Tiểu luận môn quản trị marketing đề tài strategic marketing managementanalysis of vinamilk

As aresult, according to Deputy Minister of Agriculture and Rural DevelopmentPhung Duc Tien, "the ratio of dairy farming chain links accounts for nearly100% - the highest ratio in the in

NGÂN HÀNG NHÀ NƯỚC VIỆT NAM BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC NGÂN HÀNG THÀNH PHỐ HỒ CHÍ MINH

KHOA QUẢN TRỊ KINH DOANH

TIỂU LUẬN MÔN: QUẢN TRỊ MARKETING

Đề tài : STRATEGIC MARKETING MANAGEMENT

ANALYSIS OF VINAMILK

Lớp: MAG309_231_9_TA_L23Nhóm: 03

Lê Thị Ngọc Hân 050608200050

Hồ Thị Bích Kiều 050609210593

Lê Khánh Huyền 050609211964

Võ Thanh Huyền 050609211970Nguyễn Thị Kim Ngân 050609212056

GVHD: Ts Nguyễn Văn Thích

TABLE OF CONTENTS

TABLE OF CONTENT 1

INTRODUCTION 1

1 THE INTRODUCTION OF VINAMILK: 3

1.1 Analysis of the Marketing and Management Capabilities 3

1.2 SWOT Analysis of VINAMILK 5

1.2.1 Strengths 5

1.2.2 Weaknesses 9

1.2.3 Opportunities 12

1.2.4 Threats 14

2 MARKETING STRATEGY OF VINAMILK 14

2.1 Market segmentation 14

2.2 Market targeting 15

2.3 Market position 16

2.4 Product strategy 17

2.5 Price strategy 19

2.6 Differentiation strategy 20

2.7 Focus strategy 21

3 CONCLUSION 23

REFERENCES LIST 24

In the agriculture sector as of 2021, milk plays a major leadership role As aresult, according to Deputy Minister of Agriculture and Rural DevelopmentPhung Duc Tien, "the ratio of dairy farming chain links accounts for nearly100% - the highest ratio in the industrial production industry today."Numerous multinational corporations are leading the way in investing incutting-edge, high-tech projects; they are also fast to assimilate the world'sscientific and technological advancements in technology and are importers ofhigh-quality dairy breeds for animal farming, milking cow.

Knowing this, Vinamilk always strives to raise the caliber of its offerings; this

is also the guiding principle behind Vinamilk's Rising Vietnam tagline, whichhas been in place since 2008 In addition, the business consistently provideseach client with the advantages that milk unquestionably offers to people ofall ages worldwide Dairy products from Vinamilk have been exported tooverseas markets, mostly to wealthy nations like the US, New Zealand,Australia, and others, as well as developing nations

In particular, to better understand the company's founding history, theworkings of the supply chain, and the reasons for Vinamilk's dominantposition in the Vietnamese dairy market We will discover more aboutVinamilk, the national brand that has been the top nutrition firm in Vietnamfor over 45 years Vinamilk has contributed to the growth of the dairy sectorand achieved the objective of introducing Vietnamese milk to the marketworldwide

1 THE INTRODUCTION OF VINAMILK

On August 20, 1976, Vinamilk was established on the basis of taking over 3milk factories left by the old regime and now the company has been operatingfor more than 45 years Vinamilk not only became the leading nutritioncompany in Vietnam but also established a solid position as a National Brand

on the global dairy industry map The company has entered the top 40 dairycompanies with the highest revenue in the world (Plimsoll Statistics, UK).Vision

“Becoming Vietnam's leading symbol of trust in nutritional and healthproducts serving human life”

Mission

"Vinamilk is committed to providing the community with top quality nutritionand quality through its respect, love and high responsibility to human life andsociety"

1.1 Analysis of the Marketing and Management Capabilities

Vinamilk has demonstrated strong marketing and management capabilitiesthat have contributed to its success in the dairy industry Key aspects of itscapabilities include:

1.1.1 Branding and Product Portfolio: Vinamilk has developed a

strong and recognizable brand in the dairy sector Diverse product portfolio with more than 200 products, meeting many different consumer preferences

