MARKETING STRATEGY OF LA VIE LIMITED LIABILITY COMPANY (COMPLETE SOLUTION FOR DEVELOPING MARKETING MIX MINERAL WATER OF LAVIE LTD)

In this article I would like to know how the company La Vie can stand strong even in the Vietnamese market and Marketing department has contributed to that success CHAPTER I: THE SITUATI

INTERNATIONAL EXECUTIVE MASTER OF BUSINESS ADMINISTRATION PROGRAM

1.1 About Company Limited Lavie and the production of mineral water 8

1.2 Business environment analysis of la vie - external environment 17

1.2.2 Years of work environment Five Forces 27

1.3.8 Identification and evaluation of valuable resources and core competencies 41

1.3.9 Analysis and evaluation of competitive advantage 41

1.4 STRATEGIC ANALYSIS MODELS 42

1.4.1 Evaluate the matrix elements outside - EFE 42

1.4.3 Evaluate the matrix elements inside - IFE Matrix 44

CHAPTER II : Production and business results achieved by Lavie Co., Ltd. 48

2.1.Mixed reality marketing activities for products co lavie 49

2.5.Public relations activities 60

2.6 A number of marketing activities affect the marketing mix strategy for Lavie mineral water products CO., LTD Lavie

61

CHAPTER III : A number of measures to improve the marketing mix activities for mineral water products Co., Ltd Lavie

64

3.1.Objective of the marketing system development mixed 64

3.1.2 Objectives for the marketing mix activities 64

3.2 Solutions to finishing system combination marketing for mineral water products company lavie lavie ltd.

65

3.2.1 Improve the company's marketing capabilities 65

3.2.2 Complete marketing system for mineral water product mixture Lavie 66

3.2.2.1.Program planning organizations marketing mix activities 66

3.2.2.4.Decide the scope, frequency and intensity effects. 68

3.3.The complete system solutions marketing mix for Lavie mineral water through its tools.

69

3.3.2.Sales promotion activities 70

3.4.2 Coordinate the policies of the marketing-mix 73

INTRODUCTION

Vietnam is now on the development of market economy, many components, theintegration with the regional economy and the world In the development process,there is a new job, new opportunities for the people of Vietnam, which is the field

of Marketing

Only a few years ago, when it comes to Marketing people do not understand what it

is industry, they provided it is simply marketing But perhaps now, the term

"Marketing" is no stranger to the people but they have not been able to fullyunderstand the role of its activities in the field of manufacturing and trading

In the past customers have to be proactive to find the goods, and today's businesses

to find customers for his goods more and more, increasingly diverse Consumersmay select goods for his business and marketing has helped to sell, just to helpconsumers choose the right products they need

Joint Venture Company La Vie is the one who must find his client because thebottled water market today are widespread in Vietnam market Issues need to set outwhat companies must do to stay on the market this fierce watch?

In this article I would like to know how the company La Vie can stand strong even

in the Vietnamese market and Marketing department has contributed to that success

CHAPTER I: THE SITUATION OF THE MARKETING MIX ACTIVITIES FOR MINERAL WATER PRODUCTS OF LAVIE LTD IN THE PAST

1.1 ABOUT COMPANY LTD LA VIE

1.1.1Foudation and development

Lavie venture company formed investment partnership of Long An Food Companyand Franco Asiatique Holdings Company Pte.Ltd (CFAH) under license number423/GP investor on 30/09/1992 with a total initial investment of $ 5,600,000,capital of $ 2,000,000 of which the country accounts for 35% stake share, foreignaccounting for 65% share In October / 1993 Perier Vittel Group-a group of theworld's leading mineral water Company has equity participation CFAH with thelevel of contribution is 51% of the shares of the Company CFAH For Vietnamesepartners, on 04/04/1996 General Trading Company nominated Long An ProvinceLong An alternative Food Company under the investment license number423/GPDC2 Lavie Venture company officially changed the name into Co Lavie on17/07/2007 under number 501 022 000 040 investment certificate by the People'sCommittee of Long An Province-level Co Lavie is the cooperation betweenGeneral Trading Company Long An Province and Nestle Waters corporations

La Vie Co officially put into operation on 01 May 07, 1994 with an initial capacity

of 15 million liters / year Investment each year to be considered by the growth ofmanufacturing and trading company Current capacity 3-fold increase comparedwith the initial capacity, there are two kinds of mineral water production line Fromthe beginning of modern automated equipment with a closed process technologyfrom production of bottles, bottle packaging under strict quality supervision ofNeslte Waters, a member of the Nestle Group, along with good market access andexploit the products of the company is leader in the field of products and bottled

water is the only bottled water products sales network across the country Now, thecompany is providing the Vietnam market products called 'natural mineral water LaVie'.

