Vinamilk Company’s Report.pdf

45 5 Determine market position of Vinamilk Green Farm's UHT fresh 6 Suggestion of a marketing budget for one-year marketing plan of Vinamilk Green Farm's UHT fresh milk.... ° UHT Fresh M

ĐẠI HỌC ĐÀ NẴNG TRUONG DAI HOC KINH TE

Group’s members : Trần Đặng Huệ Bình

Nguyễn Phương Linh

Lê Hoàn Thảo Miễn

Lê Thị Ánh Minh

Trần Lê Na

Đà Nẵng, 2023

TABLE OF CONTENTS

Chapterl PRODUCTS OF VINAMILK - (S2 S 1n nh nàn 9 I0) 000.0 (¡0 9

Chapter 3_ THE MARKET TARGET 2: 22 2221221132111 155 11222 se 20

I LEADING IN HIGHLY APPLICABLE INNOVATIONG 21

Il CONSOLIDATING THE LEADING POSITION IN’ THE

TI BECOMING THE MOST VALUABLE DAIRY COMPANY IN I0 9)005.i- s6 1 22 Chapter4 THE VALUE OF PRODUCTS/ SERVICES THAT THE VINAMILK PROVIDE TO CUSTOMERS u oo ccccccceceeeeeeeneceeteecetseeeneeetteeeenaas 22

1 Research and design for safe and nutritious products 22 T] Safe materials 23

HI Modern equipment and technolò1es 2 2c Sexy 23

IV Management and quality control in compliance with international

Standards 23

V Explicit and thorough mformation Íor consumers - 23

Chapter 5 MARKETING CONCEPT AND MARKETING MIX 24

I_ MARKETING CONCEPT - 2.2.1 112111111101 2111 111111111 t1 2 24 H— MARKETING MIX Ặ.Q ST 222 nu He, 25 Lo PrOdUCt 25

LL Product mix ẽ 25

1.2 Product Quality 2 2.10221120111111 1111 1111111111111 1k 26 In ca 26

L.A Packaging a4 26

1.5 Product suppOrt S€TVIC€S L0 20 12012 n2 ve 26 1.6 Product life-cycÌe 52 1 2011112011 111111211 1111111111111 x12 27 PB la 27

2.1 Pricine method 2 2c 2211221121 11221 1112111151111 x kg 27 P,ÿÄ@N» co on 28

2.3 Price-adJustment strat€Ðy 0 2 n1 S2 v12 111 11tr ớg 29 S .iI Ta 29 3.1 Supply chaimns and the value delivery network 29

3.2 DistrIbution channel manàemett ¿+ 222 2 c2 22s cszss2 30 A PROMOTION e 31

4.1 *g(00i)0/LtCCtầĂidọĐỤ 31

4.2 Promotion CC 31

Chapter6 MARKETTING PLAN FOR A SPECIFIC PRODUCT 32 I_ Environmental anaÌyS1S: - + 2 2 222112211111 12211 1111121111112 xk2 33

1 About Macro Environment of UHT Fresh Milk - Vinamilk Green

Farin — 33

I2 eo 33

I vê co 34

1.3 Technolopical ÍactOr: - c1 1112111111211 51112 11211 srkea 35 1.4 Environmental ÍaCfOT: - ScSn TS 2 92121111 11121111 hư 35 1.5 Legal and Political factOf: 2 2c 222122112 ty re2 36 II 37

2.1 Customers ieee ẽ 37

2.2 Suppliers cece ccccccccccccsecsecsseceseesseeseeeseesecensesteessecsseesseeeeenees 37 2.3) Competitors a1 38

2.4 Marketinp Intermerliar1€s 2 222 122111221 r2 38 Pu nayÿ 39

P0 on 39

2.7 ÑUITTNRFV L 1 2012222311125 1151511111521 11 1111111192 ra 39 II SWOT analysis: SWOT analysis of UHT Fresh Milk - Vinamilk Green Farm 0 40

lun ^ -‹-4 40

HN 40

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HI = Marketing obJectIVe: -. 2 2c 201121122111 21 11 2111111112111 182 1kg 43 IS 5 A 43

