Environmental Analysis and SWOT

MACROENVIRONMENT

Demographic environment

. Age- Gender- Living Places- Job

=> Increase sharply due to the young population (age) and growing number of
middle-class people (social classes) in urban areas.

. A Better Educated, More White- Collar, More Professional Population

- The rise in health-consciousness trend in Vietnam is an impact on
development of yogurt segment (Stoxplus, 2018).

Economic environment
- The rise of 6.8% in 2019 and 6.5% in Vietnam GDP (first quarter of 2020).

- The Viet Nam Dairy Association forecasts Viet Nam's dairy industry will grow
from 9-10 per cent next year and local milk consumption per capita will reach
28 litres in 2020.

Technological environment
- Dutch Lady built 5 factories in 5 provinces of Vietnam with most advanced
technology to produce their products, including yogurt.
- Other companies (Vinamilk, Long Thanh Milk, TH True,...) have their own
technology in milking the cows, pasteurizing,...

MICROENVIRONMENT
- Suppliers: buying 70000 litters milk from more than 3000 household.
- Marketing Intermediaries- Resellers: 100.000 retailers (household stores,
supermarket,…)
- Publics:
+ Media public: newspaper, TV News,... recognize Dutch Lady’s efforts in
improving many student’s life in Vietnam. Den Dom Dom Study
Encouragement Fund, which carries a message saying “Sharing is Happiness”
is their famous charity campaign.
+ Local public: Besides that, there are still thousands of scholarships awarded
every year.
+ General public: Many consumers decide to buy Dutch Lady thanks to their
kids-aiming-to marketing campaign and their reputation.

- Customers:
+ Consumer market: 1/3 population consume yogurt once a day (Dream
Incubator, 2015).
+ Reseller market: besides supermarkets, stores system,v.v... customers of
Dutch Lady are also schools who buy yogurt for their students.
- Competitors:
+ Vinamilk and TH True Milk have bigger market share than Dutch Lady
yogurt.

- Vinamilk has 7 brands of yogurt along with almost 50 flavors, TH True Milk
also has approximately 10 flavors.

=> Conclusions: Dutch Lady yogurt have a large market to exploit. With 1/3
population consume yogurt everyday, mainly in urban areas, it is a advantage
for yogurt industry when urban customers tend to spend much money.
Otherwise, two main kinds of customers are officer and students who have a
wide range of knowledge about health as well as often surf social network
while according to research, the increase of health-consciousness trend leades
to rise in yogurt consumption. It means that if Dutch Lady can create a viral
and health-benefits-focused marketing campaign of yogurt, more yogurt could
be bought by students and officers.

Moreover, Dutch Lady also have a good image with public. As it can be seen in
the research, “trusted brand” is the second factor for buyers choosing Dutch
Lady products, including yogurt.
However, this is also very extreme market. Because most of market share are
belonging to Vinamilk who has a well-known brand and be trusted by
Vietnamese. The development of TH True Group is another difficulty for Dutch
Lady although TH True join the market later than Dutch Lady.

- Strengths:
+ The owner of Dutch Lady is FrieslandCampina who has a wide range of
dairy-relatedproducts that are well-positioned and well-known.
+ Applying regular technical support and veterinary services from mother
company.
+ Dutch Lady Vietnam has a good reputation in society.

- Weakness:
+ Their farms in Vietnam are not large as other brands like Vinamilk or TH True
Milk.
+ Not having official stores. Dutch Lady still distributes their products through
resellers while their two main opponents Vinamilk and TH True Group both
have a system of retail stores.
+ Diversity of products: smalls amount of flavors (three compared with more
than 40 flavors of Vinamilk).

- Opportunities:
+ Yogurt is the fastest-growing segment (Stoxplus, 2018).
+ The Viet Nam Dairy Association forecasts Viet Nam's dairy industry will grow
from 9-10 per cent next year and local milk consumption per capita will reach
28 litres in 2020.
+ Large number of population use yogurt everyday.

- Threats:
+ The consumption of Vietnam is not even half of that in Thailand, one-third of
Singapores.
+ The dominance of Vinamilk and the fast development of TH True Yogurt as
well as the the reputation of Yakult in Live yeast drinking yogurt.

References:
Dream Incubator (2015). How Vietnamese like their yogurt.
Stoxplus (2018). Vietnam Dairy Market Report 2018.