Beruflich Dokumente
Kultur Dokumente
I. Introduce: ........................................................................................................... 2
II. Vision, mission and objective: ......................................................................... 3
1. Vision: ............................................................................................................ 3
2. Mission:.......................................................................................................... 3
3. Objective: ....................................................................................................... 3
III.External enviroment analysis: .......................................................................... 5
1. Industry: M.Porter .......................................................................................... 5
2. The PESTEL Analysis of Vinamilk: ............................................................. 8
3. Opportunity and threat: ................................................................................10
IV. Internal eviroment analysis: ..........................................................................11
1. Tangible Resources: .....................................................................................11
2. Intangible Resources: ...................................................................................12
3. Strengths and weeknesses: ...........................................................................13
4. VRIN: ...........................................................................................................14
V. Crafting Strategy: ...........................................................................................15
1. SWOT analysis of Vinamilk:.......................................................................15
2. Combination and matching: .........................................................................17
3. Generic Strategies: .......................................................................................18
1
I. Introduce:
In the position of the leading dairy company in Vietnam with products being
exported to more than 43 countries around the globe, Vinamilk awarded a series
of prestigious prizes from reputable national and international organizations: Top
300 most dynamic Asian companies (Asia 200) (Nikkei); Top 10 of Asia’s Top
1000 Brands (ranked fourth) (Campaign Asia-Pacifc (according to AC Nielsen));
Ranked first in Top 40 Companies with most valuable Brands (Forbes);
Certificate of “Vietnam’s first organic dairy cow farm under EU standard” (The
Control Union – Netherlands); Vietnam’s Top 50 Best Listed Company (Forbes),
Vietnam - ASEAN Best Corporate Governance Award, Top 10 Sustainable
Businesses in Vietnam 2016…..
The principal activities generating revenue and profit for the Company include:
• Processing, producing and trading of fresh milk, packed milk, powdered milk,
nutrition powder, yogurt, condensed milk, soy milk, beverages and other dairy
2
products.
• Raising cattle: Growing dairy cows. Raising cattle is for the main purpose of
supplying fresh milk as raw material to manufacture the Company’s dairy
products.
WITH MORE THAN 200 SKUs which are grouped into the following categories:
Liquid milk Yogurt Powdered milk Nutrition powder Oat-cocoa Condensed milk
Ice-cream Cheese Soy milk Beverages
3
and trend to set up the annual sustainable
development goals.
4
Objective By 2020 the construction of 30 branches in the major
markets of Asia such as: China, Japan, Korea, India,
Indonesia, Thailand…
By 2025, construction of 15 factories in China, Thailand,
India, Indonesia.
2030 to occupy 30% of the Asian market in the field of
nutritional products. Construction of 500 thousand points
of distribution throughout Asia.
- Vinamilk has 4 dairy farms in Nghe An, Tuyen Quang, Lam Dong, Thanh
Quang with about 10,000 dairy cows providing more than 50% of raw milk
material of the company, the remaining goods purchased from the farmers.
6
Vinamilk is actively active in raw dairy material, does not depend on foreign
countries.
- Possibility of replacing suppliers ' products:
Vinamilk to build 4 dairy farms, self-supply of raw milk. About raw milk
powder, due to the unqualified facilities and the technical current should
remain dependent on foreign supply, the company is not sufficiently
capable of replacing raw milk powder products. In addition, Vinamilk's
supplier replacement capability is also low due to the products of high-
quality suppliers and other suppliers who are not able to achieve the
equivalent quality.
With all of the branches, suppliers always cause certain pressure if they
have the scale, the collection and the owner of the precious resource. Thus,
the suppliers of small input products will have very little power to negotiate
for the business even though they have a larger number but they lack the
Organization.
Vinamilk-has restricted was the pressure from the supplier. Vinamilk can
autonomy be fresh milk source material, just depends on the source of raw
material milk powder. Moreover, the company Vinamilk has created
pressure for the supplier of quality materials, ensure the good quality of the
product. Vinamilk is not subject to pressure from suppliers due to the scale
and the owner of the high-quality materials and creates a higher position in
the provider, to ensure fair competition for the small retail supplier but high-
quality products.
Bargaining power of customers
Customers are a competitive pressure may directly affect the entire
production and business activities of the industry. Vinamilk's clients are
classified into two groups:
Customers: personal customers
Distributor: supermarket, dealer.
Both distributors and consumers all have a high position in the competitive
drivers from their purchase decisions. The company Vinamilk has limited
the pressure comes from the customer by reasonable pricing of its product
line and give the correct information about the product at the same time
made the difference for the rival's products and the other alternative
products.
