Asian marketing management marketing management for vinamilk

VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION - Asian Marketing Management Marketing Management for Vinamilk Lecturer: Mr Hoang Kim Chuong Group members Nguyen Pham Bang Bang 719V0147 Tran Phuong Uyen 719V0135 Vo Tan Lac Thien 719K0137 Nguyen Van Tuan 719K0142 Le Thi Van Truc 719V0145 Huynh Bao Ngoc 719V0130 Group 05 Shift 02 Saturday Class: 19K70401 Ho Chi Minh City, December 2021 0 Individual task No Student ID Name 719V0130 Huynh Bao Ngoc 719V0135 Tran Phuong Uyen 719V0145 Le Thi Van Truc 719V0147 Nguyen Pham Bang Bang 719K0137 Vo Tan Lac Thien - 4.1 Budget proposal & approval 100% Nguyen Van Tuan - Edit and synthesis the Final Report - 4.2 Details action plan 100% 719K0142 Tasks - Chapter Define Objective - 2.1 Market potential evaluation - 2.2 SWOT analysis - 2.3 Marketing hypothesis - 3.1 Strategic objectives and plan - 3.1 Strategic objectives and plan - 3.2 Revenue projection and tactical plan - 3.3 Contingency plan 0 Contribution 100% 100% 100% 100% Contents Chapter Define Objective 1.1 Company’s mission 1.2 Company’s objective Chapter Marketing Analysis .4 2.1 Market potential evaluation .4 2.2 SWOT analysis 2.2.1 Strengths 2.2.2 Weaknesses 2.2.3 Opportunities 2.2.4 Threats 2.3 Marketing hypothesis 10 Chapter Developing Marketing Strategy And Plan 11 3.1 Strategic objectives and plan 11 3.2 Revenue projection and tactical plan .11 3.3 Contingency plan .11 3.3.1 Many competitors enter the market 11 3.3.2 The source of input materials is not stable 12 3.3.3 Vietnamese customers tend to prefer foreign milk 13 Chapter Resource Management Strategy Monitoring 14 4.1 Budget proposal & approval 14 4.2 Details action plan 17 Reference 18 0 Chapter Define Objective 1.1 Company’s mission The mission statement of Vinamilk reads, “To deliver the valuable nutrition to the community with respect, love and responsibility.” The vision statement of Vinamilk reads, “To become a world grade brand in the food and beverage industry, where people put all their trust in nutrient and health products.”Vinamilk focuses all resources to build the dairy and food company with health benefits By building strategic product lines with a long-term competitive advantage, Vinamilk has become the company's rapid growth and most sustainable Vinamilk is constantly diversifying product lines, expanding the distribution territory in order to maintain the leading position on the domestic market Vinamilk concentrates all resources to become a dairy and food company with healthy and rapid growth, Vietnam's most sustainable building strategies by-product lines have competitive advantages long term Vinamilk would like to become the most favorite product of all regions, territories So, Vinamilk minds that quality, creativity is a companion of the company and see customer-centric and committed to meeting the needs of customers 1.2 Company’s objective 0 Vinamilk constantly develops production activities, trade and services in the area's business activity in order to maximize profits that can get the company to shareholders, enhance the value of the company and not constantly improve and raise the living standards, working conditions and incomes for workers, and fulfill their obligations to the State budget Besides, the company mounted a processing industry with raw materials in order to increase the independence of the materials in the present and future In addition, Vinamilk has many customer gratitude programs, so it attracts large customers to consume products To become a business with a working environment in which employees can bring out their full potential, contribute to common achievements, and become one of the top businesses that employees consider ideal to work for Building a long-term and sustainable development goal for major domestic and foreign suppliers is Vinamilk's main goal to ensure a stable supply of raw materials not only in high quality but also at low prices The prices are very competitive The milk obtained from the farms always meets the quality standards Building the best quality because customers are the final destination of the company The company's goal is to diversify products and develop into a strong corporation in Vietnam through building a system of stylish products 0 Chapter Marketing Analysis 2.1 Market potential evaluation Constantly affirming its position globally, Vietnam Dairy Products Joint Stock Company (Vinamilk) is the only representative of Southeast Asia to participate in global rankings, according to Brand Finance's annual report on the most valuable and most vital brands in the food and beverage industry in 2021 (Kim Anh, 2021) Specifically, Vinamilk is the only representative of Southeast Asia in the top 10 most valuable dairy brands globally in 2021 with 8/10 Vinamilk's brand value is valued at nearly 2.4 billion USD, up