Co., Ltd La Vie is the first beverage company in Vietnam granted certificate ofinternational standard ISO 9002 and continuously for 14 years (1997 - 2011) La Viewas voted by consumers' 'High Quality Vietnamese Goods' In particular, for 8consecutive years (2001-2008), La Vie is considered the best and award winning'Golden Dragon' by the Economic Times in conjunction with the Ministry ofPlanning and Investment organization

La Vie Co., whose office is located in Long An and three branch operations in HoChi Minh City, Hung Yen and Hanoi The company operates under theadministration of the board, including general manager and deputy general manager

of the Company From its inception, the company was interested in the development

of local human resources, the company has nearly 272 staff members, but only twoforeigners is CEO and plant manager The key staff are university graduates and benominated to France to attend training under the guidance of experts of NestléWaters Corporation The Company also applies mentoring training measures inplace or send professional training courses in the country to improve the skills ofofficials and employees of the Company

A crucial part of the success of La Vie Co., Ltd is a clever combination ofprofessional qualifications in the field of international mineral of Nestlé WatersCorporation with the intelligence and diligence of the basic training VietnamCompany to a sufficient level, access to new technologies as well as take on theimportant position

The milestone of La Vie

1992: Establishment of Joint Venture mineral La Vie in Long An

1993: Nestle Water is a major investment for a 65% stake

1994: La Vie debut product markets 0.5L and 1.5L

1999: La Vie launched 5G bottles for home and office

1999: La Vie achieved ISO 9001 certification, the first company in the field ofbeverage achieve this certification

2002: The factory in Hung Yen official manufacturer La Vie provides market theNorth

2005: Innovation from the square bottle round bottle switch use to this day

2008: Investing in small bottles and bottles of 19L line with the most moderntechnology for the plant in Long An

2009: Achieving ISO 22000 certification, ISO 14001 and OHSAS 18001

2010: Investing in small bottles and bottles of 19L line to the factory in Hung Yen

2011: launch of the new line Krones for Hung Yen plants (20 000 bottles / hour,project investment PET line for Long An (48000 bottles / hour) and extendedstorage

1.1.2 Vision - Mission - Values

Vision:

Maintain and promote La Vie become the number one bottled water company inVietnam (On production and sales) with the resulting high-quality products bringprofit to the company

- Developing and investing in key personnel

- Investment in system / process (ERP, RMA, etc.), re-set the workflow to improve

productivity

- Investments in brand and product innovation

- Focus on quality

- Improving safety behavior in all areas of the company

- Continuous improvement in order of priority everywhere

Value

- All for customers: We are committed to focus on serving customers and

consumers.Customers will feel very satisfied with our quality and service Weanticipate the future needs of our customers and are always prepared to meet those

needs

- Commitment to quality: There is no compromise on quality.La Vie products

always have high quality than the competitors

Continuous improvement: We always have the ambition to continually improve the

performance measurement indicators, methods and work efficiency of employees

- Human resources La Vie make a difference: We want to retain, develop and

recruit the staff always had the passion, ambition and progressive.La Vie employees

who have high-performance along with extensive knowledge of the soft drinks

industry

- Integrity, honesty and dedication: We are open and fair with employees and

business partners.We respect different views We are committed to the job and the

company

- Proud of the company: We are convinced and proud to work for food and

beverage companies in the world as well as Vietnam

Figure 1.1 Organization Chart Company La Vie

General directors representing foreign partners, general operating business

operations, responsible for the efficient production of the company's business

Deputy General Director representing the Vietnamese partner in the joint venture,

besides vice president responsible for the relationship between joint venture with

the local government and is operating the quality management activities throughout

the company

Director responsible for managing plant production activities as well as

development projects in both the Long An and Hung Yen Director of the factoryLong An (in fact Director cum factory location) and Hung Yen carry out the

management of production activities in the factory under the management of the

factory manager Long An is responsible for plant production and supply ofproducts to market South from the town back on Hung Yen is responsible for plant

production and market supply North from Quang Tri

Company marketing department is responsible for marketing, trade promotion for

the country, both North and South markets Marketing department is responsible for

development and implementation of strategic marketing plans to promote the sale of

products to ensure the business plan of the company

Booking is divided into two zones with two parts: the sales department small bottle

of South and North, the obligation to sell large bottles of South and North Northern