PM ch e 43

3 _ Achlevable cc HH HH ch Ha 44

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IV Marketing strat€ÐI€S: - L1 TT 0121121112111 1117110111811 Hư 44

1 Understand customers” needs - -á 5c cà t2 1222 2xx zrrez 45

2 Tarpet marke L1 22 201121122 11 119111111111 111 1 11g tk 45 3 Analyze cOomp€fItIOH Q.2 201221122112 1112111111111 12811182 e 45

4 Define Marketing m%X 2c 2c 22 21211211 1231121 111111222 xe 45

5 Determine market position of Vinamilk Green Farm's UHT fresh

6 Suggestion of a marketing budget for one-year marketing plan of Vinamilk Green Farm's UHT fresh milk 0000 cceeeceeeteeteeeneetseenes 48

V Marketine lmplementation: - +2 22221211121 125121 E212 xe2 49 l9 án 90 nh 49

EU c9 nh aOỪừD 50

VI Evaluations and Controls: 0.0 cc eeeceeeeeeeeeteeneeeteeenneenneenteeeeees 51

1 ~~ Performance standards an e 51 PMaộn co ha e 52

3 Monitorine proC€dUF€§: - 0 201221121112 1222118 181111 xe 53

Chapter 1 PRODUCTS OF VINAMILK

I UHT Fresh Milk

° Vinamilk fresh milk 100%:

HAPPY COW HAPPY MILK

° Vinamilk UHT Fresh Milk With Bird’s Nest:

binding to the bones, supporting skeletal system

- With vitamin A, D3 & Selen, it helps increasing resistance and supports immune system to make your family healthy everyday

° Vinamilk Green Farm

- At the farm, the natural groundwater is considered "the source of nourishing life" as it is the water supply source for plants, grasslands and corn, contributing to creating eco-detention basins and keeping the air cool and fresh

- No use of pesticides and chemical fertilisers

- The Vinamilk eco-farm system also owns fields spanning thousands

of hectares, with varieties of Mombasa and Ruzi grass, oats and fresh com - a natural food source rich in nutrients, which is green and clean for dairy cows

- The dairy herd at Vinamilk eco-farm 1s the purebred breed imported from the US, Australia, and New Zealand

° UHT Fresh Milk - Vinamilk 100% Organic

ih Cat | Ra

ery | Ue

Fresh Organic farm: The first organic dairy farm in Vietnam to be certified with EU Organic Standard according to the certified document of Control Union Vietnam on November 28th, 2016

- Internationally qualified Organic cows: Strictly selected according to

EU Organic standard

- Natural Organic Pasture: Herd of cows are grazed on the natural Organic pasture to enjoy the fresh cool air of the Dalat highland

II UHT Nutritious Milk

° Vinamilk UHT Milk Pouch:

VITAMINA D3.CANX!

Cai ery he caromg bà tăng cơ — 9 8 ae

- Packed with abundant nutrients, a handy packaging and a reasonable price Vinamilk UHT Milk Pouch provides everyday essential nutrients so that your family stays healthy and energetic wherever they go

wonderful flavors to suit your family's taste, which will surely make them enjoy drinking more milk

- Provide an abundant source of nutrients including vitamins A, D3 and calcium for your family to have sharp eyesight and strong bones

° Vinamilk ADM:

- Vinamilk's genuine milk, fortified with many micronutrients such as vitamin A to help brighten eyes, vitamin D and calcrum to help with height, Vitamin B and Omega 3 to help improve memory

` Vinamilk Flex:

- Vinamilk Flex is the first Lactose-free milk in Vietnam, 50% extra calcium with added lactose enzymes to support digestion without causing discomforting, it is an easy- to- digest nutrient source that help maintain healthy bones