to 12% compared to 2020 In addition, Vinamilk is also one of the three most potential brands of the dairy industry globally, with the second-highest score This is a significant result when it shows the development potential of Vinamilk in the challenges posed by the pandemic to businesses and the dairy industry globally (Kim Anh, 2021) Not only achieving high rankings in the dairy industry, but according to this report, in the food industry, Vinamilk has also conquered two rankings as the top strongest food brands in the world and the top 30 of the 100 most valuable food brands globally with 27th position, increase sharply to places compared to 2020 Before that, Vinamilk has also appeared in many prestigious world rankings with high rankings Most recently, Vinamilk was ranked 36th in the top 50 dairy companies globally in terms of revenue and the only representative of Southeast Asia (Kim Anh, 2021) In 2020, export revenue reached more than 5,500 billion VND, up to 7.5% compared to 2019 In the first six months of 2021, Vinamilk's export activities recorded double-digit revenue growth, reaching nearly 2,800 billion VND, a rise of 13.1% compared to 2020 (Kim Anh, 2021) It can be said that behind the success of international business contracts worth millions of dollars is a combination of seizing growth opportunities and affirming business reputation These two factors show Vinamilk's business bravery during 25 years of international "war" and especially the "fire test" period lasting nearly two years when the Covid-19 incident occurred With the motto of taking quality - price - 0 service as a success factor in international business, the company always spends many years researching markets and consumption habits to improve the nutritional quality of each product, maintaining the trust of partners and customers In addition to traditional products with strengths such as condensed milk, baby milk powder, and nutritional powder, Vinamilk invests in research and development to introduce unique products to serve local tastes (Vinamilk, 2021) From the starting point that Vietnam is a dairy importer, Vinamilk has not only taken the lead in the domestic market but also brought its products to 56 countries and territories, with a total turnover of accumulated exports of more than 2.5 billion USD and increasingly affirmed the brand and reputation of Vietnamese milk in the international market (Vinamilk, 2021) 2.2 SWOT analysis 2.2.1 Strengths Regarding the strengths in the SWOT model of Vinamilk, this brand has some outstanding strengths below (Misa, 2021) Famous brands: + The first strong point of Vinamilk is that Vinamilk is a famous brand Since starting operations in 1976, Vinamilk has built up a firm brand name for dairy products in the Vietnamese market + The Vinamilk brand has been used since the company was first established and is now a widely known dairy brand in Vietnam Vinamilk dominates the market by focusing on advertising and marketing, constantly innovating products, and improving quality (Misa, 2021) Effective Marketing Strategies: + One of Vinamilk's marketing strategies is to take advantage of various channels such as TV, newspapers, billboards, fan page, television to advertise their products With the multi-channel product advertising strategy, the coverage has helped Vinamilk successfully implement the business's marketing campaigns + Besides, Vinamilk also invests in advertising content in Marketing campaigns and provides valuable information to customers To produce excellent and attractive 0 content, Vinamilk has effectively applied the Hero - Hub - Help (3H) model in its content strategy to achieve specific successes (Misa, 2021) Diversified product portfolio: + Vinamilk provides diversified dairy products with over 200 dairy products, serving a wide range of consumers Product lines target specific audiences such as children, adults, and the elderly, along with products for households and businesses such as coffee shops + Vinamilk's products are diversified with different packaging sizes, providing customers in the Vietnamese market with convenient dairy products Vinamilk also diversified product categories to increase serviceability and maximize profits in the market segment that Vinamilk targets (Misa, 2021) Wide distribution network: + With a vast distribution network, Vinamilk can reach many customers and ensure the launch of new products and effective marketing strategies nationwide + In 2021, Vinamilk has sold products through more than 240 distributors and more than 240,000 points of sale through conventional channels, 465 “Giac Mo Sua Viet” stores, 2.400 points of sales through convenience stores, and 5.400 points of sales through supermarkets in all 64 provinces and cities A labor force of around 9,361 employees with an experienced sales team of 1,787 shop assistants around the country