Assignment introduction to marketing topic developing successful organizationaland marketing strategies for vinamilk

1 Introduction 1.1 About Vinamilk dairy company O Vinamilk's establishment period from 1976 to 1986 O On August 20, 1976, Vietnam Dairy Products Company Vinamilk was officially establish

VIETNAM INTERNATIONAL UNIVERSITY, HANOI

UNIVERSITY OF LANGUAGES AND INTERNATIONAL STUDIES

ema, a2 ORTUN 74 4 ĐẠI HỌC NGOẠI NGỮ

ASSIGNMENT INTRODUCTION TO MARKETING

TOPIC: DEVELOPING SUCCESSFUL ORGANIZATIONAL AND MARKETING

STRATEGIES FOR VINAMILK

Lecturer : Mrs.Le Thi Thu Mai

Group 5 : Nguyen Thi Phuong Nam

Pham Thi Bich Lien Nguyen Thi Hong Hue

Hy Thi Phuong Duong Thanh Nhan

Le Thanh Thu

HA NÓI, 2022

Table of Contents

11 About Vinamilk dalry cOompanyy - . cà nh HH HH tệp 6

1.2 Vinamilk's business 6

13 Vision- Mission- Core values- Business philosophy- Quality policy 6

2 Strategic Marketing Planning 7

2.1 M2 7.5 ¿2.2 7

"5® 7

"5 2® vn 8

2.1.3 Competitive advantages 9

2.2 Where do we want to 802.0 ố ố ố 9

2.2.1 SWOT analysis model of Vinamilk companyy ca nhe 9 2.2.1.1 Sirengths (Š) in Vinamilk's SWOT mafTIX à nh nhi 9 2.2.1.2 Weaknesses (W)¡n Vinamilk's SWƠÏT mafriX à 2n nen 11 2.2.1.3 Opportuniiy (O) in Vinamilk's SWƠT matrix moelL - eee 11 2.2.1.4 Challenge (T) in Vinamilk's SWOT matrix moel - cc2-scccccc>xeevee 12 2.2.2 Analysis of Vinamilk's BC mafTIX - 2 25 22t HH He 13 23 Diversificationtion anaÌySÏS cscccn nnnnHnHh TH HH HH TH HH Hiệp 15 2.3.1 Vinamilk”s strategy to enter the market In COUTTI©S eee eee reer 15 2.3.2 Market developmenI s†raf€BV: càng HT HH HH hư 16 2.3.2.1 Leading in creative innovation with appÏiCatiOn - nàn nhớ 16 2.3.2.2 Strengthing the leading position of Vietnam”s đaily Indusfry 17

2.3.2.3 Become a daily company that creates the most value in Southest 17

2.3.2.3.1 New production technoÏOgyy - sc t2 HH HH HH HH rệt 17 2.3.2.3.2_ Research & improvement of prodUCs -.- như 17 23.233 Certificate of quality and other manament sySies -cc sec 17 2.3.2.4 Vinamnlk diverse siraf€gyy nn HH HH HH HH HH HH He 17 2.3.2.4.1 Won IUFoST 2014 Vinamilk Award ( Global Food Industry Award) 17

2.3.2.4.2 How Vinamilk brings foreign investment products back to Vietnam: 18

2.3.2.4.3 Penetration Inio the unsaturated market ( products for dieters) 18

` 18

Table of Figure

Figure 2-1: BCG Matrix Boston Consulting Group Figure 2-2: SBU in matrix BCG

Table of Table

Table 2-1: Analysis of Vinamilk's Boston matrix in 2020

1 Introduction

1.1 About Vinamilk dairy company

O Vinamilk's establishment period from 1976 to 1986

O On August 20, 1976, Vietnam Dairy Products Company (Vinamilk) was officially established with the initial name of Southern Coffee and Milk Company The company belongs to the General Department of Food Industry in the South

In 1982, Southern Milk - Coffee Company was transferred to the Ministry of Food Industry and renamed as Dairy - Coffee - Confectionery Enterprise I

Innovation period 1986 — 2003 time

In March 1992, the Union Enterprise of Milk - Coffee - Confectionery I, officially changed its name to Vietnam Dairy Products Company (Vinamilk) - under the Ministry of Light Industry The company specializes in the production and processing of dairy products From 1994-2000, Vietnam Dairy Products Company built a number of factories to develop

markets in the North, Central and Mekong Delta

Up to now, Vinamilk owns a system of 13 factories across the country The factories all meet the most stringent international standards, with modern technology to produce most of the main product lines of the dairy industry This helps Vinamilk maintain its leading position in key dairy products for many years