III Spoon Yogurt: Produced with natural fermentation technology using Lactobacillus Bulgaricus, Vinamilk Yogurt has a distinctive, pure and luscious taste, enhanced with calctum and vitamin D3, and helps your body to better absorb nutrients and build stronger bones to stay active, help your children to stay active and healthy all days at school

° Mainstream Yogurt:

° Premium Yogurt

° Yogurt for Kids

IV _ Product for pregnant & infant Product for pregnant and breastfeeding women:

- Strengthening Mom's digestive system

- Supporting the baby's physical and intellectual growth

- Boosting Mom's immune system and body resistance

° Product for infant

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- Supports healthy digestion and immune system, improve weight, height and brain development

° Soymilk

VH Beverage

` Vfiresh Fruit Juice/Tea:

- Vfresh 100% Fruit Juice is made from fresh, delicious fruits of famous countries such as Valencia orange, Spanish grape, Indian guava, etc., with

no preservatives added, retaming natural fresh taste with high content of vitamins

° Coconut Water:

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- Carefully selected by fresh pure coconuts : 100% non- GMO & No preservatives added

- Keeping the whole of natural taste, vitamins & minerals in fresh coconuts, cooling your body quickly

- The fresh sweet coconut water helps you release thirst quickly

° Salty Lemonade (ICY):

- Instantly quench thirst and replenish water with fresh lemon juice

- Balance electrolytes, help naturally recover your health with Sodium lon

VIII Condensed Milk

° Sweetened Condensed Milk (Ong Thọ):

- With the richness of protein and tasty flavor, Ong Tho sweetened condensed milk has been an indispensable companion to the kitchen of Vietnamese families for the past 40 years

° Sweetened Condensed Creamer (Ngôi sao Phương Nam):

- With smooth, sweet and tasty Flavor, Southern Star Sweetened condensed Creamer blends perfectly with coffee that helps you enjoy your moment

to the most

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IX Ice Cream: Nothing could be better than a family gathering moment! VINAMILK Ice-cream tub with 12 great flavors can make that moment of yours even more memorable

x Sugar (Vietsugar):

GMO sugarcane, which has been cultivated in a completely natural environment Using Activated carbon and Jon exchange technology according to European and American standards in the refining process, allows Vietsugar to achieve its desirably natural white color and follow strictly “3 No standard”:

v Non GMOs

v No additives

Vinamilk is aiming to diversify the source of its candidates for leadership, management and staff, regardless of race, religion, sex and age The objective of the recruiting process is to find the qualification to work, the quality of work through the fair selection process

“+ Labor recruitment process of Vinamilk:

- Content of the process: This process is to guide and allocate responsibilities in labor recruitment, ensure the supply of resources in accordance with the company's planning and policies

Y Step 1: Make a recruitment request

- The unit needs to recruit the report to the Human Resources Department to submit to the General Director for approval

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- Once the Human Resources Department has been approved, it will start recruiting

Y Step 2:

- Recruiting

- Planning recruitment

- Establish recruitment committee

- Searching for candidates from internal and external candidates

- Select profile- Selection

- Verification of candidate information

- Final evaluation and selection

Y Step 3: Integration, trial and probation

- Integration: In order for the new staff to understand the working environment and culture of the company, the Human Resources Department will implement

departments through Forms of exchange meet, email introduction ., disseminate to the staff policies, content and regulations of the company

- Tnal and Appraisal: Depending on the position of the recrutter, the qualifications and experience of the new employee, the recruiting unit will coordinate with the Human Resources Department to apply appropriate assessment methods in the probationary period Qualified employees will be officially recruited by signing a contract of employment

Chapter3) THE MARKET TARGET

Maintaining the No.1 position in Vietnam market and aiming to reach the Top 30 of World’s Largest Dairy Companies in terms of revenue, Vinamilk has identified a development strategy with three main pillars for execution, including:

] LEADING IN HIGHLY

APPLICABLE

INNOVATIONS

Focus on dairy industry and

dairy related products, which is the

core business that has established the

Vinamilk brands Continue to R&D to

develop more new products with

Innovation; expand and diversify

portfolio based on consumers’ preferences and demands; as well as bring various and convenient experiences to them

LEADING POSITION IN THE

INDUSTRY

Prioritize to exploit the domestic

market which still has great growth

potential Promote more on high end and

added value products, especially in urban

areas Penetrate and cover rural areas with

mainstream products that growth potential

are large Continue to build a large and strong domestic distribution system, increase market share and maintain Vinamilk’s leading position in the market

IH BECOMING THE MOST

SOUTHEAST ASIA

Be ready for M&A activities

and expand strong cooperation with

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partners in all three directions of horizontal, vertical and combined integration; Prioritize to seek M&A opportunities with dairy companies at other countries for the purpose of expanding the market and increase sales Continuing to penetrate new export markets with the strategy of converting the traditional goods export model into types of deep cooperation with the distribution partners in new key markets

Chapter4 THE VALUE OF PRODUCTS/ SERVICES THAT THE VINAMILK PROVIDE TO CUSTOMERS

Identifying food

safety as top priority,

Vinamilk commits that

each of its products is the

result of a closed-loop

production cycle which

meets one of the most

rigorous requirements for

the quality, including:

Moreover, they absolutely say "no" to unhealthy ingredients that can result in negative impacts on consumers’ health such as preservatives in all Vinamilk's present and future products

II Safe materials

Vinamilk Fresh milk 100% with immune system support is produced from farm fresh milk mainly sourced from our dairy farms, strictly selected and controlled to ensure food hygiene and safety

Imported raw materials are sourced from the prestigious suppliers of America, Australia, New Zealand, France, etc

III Modern equipment and technologies

To ensure the perfect quality of its products, Vinamilk has consistently been researching, and investing in modern equipment and technologies They proudly own one of the most advanced manufacturing chains that keep up with the world's leading milk production technologies

IV Management and quality control in compliance with international

standards

Vinamilk has highly paid attention to product quality control and management They have therefore applied advanced management systems such as BRC and ISO 17025 to strictly and thoroughly manage all manufacturing stages including pre, mid and post production in order to ensure the quality and safety of Vinamilk's products In addition, a product tracking system has also been applied to the product recall and the disposal process of faulty products in order to minimize the possible negative impacts on consumers and society

Vv Explicit and thorough information for consumers

Vinamilk commits to deliver explicit and thorough information about its products including ingredients, nutritional values and preservation guidelines to help consumers choose and use Vinamilk's products that fit and satisfy their needs Chapter5 MARKETING CONCEPT AND MARKETING MIX

IMARKETING CONCEPT

Vinamilk is a leading dairy company in Vietnam and it has adopted the marketing concept as its primary approach to doimg business The marketing

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concept 1s a business philosophy that focuses on identifying and meeting the needs and wants of customers while also achieving the company's goals

Vinamilk's marketing concept is centered around understanding the needs and preferences of its customers and developing products that meet those needs The company has a strong focus on research and development to ensure that its products are innovative and of high quality Vinamilk also invests heavily in marketing and advertising to promote its products to customers

One of the key strategies that Vinamilk uses to implement its marketing concept 1s product differentiation The company offers a wide range of dairy products, including milk, yogurt, cheese, and other dairy-based products, and it focuses on developing unique features and benefits that set its products apart from its competitors

Vinamilk also places a strong emphasis on customer service and feedback The company regularly conducts customer surveys to understand their preferences and needs and uses that feedback to improve its products and services Vinamilk also uses social media and other digital marketing channels to connect with its customers and gather feedback