has helped distributors better serve retailers, consumers and promote the company's products (Vinamilk, 2021) High-tech applications: + Vinamilk owns European production technology that meets global standards, Vinamilk's sterilization equipment is imported from Sweden, and other equipment is made from European countries International standards such as ISO 50001:2011 and HACCP are applied to control the production system + Vinamilk also built more factories with modern and advanced equipment in key economic regions of the country, creating an initiative in production and business (Misa, 2021) 0 2.2.2 Weaknesses Besides strengths, Vinamilk also has weaknesses that need to be overcome Some of the main weaknesses in Vinamilk's SWOT model can be mentioned as follows (Misa, 2021) Unable to control the source of raw materials: + When domestic raw materials only meet about 30% of production demand, 70% of supply and input material ratio depend on the world milk supply-demand relationship With this dependence, the production and business situation of Vinamilk will be affected by the external environment and factors such as inflation and economic crisis (Misa, 2021) The market share of powdered milk is not high: + Currently, users tend to use imported powdered milk higher than domestically produced powdered milk In addition, the market appears more and more foreign milk brands imported from Europe, so Vinamilk's powdered milk market share, which holds a monopoly position, tends to decline (Misa, 2021) The marketing system is not good: + Weak marketing, leading to not creating an effective message to advertise to consumers about the company's strengths Although there is 70-99% fresh milk in the products, Vinamilk does not know how to exploit the brand, so Vinamilk does not have a message for consumers to understand the difference between fresh milk and reconstituted pasteurized milk Even all other strengths have not yet been conveyed to consumers (Mirumiru, 2011) Customer care and product quality need to be improved: + Dairy products are susceptible to the stages of preservation and transportation If these steps are not done well, consumers will receive milk products that are not the same quality as the original Therefore, customer care is a top priority However, Vinamilk's products and customer care services are still poor because there are still many shortcomings in customer care (Mirumiru, 2011) Unselected distribution and retail system: 0 + The distribution and retail systems of domestic dairy companies in general and Vinamilk, mainly, are not tight in selecting and signing distribution contracts with agents Agents and retail outlets are the direct sales channels to consumers If there are no strict regulations on storage, and service conditions, the company's reputation will be discredited Many milk cartons are not correctly preserved, so the packaging has been deformed and expired before reaching consumers Vinamilk should make specific recommendations and announce genuine distribution agents on the mass media for everyone to know At the same time, there is a commitment to compensate for infringing products purchased at the company's agent if there is a good reason, helping consumers feel more secure with domestic dairy products (Mirumiru, 2011) 2.2.3 Opportunities To capitalize on strengths and overcome weaknesses, Vinamilk can seize several beneficial opportunities to develop its brand and increase sales as follows (Misa, 2021) The Government is supporting the source of raw materials; imported materials have a reduced tax rate: + After Vietnam became a member of ASEAN and WTO in 1995 and 2007 In July 2010, Vietnam's Ministry of Health approved regulations requiring dairy products, especially baby milk, to meet specific standards + Currently, the Government is also supporting the supply of raw materials and reducing import tax on raw materials to help businesses reduce the burden of production costs (Misa, 2021) A high number of potential customers and great demand: + Vietnam has a high population density, the proportion of people tending to urbanize in recent years has increased, the education level has increased, and the income of the middle class has also gradually improved + With an increased level of education, Vietnamese young people have the opportunity to access knowledge and cultures in the West, understand more about the effects of milk on the body, so they tend to consume more dairy products Besides, 0 parents are more and more concerned about their children and pay attention to their children's nutrition (Misa, 2021) Vietnamese people's demand for milk increases: + Most Vietnamese people need to use dairy products Besides nutritional supplements, many people also use dairy products for beauty or cooking Therefore, this is a great opportunity and potential for Vinamilk to grow more vital in the dairy