The highlight of Vinamilk's factories is not only in terms of capacity and output, but also in the way this enterprise applies 4.0 technology, meeting many standards such as ISO 9001, FSSC 22000, ISO

17025 The machine also has special certifications such as Halal, European Organic, FDA (USA),

Chinese standards serving the domestic market and ready for international business expansion

1.2 Vinamilk's business lines

Oo

Oo

O

O

O

Producing and trading in canned milk, powdered milk, nutritional powder, cakes, fresh milk,

soy milk, beverage and other dairy products

Trading in food technology, equipment and spare parts, supplies, chemicals and raw materials

House business, real estate brokerage, warehouse and yard business, Cargo transportation business, loading and unloading goods

Producing and selling alcohol, beverages, processed foods, drinking tea, roasted-milled coffee-soluble

Producing and trading in packaging, buying on packaging

Production and sale of plastic products

Polyclinic

1.3 Vision- Mission- Core values- Business philosophy- Quality policy

Oo Vision: “Becoming the leading symbol of trust in Vietnam about nutrition and health products serving human life”

O Mission: “Vinamilk is committed to providing the community with top quality and high- quality nutrition with its own respect, love and high responsibility for human life and society.”

O Core values: “Becoming the leading symbol of trust in Vietnam about nutrition and health products serving human life”

O Business philosophy: Vinamilk wishes to become a favorite product in all regions and territories Therefore, we keep in mind that quality and creativity are Vinamilk's companions Vinamilk considers customers as the center and is committed to meeting all needs of customers

O Quality policy: Always satisfy and be responsible to customers by constantly improving, diversifying products and services, ensuring quality, food safety and hygiene with competitive prices, respecting business ethics and obey the law

2 Strategic Marketing Planning

2.1 Where are we now?

2.1.1 Competitors

According to Euromonitor, the rapid expansion of the yogurt and drink segments, in

particular, will help Vietnam's dairy market reach VND 135,000 billion in 2020, an increase of more than 8% from 2019 Liquid milk (+10%), eye cosmetics (+11%), butter (410%), and other dairy

goods (+8%) are among the industries that had rapid growth, while the value of powdered milk only climbed by 4% The component of the dairy business in Vietnam that contributes the most value is

liquid milk, which includes well-known brands like Vinamilk, Moc Chau milk, TH True milk,

Dutch Lady, and Nutifood With the well-known brand "Vinamilk" is currently owned by Vietnam Ban Joint Stock Company (VNM), which also holds the greatest market share

Liquid milk market share in 2022

Friesland Camp- ina Viét Nam;

Nestle Viét Nam;

11.67%

TH Food; 18.33%

Vinasoy; 11.67%

Friesland Campina Viét Nam & TH Food ® Vinasoy

mg Nestle Viét Nam m Khác

Chart 2-1: Liquid milk market share in 2022

2.1.2 Competitor analysis

O TH true Milk

Strengths

O Clear strategic objectives, investment large, methodical and synchronous investment

O Making a difference from competitors with the impressive slogan "the essence of nature is kept intact in every drop of clean milk"

O_ Special process of raising and taking care of dairy cows, quickly attract customers, make a good impression on consumers

O Experienced management team, professionally trained management team

Weaknesses

O The distribution channel system is not diversified and the coverage is not high

O_ The factory is small, and the product range is not rich

O Depends on imported materials, so it is passive in input prices

H1 Totally dependent on the domestic consumption market because there is no foreign market High

O Product price

H Vinasoy

Strengths

O_ Vinasoy is a large enterprise, has a stable and reputable customer base Vinasoy accounted for 84.2% market share of soy milk

O Widely known not only for quality products but also for charity activities

LH Possesses the most advanced soy milk production technology today

Weaknesses

O Financial limitations in marketing activities

O The company's products are still monotonous and not eye-catching

O Haven't invested much in customer care services

O Nestle Vietnam

Strengths

O_ Strong research and development capacity

O World famous brands

O Wide distribution network

O Brand and product portfolio

O_ Large Workforce

O_ Brand value

H1 Efforts force for green industry

1 Weaknesses

O Criticism from society

O Contaminated product recalls

LH Misunderstanding and contradictory advertising

HH Relying too much on media

O Friesland Campina

Strengths

O Production chain management from grass to glass

O Strong partnership with Vietnamese dairy farms

O Global presence with product accessibility in over 100 countries

O Purpose-driven, results-oriented creating a special culture

Weaknesses

O Facing liquidity problems, bond value issued

O Products with higher added value than

O Vinamilk

Strengths

O Familiar brand trusted by people

LH Distribution networks are widespread, combining many modem and traditional distribution channels