The substitutes
-The dairy product is a product of nutritional supplements in addition to the
daily meal, with children, youth and the middle-aged man-milk has major
7
impacts on health support. On the market, there are many types of flour,
grain, health-enhancing beverage but the products of quality and nutrient
levels did not completely replace the milk
- Currently, on the market, there are many products competing with milk
products such as green tea, coffee cans, soft. However, due to the cultural
characteristics and the health of people Vietnam, not the products can replace
the milk. On the other hand, the characteristics from the alternative product
are sudden and unpredictable to be so though they are in high positions but
the dairy sector is still facing the pressure of substitute products should
always be trying to improve their products for compliance with consumer
tastes.
8
for improving the health and beauty increased so they need a product that can
meet their satisfaction such as fresh milk.
Technological Environment: Milk Joint Stock Company Vietnam (Vinamilk)
is still the leading enterprises of the milk processing industry of Vietnam.
Vinamilk leaders always factor in science and technology; depending on funding,
market demand and product structure to convert technology investment timely.
Therefore, customer will have a lot of information about company and company
can build the trust and customer’s satisfaction. It play a big role in business
therefore Vinamilk have a modern system from European countries of advances
technology.
Environment factor: Company should focus on the waste disposal system in
order to reduce the pollution. They need to use reasonable, saving natural
resources, develop clean energy, renewable energy and boosting recycling,
reuse and waste reduction. Company also develop and use the safe and fresh
material.
Legal factor: Vinamilk must ensure the production, which are safety and health
for customer by using modern system. Company should follow the rule of food
safety. Vietnam has many different tax rates so it will make difficult for any
company. It also effect on the price decision of company.
The average GDP growth rate in the period 2004 - 2008 is high. Whereas the
population growth was constrained led to the average level of income per capita
GDP Increase year by year.
9
In 2008, the landmark of economic development in Vietnam has moved from the
group of countries with the lowest income to the group of countries low average
income.
3. Opportunity and threat:
a. Opportunity
The Government’s preferential policies for the dairy sector
The source of supplied materials are receiving the help of government,
imported raw materials have decreased tax rate:
- Imported tax raw milk is lower as committed to the WTO, this is the
opportunity to reduce production costs while raw milk powder imports
account for 75%
A high force of prospects and big demands
- Viet Nam has a young population structure (36% of the population) and
population growth of over 1% per year, this is a very attractive market.
- The per capita income increases above 6%/year.
Competitors are being weakened due to issues related to quality and
perspectives Vietnamese users are being met:
- Competitors are losing consumer confidence, this opportunity for
Vinamilk to expand its section in Vietnam Dairy field exam.
b. Threat
Vietnam's economy is not yet stable.
Joining the WTO with the opportunity of foreign milk firms entering
Vietnam market.
Market involvement of a strong competitor:
- The competitive milk market is drastic when there are many companies
involved, especially the major dairy companies in the world such as
Nestle, Dutchlady, Abbott, Enfa, Anline, Mead Jonhson,...
- The tax cuts that Vietnam has pledged to join the WTO is to reduce the
tax of powdered milk from 20% to 18%, condensed milk from 30% to
25% → This is an opportunity for Vinamilk's competitors to be easier to
enter the Vietnamese market.
Unstable input Source:
- The current dairy cow breeding in Vietnam is mainly household (95%).
Total raw milk production only meets 20 -25% of the raw milk content
10
- The cost of dairy feed accounted for 70% of the sale price This is the
main cause leading to high raw material price, while the entry price of the
dairy companies is low
Customers:
The export market has many risks and psychological likes to use foreign
goods of the customers
- More than 90% of the export profits come from the Iraqi market – this is
a market that is risky in both politics and economics. As a result,
Vinamilk's export profits have not yet had a solid static.
- The field of sensitive business, directly affecting the health of consumers,
requires businesses to always ensure the quality of products. Food safety
issues can be more consumer-shy and thorough when using dairy products.
- The psychology of using Vietnamese foreign people is a big challenge
for Vinamilk and industry enterprises
11
fund that is 6.638 billion dong raising 1.876 billion correlatively increasing
39% in the first half of the same year .
Organizational resources:
Distribution network widen over 240 distributors àn over 140.000 retailers for
all 64 cities in the country.Experienced sale team including 1.787 salespeople
in all over the country
Technological assets: Vietnam Dairy Factory is equipped with production
lines sterilized milk with modern equipment and advanced production
technology currently leading. The plant operates on an automated production
line, closed, from input to output of products.