Sales is responsible for promoting the consumption of plant products by Hung Yen

produce across the northern range from Quang Tri In the North, with sales sellingsmall bottles and a big bottle, small bottle sales department with the task of

organizing the consumption of small-sized products (products with a capacity of

350ml bottles; 500ml; 1 , 5L; 5L) also large bottle sales department is responsible

for organizing large-sized consumer products (product type cylinders 19L aka 5

gallon bottles)

Purchasing and supply mission to organize the search for suppliers of materials,

equipment, machinery, purchase planning and production provide sufficient and

timely manner to ensure the production schedule And organize freight to the place

of consumption, fully meet the requirements of the volume of goods as required by

the sales department

Forecasting, supply planning and product consumption by the plant, supply room,the sales department work closely together to build Sales department is often to

predict the volume of products sold in certain phases as the month and year, on the

basis that the supply air and room planning production and supply of products to the

market

Financial and Accounting Department has an advisory role to the board of the

financial plan to achieve the highest business performance through this plan Alsoresponsible for coordinating implementation, inspection and control of business

operations of the company through the financial criteria to ensure the business

objectives set

HR management HR issues such as recruitment are fully guaranteed to provide

high-quality human resources to effectively serve production and business activities

of the company Make sure the salary, bonuses and social modes such as social

insurance, health insurance, etc of staff are met satisfactorily

The IT department is responsible for ensuring the operation of information

technology systems, data connectivity throughout the company, effective

Target market of La Vie

Natural mineral water products the La Vie service for refreshments and goals focus

on the high-income market, development of industrial life that is urban, industrial

zones across the country La Vie bottled product types 350ml, 500ml, 1.5L, 5L and

5G (19L) in which two strategic product lines is 500ml and 5G

- The small bottle of product: 350ml, 500ml, 1.5L and 5L are sold nationwide

through retail market: distributors, dealers, supermarkets and retail stores

- 5G assigned product market:

 Commercial customer markets: business, company, factory, industrial,

office, headquarters buy in bulk

 Residential market: the family

 Current 5G products are distributed mainly in Hanoi,

Hai Phong, Ha Long, Hai Duong, Ho Chi Minh City, Can

Tho, Vung Tau, Bien Hoa and surrounding areas

1.1.3 Production and business results

1.1.3.1 The product structure of La Vie Co.

The time now La Vie bottled natural mineral water as the major products are

classified into two groups: small size products with the bottled product types 350ml,

500ml, 750ml Premium, 1.5L and big bottled products Product with 5L and 19L

vessels In which the two products account for a high proportion of 500ml and 19L

Analyzing the structure of small-sized bottles and large bottles, the data is measured

in liters of bottled products, small size accounts for 46% of output, and large size

bottles account for 54%

Analysis of the proportion of each product, with data calculated in liters, 19L

products (5gallons) accounted for 49.4% of output and 500ml products accounted

for 28.7% These are the two main products in the product portfolio of La Vie The

remaining products turn 350ml accounted for 8.0%, 1.5L accounted for 8.4%, 5Laccounted for 4.4%, the kid-350ml 0.5% and 0.3% premium 750ml.

1.1.3.2 Revenue and profit over the years

Table 1.1: Summary of revenue and profit

Chart 1.1: Revenue growth and profit

TỶ SUẤT LỢI NHUẬN

2.2 BUSINESS ENVIRONMENT ANALYSIS OF LA VIE - EXTERNAL

ENVIRONMENT

2.2.1 General environment - PEST model

2.2.1.1 Economic Environment

Economic growth rate

Table 1.2 : Growth rate of GDP in the period 2002-2011

GDP Growth (%) 7.1 7.3 7.8 8.4 8.2 8.5 6.3 5.3 6.8 5.9

Source: World Bank - World Bank

Figure 1.2: The growth rate of GDP of Vietnam during the period 2002 - 2011

- According to data on the economic growth of Vietnam from 2002 until now is

quite high.This is a positive factor to the business activity in the economy of

Vietnam in general and La Vie in particular Growth rate of GDP growth has pulled

the growth rate of GDP per capita also increased:

Table 1.3: GDP per capita in 2002-2011

GDP Growth (%) 7.1 7.3 7.8 8.4 8.2 8.5 6.3 5.3 6.8 5.9 GDP per capita

Unit: USD / person / year

Source: World Bank - World Bank

Graph: GDP per capita in 2002-2011

- From the above data shows GDP per capita relative increase steadily over the

years, and the relative increase since 2002.Vietnam has overcome the low-income

threshold and are at the stage of low average income This is a benefit for the

economy as well as general manufacturing enterprises La Vie in particular

Increasing consumer

- Economic growth and per capita income affects the consumption of general goods

and bottled water products, including La Vie in particular.When economic growth,

high income people, material life is guaranteed, the need to improve nutrition,

demand for food safety, including bottled drinking water also increases

- On the one hand to achieve a relatively high GDP growth for many years, but

Vietnam's inflation high and erratic, control is poor.2011 inflation index at

18.7% This is a major difficulty for the production, rising input value while people

limit consumption because of the expensive

- Go along with high inflation and erratic bank interest rates also unpredictable

fluctuations, especially in 2011 and early 2012, interest on bank loans at very high

rates, sometimes up to 25% / year.This figure was stifling the production of goods

and, of course, have a major impact on the economy Production decline as people's

incomes decline and ultimately consumers decline, here it is direct production

decline

Vietnam international economic integration:

- When Vietnam joined the World Trade Organization WTO, Vietnam will cut

import duty in accordance with the roadmap as WTO commitments.Specifically,

about 36% of tariff lines in the tariff to cut import tax rates compared to the

current Route cuts last from 5-7 years The branch cuts most textiles, fisheries,

manufacturing

create and machinery, automobiles and auto parts, food processing

- Along with the reduction of import tariffs under WTO commitments, Vietnam

continues to make the commitment to regional tariff reductions under the FTA.As

these commitments are very radical cuts, down to 0-5% This will have a significant

impact on domestic production if no corrective measures for partner countries have

advantages in manufacturing and EXPORT export.The tariff reductions under the

FTA within the framework of AFTA time not have much impact on domestic

production due to the fact that ASEAN trade accounted for only 25-27% of the totalvalue of import and turnover thus ensuring that the only to be exempt from the new

tax accounts for 10% of total imports from ASEAN However, the when AFTA

extended to China, South Korea, the effects will become evident

- The Vietnam involved more deeply into the world economy, on the one hand to

create favorable conditions for domestic companies expand, access to advanced

technology, improve management On the other hand, it also creates competitive

pressure for domestic companies.Forcing companies to regulate activity, lower cost

products to adapt to the new situation

2.2.1.2 Political environment, policy and law

- The stable political situation of Vietnam is crucial to economic development, jobs,

income for workers, increasing social demands.This is also a positive impact in

creating and implementing strategies of enterprises in Vietnam in general, including

La Vie

- In the trend of integration into the regional and world economy, Congress enacted

and continue to complete the Code of Commercial Law, Business Law, Investment

Law, Tax Law to speed up the process economic reform in Vietnam

- The State has implemented policies to encourage all economic sectors, industries,

business enterprises which the law allows.This leads to stronger competition in the

market, which requires businesses to survive and develop, they must constantly

improve their competitiveness, more efficient operation

- It can be said that bottled water in general and bottled natural mineral water in

particular is one of the essential products in people's everyday lives, ensuring clean

drinking water needs of the strata in society

- Legally binding for the production of bottled natural mineral water mainly related

to food safety and protection of natural resources and the protection of consumers'

interests.This is also the problem is La Vie many years very seriously and

considered the long-term strategy

2.2.1.3 The socio-cultural environment

Vietnam in the concept of culture is a unified national culture on the basis of ethnic cultural nuances are presented in three main characteristics:

multi-The first characteristic: Vietnam has a rich culture and diversity in all aspects, the

