Group project ib 351 s group sea vinamilk international business

VINAMILK INTERNATIONAL BUSINESS VINAMILK INTERNATIONAL BUSINESS VINAMILK INTERNATIONAL BUSINESS VINAMILK INTERNATIONAL BUSINESS VINAMILK INTERNATIONAL BUSINESS VINAMILK INTERNATIONAL BUSINESS VINAMILK INTERNATIONAL BUSINESS VINAMILK INTERNATIONAL BUSINESS VINAMILK INTERNATIONAL BUSINESS

Group: SEA

TABLE OF CONTENTS

I Overview about Vinamilk

II Vinamilk's international business

III Conclusion: Evaluating Vinamilk's

international business results

1.1 Company Introduction

• NAME: Vietnam Dairy Products Joint

Stock Company (VINAMILK)

• ADDRESS: 10 Tan Trao, Tan Phu

Ward, District 7, Ho Chi Minh City,

I Overview about Vinamilk

1.2 Development history

• VISION: To become a world grade brand in food

and beverage industry, where people put all

their trust in nutrient and health products.

• MISSION: To deliver the valuable nutrition to

community with our respect, love and

responsibility.

• CORE VALUES: Becoming Vietnam's leading

symbol of trust in nutritional and health

products serving human life

• There are 5 core values of Vinamilk includes:

Integrity, Respect, Fairness, Ethics, Compliance.

I Overview about Vinamilk

1.3 Development history

1.4 Products

I Overview about Vinamilk

1.4 Products

I Overview about Vinamilk

I Overview about Vinamilk

1.5 Market

• Domestic market:

- Urban: Concentrated in Ho Chi Minh City and

Hanoi, 30% of Vietnam’s population

- Rural: High population, 70% of Vietnam’s

- Children: 25% of the population, main

consumers of liquid milk

- Adults: 66% of the population, income-earning workers and main decision makers

II.VINAMILK’S

INTERNATIONAL BUSINESS

II Vinamilk's international

2.1 Export of Vinamilk products

• Main export products include: powdered milk, condensed milk, nutritional powder, soy milk, liquid milk, and soft drinks

• Total export turnover from 1997 to present:

about 2 billion USD

• First Half of 2020 Export Revenue: $106

Million, up 7.3% over the same period the

previous year

P • China-Vietnam: good diplomacy and economy.

• Eight Vietnamese dairy companies (20 factories) get codes to export to China

E • China: world’s second largest economy and biggest milk importer

• Yogurt: fastest growing segment, $73 billion revenue by 2029, 15% annual growth.

S

• Chinese people: daily yogurt consumption, trust foreign dairy products.

• VNM: produce quality yogurt for Chinese market, cooperate with leading partners.

• Chinese partners: import, distribute, comply, promote VNM products

T

• VNM: Vietnam’s leading dairy company in technology and innovation

• 13 factories and 7 farms certified by Global G.A.P

• Dairy products achieve international standards: ISO, FSSC, BRC, Halal, Organic.

• Yogurt products: heat sterilized, naturally fermented, no preservatives, hygienic and safe.

L

• Products: achieve China’s standards on hygiene, safety, quality, packaging and labeling.

• Taxes and fees: apply when exporting to China.

• Legal risks: commercial disputes, intellectual property rights, unfair competition.

E

• VNM: environmental and social responsibility.

• Energy saving, emission and waste reduction in production.

• Social activities: support the poor, orphans, elderly and disabled.

• Dairy farming development: provide cows, feed, medicine and technical support to farmers

2.2.1 PESTEL analysis of Eastern Asia (China).

2.2 EASTERN ASIA (CHINA)

Introducing international business

strategy:

• Sept 21, 2019: the "Vietnamese dairy

product launch program in China“.

This is a stepping stone for VNM to move towards evil strategies in the Chinese

market.

2.2.2 VNM's international business strategy of Eastern Asia (China)

Main export products

Fresh

milk

Yogurt Condensed milk

Global production and supply chain management:

• Products are launched with retail

supermarkets: Hema, Tianhong, Xiangjiang

Baihuo, Haorunjia, Dennis Department Store

- the largest supermarket chain in Henan.

• Private stores on the e-commerce site Tmall

(of Alibaba), Daily Fresh, Lucky and Fresh.

• In 2023, Vinamilk signed a cooperation

agreement with two businesses to export

yogurt products.

2.2.2 VNM's international business strategy of Eastern Asia (China)

• In 2020, Vinamilk exported the first batch of

condensed milk to the Chinese market

Marketing Strategy:

Announcing the brand identity logo in

China

2.2.2 VNM's international business strategy of Eastern Asia (China)

• Dubai's economy is growing rapidly, GDP growth and high income.

• Global economic impacts and fluctuations may affect the economy and people's consumption needs for the dairy industry in general and Vinamilk in particular.

• Create favorable conditions for VNM in transportation, warehousing and market access.

• Production technology and quality management processes can affect VNM's competitiveness.