Thanks to a combination of factors: advanced processing technology,
technology UHT sterilization and aseptic filling technology, products can
keep fresh flavor for 6 months without preservatives
Operating system-based solutions Plant automation Tetra Master, which
allows connecting and integrating the entire plant from raw material to
finished product for. So that the plant can control all activities that occur in
plants, monitoring and quality control continuously. Tetra Plant Master
System also provides all the necessary data can help plants to continually
improve manufacturing operations and maintenance.
External relationship:
+ Vietnam Airlines Corporation: Ho Chi Minh city, on August 8th, 2018,
Vietnam Airlines Corporation and Vinamilk Company has officially announced
strategic cooperation program with a target supplying international qualified
nutritious products to worldwide customers and together develop global brand.
Agreement to strategic cooperating between Vietnam Airlines and Vinamilk is
affected in 5 years time(2018-2023). All Vinamilk products will be appeared in
designed packaging in Vietnam Airlines’ flights, ensuring quality to serve for the
12
only international 4-star airlines in Vietnam. Total Vinamilk product value
supplying for Vietnam Airlines’ planes is expected to increase 10% each year,
which shows steadfast and productive cooperation between two firms Also on.
+ FPT: October 10th,201 , FPT Retail and Vinamilk has officially signed for
cooperation in order to expand milk retailing system
b. Weaknesses:
13
The low-income majority rural population is the first weakness having influence
on the operation of Vinamilk. In case the economy slowing growth in the coming
period, aslower income people will restrict the consumption of output in the
country, reduce profitsand sales revenue of the company. In addition, reducing
the duties for dairy products will be favorable conditions for imported dairy
products. With 50% of raw material to the company’s import and 30% of the
company’s revenues are from exports, the fluctuations in exchange rates affect
theoperation of the Company. Finally, Viet Nam’s WTO accession will create
conditions for foreign company to take part in the domestic market. It will
increase competition among companies in the industryas a result.
4. VRIN:
Technological
√ √ No
assets
Human assets √ √ No
Branding √ √ Yes yes
Intangible Marketing √ Yes
External
√ √ No
relationship
14
Competitive advantages:
Branding: As we can see, Vinamilk is a strong and famous brand. Therefore,
launching a new product into the market and targeting our customers will
bring many advantages to the company
Economies of scales when Vinamilk is well positioned as a leader in dairy
market of Vietnam.
Vinamilk is undoubtedly a familiar and trusted brand in the mind of
Vietnamese consumers during the last 34 years.
An extensive distribution network located nationwide and continued being
expanded over time allows Vinamilk to bring its core products to consumers
in a fast and effective way.
Vinamilk’s high-quality products are the favourite brand of consumers.
A range of modern factories located along Vietnam that helps to reduce
transportation expenses and a system of the state-of-the-art machinery and
equipment, being improved and expanded every year, that helps to ensure the
output products meeting the international standards.
The loyal and cooperative relationships with both local and overseas suppliers
allow the company to have a stable material source at the reasonable prices.
At present, Vinamilk is the purchaser of about 60% of all cow milk produced
in Vietnam.
Vinamilk owns a management team deeply experienced in dairy business and
production, a transparent internal management system and tight and detailed
management procedures. A strong spirit of self-renovation for improvement
of operation quality is absolutely penetrated from every managers to each
employee.
V. Crafting Strategy:
1. SWOT analysis of Vinamilk:
Strengths (S) Weaknesses (W)
1. Business scale is leading the dairy 1. Marketing is still weak, so it has
market in Vietnam not created an effective message
2. Vinamilk is a familiar brand and to promote consumers the pros
trusted by Vietnamese people in the of the company. The company
past 34 years. has products with 70-99% fresh
3. The distribution system extends milk but there is no way to
throughout the country and is promote that difference.
15
continuously expanded over the 2. The company has a variety of
years to help bring the company's products for different
products quickly to consumers consumers, but the packaging
4. Products with good quality and specifications do not make a
consumers’ favorite difference to help customers
5. The chain of factories arranged recognize.
across Vietnam helps reduce 3. Purchasing raw materials has
transportation costs, invested in not made full use of supply from
modern machinery and equipment, farmers
is upgraded and expanded each 4. The company's investment in
year, products ensure international dairy factories in Da Nang is not
standards. effective
6. Long-term relationships with 5. Export market is limited and
domestic and foreign suppliers help unstable
the company to have a reasonable
supply of resources and stable
prices. Currently, the company is
purchasing 60% of fresh milk
produced in Vietnam
7. The management team is
experienced in the field of business
and milk production. The internal
management system is transparent,
the processes are specific and strict.