Vietnamese community with 54 ethnic groups have the right customs, good for a

long time, the ceremony Meeting meaningful community activities, sustainable

belief in religious, ideological tolerance in the different teachings of the religion,

thorough communication and metaphor in language communication, from

traditional to modern literature and art

The second characteristic: The structural differences in terrain, climate and ethnic

distribution, the population has created the cultural area has its own characteristics

in Vietnam From the cradle of Vietnamese culture in the Red River Delta of Vietmainstream culture villages and wet rice civilization, to the cultural nuances of

ethnic minorities in the Northwest and Northeast From the land border Vietnam's

telecommunications building in the North Central to blend with Cham Cham culture

in South Central From the new lands in the South with a combination of ethnic

culture, Khmer to the diversity of cultural and ethnic groups in the Central

Highlands

The third characteristic: With a history of thousands of years of English along with

the convergence of the back of other peoples, from the local culture of the ancient

Vietnamese from Hong Bang to the external influences for thousands of years Withinfluences from ancient China and Southeast Asia to the influence of France since

the 19th century, the West in the 20th century and 21st centuryglobalization Vietnam has made a change in culture in the period of history, there

are aspects loss but there are other cultural aspects added to the culture of modern

Vietnam

Currently Vietnamese culture retains the inherent richness however, the black

mixed with the awareness of new and modern and there are even imported from

outside interference nature strong

The interference of culture that provides opportunities and challenges for social and

cultural issues, but also the economy Consumer goods manufacturing industries,

including La Vie also given yourself the opportunity

Vietnam, with 54 ethnic groups and there are thousands of festivals every year, the

festival attracts millions of visitors, the demand for drinking water, or water festival

in the festive spirit is great

Habits as consumers still use boiled water instead of bottled water is also difficult

for the bottled water industry, however this is slowly changing habits when

industrial life washed until the distant rural areas

Thanks to the open economy, there is a strong pattern of culture in Vietnam blow

millions of foreign tourists to visit, this is a tremendous opportunity for the

production of drinking water close bottles in general and La Vie in particular

2.2.1.4 Population Environment

Pakistan is considered the country's population, about 90 million people

today Vietnam's population is now considered the golden population

period Population structure in the process of change is very powerful

First, population growth trend analysis

Table 1.4 : Vietnam population data

Source: General Statistics

Comments: The population of Vietnam is about 90 million people and is still in a

straight line, with the current population growth rate of about 1% / year 2011 is

1.04%

Analysis of population distribution by urban and rural areas showed increasing

trend of urban population trend line.There are currently about 32% of the

population live in urban areas, this ratio will change rapidly in the future

Vietnam is in the golden population period should have abundant labor force, as

well as a major consumer force for manufactured goods

Table 1.5: Age structure of the population, 2009

Tuổi Nam Nữ Tỷ lệ (%) Lũy tích

0-4 8,6 7,8 8.2 8.2 5-9 8,2 7,5 7.8 16.0 10-14 8,8 8,1 8.4 24.4 15-19 10,8 10,1 10.4 34.8 20-24 10,0 9,6 9.8 44.6 25-29 9,2 8,9 9.1 53.7 30-34 8,2 7,8 8.0 61.7 35-39 7,8 7,4 7.6 69.3 40-44 7,0 6,9 7.1 76.4 45-49 6,2 6,5 6.4 82.8 50-54 4,9 5,4 5.1 87.9

55-59 3,2 3,7 3.5 91.4 60-64 2,0 2,5 2.3 93.7 65-69 1,5 2,1 1.8 95.5 70-74 1,3 1,9 1.6 97.1 75-79 1,1 1,7 1.4 98.5 80-84 0,6 1,1 0.8 99.3 85+ 0,4 1,0 0.7 100.0

Tổng 100,0 100,0 100,0

Source: General Population

According to the data of the population, in 2009 the population aged 15 to 65

accounted for 69.1%

2.2.1.4 Technology environment.

Vietnam is a low technology, all technology must be imported from abroad, even

the spare parts of Vietnam are also not able to provide

The scientific and technical revolution took place rapidly in recent times has made

the life cycle of technology is increasingly shortened This forces companies to

constantly innovate technology if you do not want to fall behind Consumer tastes

change frequently so the life cycle of increasingly shorter product Paradoxically, in

conditions of fierce competition today, to develop production, increasing

accumulation for investment and development is a difficult problem for everybusiness