industry (Misa, 2021) Customers who have a need to consume quality and healthy products: + According to Nielsen's consumption report, today's customers are deeply interested in health and tend to buy health products And when it comes to health supplements, most consumers will mention milk, an essential food in nutritional products (Misa, 2021) 2.2.4 Threats Besides opportunities, Vinamilk also needs to face some challenges The main challenges in the SWOT analysis of Vinamilk can be listed as follows (Misa, 2021) Many competitors enter the market: + Increasing demand for products leads to the appearance of new competitors With a long-standing brand like Vinamilk, this is both an opportunity and a big challenge Currently, Vietnamese consumers are facing many choices of dairy products Especially foreign brands are landing in Vietnam, leading to Vinamilk's position in the market gradually "shaken" + Some of Vinamilk's main competitors can be mentioned, such as TH True Milk, Dutch Lady, and emerging brands such as Meadow Fresh or Table Cove (Misa, 2021) Unstable input materials: + Although owning international standard dairy farms, Vinamilk's raw materials still depend on imports In addition, because the profit from livestock production is not high, farmers tend to change jobs This has created much pressure on Vinamilk, requiring the brand to develop domestic raw materials and avoid dependence on imported materials abroad (Misa, 2021) 0 Vietnamese customers tend to prefer foreign milk: + For health-related products, customers tend to prefer foreign products They believe that portable products' nutritional content and safety are higher than that of domestic products With this situation, Vinamilk needs to strengthen more brand promotion campaigns, affirming that the product's nutritional value is not inferior to any famous foreign brand (Misa, 2021) 2.3 Marketing hypothesis Although much attention over the last year has been given to the overnight boom in e-commerce and the shift away from stores, physical outlets remain a critical part of the shopping journey 0 Chapter Developing Marketing Strategy And Plan 3.1 Strategic objectives and plan 3.2 Revenue projection and tactical plan 3.3 Contingency plan Every business is able to occur in situations that adversely affect operations If the response to the problem is poor, it can have a big impact on the future of the business, such as loss of customers, loss of data, or even loss of business (Lam Anh, 2019) Besides opportunities, Vinamilk also needs to face some challenges The main challenges in the SWOT analysis and how we recommend the contingency plan can be listed as follows: 3.3.1 Many competitors enter the market According to Misa (2021), the increasing demand for milk products leads to the emergence of new competitors With a long-standing brand like Vinamilk, this is both an opportunity and a big challenge Currently, Vietnamese consumers are facing many choices of dairy products Especially foreign brands are landing in Vietnam, leading to Vinamilk's position in the market gradually "shaken" Some of Vinamilk's main competitors can be mentioned such as TH True Milk and Dutch Lady The increase in the number of competing companies causes many potential risks for Vinamilk such as reducing the variety of dairy products, difficulty in maintaining loyal customers, loss of market shares Because of these reasons, we recommend Vinamilk should conduct more campaigns and marketing strategies to increase brand awareness and also brand loyalty Social media will definitely be an important part of the strategy, as this is the best place to directly interact and engage with customers We can find out where our target customers usually talk and we listen to what they share That's the most natural way to reach out and share with them what we can help with Posting photos, investing in content creation and growing Vinamilk hashtags We need to show up at the right time and interact appropriately with the customers – they will sense our sincerity Besides that, awareness also means being at the top of search rankings People tend to use Google for all sorts of purposes and of course, that also includes searching for 0 products and services from businesses We recommend Vinamilk need to check the keywords that our target customers often use to find information Then we can add in headers, tags as well as all the online content It is also an effective way to enhance brand awareness (Kate Vu, 2016) 3.3.2 The source of input materials is not stable Another challenge that Vinamilk faces is the unstable source of input materials Despite owning international standard dairy farms, Vinamilk's raw materials still depend on imports In addition, because the profit from livestock production is not high, farmers tend to switch jobs This has created great pressure on Vinamilk, requiring the brand to