logo is a special combination of a letter symbol and a circle Thecircle of the logo symbolizes plumpness, fullness, protection and protection At the sametime, it also symbolizes the perfection and integrity of the product's quality.

Inside that round block is the word VNM with a soft, flexible stylized design Thelines surrounding the brand logo are the symbol of fresh drops of milk rich in nutrients.This also implicitly demonstrates the promise to bring the most nutritious quality dairy products to consumers

The main colors in the brand logo are blue and white These two colors areharmoniously combined to create the most famous Vinamilk brand logo in Vietnam The blue color of the logo is the symbol, representing trust, hope, and assurance of productquality White is the color that represents the color of milk drops, the color represents product quality

From the delicate and harmonious combination of milk colors, we can see the professionalism and characteristics of dairy products At the same time, it alsodemonstrates the commitment to product quality that the dairy company provides

- The word "Vinamilk" is written in strong, generous handwriting, creating a feeling

of strength and confidence This is a symbol of the new spirit of the brand

- The smiley line on the dotted letter "i" represents the brand's friendliness, closenessand spiritual care

- The image of a drop of milk in the letter "a" of Vinamilk and the words "Est 1976"remind of the values and achievements that Vinamilk has achieved during its operation

- The main colors of the logo are "brilliant blue" and "sweet milk cream", creating afamiliar yet impressive feeling The tropical color palette is inspired by Vietnam's richculinary culture

Overall, Vinamilk's new logo is simple, bold and impressive It represents the brand'sconfidence and unique identity, along with closeness and spiritual care towardsconsumers

2.1.5 Corporate and business strategy

2.1.5.1 Development strategy

Vinamilk's Board of Directors determines a long-term strategic vision to orient production and business activities Continuing to maintain the No 1 position in theVietnamese market and moving towards the goal of becoming one of the Top 30 largestDairy Companies in the world in terms of revenue, Vinamilk determines a developmentstrategy with 3 main pillars to be implemented , include:

  Leading in highly applicable innovation:

The company continues to focus on the dairy industry and milk-related products,which is the core business that creates the Vinamilk brand such as fresh milk, pasteurizedmilk, powdered milk, condensed milk

In addition, Vinamilk also continues to research and develop many new productswith the purpose of innovating, expanding and diversifying the product portfolio based

on the tastes and needs of consumers; At the same time, it brings consumers many rich

and convenient experiences Some of Vinamilk's new dairy products are famous recentlysuch as eating yogurt, drinking yogurt with a variety of flavors, baby food powder, dairy products for adults, Vinamilk ice cream lines are also very popular attract a large number 

of customers

  Strengthening the leading position in Vietnam's dairy industry:

Evaluating Vinamilk's results, in the Brand Footprint report on the Vietnamesemarket, Kantar Worldpanel commented "Vinamilk is once again recognized as the mostchosen manufacturer in Urban (4 main cities) in 8 consecutive years This domesticmanufacturer has reached more than 80% of Vietnamese households thanks toadvertising and communication activities that emphasize the nutritional value of their  products as well as constantly innovating their image with many customers New products are launched to meet new consumer needs.”

Vinamilk prioritizes focusing on exploiting the domestic market with hugedevelopment potential With a widespread consumer network, especially in urban areas,nearly 92% of consumers choose to buy Vinamilk products, much higher than other  brands in the top 10 In addition, this brand also Attracts new households in rural areas bycontinuously emphasizing brand image and value with investment in many high-end,healthy products such as organic products and nut milk …

In addition, Vinamilk also promotes a focus on the high-end product segment withmany added values, especially in urban areas In addition, the company continues to build

a large and strong domestic distribution system, increasing market share and maintainingVinamilk's leading position in the market

  Becoming the dairy company that creates the most value in Southeast Asia:

To become the dairy enterprise that creates the most value in Southeast Asia,Vinamilk is ready for merger and acquisition (M&A) activities and expands strongcooperative relationships with partners according to all three directions: horizontalintegration, vertical integration and combination

Vinamilk also prioritizes finding M&A opportunities with dairy companies in other countries with the purpose of expanding markets and increasing sales.

Vinamilk Company continues to penetrate new export markets with the strategy of converting the traditional goods export model to forms of deep cooperation withdistribution partners in new key markets

Vietnam Dairy Products Joint Stock Company (VINAMILK) is the onlyrepresentative of Southeast Asia to appear in 4 global rankings, according to BrandFinance's annual report on Most Valuable Brands and Strongest Brands in the food & beverage industry in 2021

Also according to this report, recently, in 2023, Vinamilk is the only representative

of Southeast Asia to be in the Top 5 most sustainable dairy brands globally (according tothe Sustainability Perceived Value Index - SPV) Furthermore, Vinamilk's sustainabilityawareness score is the highest in the Top 10 (with 5.75 points), surpassing many other  big names in the world dairy industry

2.1.5.2 Business strategy

Vinamilk's business strategy applies a low-cost strategy

Vinamilk's goal when pursuing a low-cost strategy is to outperform competitors bycreating products with lower prices than foreign companies in the context of more than

40 operating businesses nationwide , hundreds of milk brands, With many producttypes, including many multinational corporations, and fierce competition, Vinamilk stillstands firm and affirms its leading position in the Vietnamese dairy market

In previous years, Vinamilk's market share was only 17%, in 2010 it was 25% andcontinued to grow The company's milk and dairy products account for about 55.5% of the national market share with 40.6% of the powdered milk market share; 33.9% marketshare of drinking yogurt; 84.5% market share of yogurt; 79.7% condensed milk marketshare

Vinamilk's product portfolio includes main products such as fresh milk, powderedmilk and value-added products such as condensed milk, yogurt and drinking yogurt, icecream and cheese.

