Vinamilk marketing plan INTRODUCTIONABOUTVINAMILK

Hanoi University Faculty of Management and Tourism Vinamilk Marketing Plan Lecturer: Mrs Le Minh Hang Tutor : Mrs Vu Nguyet Minh Tut - Group Group's member: Nguyen Thuy Hien - 1904010033 Vu Thi Thuy Hue - 1904010041 Do Thuy Duong - 2104050012 Oyunchimec Anujin -18L4000001 CONTENTS 01 Summary Executive 19 02 Marketing Objectives Company Introduction 04 Current Marketing Situation 14 20 Marketing Strategies 23 Action Program SWOT analysis 18 Main Issues 28 References SUMMARY EXECUTIVE Vinamilk, with the mission "To deliver the most valuable nutrition to the community" has become one of the leading companies in the dairy industry in Vietnam Vietnamese living standards tend to be higher because of the development of Vietnam's economy, which means people take more consideration of their well-being, demanding more nutrients apart from daily food Hence, one kind of product is believed to be ideal, complete, high-nutritious and safe, and suitable for all ages, which is milk Milk product lines with a potential market in Vietnam have brought back great profit for Vinamilk and make it one of the majority proportions of Vietnam's dairy market share However, it is very inevitable that there are some existing risks that the company does not still solve suitably Based on secondary research, this report discusses the marketing research one of the VINAMILK's product line - milk First of all, the research gives you information about the current marketing situation (internal environment, micro one, and macro one) of VNM Second, a SWOT analysis will be presented clearly in the paper Following the SWOT analysis, we will state the important problems related to the company Third, marketing strategies and marketing objectives must be analyzed to solve the mentioned issues and achieve these objectives This report based on gathered information from textbooks, journals, and online web pages relating to the contents of the marketing mix 4Ps provides insight and appreciates the issues of Vinamilk which have not been accessed and discussed to consider and improve their product in the future The last thing indispensable for this marketing research is to propose an action program and illustrate products, posters, TVC, etc so that all staff in the company can follow and run the whole plan to improve current major problems 1 I INTRODUCTION ABOUT VINAMILK Vietnam Dairy Products Joint Stock Company (Vinamilk), with over 200 dairy products, including fresh milk, yogurt, condensed milk, soymilk, etc distributed in over 30 countries (Vinamilk 2021) The company was established on August 20, 1976, by joining three milk brands in southern Vietnam including Dak Lak, Truong Tho, and Thong Nhat (Vinamilk) Its main office is located in District 7, Ho Chi Minh city When mentioning the mission of the company, the Chief Executive officer of VNM named Mai Kieu Lien said that: “To manufacture one of the leading products in the market, we must always be innovative Innovation is a vital element!” It is the reason why VINAMILK has been consecutively holding the first position in the dairy market in Vietnam in recent years It has been shown on the website viettrade.com that the company includes 15 factories and Global G.A.P certificate farms and manufactures more than 250 products and services which are mainly made of both buttery and milky, consisting of Powdered Milk, Infant Cereal, Milk Drink, Condensed Milk and value-added ones as yogurt, soya drink, ice cream, etc Vinamilk has demonstrated development: quality and innovation are always the most important features; therefore, they achieved the National Quality Award for 23 consecutive years (VNExpress 2019) According to Forbes Vietnam rankings in 2019, Vinamilk is in first place among 50 companies that have the best price The company’s vision is to become a world-grade brand in the food and beverage industry, where people put all their trust in nutrient and health products and their mission is to deliver valuable nutrition to the community It is noticeable that most of Vinamilk's products account for the highest market share in Vietnam’s dairy market Spoonable yogurt, which is discussed most in this report, often amounts to over 80% over many years Other products such as condensed milk, liquid milk, and powdered milk also comprise the highest percentage of market share in Vietnam In addition, the group bought Moc Chau company in the last month of 2019 VISION To become a world grade brand in food and beverage industry, where people put all their trust in nutrient and health products MISSION To deliver the most valuable nutrition to community with all respect, love and responsibility CORE VALUE To become a world grade brand in food and beverage industry, where people put all their trust in nutrient and health products II CURRENT MARKETING SITUATION INTERNAL ENVIRONMENT a Marketing orientation The marketing concept is a marketing management orientation that Vinamilk always follows as it is clearly reflected in the company's vision: "To become a world grade brand in food and beverage industry, where people put all their trust in nutrient