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Overview of Vinh Hao Mineral Water Joint Stock Company 1.1 Overview of the Company - Name: Joint Stock Company Vinh Hao Mineral Water - Brand: Vinh Hao - Logo: - Headquarters: No.. Thank

The business strategy of Vinh Hao Mineral Water Joint

Stock Company

TABLE OF CONTENT

TABLE OF CONTENT 1

INTRODUCTION 3

RESEARCH OF CONTENT 4

1 Overview of Vinh Hao Mineral Water Joint Stock Company 4

1.1 Overview of the Company 4

1.2 Aspects of Vinh Hao Mineral Water 4

1.3 The formation and development of the company 5

2 Overview of the mineral water market 6

2.1 Characteristics of mineral water market 6

2.1.1 The needs and tastes of customers 6

2.1.2 The competitive company in the industry 7

2.2 Environmental factors affecting mineral water market 7

2.2.1 Legislation environment 7

2.2.2 Economic environment 8

2.2.3 The natural environment 8

2.3 Strategic Analysis S - T - P of companies in the period 2012- 2014 9

2.3.1 Market Segmentation 9

2.3.2 Select the target market 9

2.3.3 Product positioning 10

3 Analysis of strategies of Vinh Hao Mineral Water Joint Stock Company 11

3.1 Dimensions product aggregation 11

3.2 Product Branded 13

3.3 Decision concerning product characteristics 13

3.3.1 Product line carbonated mineral water 13

3.3.2 Product line mineral water not gas 15

3.3.3 Field of fresh mineral water products 16

4 Designing packaging product 17

RESEARCH OF CONTENT

1 Overview of Vinh Hao Mineral Water Joint Stock Company

1.1 Overview of the Company

- Name: Joint Stock Company Vinh Hao Mineral Water

- Brand: Vinh Hao

- Logo:

- Headquarters: No 346 Hai Thuong Lan Ong street, Block 2, Phu Tai Ward, Phan Thiet City, Binh Thuan Province

- Telephone: 031 3739106 - 031 3739107; Fax: 031 3739108

- Website: www.vinhhao.com

- Capital: 81 billion VND (eighty one billion)

Certificate of business registration: No 3400178402 The first registration on March 9, 1995, registered revision seven on May 21, 2008

The units attached to the on December 31, 2010 include:

+ Mineral water factory in Vinh Hao commune, Tuy Phong District, Binh Thuan Province

+ Manufactory bottled water at 678/72/32 Nguyen Van Linh street, Le Chan District, Hai Phong City

+ Branch Ho Chi Minh City at No L12 Dong Den street, Ward 14, Tan Binh District, Ho Chi Minh City

+ Representative Office in Ho Chi Minh City is located at 5F Floor, Tower Master, 41-43 Tran Cao Van Street, Ward 6, District 3, Ho Chi Minh City

+ The distribution station in Phan Thiet, Phan Rang to Da Lat

The main business line of the company: production of mineral water, purified bottled water,etc,

1.2 Aspects of Vinh Hao Mineral Water

In 1928 French scientists have discovered the excellent quality of Vinh Hao mineral resources in the area Tuy Phong District - Binh Thuan province Since then, the Vichy mineral water - Vinh Hao was born and occupy the largest market share in Vietnam market at that time Not stopping there, Vinh Hao Mineral Water also exported to markets like the US, Australia, Canada, Taiwan,etc, and soon assert his

International However, not everyone knows the Vinh Hao Mineral Water is the only kind in Vietnam by the French expert research and evaluation of mineral resources is comparable to the famous Vichy mineral water worldwide

Differences create the personalities of Vinh Hao Mineral Water is containing high levels of bicarbonate (HCO3-) - antacids (antacid), reduces the acidity of the stomach, reducing gastric stock mercy and flatulence Thanks to this unique characteristic that Vinh Hao Mineral water is considered good quality products compared to similar products on the market

Therefore, Vinh Hao Mineral Water soon became close friends of each family, not only refreshing pure value, but also because of the special benefits of the health giving With the new development orientation, and all the leaders Officials Employees

of Vinh Hao Mineral Water Joint Stock Company are ongoing effort to reaffirm the position of the brand pioneered Vietnamese consumers inherently trust cherish for over 80 years