focus on developing domestic raw materials, avoiding dependence on imported materials from abroad (Truc Mai, 2021) To meet the needs of domestic consumption and export, Vinamilk's material area development projects are still being implemented on schedule Typically, the successful reception of 2,100 purebred HF dairy cows imported from the US to Vinamilk's new farm in Quang Ngai This is a new farm with a scale of 4,000 children, an area of over 100 hectares with a total initial investment of up to 700 billion VND located in the "Green Farm" ecological farm system that Vinamilk is investing and developing According to the plan, the company will also import more than 5,000 high-yielding dairy cows to increase the total herd for farm projects In 2021, Vinamilk has focused on investing in large projects to expand its scale Specifically, the project of a high-tech dairy farm combined with eco-tourism in Moc Chau, Son La, the Lao-Jagro dairy farm complex in Laos, the project of raising, processing and distributing beef cattle of Vietnam Vilico… Vinamilk CEO Mai Kieu Lien said that Vinamilk is also looking for mergers and acquisitions opportunities in the next 3-5 years for further growth and also can follow new business lines if potential (Hanh Nguyen, 2021) Therefore, we can see that despite being adversely affected by the COVID-19 pandemic, businesses have promptly turned the situation around by promoting the construction and development of domestic raw materials instead of being passive in the supply from abroad We recommend that Vinamilk deduct the budget to continue to expand and develop the farms This can both help businesses control the entire 0 operation process, proactively adjust mechanisms to suit market needs and Vinamilk's business capabilities, and help the image of milk with pure Vietnamese ingredients can create a highlight in the hearts of consumers 3.3.3 Vietnamese customers tend to prefer foreign milk The third threat that Vinamilk should consider preparing a contingency plan for is purchasing habits of Vietnamese customers Currently, the market is flooded with Chinese products with labels advertising cheap Vietnamese goods However, people's quality of life is increasing, especially in big cities, when consumers pay attention Origin and product quality are the top criteria In addition, due to some parts of small manufacturers doing mercenary business, there are many fake goods on the market, directly affecting the health as well as product use and daily activities of people Causing confusion for consumers Therefore, consumers are increasingly cautious in choosing products Vietnamese goods have been gradually forgotten not only because of the desire to buy cheap or to buy foreign goods of some high-income consumers, who like fashion and brands, showing their class Moreover, for health-related products, customers tend to prefer foreign products They believe that the nutritional content and safety of portable products are higher than that of domestic products (Hang Nhap Khau Duc Va Chau Au, 2021) If we learn about the nutritional quality of Vinamilk's products, it will certainly not be controversial because they always take the time to research and update the needs of consumers but the important issue is how to best convey the message to consumers We recommend the following strategies to the company: Vinamilk should hold press conferences and announce the quality of their products based on food safety standards They should organize an exchange event about the online or offline market between businesses and consumers so that everyone can share their views and have a broader perspective on domestic products Besides, instead of focusing on advertising on social networking platforms, Vinamilk should invest brains in video clip design projects to demonstrate to consumers the entire production process and results used to reinforce consumer confidence more effectively 0 Chapter Resource Management Strategy Monitoring 4.1 Budget proposal & approval After completing business activities in 2021, we suggest Vinamilk allocate business development expenses for the next quarters in 2022 according to the following priority ratios: Percentage Activities 35% Improving the quality of domestic farms 30% Expanding market share to Southeast Asia countries 20% Developing product lines 10% Maintaining sponsorship, donation and charity 5% Other costs incurred For the first goal in the process of sustainable development, Vinamilk built the Vinamilk Green Farm eco-farm system on the basis of achieved international standards The farm is distinguished by four factors: natural groundwater and ecologically regulated lakes, nutritious food sources, no use of pesticides and chemical fertilizers and imported purebred cow breeds After 15 years of non-stop investment and development, Vinamilk has built a system of dairy farms meeting