Overall, Vinamilk's marketing concept 1s centered around understanding and meeting the needs of its customers while also achieving its business goals By focusing on product differentiation, innovation, and customer service, Vinamilk has become one of the most successful dairy companies in Vietnam

to become the greatest milk enterprise in Vietnamese dairy advertising at present

Vinamilk has applied the world's most modern technology and equipment to produce products that meet international quality standards All production lines are built by Vinamilk develops and applies the HACCP framework for cleanliness and nurturing security, production lines have been assessed by accreditation organizations such as SGS, and BVQI, and certified to meet Dutch HACCP RVA standards

13 Branding

Choosing a brand name and image for the company has an important meaning for the success of Vinamilk After more than 30 years of development, some goods such as Ong Tho condensed milk, Dielac, and Vinamilk yogurt are prevalent brands

“Vina” in the word Vinamilk means Vietnam This name creates a sense of friendliness and is easy to remember Besides, Vinamilk’s images are associated with green grasslands, sunny fields and funny cows

1.4 Packaging

Packaging contributes to buying decisions so the company has focused on designing a catchy package with necessary information on the labels (ingredients, Instructions, expiration date) Besides, the capacity of each product’s type is also diversified to easily meet different consumer purposes From the environmental perspective, Vinamilk has developed packages that are environmentally friendly by using paper boxes, supplied by Tetra Pak, for entire liquid dairy products and beverages

The systems for packaging pasteurized dairy products ensure the three main objectives of the packaging process: guaranteeing product quality, eliminating wastage, and lowering distribution costs

1.5 Product support services

Vinamilk provides an official website to interact with customers Customers have handy access to get information such as the number of nutrients in each product Recently, its distribution network entitled “Vietnamese Dairy Dream”

reached the threshold of 500 stores in all 63 provinces and cities The retail website www.giacmosuaviet.com.vn 1s also proving to be effective, especially during the social distancing period

1.6 Product life-cycle

Since 1976 -the year of being founded, Vinamilk has spent many landmarks from the beginning for maturation and development like today Recently, it can be seen that Vinamilk 1s in the maturity stage

According to Vinamilk’s financial report, growth remains stable in the first quarter of 2021 In the last quarter of 2020 and the first quarter of 2021, Vinamilk’s revenue respectively was more than 2,6 thousand billion VND and about 3,15 thousand billion VND

In short, Vinamilk has been very successful in its product strategies These strategies are based on actual needs, so they are effective immediately In addition, huge investment costs for advertising and introducing new products facilitate the introduction of information to consumers Product quality is also very focused, so it has created trust with customers Vinamilk's packaging is simple but complete and beautiful, so it also attracts the attention of a large number of consumers

2 Price

Because of the difficulties of the economy in recent years, Vinamilk has had

to face many challenges to adjust its pricing strategies properly

2.1 Pricing method

Nowadays there are many businesses in the same market segments so competitive prices affect a lot of Vinamilk Therefore, Vinamilk has taken competitive-based pricing methods Vinamilk focuses on producing high-quality goods but still sets its products at competitive prices In that sense, the pricing strategies of Vinamilk are not only ensuring profit but also maintaining the purchasing ability of consumers

The company owns dairy factories with large capacity, advanced technology, and fully automatic can which make costs reduce significantly and ensure product

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quality Besides, the company’s long experience in the industry contributes to cheap material costs and leads to competitive prices of the product These are the prices of some products:

Besides product lines of yogurt and condensed milk, which overwhelm the market, the others face drastic competition with other domestic dairy producers In that circumstance, pricing 1s one of the crucial strengths of Vinamilk to compete with its rivals Compared to its competitors, there is no huge difference, especially

in the liquid milk sector For example, Vinamilk's price of a 1-liter fresh milk box 1s about 30 500 VND, while the same product type of other companies (TH True Milk, Lothamilk, or Dutch Lady) range from 27 600 - 34 000 VND