1.3 The formation and development of the company

From ancient times, hot spring water is considered as water EAMU St and is used only in the spiritual sacrifices and treatment By the early fourteenth century, legend, Princess Huyen Tran was father Tran Nhan Tong married to the king of Champa - Che Man, in a rambling trip aqua paint hills, incidentally stopped next to the hot springs are erupting, limpid calm, and she herself was named Vinh Hao stream with wants relations between Vietnam - Chiem lasting and eternal good The later kings of the Nguyen Dynasty has also built the house in the source area for rest and convalescence

In August 1909: a merchant name Bui Huy Tin, accidentally discovered the source of the Vinh Hao mineral hot springs

On January 28, 1928: assessment by the quality of this mineral spring equal to the world-famous Vichy France, Vinh Hao D'Etudes Societe Civile des Eaux De company started Minerals exploitation and commercialization

In October 1930: Vinh Hao Mineral Water was officially launched with a capacity of 3000 liters/hour This is the first time Vietnam has products named Vichy mineral water - Vinh Hao, have occupied the largest share market in Vietnam at that time Not stopping there, Vinh Hao to continue reaching out to the Indochinese

countries and exports to markets like the US, Australia, Canada and Taiwan,etc, assert its International

Since the early 20th century: Vinh Hao mineral water brands are renowned worldwide

In 1995: Vinh Hao mineral water factory is a joint venture established joint stock company Vinh Hao Mineral Water, by the People's Committee of Binh Thuan province licensing 000965GP/TLDN-03 on January 14, 1995, with two main shareholders in Binh Thuan province, Saigon Finance Joint Stock Company (now the Viet Asia Bank) From there, Vinh Hao has marked his moves and new developments

In 2008: Celebrating 80 years of the founding of Vinh Hao company

The growth in recent years:

1

Production (1,000 liters)

48.603 73.129 99.407 Growth rate

2

Revenue (million)

106.094 195.865 342.605 Growth rate

Source: Vinh Hao Mineral Water Joint Stock Company

2 Overview of the mineral water market

2.1 Characteristics of mineral water market

2.1.1 The needs and tastes of customers

Water is the essential needs of man Clean water is even more precious International organizations say demand clean water is increasing, amid the supply of safe drinking water and sanitation facilities are still lacking in most of the developing world So bottled water products tend to get more people to use because of its convenience Consumers can take with you a bottle water product at anytime, anywhere, ensuring their physiological needs Currently, most customers do not understand the use of the bottled water market, including pure water and mineral water That leads to erroneous perceptions as well as the demand for these products,

making it difficult for businesses in the bottled water market in general and in particular mineral water

Mineral water is water containing minerals The first type of this mineral with appropriate amounts can bring health benefits But if used too much, it will not be beneficial because the body absorbs too much and cause excessive mineral mining Therefore, considering the data on mineral content in the product is the company very focused and rigorous management, to ensure the health of consumers and maintain their products on the market

Mineral water products are used extensively in all ages Older people generally prefer a high quality product, with health benefits, not fussy frills so often consume these products with large capacity, so at home Meanwhile, young people love and care about style elements, dynamic personality, closer to daily life than the quality factor Thus, many mineral water product line was created to meet the needs of all ages

2.1.2 The competitive company in the industry

* The direct competitors:

- Lavie

- Vital

- Some other mineral water brands such as: SANNA, Khanh Hoa, Kim Boi,

* The indirect competitors (Business purified water)

- Aquafina

- Sapuwa

- Joy

2.2 Environmental factors affecting mineral water market

2.2.1 Legislation environment

* Regulation of bottled mineral water production

- Organizations and individuals can only exploit natural mineral water after the Ministry of Natural Resources and Environment granted the mining license (mineral water) as stipulated by the legislation on mineral resources

- Organizations and individuals can only produce bottled mineral water after the Ministry of Health (Department of Food Hygiene and Safety) certificate of eligibility base food safety

- Organizations and individuals producing bottled natural mineral water must publish quality standards food safety with the Ministry of Health in collaboration with the Department of Food Hygiene and Safety under the provisions of prior legislation products circulating in the market