H1 Strong finance: quite safe capital structure, debt/total assets ratio is 16.7% (2009)

O Good and experienced leadership and management: good and experienced leadership team Weakness

O Not active in the source of raw materials: heavily dependent on imported materials (60%)

Ol Input costs are strongly affected by world milk prices and exchange rate fluctuations

O The market share of powdered milk is not high, not competitive

2.1.3 Competitive advantages

Vinamilk is a reliable and well-recognized brand As a result, the corporation has many

benefits when introducing new products to the market, clients, and consumers With more than 180

distributors and 80,000 stores, Vinamilk has a vast distribution network The company's product- consuming activities will benefit from a large distribution channel system, and beneficial distribution of goods is guaranteed

The business has constructed production facilities, maintained regions for raw materials, and

complied with technical norms Improve product quality to compete with other market manufacturers

Distribute products over a wide range of categories to increase product diversity Control product quality from raw materials, production, and consumption at the same time

2.2 Where do we want to go?

2.2.1 SWOT analysis model of Vinamilk company

2.2.1.1 Strengths (S) in Vinamilk's SWOT matrix

Strong brand:

CVINAMILK)

(CC 2 0U

Tưng

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O Vinamilk is a familiar brand and has been trusted by Vietnamese consumers for more than

34 years

O Vinamilk brand is associated with dairy products and dairy products trusted by consumers Vinamilk was also voted by consumers in the group of "Top 10 High-Quality Vietnamese Goods" from 1995 to 2009

LH Vinamilk owns leading brands in Vietnam such as Ong Tho condensed milk, Star, Dielac,

and Yogurt Vinamilk

Good and experienced leadership and management:

O Vinamilk has a strong, experienced, and ambitious leadership team proven by sustainable business profits

Diversified product portfolio:

O Vinamilk has a diversified product portfolio, targeting many customers, product quality is not inferior to imported goods while the price is very competitive Especially the condensed milk product line "Ong Tho and the Star"

O Vinamilk is the largest dairy enterprise in Vietnam with a market share of 37%, of which it

holds 45% market share in the liquid milk market, and 85% market share in condensed milk

and yogurt — Vinamilk has the ability to set prices in the market

Wide distribution network: combining many modern and traditional distribution channels:

O Vinamilk's extensive distribution and sales network is an essential factor in its success Currently, Vinamilk is widely distributed in 64 provinces and cities with 250 distributors and

more than 135,000 points of sale nationwide

O Distribution system combining modern and traditional: Products are distributed through the

Metro system, supermarket —> consumers (modern channel); distributors — retailers > consumers (traditional channels)

Quality natural milk source, international standard farm:

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O The company invests in building organic dairy farms according to international standards, supporting dairy farmers to be proactive about input materials In addition, the company also has a dairy project in New Zealand (the country that exports the rawest milk to the

Vietnamese market)

O Vinamilk's milk factories are located at strategic locations near the farm, allowing Vinamilk,

in addition to maintaining and strengthening relationships with suppliers, also ensures the purchase of fresh milk of good quality

O Vinamilk consumes more than half of domestic raw milk production, this is also a business

capable of navigating the price of milk in the Vietnamese market

Invest in modern, high-quality equipment and technology:

O All of Vinamilk's dairy factories are invested in modern and advanced technology, imported from European countries such as Germany, Italy, and Switzerland to apply to the production line

O Vinamilk is the only company in Vietnam that owns a system of machinery using spray drying technology developed by Niro of Denmark, ensuring quality dairy products to consumers

Financial strength:

O While many businesses are facing difficulties because of loan interest rates, Vinamilk has a fairly safe capital structure, with a debt/total asset ratio of 16.7% (2009)

2.2.1.2 Weaknesses (W) in Vinamilk's SWOT matrix

Not active in the source of raw materials: The raw material source has not been active, and it

depends a lot on imported materials (60%), so input costs are strongly affected by world milk prices and exchange rate fluctuations

The market share of powdered milk is not high: Not yet able to compete with khauar imported milk powder products from the US, UCs, and the Netherlands According to BVSC's latest report, the domestic powdered milk market is accounted for 65% by imported dairy products, 20% by Dutch lady, and 16% by Vinamilk

2.2.1.3 Opportunity (O) in Vinamilk's SWOT matrix model

Raw materials supplied receive government support, imported materials have reduced tax

rates:

10