Global Strategy of Vinamilk How Vinamilk succeed in the international market ? We are group 8 Phan Thi Thu Thao Do Thi Thanh Tuyen Nguyen Thuy Truc Linh Nguyen Khanh Minh Chau Table of contents 01 The.
Global Strategy of Vinamilk How Vinamilk succeed in the international market ? We are group Phan Thi Thu Thao Do Thi Thanh Tuyen Nguyen Thuy Truc Linh Nguyen Khanh Minh Chau Table of contents 01 02 Market entry modes The key factor to success 03 04 The solutions Recommendations VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY BRIEF INTRODUCTION LEADING NUTRITION GROUP IN VIETNAM VISION: to become a world grade brand in food and beverage industry, where people put all their trust in nutrient and health products CEO&FOUNDER: MAI KIEU LIEN WORLD’S TOP 40 DAIRY PRODUCERS CEO&FOUNDER: MAI KIEU LIEN LEADING NUTRITION GROUP IN VIETNAM WORLD’S TOP 40 DAIRY PRODUCERS PRODUCTS FOR HUMAN GLOBAL OUTREACH: ~ 60 COUNTRIES & TERRITORIES 01 Market Entry Modes Speaker: Do Thi Thanh Tuyen I EXPORTING Which market in the early days ? EXPORTING MIDDLE EAST IRAQ (1998) AD UN’s oil-for-food program Great demand DIS Potential Markets Strict standards Lack of big dairy producers Political risks 2.R&D Conducting a wide range of market studies covering all aspects: packaging design, consumer flavor and taste preferences Example: ● In the Korean market: soymilk and milk tea =>One of South Korean's top imported brands by sales volume ● E-commerce websites: 11St, eBay and soon on 7-Eleven and GS25 outlets ● The Vietnam Dairy Products JSC is stepping up R&D to create innovative products enriched with local flavors to satisfy the diverse range of global tastes EXAMPLE: MIDDLE EASTERN, JAPAN PHILLIPINE Pros & Cons Evaluation Mergers and Acquisitions ❖ Revenue 2020 Vietnam’s dairy industry had negative growth of -6% (AC Nielsen) Vinamilk recorded growth in export revenue reaching VND 5,56 trillion, up 7,5 percent compared to 2019 1-6/2021 Vinamilk recorded double-digit growth, reaching VND 2,77 trillion, up 13,1% compared to 2020 Mergers and Acquisitions ❖ Remarkable events The first dairy company in Vietnam to be licensed to export to EAEU countries The first batch of Ong Tho condensed milk to China lines of Vinamilk branded soya milk and milk tea to Korea Mergers and Acquisitions Competition from domestic business of target markets New Zealand The initial step to Vinamilk global strategy The world's 8th largest milk producer Miraka - 1% dairy market shares in 2017 Mergers and Acquisitions Strict standards to meet, maintain & improve Prepared a profile includes information from the farm to the final product (cow origin, veterinary control procedures, sampling, ) All information must be in English & Chinese Double standards – European Organic (EU Organic) and Chinese Organic Organic fresh milk launched at Shanghai Global Food Trade Show M&A plays A PIVOTAL ROLE in EXPAND DISTRIBUTION SYSTEM, AND INCREASE BRAND AWARENESS making Vinamilk THE MOST VALUABLE DAIRY COMPANY IN SOUTHEAST ASIA Research & Development ❖ Vinamilk made great journey towards sustainable development VIETNAM'S TOP 10 SUSTAINABLE BUSINESSES IN 2016 ❖ More active in market research activities to gain advantages over domestic competitors ❖ F&B Trend in Nutrition, Health benefit after economic recession due to pandemic - Organic milk, application of biotechnology, - Focus on elderly, the sick, and children segments TOP 300 MOST DYNAMIC ASIAN COMPANIES Nikkei Asian Review magazine (Japan) 2016 - 2020 THOROUGH R&D Vinamilk can CREATE ITS OWN UNIQUE VALUE & MINIMIZE RISKS of international investment 04 Recommendations Speaker: Do Thi Thanh Tuyen Understanding of target markets Pros and cons vs long run profit potential International Market Fair Exporting and Joint venture first International agreements References ● ● ● ● ● ● ● ● ● ● ● https://www.vinamilk.com.vn/baocaophattrienbenvung2021/challenging-en.ht ml#tab-page-3 https://www.vinamilk.com.vn/en/distribution/export-market https://www.vinamilk.com.vn/en/news-events/2114/vinamilk-makes-a-strateg ic-move-for-market-expansion-in-south-korea https://www.vinamilk.com.vn/en/outstanding-achievements https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/ConsumerBus iness/ie_Dairy_Industry_Trends_and_Opportunities.pdf https://www.vinamilk.com.vn/en https://vietnammoi.vn/vinamilk-dong-cua-cong-ty-con-o-ba-lan-sau-6-nam-ho at-dong-2020231114235222.htm https://www.vinamilk.com.vn/vi/thong-cao-bao-chi/1281/lien-tiep-mo-rong-da u-tu-vinamilk-hai-trai-ngot-o-n https://www.vinamilk.com.vn/en/news-events/1338/vinamilk-banking-on-thaisales-potential https://vir.com.vn/vinamilk-raises-stake-in-new-zealands-miraka-company-35 853.html https://www.vinamilk.com.vn/vi/thong-cao-bao-chi/1251/chuyen-xuat-ngoai-d au-tien-cua-vinamilk Thanks! for listening to our presentation Feel free to ask us if you have any questions ... Maintaining the NO.1 position in Vietnam market BECOME ONE OF THE 30 LARGEST DAIRY COMPANIES IN THE WORLD How did Vinamilk achieve that goals? Understand the world economy and market Domestic market: ... China lines of Vinamilk branded soya milk and milk tea to Korea Mergers and Acquisitions Competition from domestic business of target markets New Zealand The initial step to Vinamilk global strategy. .. factory Vinamilk has three factories in the U.S., New Zealand, and Cambodia Significant investment for global expansion Vinamilk Farm in Laos Significant investment for global expansion Vinamilk