The sense of self-change to improve
the quality of operations is thorough
from management level to
employee level.
16
3. Develop and consume more and 3. Foreign competitors have better
more new product lines in model, ways to access the market and
style and quality. better marketing strategies
4. The income of people is increasing,
the demand for products is higher
and they are more interested in
healthy products.
17
Improve the system and quality of distribution to gain more market share in
markets where vinamilk has a low market share, especially in rural areas and
small cities
3. Generic Strategies:
a. Low-cost strategy:
Vinamilk's goal when pursuing a low-cost strategy is to outperform its
competitors by creating products that cost lower than foreign companies
when there are over 40 active businesses, hundreds of milk brands of all
types, including many multinational corporations, fierce competition,
Vinamilk still stood firm and affirmed its leading position in Vietnam's
dairy market. In the years before Vinamilk's market share was only 17%,
in 2010 it was 25% and continued to grow. The company's milk and dairy
products account for about 50% of the national market share. Vinamilk's
product portfolio includes: key products are fresh milk, powdered milk and
added value products such as condensed milk, food yoghurt and drinking
yoghurt, ice cream and cheese.
Vinamilk also foresees an increase in prices but the prices greatly affect
consumers because the income of Vietnamese people is not equal to many
other countries, so Vinamilk tries to make it possible for all classes to drink
milk at a reasonable cost (in fact, while in Thailand, each person drinks 23
liters of fresh milk / year, China is 25 liters / year, in Vietnam this figure is
only 14 liters / year)
In order to bring products with "Vietnamese price" to Vietnamese people,
since 2009 Vinamilk has focused on cutting down the possible costs. In
addition to restructuring the brand, the company has implemented a
business strategy with uniform names and control of retail outlets. Before
implementing this new business strategy, Vinamilk's sales always depend
heavily on wholesalers. The company often has to deal with the situation
of stocking and discharging of big dealers according to the promotion
cycle. This arises unexpected phenomenon, which is price competition.
When applying the retail coverage strategy, sales of Vinamilk is no longer
dependent and thus the Company saves a lot of promotional expenses, this
new strategy not only increases operational efficiency for the Company but
also brings practical benefits to consumers. First of all, it's the freshness of
18
the product like some brands with short expiration date: fresh milk, yogurt,
ice cream ...
b. "Differentiation" strategy:
The goal of the strategy is to gain a competitive advantage by creating
products that are considered unique, unique to customers, satisfying the
needs of customers in ways that competitors cannot. . With Vinamilk, high
quality, reasonable prices and customers must be the center, this is also the
secret to the success of this leading dairy brand in Vietnam. "Product
quality is the best way of PR"
The image of Vietnamese dairy cow on Vinamilk milk packaging has
become very familiar to Vietnamese people
From the beginning, Vinamilk has determined that the supply of quality
and stable raw milk is especially important. Therefore, Vinamilk has built
sustainable relationships with suppliers through the company's evaluation
policy. Vinamilk provides financial support to farmers to buy dairy cows
and buy good quality milk at high prices.
The company also signed annual contracts with milk suppliers and
currently 40% of raw milk is purchased from domestic sources.
Manufacturing plants are located in strategic locations near dairy farms,
allowing Vinamilk to maintain and promote relationships with suppliers.
At the same time, Vinamilk also carefully selected the location of milk
collection centers to ensure fresh and good quality milk. In addition,
Vinamilk also imports powdered milk from Australia and New Zealand to
meet production needs in both quantity and quality.
c. "Focus on differentiation" strategy
The goal is only to meet the needs of a certain market segment determined
through geographical factors, customer segments or product
characteristics. With a long history of being present in Vietnam market,
Vinamilk has the ability to identify and understand consumer trends and
tastes. This helps Vinamilk focus their efforts on developing products for
market segments that can bring high success. Currently, Vinamilk will rush
to rebuild its marketing department, short-term and long-term marketing
strategies with clear criteria, aiming to build a strong brand system. To
implement the business strategy the company has proposed the following
measures:
The company pays great attention to designing new and suitable
packaging designs. Use media channels to promote brand image.
19
The company focuses on improving product quality, diversifying
product categories and researching new product lines to fully meet
consumer demand and contribute to dispersing risks to the company.
The company has over 200 items of milk and milk products: Condensed
milk, powdered milk, nutritious powder, fresh milk, Cream, yogurt,
Cheese. And other products such as soy milk, fruit juice, cake, instant
coffee, bottled water, tea, chocolate. The company also constantly
improved production technology, the cooperation with the National
Institute of Nutrition also created more consumer confidence for the
product.
20