- Organizations and individuals producing bottled natural mineral water may only processed and bottled natural mineral water at source

* Regulation of bottled mineral water exports

- Organizations and individuals importing bottled natural mineral water must fully implement the content and procedure for state inspection of quality prescribed by the Ministry of Health regulations

- Organizations and individuals importing bottled natural mineral water must publish quality food safety standards food safety with the Ministry of Health in collaboration with the Department of Food Hygiene and Safety under the provisions

of prior legislation products circulating in the market

2.2.2 Economic environment

The economic crisis, high inflation makes the consumption of these items decreased In the beverage market in general and in particular mineral water, purchasing power has increased with every year enabling companies can develop the brand as well as profit But customers are also more interested in factors such as quality of product, price, utility,etc, Just so that higher competition also requires appropriate strategies from companies in the industry

In addition, our country is a country with a market economy, has joined the WTO So are the products of foreign origin are imported into Vietnam more They are mostly of high quality products which are potential competitors of the company are very strong presence in the market

2.2.3 The natural environment

Nature has bestowed many valuable people are, the resources almost endless, including water resources In Vietnam, there are sources of mineral water everywhere from north to south, each mineral resources are typical components for specific use, bringing a diversity of mineral water products In the north there is mineral iron (Northern Plains) From Quang Binh to Binh Thuan in the mineral silica and from Binh Thuan to Dong Nai, Ba Ria - Vung Tau with carbonic mineral

But the natural environment is increasingly polluted and being severely exploited affect the quality of mineral water products So to keep the quality of mineral water is always guaranteed, the company offers strategic planning and build infrastructure to protect mineral resources from the effects of environmental pollution

On the other hand, increasingly hot climate makes drainage occurs quickly, people need to consume more water than normal items mineral water should become more concerned

2.3 Strategic Analysis S - T - P of companies in the period 2012- 2014

2.3.1 Market Segmentation

To facilitate your business with a more detailed view on the market, selecting target markets accurately and efficiently, Vinh Hao market segment based on segments such as geographic characteristics psychology, consumer behavior

Criteria segmentation by geographic area, Vinh Hao divided into three segments:

- North: Hanoi, Hai Phong,etc,

- Central: Da Nang, Hue,etc,

- South: Ho Chi Minh City, Binh Thuan, Dong Nai, Vung Tau,etc,

Criteria segment psychological characteristics: Based on the differences in personality (ostentatious, like to express themselves, powerful, vibrant), Vinh Hao put the product line fresh mineral water with reasonable prices to attract customers

Criteria segmentation consumer behavior: The company focuses on segments primarily on the use of the product benefits Company whacked segments such as schools, hospitals, offices with Non-carbonated mineral water, bring drinking water to ensure consumers' health In addition, Vinh Hao also introduced the carbonated mineral water and fresh mineral water, provides essential minerals to the body after work, study, and prevent a number of heart disease and osteoporosis circuit

2.3.2 Select the target market

From the market segment where the company has research, Vinh Hao determine your the target market segment focused on primary, secondary and psychological characteristics Vinh Hao identify target customers as follows:

Branded Characteristic Competitors Target customers

Non-carbonated

mineral water

The average mineral content, good quality, have health benefits

Lavie Vital

Primary:Schools, hospitals, offices, families,etc,

Carbonated

mineral water

High mineral content, high quality, good for health

Intermediate:Families middle

Fresh mineral

water

The average mineral content, high-quality, distinctive in each product category

Customers children (pupils, students, young entrepreneurs, .) have personalities, like the new, unique

2.3.3 Product positioning

The difference of Vinh Hao compared to competitors in the market of mineral

water are: High quality, have health benefits and relative price equal to or lower than

the direct competitors are in majority Lavie and Vital items

The difference was due Vinh Hao Mineral Water a precious source, apply a

quality management system ISO 9001: 2000 and has improved the system of food

safety management standard ISO 22000: 2005 in the first year 2008 Besides,

investment in Vinh Hao system modern machinery, research and strict management

production processes, enhance competitiveness and provide safe products in terms of

quality and service to consumers in order to increase the brand's reputation in the

market Vinh Hao

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Vinh Hao