international standards in Viet Nam and abroad, dairy products for both domestic and export markets According to the development strategy of the dairy industry in the next years, with a vision to 2030, 60% of the country's cow herd will come from concentrated livestock farms Large-scale farms, invested in modern technology and meeting world standards will be the driving force behind the development of the whole industry in terms of both quantity and quality (Minh Thi, 2021) With our recommendation of this 35% approach, we can actively control the entire production and processing process of the whole system, helping Vinamilk to plan goals and strategies more easily According to Vinamilk (2021), in addition to enhancing international business, aiming at the strategic goal of being in the Top 30 leading dairy companies in the 0 world, Vinamilk constantly invests in expanding its scale both at home and abroad Vinamilk currently has subsidiaries and affiliates in the US, New Zealand, Cambodia, Laos and most recently a joint venture in the Philippines with partner Del-Monte, a leading food and beverage company In order to effectively expand market share, Vinamilk should invest 30% of total costs in activities such as conducting market research on the behavior and consumption habits of target customers in Southeast Asia Then, we need to analyze the data and make a decision as to how the consumer needs of the target customers are at different levels From there, unify marketing activities for products in the region to effectively raise brand awareness Vietnam's dairy market is increasingly diversified in product categories, however, liquid milk and powdered milk are still the two largest products today In particular, it can be said that Vinamilk is an enterprise with comprehensive development in both these major product lines and has been leading the market for many consecutive years In its portfolio, Vinamilk currently has nearly 250 products of all kinds, the liquid milk industry alone owns nearly 50 types of products, meeting almost all the nutritional needs of consumers who are becoming increasingly diversified According to Mr Phan Minh Tien - Marketing Executive Director of Vinamilk, “liquid milk is a key product that Vinamilk focuses on investing in” In addition to ensuring the quality and high nutritional value of products, Vinamilk will focus on diversifying liquid milk product lines to suit customers of all ages, segments and development selectively high-end product lines (Vinamilk, 2021) The strategy of diversifying product lines is also a necessary factor because the consumer needs of customers are increasingly diverse and complex, so if handled well, this will definitely help increase revenue in a maximum way best However, in order to fight against the bad effects of the COVID-19 pandemic, we recommend Vinamilk spend 20% on research and produce a nutritious drink to help strengthen the immune system and support infected people’s quick recovery This is very practical at the moment, so if Vinamilk can it, it will leave a glorious mark in the hearts of consumers, and at the same time have a profound meaning for the community 0 According to Thien Duc (2021), the Covid-19 epidemic with recent outbreaks has affected all subjects in society, including children Currently, according to incomplete statistics from provinces, cities and the whole country, there are nearly 2,500 unfortunate children orphaned due to Covid-19 Tens of thousands of children have fallen into difficult circumstances because of the direct impacts of the pandemic In addition, the pandemic has left many long-term effects on children such as psychological effects, educational conditions, and interruption of care Contributing to the "green area of hope" for a healthy Vietnam implemented during the outbreak of the 4th wave of Covid-19, the campaign "Healthy Friends, Healthy Vietnam" has received a response and spread by meaningful messages and many practical community activities, aimed at taking care and protecting children such as vaccines for children, support for orphans because of the pandemic, nutritional care for children in difficult circumstances Vinamilk is an enterprise that actively implements programs aimed at children During the years of the outbreak, Vinamilk has promoted child care activities such as the Vietnam Tall Tall Milk Fund (with 3.4 million glasses of milk equivalent to 25 billion VND in 2020 and 2021); supporting hundreds of thousands of milk cartons for children in concentrated isolation places; financial support for many cases of children having heart and eye surgery in difficult circumstances As we can see, Vinamilk has carried out its activities during the year very well and effectively, our team recommends that they continue to maintain activities for the community at a cost of 10% The final 5% cost that we suggest