Introduce international

Business strategy

Strategy focuses on

differentiation:

The goal: to create

customer-specific products that satisfy

customer needs in ways that

competitors cannot.

2.3.2 VNM's international business strategy of The Middle East (Emirate of Dubai).

Market expansion strategy:

Gulfood Dubai: one of the world’s largest food industry fairs, with over

125 countries and territories and over 5,000 booths.

Vinamilk’s participation: tens of millions in Contracts Signed

Entry strategy and

strategic alliances

• Vinamilk's Entry into 43 Foreign Markets

• Middle East Challenges in Late 1990s-2000s

• Middle East Sales Growth 2010-2015: 38%

• Gulfood Fair 2016, Dubai: Market Expansion Opportunity

2.3.2 VNM's international business

strategy of The Middle East

(Emirate of Dubai).

Global production and supply

chain management

• Middle East: a capable market,

contributing more than 85% of

VNM’s export revenue since

2000s

• Vinamilk: active in trade

promotion events such as Gulfood

Dubai 2023, Foodex Japan Fair,

FHA Singapore Fair, etc

2.3.2 VNM's international business strategy of The Middle East (Emirate of Dubai).

Global marketing and r&d

• Marketing: VNM uses multi-channel marketing

strategies for the Middle East region These

include:

- Advertising on mass media and social networks

- Cooperating with local distributors

- Organizing events and promotions

2.3.2 VNM's international business strategy of The Middle East (Emirate of Dubai).

Global marketing and r&d

• R&D: VNM invests in R&D to develop products

for the Middle East region VNM’s R&D

products include:

• Repair

HR Challenges in the Middle East for Vinamilk:

• Culture differences

• Language differences

• Competition for human resources

Solutions Implemented by Vinamilk:

• Recruit and train indigenous

Global human resource management

2.3.2 VNM's international business strategy of The Middle East (Emirate of Dubai).

2.4.1 PESTEL analysis of Eastern Asia (Viet Nam).

P

• Stable Political Environment

• Growing Health Awareness

L

• Customer Health Safety

• Clear Legal Policies

• Advanced Production Facilities

E

• Challenging Climate

• Favorable Natural Conditions

• Natural Disasters

• Raw Material Sourcing

2.4 SOUTHEAST ASIA (VIET NAM).

Introduce international business strategy

• Strategy focuses on product quality: "Focus on

making good, high-quality products, undergoing

scientific and practical inspection and testing to

be able to convince potential customers."

• Successful Low-Cost Strategy

• Advanced marketing and sales registry

Entry strategy and strategic alliances

• Meeting Domestic and International Demand

2.4.2 VNM's international business strategy of Southeast Asia (Viet Nam).

Global production and supply chain

• VNM's distribution channels include:

- General Trade Channel – GT: System of distribution

- KA channel: Direct distribution to businesses, schools,

and entertainment areas

2.4.2 VNM's international business strategy of Southeast Asia (Viet Nam).

• Strategic Vision: Top 50 Global

Dairy Company

• Innovation Drive: Research,

Testing, & Product Developer

• Vinamilk’s laboratory system:

ISO/IEC 17025:2005 standard.

Global marketing and R&D

2.4.2 VNM's international business strategy of Southeast Asia (Viet Nam).

• Vinamilk's success is a

result of its dedicated team.

• Vinamilk always aims at

the operating motto

"Consumer benefits are Vinamilk's development goal"

Global human resource

management

2.4.2 VNM's international business strategy of Southeast Asia (Viet Nam).

III Evalu ating Vi

namilk's internat ional bu

siness r esults

3.2 Vinamilk's outstanding achievements in export

3.3 Lessons from Vinamilk's success

in the international market

3.1 Outstanding strategies that create the success of the Vinamilk brand in the international market

3.1 Outstanding strategies for Vinamilk’s success in the international market:

• Develop new products, improve

product quality

- Vinamilk innovated technology and

invested in modern machinery lines from

leading countries in the world

• Responding to media crises

- Vinamilk recalled and corrected

mislabeled products in 2006 in Cambodia

and Philippines

- Vinamilk launched a 100% pure fresh

milk product line

-Targeting loyal customer base,

competing on price and quality

- Participation in quality goods

fairs in Cambodia

- Using cows, music, animation:

'Beautiful Life' message

• Carry out media campaigns

3.1 Outstanding strategies for Vinamilk’s success in the international market:

3.2 Vinamilk's outstanding achievements in export:

In the first quarter of 2023 growing by 7.5% over the same period, reaching 1,225 billion VND in the first quarter of 2023

In 2022, exports contributed 4,828 billion VND

In 2022, exports contributed 4,828 billion VND

3.3 Lessons from Vinamilk's

success in the international market

• Providing a variety of quality products

• Find potential markets

• Collaborate with trusted partners

• International market access strategy

consistent with company resources

• Flexible use of media

Thank You

F o r Y o u r A t t e n t i o n