However, in the context of international economic integration has created very

favorable conditions for La Vie can reach easily with new technology and modern

machinery of the world to its position their market

2.2.2 Years of work environment Five Forces

2.2.2.1 Competitors

Current competitors: La Vie two rivals today in the Vietnamese market is Pepsi's

Aquafina and Coca-Cola's Dasani, Aquafina which the relative market share as La

Vie also Dasani has a smaller market share The level of competition is very strong

opponent, Aquafina and Dasani compete with low prices

2.2.2.2 Customers

More and more options because there are many products on the market, however,

awareness of product quality and consumer services on a high This is an

opportunity for high quality products and services, such as La Vie

2.2.2.3 Suppliers

The supplier in Vietnam is very low, many vendors are unique and sometimes

difficult to negotiate and negotiate The supplier is also unprofessional

The bottled water industry is having participating businesses and also attract the

attention of many investors Vietnamese market's current main rival La Vie is

Pepsi's Aquafina and Coca-Cola's Dasani, here are two companies along withNestle are the three leading global companies with the financial resources,

technology and management at a high level, in the Vietnamese market appeared a

similar opponent is very difficult because of financial barriers, technology and

management level

3.3 ENVIRONMENTAL ANALYSIS IN

3.3.1 The need to analyze the enterprise

To develop a strategy and implementation strategy success depends largely on the

resources of the business The analysis in order to specify the strengths as well as

point out the weak points of the business from which to take the appropriate

business strategy and direction of the most appropriate allocation of resources for

the implementation of the strategy selected companies The English have a saying,

"Know who know me, pressing invincible battle" should understand the external

environment as well as competitors as well as the business about yourself is

extremely important

3.3.2 Tangible resources

Financial resources:

Lavie financial resources from local partners and foreign partners is Nestle (65%

owned) Nestle is a global company, is the world's No 1 food company, with strong

financial strength capable of financing large Lavie

Besides, Lavie has now grown after nearly 20 years of operations and accumulated

in the Vietnamese market, Lavie has solid financial strength and fully self-financetheir projects

Organizational resources:

Organization of production and business activities, management of Lavie platform

is built on the advantages conveyed by the global Nestle, with the most advanced

and efficient method

Material resources:

Lavie has good infrastructure with a focus on two large-scale factory in Long An

and Hung Yen, along with the gadget comes fully guaranteed to meet the strategic

requirements of the company

Lavie chain system the world's most modern technology, in-depth investment

Currently, the factory in Long An has two production lines and a small bottle

production line per 19 liters A small bottle line capacity of 20,000 bottles / hour

was invested in 2008 with a value of U.S $ 6 million, and has now invested more

and came into operation from January 6, 2012 a small bottle line again with a

capacity of 48,000 bottles / hour This line is worth about 10 million U.S dollars

Production line per 19 liters with a capacity of 1,100 bottles / hour

Factory in Hung Yen, currently has two production lines of small bottles, one with a

capacity of 10,000 bottles / hour and a capacity of 20,000 bottles / hr and a 19 liter

production line with a capacity of 600 bottles / hour In Hung Yen, the company is

also investing more new production line per 19 liters with a capacity of 2,200

bottles / hour

Technical resources:

With nearly 20 years of operation, Lavie also get the knowledge, advanced

technical experience for manufacturing operations.Behind it, Lavie huge backing

from Nestle Lavie can say there are now outstanding technical resources in the

water sector plays c two

3.3.3 Intangible resources

Human resources

International Executive Master of Business Administration 29

With a team of about 450 staff employees, mainly for the key positions and

importance, it's a strong team with the capacity, knowledge and experience Lavie's

human resources enough to meet the strategic objectives of the company

Resource initiatives

Large value, the change is always created from the initiative Lavie's staff are

competent and always creating new ideas to change and increase work efficiency,

business efficiency Besides, the company also built feedback system so that

employees can contribute ideas, innovations The combination of innovativecapacity of the staff and the encouragement of the company has created a powerful

force for promoting employee creativity The innovations of the employees are a

company's value

Resources reputation

In the Vietnamese market, when it comes to bottled water bottled mineral water in

general and in particular they are evoked in the mind that is Lavie Lavie even

become common noun only bottled water Sometimes buyers usually called Lavie

buy for any other product not Lavie This shows that Lavie brand reputation was

rooted in no small part the people of Vietnam

Besides Lavie is Nestle to global fame has contributed to brand Lavie in

Vietnamese market scale flowers With foreign customers or the vast majority of

consumers wise in Vietnam will be attracted by this

PHÁT TRIỂN CÔNG NGHỆ MUA HÀNG VÀ CUNG ỨNG

Infrastructure of good Lavie General administration and planning of the company

is very good, financial accounting strong and healthy company, the company

complies with all statutory requirements of Vietnam in the business market

Quality of management, the company quality management system The company

has ISO9001 and ISO2200 and implement a series of measures and procedures to

ensure quality from Nestle

Human Resource Management:

Lavie focus on recruiting high-quality human resources, besides, but the staff

development program to enhance the capacity and knowledge.Every year the

company is worth employees, looking for opportunities to develop staff in the

appropriate direction

Company policy is always to attract high quality human resources The company

also has nearby team training program for positions in the future, but who have the

capacity

Technological development:

Technological chain of production Lavie is the world's most modern production

lines imported from renowned manufacturers such as Krones, Sidel, Bardi, this

modern lines and high automation, production efficiency thereby ensuring high

quality products and cost savings

Purchasing and supply

Lavie materials that are use high quality raw materials.All materials must be

approved by bowie Nestle All suppliers are evaluated before the purchase decision

The source materials Lavie is the current approach of good quality but the prices are

quite high compared to the general market Developing Lavie system providers in

the country has the capacity to be more active in the stage quickly and lower the

cost of materials

Principles of purchasing and supply is not allowed to lack of raw materials at any

time

Receipt and use of materials

Supplies are received and stored in the warehouse for production The materials are

reviewed before admission to ensure that materials are suitable for production The

inventory of raw materials is defined depending on the type and depends on the

ability to meet delivery times of suppliers

Raw materials, storage, and transfer to production is done according to the

procedure has been developed Raw materials in the warehouse inventory monthly,

quality assessment and reporting

The inappropriate material will be returned to the supplier

Production activities

Production system with two-scale factories, infrastructure, factories, warehouses

good Modern production lines enough capacity to meet market demand, high level

of automation to reduce human impact

High-performance line is a factor of production to ensure product safety and

quality It is also the basis for the exploitation chain efficiency, better control

production costs

Supply of goods

Lavie supply of goods through the distribution system (case 19 liter Lavie direct

sales and with a delivery unit directly to the customer).The distributors were

evaluated before signing the contract capacity as distributor

Stock sold by order of distributors and agents Plant's storage products are

guaranteed number of days sales according to the guidelines, while at the distributor

is also required to ensure store some day sales in the prescribed quota

The warehouse distributors and their products are evaluated monthly to ensure that

the store to ensure amount of and Lavie product quality

Marketing and sales

- Advertising is done through different channels: On TV, advertising panels,

raincoats displayed umbrellas, shelves or bins religion at the place of sale,

crowded places.There are also many public relations activities are used to raise

Lavie image

- The promotion is also done as much as discounts, increasing the quantity

purchased, raincoats, Lavie bottles,

- Distribution system of Lavie widely across the country, the distribution

density of high density concentrated in the cities of Hanoi and Ho Chi Minh City.At

the distributors are monitoring sales of Lavie These are the sales team with highly

professional Lavie

- Goods from a distributor can be sold directly to consumers or sold through

retailers

Services

Lavie service delivery per 19L as well as hot and cold equipment, porcelain vase

until the consumer

After-sales issues Lavie customer is always deeply interested as the case of

customer complaints about products, equipment and services are thorough Lavie

solve

Also Lavie provide maintenance services, hot and cold sanitary equipment to

customers

3.3.5 Analysis of evaluation resources (7S)

Chart: The McKinsey 7S model

Common values:

• Is a leading company in the field of bottled water Lavie aims to contribute to a

healthy market bottled water, bring to market the best products.At the same time

contribute to create a fair competitive environment

• Contribute to the sustainable development of the economy with business

efficiency, profitability and provide a stable work environment, sustainable part of

Vietnamese labor

• Efficient exploitation of water resources contribute to environmental

protection and sustainable development of the community

• Development of local communities through the sharing of benefits

Organizational structure:

• Lavie organizational structure is functional structure, headed by General

Director and below is the functional departments (Finance and Accounting, Human

Resources, Purchasing, Manufacturing, Quality, Marketing, Sales , Logistics,

Information Systems, etc.).This organization helps the management efficiency

• In group activities with the participation of the cross-functional and effective

organization

Strategy:

The company's strategy is to maintain and increase the lead the bottled water market

is based on the competitive advantage of high international quality standards for

products and services, thereby highlighting the reputation Lavie

Besides, the company also pays great attention to product pricing and services

through effective cost management

System

Lavie has strict management system by establishing procedures process: The

process of financial management, accounting, human resource management

process, purchasing management process, sales and administrative processes

production and quality management, etc All these activities have performance

indicators to measure performance

Style:

Lavie management styles based on modern management style from the West, we

can say it is transmitted as well as deep supported by Nestle's management style

Besides it has learned with refined Japanese style of management

However with the personnel platform is Vietnamese so the management has also

affected by management styles Vietnam

In general, effective management of Lavie style, it can be expressed through the

cross-functional team work with very effectively Way to lead to a common goal is

not misleading

Personnel

The management functions get Lavie experts in each field.Time at Lavie functions

are those who have the capacity, extensive knowledge and experience

With staff have university degrees and postgraduate large proportion (over 50%)

shows that this is a powerful resource of the company

Skills:

As the above analysis, each functional department has people who are considered

experts in the field that the head of each department functions The management

and supervision of well qualified and highly skilled.At the level of school workers

and unskilled workers, the company also need a training process for employees lack

the knowledge and practical skills in the operation of the company

3.3.6 Analysis and evaluation functions

Administration

Four basic functions of management: planning, organization, control and testing

- Good planning is done at the company, it includes all administrative activities

related to preparing for the future: Prediction, set goals, work out development

strategies and policies

- Organizational activities are also appreciated, it includes all of the

governance structure of the relationship of authority and responsibility

- Including efforts to control human-oriented activities throughout theorganization, namely leadership, decentralization, authorization, .The more

activities that Lavie is on track strategic objectives

- Control is done effectively, the activities have objectives and are reviewed

regularly to assess attainment.Control related to all management activities to ensure

appropriate actual results consistent with the results already being planned

Marketing

Marketing activities in the past with no outstanding features Marketing department

has implemented many programs but not every program also highly efficientstrange Marketing's mission is to promote the marketing mix for Lavie

- Design new products based on market research needs

- Develop advertising programs

- Develop promotions

- Implement public relations activities

Personnel

HR is not fully active in human resource management issues, particularly in human

resource development issues Effective human resource management is mainly

based on efficient management of departmental functions In training and humanresource development is an unmet demand

The main task of the HR department are:

- Develop plans to suit the company's needs

- Recruiting qualified personnel for companies

- Human development on the basis of company development needs through

program evaluation, training and structure

- Management salary issues

Production:

Parts manufacturer with two factories Long An and Hung Yen have good

management and production capacity, have adequate capacity to meet the needs ofthe market with the best products The plant is also great technical support from

Nestle Group

The mission of the two plants is the production and meet the needs of the market

with quality products at all times

Quality:

Lavie quality parts are very strong and organized system Quality management is

done through the procedure and process very closely The quality management

process is implemented through from raw material suppliers, in the process of

production and export, and the sales process It can be said that quality management

products to the end customers and consumers

Quality is considered a pillar of the activities Lavie The main task of the

department is quality:

- Ensure quality production and distribution of products to customers

- Building systems and quality management processes

- Evaluate the implementation of effective quality management process in the

department, region

- Training staff knowledge and awareness of quality

Supply

Current supply consists of two parts is the purchasing and logistics functions

Purchasing department works quite effectively through the search for new supplies

of raw materials cheap and stable quality But now there are still a number of

materials that only one supplier sometimes create relative monopolistic suppliers

leads to disadvantages for the company in the negotiations

Major parts logistics service delivery, also known as forwarding department, is

responsible for providing full to the point of sale products for sale Also responsible

for delivering the product per 19 liters to consumers This department in the past

have completed their tasks

Finance and Accounting

Staff accounting financial strength and the support of dedicated software,

accounting activities always effective

Financial department is responsible for the management and supervision of the

financial situation of the company, the project The financial situation of the

company for many years is very positive that this function works very effectively

Sales

Sales are seen as the vanguard of the company Sales growth at a constant high level

for many years that this function works very effectively Current sales team consists

of qualified staff and have experience in sales

3.3.7 Analysis and evaluation capacity

From the above analysis that found Lavie remarkable capacity as

- Modern Technology

- Good infrastructure to ensure product quality and production