 Vinamilk's business strategy focuses on product quality

With Vinamilk, high quality, reasonable prices, not only focus on centricity, but Vinamilk also implements a product-centric sales strategy with the principle "Product quality is the best PR method" ", this is also the secret to the success

customer-of this leading dairy brand in Vietnam

From the beginning, Vinamilk's business strategy has determined that a stable andquality supply of raw milk is especially important Therefore, Vinamilk has builtsustainable relationships with suppliers through very good company policies Vinamilk  provides financial support for farmers to buy dairy cows and buy good quality milk athigh prices

The company also signs annual contracts with milk suppliers and currently, 40% of raw milk is purchased from domestic sources Manufacturing plants are located instrategic locations near dairy farms, allowing Vinamilk to maintain and strengthenrelationships with suppliers At the same time, Vinamilk also carefully selected thelocation of the milk purchasing center to ensure fresh, good-quality milk In addition,Vinamilk also imports powdered milk from Australia and New Zealand to meet production needs in both quantity and quality

Vinamilk's business strategy "focuses on difference"

The goal of a differentiation strategy is to gain competitive advantage throughcreating customer-specific products that satisfy customer needs in ways that competitorscannot The purpose of Vinamilk's business strategy is to meet the needs of a certainmarket segment determined through geographical factors, customer objects or productcharacteristics

The company pays great attention to designing new, appropriate packaging designsand continues to use media channels to promote its image The company focuses onimproving product quality, diversifying product types and researching new product lines

to fully meet customer needs and contribute to dispersing risks for the company

The company has over 200 milk products and dairy products: condensed milk, powdered milk, nutritional powder, fresh milk, ice cream, yogurt, and cheese And other  products such as soy milk, fruit juice, cakes, instant coffee, bottled water, tea, and instantchocolate The company also constantly improves production technology, andcooperation with the National Institute of Nutrition also creates more trust for consumers

in the product

Vinamilk's business strategy emphasizes personnel training 

Vinamilk systematically implements its human resources strategy and has training programs to help employees develop and achieve their career goals Therefore, as aVinamilk employee, you will have the opportunity to be trained to perfect skills andknowledge to meet the requirements and challenges of work Professional and skillstraining courses as well as practical training sessions are regularly organized by Vinamilk 

at home and abroad

Decent salary and benefits: Working at Vinamilk, you will receive a salarycommensurate with your abilities and competitive with the market

The culture that inspires work and creativity: Vinamilk believes that "Our value andsuccess depend greatly on your creativity and excitement in your work" Therefore,Vinamilk always strives to create a professional working environment but no less friendlyand open so that each individual can freely develop their creativity and reach their full potential make a difference

 Vinamilk's business strategy enhances marketing and sales

Vinamilk's business strategy is to actively market and promote products throughmass media such as television, newspapers, magazines, the internet or banners, posters

Vinamilk's promotional videos are aimed at the target audience Children who loveanimation have achieved certain successes This is an extremely important step for Vinamilk with its competitors.

Promotion is also a form of advertising for Vinamilk's products such as buying 1 box

of milk and getting 1 mini puzzle free or buying 4 bottles of milk and getting a lantern onthe occasion of the recent Mid-Autumn Festival

Vinamilk's distribution system is very well organized Vinamilk's distribution systemhas expanded to provinces, cities, towns, districts and communes of 23 Northern provinces and cities, with more than 13,000 sales points and 4 distributors throughout theregion North

For Vinamilk's retail locations as well as other direct distribution channels, wheninput material prices are high, the company can sell at high prices but customers still have

to accept Therefore, Vinamilk can transfer disadvantages from suppliers to customers.For agents, Vinamilk always has incentives for them to become close and loyalfriends with its products If the contract is violated, the company will resolutely cut it off 

to set an example for other agents Vinamilk subsidiary regulates sales and rewardsagents depending on monthly or quarterly business results achieved

2.1.6 Vinamilk dairy farm system

Foundation phase:

15 years since launching the first dairy farm in 2007 until 2021, Vinamilk hascontinuously invested in building a farm system according to international standardsacross the country After 15 years of launch, Vinamilk has built a system of 13 million-dollar farms across the country

Since the 90s, demonstrating the pioneering role of a leading enterprise in theindustry, Vinamilk initiated the "white revolution" - the dairy farming movement inVietnam - by cooperating with farmers During this period, the business's leadership also