Vinamilk should prepare for is the additional costs incurred while operating the business We always have to be well prepared for worst-case scenarios so that they don't happen The activities can be mentioned as the contingency plans that we mentioned earlier, problems in the system that need to be repaired, compensation for damage to customers if there are any errors in the product or shipping process Everything needs to be done optimally to make sure that Vinamilk is operating and using the investment costs of operations effectively 0 4.2 Details action plan After completing business activities in 2021, we suggest Vinamilk allocate business development expenses for the next quarters in 2022 according to the following priority ratios: Producing fresh milk with modern equipment and advanced technology Vinamilk Dairy Factory is equipped with pasteurized fresh milk production line with modern equipment and leading advanced production technology today The factory operates on an automatic from input material to product output Fresh milk, after being checked for quality and through measuring and filtering equipment, will be entered into the cold storage system (150 m3/tank) From the cold storage tank, raw milk will go through the processing stages: centrifugation, homogenization, pasteurization, cooling down to oC and transfer to the tank ready for UHT sterilization processing UHT Sterilization: The advanced pasteurization system heats the milk up to 140 oC, then the milk is rapidly cooled down to 25 oC, preserving the natural flavor and nutritional components, vitamins & minerals of the product Milk is transferred to a sterilized tank waiting for aseptic filling into sterilized packaging Thanks to the combination of factors: advanced processing technology, UHT sterilization technology and aseptic filling technology, the product can keep its fresh taste for months without preservatives Vinamilk has The top smart warehouse in Vietnam, with an area of 6000 m2 with 20 entry and exit gates, 105 meters long, 35 meters high, including 17 floors with a capacity of 27168 lots Import and export goods automatically with 15 RGV (Rail guided vehicle) transporting finished goods to the warehouse and 08 Robot Crane (Stacker Crane) arranging goods into the shelf system The management of import and export goods is done based on Wamas software The operating system is based on the automation solution Tetra Plant Master, allowing to connect and integrate the entire plant from input materials to finished products As a result, the factory can control all activities taking place in the factory, monitor and control the quality continuously The Tetra Plant Master system also 0 provides all the necessary data to enable the plant to continuously improve production and maintenance operations Expanding market share in Southeast Asia With a new market, local consumption habits and brand recognition are two most important factors Therefore, Vinamilk needs to make more efforts to understand the characteristics of consumption in the local market, research and launch suitable products to promote development in new markets Vinamilk is looking for opportunities to expand sales in Southeast Asia markets such as Myanmar and Indonesia through the establishment of Joint ventures with local companies Besides the traditional products of condensed milk and powdered milk, yogurt is a product line that Vinamilk focuses on promoting in the international market The yogurt industry will lead the growth in Southeast Asia in the coming years This is because consumers are more and more concerned about their own health, switching to using products with high nutritions The population structure in Indonesia and Myanmar is quite similar to that of Vietnam as both are potential markets for dairy producers, meeting the needs for the development of the dairy industry In addition to the large population, the population growth rate in Myanmar is 0.87%/year, in Indonesia is 1.12%/year Milk consumption per capita in these two countries is almost the lowest compared to other countries in Southeast Asia, only about 10-11 liters/person/year compared to the consumption of 22 liters/person/year in the Philippines or Singapore with 45 liters/person/year The challenge for Vinamilk in these markets is to raise people's awareness about consuming dairy products, especially industrial dairy products that have been certified for high quality instead of using handmade traditional dairy products with low quality At the same time, promote brand promotion and take advantage of the existing distribution system from partners to introduce their products to consumers Vinamilk Diversification Strategy 0 Chapter Developing Marketing Strategy And Plan 3.1 Strategic objectives and plan 3.2 Revenue projection and tactical plan 3.3 Contingency plan Every business is able to occur in situations