2.2 Price Strategy

2.2.1 New product pricing strategy

When publishing new products to the market, Vinamilk chooses market- penetration pricing To make sure new products adapt to customers quickly and deeply, Vinamilk set a low initial price VNM Green farm 1s the newest liquid milk product and its price is 32,340 VND for a lot of 4 boxes With this affordable price, the Green farm has quickly consumed and become the family’s favorable product 2.2.2 Product mix pricing strategy

Product line pricing: Vinamilk focuses on developing its product lines and sets the price steps between various products in a line This helps customers make suitable choices that fit their demands In the powdered milk line, Vinamilk offered Dielac Grow Plus and an upgraded version of it-Grow Plus with Bird’s nest and we can see a price step between them

Product bundle pricing: Vinamilk combines some products with other products and offers this bundle at a reduced price to encourage purchases consumers Vinamilk sells a combo of Ridielac cereal with 4 different flavours 2.3 Price-adjustment strategy

Psychological pricing: Vinamilk is using the “The more you spend, the more you get” strategy The company usually upgrades their goods which contain more

nutritious than the original ones and specialized for some specific target consumers When existing products have a high value to be positioned in the minds of consumers, the new version of them will completely succeed For example, Dielac Grow Plus with Bird’s nest is an upgraded version of Dielac Grow Plus With more nutrients from bird nests, customers would not hesitate to spend a little bit more to get a better product

Maintaining stable price: Vinamilk had participated in the commitment of stabilizing prices for some products (liquid milk, powdered milk for children, elders, and patients) stnce April 2012 Due to the increase in the world’s materials, many dairy firms set their prices 7-15% higher Nevertheless, after one year of maintaining stable prices in trials, Vinamilk was forced to increase the sales prices

of some product groups

Promotional pricing: To increase short-run sales, Vinamilk temporarily set their price lower than before to promote customers’ purchases On an e-commerce website, many products are usually discounted by 5%

3 Place

During the past few years, the distribution network of Vimamilk has proceeded to be consolidated and emphatically grown in both domestic and worldwide markets

3.1 Supply chains and the value delivery network

Vinamilk has a mass distribution network which is present in 63 provinces of Viet Nam The company’s distribution strategy is an intensive distribution strategy, with their multichannel distribution system, they want their products to be distributed all over Southeast Asia The distribution system of Vinamilk follows this model with over 250 exclusive distributors and more than 220 000 points of sale nationwide

Direct channel: VNM’s direct channel is divided into 2 smaller channels: online and offline

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For the online channel, in October 2016, Vinamilk officially published an online selling website named Giacmosuaviet.vn This website marked the first time a business in the FMCG industry has developed an e-commerce business channel

For offline channels, Vinamilk directly distributes to their business partners who use Vinamilk’s products to make theirs Condensed milk and liquid milk are usually distributed in this way Some partners of Vinamilk can be mentioned are Viva star coffee, Gem centre, Callary, etc

Indirect channel: VNM7’s indirect channel also includes online and offline channels

For online channels, the company cooperated with companies that manage to sell websites to bring Vinamilk’s goods available on Shopee, Lazada, and Sendo,

Offline channels, it is divided into two types: modern distribution channel and traditional distribution channels

Traditional distribution channel: The majority of Vinamilk’s total revenue comes from selling through the traditional channel In this way, distributors get the products from factories and share out with resellers The biggest advantage of it is the number of members in the system and the cheaper price compared with the modern distribution channels

Modern distribution channel: Vinamilk has 7.800 modern channels they are supermarkets, hypermarkets, and minimarts, which are directly ordered from representatives of the Vinamilk branch This distribution channel is easier to approach consumers but its obstacle is the weak ability to access rural customers 3.2 Distribution channel management

System management: Using ERP (Enterprise Resource Planning) system which is a tool used to support agencies and allow them to connect to Vinamilk distribution network By that, Vinamilk can collect and manage agencies’ business information Implementing Oracle Business Suit which includes applications related