Thuyết trình Vi mô về Vinamilk

MARKET SHARE Market share of yoghurt Market share of Condensed milk Powdered milk industry 1 THE REALITY OF VINAMILK COMPETITIVENESS IN THE DAIRY MARKET Human resources slide 7... 2 Ma

a) INTRODUCTION

IN VIETNAMESE DAIRY MARKET

Group 1

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Second level

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Fifth level

B) DISCUSSION

Human resources slide 1

I) DAIRY MARKET COMPETITION

MARKET SHARE Market share of yoghurt

Market share of Condensed milk Powdered milk industry

1) THE REALITY OF VINAMILK COMPETITIVENESS IN THE DAIRY MARKET

Human resources slide 7

Revenue of some big milk companies in Vietnam in 2016 (million dong)

Human resources slide 6

2) Market structure of general dairy products

2.1) Definition of monopolistic competitive market

Monopolistic competition is the market structure with many manufacturers andproviding products that are interchangeable at a high level but differentspecial

2.2) The specific characteristics of monopolistic competition

There are many small sellers

Firms' products differ slightly from each other

There is freedom to enter and exit the market

Firms apply strong forms of non-price competition through advertising, product differentiation

3) The competitive market characteristics of Vinamilk dairy products in Vietnam

3.1) This is a market with many suppliers and products of each company are differentiated from the products of the remaining firms.

• No genetic modification, no growth hormone, no antibiotics

• Produced from organic fresh milk from cow herds grazing on natural grassland

3.2) Non-price competition forms are adopted by the company

• Advertising on mass media

• Promotional costs

• Product packaging costs, …

II) VINAMILK DAIRY goods market

1) Demand of vinamilk dairy products

in vietnam

1.1) Overview of Vinamilk’s demand in Viet Nam

• Become the leading enterprise of the dairy processing industry

• Accounting for 75% of the dairy market share in Viet Nam

• The brand that consumers choose to buy the most in 4 main cities and rural areas of Vietnam

1.2) Determinants of demand

1.2.1) Price of related goods

• Vinamilk milk is substitute goods

• Vinamilk has many competitors who choose the same target: TH true milk , Dutch lady…

• Using foreign food is deeply ingrained of Vietnamese

Affect Vinamilk’s demand, reduce the demand of products

1.2) Determinants of demand

1.2.3) Tastes and Preferences of consumers

Each customer has the right products

 For children under 6 years of age : 110 ml canned milk, children aged 6 and older and adults : boxes of 180 ml , 200 ml

 Many ways to pack: paper boxes, paper bags

 Ordinary people : sugar free, strawberry flavored milk, chocolate…

1.2) Determinants of demand

1.2.4) Expectations

1.2) Determinants of demand

1.2.5) Market size

 Vinamilk mart branches are often distributed in big cities and urban areas

Expanding the market:

Products are present in more than 40 countries and many continents and regions : US, Europe, Southeast Asian…

2) Supply of vinamilk dairy products

2.1 current situation of vinamilk market

 Strong position: 55% market share

 Strong brand: 40 years development

 A wide distribution system: 224,000 retail points

2.2) determinants of supply

2.2.1 ) Input cost

The price of production factors directly affects the cost of production and thus affects the amount of goods that producers want to sell.

Typically, on February 12, 2010, Vinamilk raised milk prices as input materials such as powdered milk increased by about 50%, to USD 3,750 / ton compared

to September 2009 price, the sugar price of this company use for production also increased to 100%

A sharp increase in input costs of enterprises, which forced Vinamilk to raise milk prices.

2.2) determinants of supply

2.2.2) Technology

Not only ensure the development but also create a competitive advantage for businesses

2.2) determinants of supply

2.2.3) Government policies

Government policies also have a strong impact on supply

• In 2014, the Government imposed a ceiling price for milk for children under 6 years of age, which made Vinamilk milk prices fall

• On February 4, 2016, Vietnam officially signed the Trans-Pacific Partnership Agreement (TPP) in Auckland, New Zealand After

signing, the taxes of many foreign dairy products are much reduced and by 2018, when New Zealand and Australian dairy products enter the market with zero tax rates will certainly affect the dairy and business markets

• In addition, the Government also has policies to support cow raising to increase Vinamilk dairy products

2.2) determinants of supply

2.2.4) Seller expectations

Expectations are the predictions and forecasts of producers about future market developments which affect the current supply

After changing Slogan “Niem tin Viet Nam” in 2010, Vinamilk:

• Set revenue of 3602 billion after tax, increased by 51% compared to 2009

• Was voted as the best operating enterprise in Asia

3) Growth expectation in the coming years

Domestic demand in recent years has increased quite steadily

Strong advantage thanks to its distribution channel

Other advantages: marketing capacity, competitive pricing,…

The market share of Vinamilk House

in the next 5 years is expected to be higher: 60%

Three reasons below:

c) CONCLUSIONS

I) STRENGTHS

II) RESOLUTIONS

PROGRAMS

IMPLEMENT PROGRAMS

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