that adversely affect operations If the response to the problem is poor, it can have a big impact on the future of the business, such as loss of customers, loss of data, or even loss of business (Lam Anh, 0 2019) Besides opportunities, Vinamilk also needs to face some challenges The main challenges in the SWOT analysis and how we recommend the contingency plan can be listed as follows: 3.3.1 Many competitors enter the market According to Misa (2021), the increasing demand for milk products leads to the emergence of new competitors With a long-standing brand like Vinamilk, this is both an opportunity and a big challenge Currently, Vietnamese consumers are facing many choices of dairy products Especially foreign brands are landing in Vietnam, leading to Vinamilk's position in the market gradually "shaken" Some of Vinamilk's main competitors can be mentioned such as TH True Milk and Dutch Lady The increase in the number of competing companies causes many potential risks for Vinamilk such as reducing the variety of dairy products, difficulty in maintaining loyal customers, loss of market shares Because of these reasons, we recommend Vinamilk should conduct more campaigns and marketing strategies to increase brand awareness and also brand loyalty Social media will definitely be an important part of the strategy, as this is the best place to directly interact and engage with customers We can find out where our target customers usually talk and we listen to what they share That's the most natural way to reach out and share with them what we can help with Posting photos, investing in content creation and growing Vinamilk hashtags We need to show up at the right time and interact appropriately with the customers – they will sense our sincerity Besides that, awareness also means being at the top of search rankings People tend to use Google for all sorts of purposes and of course, that also includes searching for 0 products and services from businesses We recommend Vinamilk need to check the keywords that our target customers often use to find information Then we can add in headers, tags as well as all the online content It is also an effective way to enhance brand awareness (Kate Vu, 2016) 3.3.2 The source of input materials is not stable Another challenge that Vinamilk faces is the unstable source of input materials Despite owning international standard dairy farms, Vinamilk's raw materials still depend on imports In addition, because the profit from livestock production is not high, farmers tend to switch jobs This has created great pressure on Vinamilk, requiring the brand to focus on developing domestic raw materials, avoiding dependence on imported materials from abroad (Truc Mai, 2021) To meet the needs of domestic consumption and export, Vinamilk's material area development projects are still being implemented on schedule Typically, the successful reception of 2,100 purebred HF dairy cows imported from the US to Vinamilk's new farm in Quang Ngai This is a new farm with a scale of 4,000 children, an area of over 100 hectares with a total initial investment of up to 700 billion VND located in the "Green Farm" ecological farm system that Vinamilk is investing and developing According to the 0 plan, the company will also import more than 5,000 high-yielding dairy cows to increase the total herd for farm projects In 2021, Vinamilk has focused on investing in large projects to expand its scale Specifically, the project of a high-tech dairy farm combined with eco-tourism in Moc Chau, Son La, the Lao-Jagro dairy farm complex in Laos, the project of raising, processing and distributing beef cattle of Vietnam Vilico… Vinamilk CEO Mai Kieu Lien said that Vinamilk is also looking for mergers and acquisitions opportunities in the next 3-5 years for further growth and also can follow new business lines if potential (Hanh Nguyen, 2021) Therefore, we can see that despite being adversely affected by the COVID-19 pandemic, businesses have promptly turned the situation around by promoting the construction and development of domestic raw materials instead of being passive in the supply from abroad We recommend that Vinamilk deduct the budget to continue to expand and develop the farms This can both help businesses control the entire 0 ... strong point of Vinamilk is that Vinamilk is a famous brand Since starting operations in 1976, Vinamilk has built up a firm brand name for dairy products in the Vietnamese market + The Vinamilk brand... has helped Vinamilk successfully implement the business''s marketing campaigns + Besides, Vinamilk also invests in advertising content in Marketing campaigns and provides valuable information to... Vietnam Vinamilk dominates the market by focusing on advertising and marketing, constantly innovating products, and improving quality (Misa, 2021) Effective Marketing Strategies: + One of Vinamilk'' s