Vinamilk background Vinamilk market size and SWOT Analysis market growtTo becom e a worldgrade bran d in food an d beverage in dustry, wh ere people put all th eir trust in n utrien t an d h ealth products”To becom e a worldgrade bran d in food an d beverage in dustry, wh ere people put all th eir trust in n utrien t an d h ealth products”
International Business BUSINESS PROJECT OF VINAMILK IN MAURITIUS Group Team Members Nguyễn Bảo Anh Trần Ngọc Châu Trần Huệ Chi Nguyễn Thùy Dương Đỗ Mai Hằng Table of Content Introduction Business Environment Research Comparative Strategy Mode of Market Entry Estimated profit and growth Vinamilk background INTRODUCTION Vinamilk market size and market growth SWOT Analysis Vinamilk background core values Integrity Respect Fairness Ethics Compliance VINAMILK BACKGROUND 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 valuable nutrition to community with our respect, love and responsibility” Organic Food Presentations are tools that can be used as lectures Borcelle Vinamilk market size and market growth Vietnamese dairy market experienced stable growth in both volume and value from 2016 to 2020 Fresh milk market in Vietnam in 2020 S STRENGTHS Vinamilk’s strong financial growth Increasing and diversified Vinamilk’s product lines International standards and advanced technology W WEAKNESSES Imported materials (from Sweden and G7 countries of Europe) Negative Press - Rumors have always surrounded Vinamilk regarding the various products but none of them has been proven to date T O OPPORTUNITIES THREATS Growing demand for dairy products in Difficulties in the supply chain since Mauritius Mauritius is an island nation Mauritius’s beneficial natural conditions Cultural preferences and taste Mauritius’s limited domestic production preferences in Mauritius Health-conscious consumer trend in Lacking some factors in raising cows in Mauritius Mauritius Socio-cultural environment Multi-ethnic, multilanguage, and religiously diverse country Increased understanding between people of different ethnic backgrounds Legal environment Hybrid legal system A strong legal and regulatory framework COMPARATIVE STRATEGY Multidomestic Strategic Approach Lack of promotion in consumption from the government In contrast with Vietnam where the industry conditions are more favorable Shortage of animal feeds Key product is powdered milk Sold in large packages weighing approximately 1kg Consumed as an alternative to fresh milk $1.65 - $4.09 The average price powdered milk Mauritius of in Big challenge $8.12 - $20 The average price powdered milk Vietnam of in The price difference in countries MODE OF MARKET ENTRY ACQUISITION ACQUISITION DEVELOPMENT STRATEGY MARKET ACCESS Vinamilk prioritizes seeking M&A Vinamilk can tap into its existing opportunities with dairy customer base, distribution companies in other countries channels, and market knowledge ACQUISITION ESTABLISHED INFRASTRUCTURE COMPETITIVE ADVANTAGE LOCAL RELATIONSHIPS AND NETWORKS Reduce the time By eliminating or reducing Established relationships with and costs competition in the market suppliers, distributors, retailers, etc POTENTIAL CHALLENGES Cultural Differences Integration Challenges Regulatory and Legal Considerations ESTIMATE PROFIT AND GROWTH Vinamilk: Net revenue and Net Vinamilk: Net revenue and Net profit after tax from 2018 - 2022 profit after tax from 2018 - 2022 Net revenue & net profit after tax of Vinamilk will be reduced at a rate of 15% compared to that of 2022 In 2024, the net revenue & net profit will recover to the same figures in 2022 2024 to 2027, the net revenue will witness a stable growth of 8% & 5% for the net profit after tax Pricing Strategy Penetrating pricing strategy Key product: Optimum Gold powdered milk Price: 450MR (232.000VND) per 1800g can => Decrease in revenue & profit for our first year, but attract a large customer base After 2023, slowly raise the price to 650MR (335.000VND) in 2027 Marketing Strategy Main criteria: Cost efficiency and earning high return on low investment Target Audience: Middle-aged moms Live in the urban area of Mauritius Distribution channel: E-commerce channel Cooperate with Mauritius ongoing dairy projects Vinamilk provides R&D and human resources support for Mauritius' producer Thank You