and health products." On the one hand, this concept brings to Vinamilk many opportunities Firstly, the company conducts continuous marketing audits and marketing research, which enables it to respond quickly to the change in buyer behavior Consequently, the decision-making process is no longer based on hunches but on reliable scientific data and the proper interpretation of such data, which means more certainty in the firm's profits Secondly, this concept directly benefits consumers by allowing them to buy products at affordable prices, of better quality, and at convenient locations Moreover, by maintaining long-term relationships with customers through service and quality that they can trust, customer retention, and new customers over time will be ensured However, as opposed to a selling concept which only focuses on sales and promotion, businesses operate from a marketing concept that requires implementing a set of marketing tools that are coordinated asynchronously and systematically to achieve market goals When an organization practices the marketing concept, all its activities such as research and development, distribution, quality control, finance, manufacturing, selling, etc., are all focused to satisfy the consumer needs and wants Because of this, it is more expensive to market a product following the marketing concept than the selling concept Organizationalstructures b Infrastructure 01 Human resources 02 From the initial three factories when established, up to now, Vinamilk currently has 13 domestic factories that are invested in scale and apply the world's leading technology This factory system enables Vinamilk to develop more than 250 types of dairy products in 13 product categories, from condensed milk, liquid milk, powdered milk, yogurt, ice cream, and soft drinks Not only stopping in the country, the company also continuously expands investment abroad In addition to 10 farms and 13 domestic factories, Vinamilk also has three factories in the US, New Zealand, Cambodia, one subsidiary in Poland and is promoting exports to new markets such as Thailand and Myanmar and Africa By 2022, Vinamilk has over 10,000 people operating at 34 member units around the country Vinamilk has long advocated for employee respect and equality in terms of gender, geography, and religion Everyone, regardless of field or level, is free to express their values and contribute to the company's success According to CareerBuilder Vietnam, Vinamilk is rated in the Top of the 100 most favorite employers in 2020 and rose to the top of the Top 10 most favorite employers of the fastmoving consumer goods (FMCG) industry 03 c Business performance MARKET SHARE According to Euromonitor, in 2021, Vinamilk leads in market share of the whole industry, accounting for 43.3% (excluding Moc Chau Milk) with a strong distribution network covering 64 provinces and cities in Vietnam In particular, in some segments Vinamilk holds a very large market share such as condensed milk (accounting for about 80%) SALES The Covid 19 epidemic hit the dairy sector in general in 2021, and Vinamilk is no exception However, Vinamilk finished 2021 by achieving a new revenue record, reaching the VND 60,000 billion mark for the first time Notably, consolidated sales increased by over 10% in the fourth quarter of 2021, the strongest quarterly rise in nearly years This revenue record is the result of contributions from all three segments: domestic, export, and overseas branches According to the newly published annual report of Vinamilk, the company plans to raise its market share by 0.5% to 56% and revenue by 5% to VND 64,070 billion in 2022-2026, which is higher than the 2.2% rise in 2021 In addition, profit before tax for the whole year is expected to reach VND 12,000 billion STRATEGIC BUSINESS UNITS Vinamilk products have mostly fallen into the star stage, which consists of milk product line Milk is one of the potential products that Vinamilk should expand and develop strongly It accounts for high market share (over 80%, data from Nielsen) in the milk consumption market in Vietnam Beside that, according to Euromonitor, Vietnam's dairy market in 2020 increased by more than 8% compared to 2019, thanks to the rapid growth of yogurt and drinking milk products In which, the yogurt industry has the highest growth with 12% As a result, it is clear that Vinamilk products faces high competition in the Vietnamese market as well as the international market (high business growth rate) Therefore, Vinamilk's products are considered a star stage ... like Ong Tho condensed milk, Vinamilk yogurt, Vinamilk fresh milk Vinamilk employs effective and successful marketing strategies Vinamilk spent lots of money and time on marketing and partnered with... and marketing plan for new campaign: “Shaping a healthy lifestyle with Vinamilk? ?? through this link: Timeline Campaign Plan 27 References Nguyen, D., H., (2021) Phân tích chiến lược marketing Vinamilk. .. hand, Vinamilk? ??s plan mainly focuses on the Southern market, so that the North will be their missing marke 2.6 Marketing intermediaries Vinamilk has been exerting to utilize a variety of marketing