1.1.2 Distribution Network: The company has an extensive

distribution network that spans across Vietnam and extends to international markets This allows Vinamilk to reach a broad customerbase efficiently

1.1.3 Marketing Strategies: The company employs effective

marketing strategies, utilizing both traditional and digital channels to promote its products and engage with consumers They also engage in corporate social responsibility initiatives, which enhance their reputation, such as the Stand Tall Vietnam Milk Fund, "VINAMILK - Nurturing Young Vietnamese talents" scholarship fund, and other community support activities

1.1.4 Management Capability: Vinamilk's management team has demonstrated strong leadership in the dairy industry, overseeing the company's growth and expansion into international markets Vinamilk's management is shown in a professional manner The company has well built charters and regulations, clearly publicized on the company's website such as Charter of operations, Internal regulations on corporate governance, Code of conduct, and

Regulations on the Association's activities Board of Directors, Regulations on Information Disclosure, Operation Regulations of the Audit Committee

The clearest evidence we can see is that although the price of raw milk

in the world increased by 60%, Vinamilk's consolidated after-tax profit in the second quarter of 2023 was still higher than the same period last year

pháp… 67% (3)

26

Tiktok ok - de tai nghien cuu khoa hocphương

pháp… 100% (3)

234

Midterm test Không có gì coiphương

-pháp… 100% (1)

6

1.2 SWOT Analysis of VINAMILK

1.2.1 Strengths

1.2.1.1 The first strength of Vinamilk that needs to be mentioned

is the integrated value chain built in a sustainable and

environmentally friendly way

Vinamilk is the enterprise that owns the largest herd of cows in Vietnam with

a total of 140,000 cows, including 40,000 cows raised at 14 internationalstandard farms, along with 6,000 exclusive revenue contracts

Thanks to that, Vinamilk is 100% proactive in the supply of raw fresh milk toensure continuous production capacity on a large scale

In addition, Vinamilk also applies the latest scientific and technical advances

to increase milk productivity and self-supply rate, thanks to which Vinamilk'sherd of 40,000 cows can meet 50% of fresh milk demand raw materials,equivalent to the number of 100 thousand cows through milk purchasingcontracts from farmers

Outstanding technologies being applied by Vinamilk at cow farms include:Kaizala software: informs farmers about milk quality and milk prices toincrease the efficiency of information exchange, thereby helping farmers

Trading HUB 3Xác suấtthống kê 96% (28)

36

Maintenance software system: Helps manage and plan effective operations formore than 60 motor vehicles and 300 pieces of machinery and equipment onfarms.

Large-scale milking system & Health control system and electronic chipoperation: Helps Vinamilk identify, collect and manage data automatically.Automatic food pusher (Lely Juno): Automatically pushes food and playsmusic for cows to relax while eating

In addition, Vinamilk's farms are also designed and operated according toenvironmentally friendly standards, helping businesses effectively useproduction resources, ensuring the supply of quality raw materials for dairyfactories and improve output standards for its products, such as:

Green Farm in Quang Ngai with a capacity of 4 thousand cows on a scale of

100 hectares, investment capital of 30 million USD

The environmental management system follows ISO 14001 standards, and5.14% of water usage is a result of circular economy operations

Rotate crops on livestock land, and use organic fertilizers instead of chemicaland inorganic fertilizers to minimize waste into the environment

Biogas systems are used at all Vinamilk farms to reuse waste and reducecarbon emissions into the environment

Solar battery systems are installed on farms to save electricity and increasethe use of green energy

Besides, there are many automation technologies from Europe applied byVinamilk to optimize milk quality and production costs such as: productionlines using German, Italian, and Swiss technology; Danish Niro spray dryingtechnology; Oracle's inventory and damage control system…

1.2.1.2 Leading in product category

In Vietnam, Vinamilk is leading dairy businesses in the number of product lines made from milk with 250 SKU codes, divided into 12 different product groups, helping the company to reach diverse target groups in Vietnam all classes, all ages and all income levels

This is a strong point that helps Vinamilk always maintain its market share in the Vietnamese market

1.2.1.3 Leading brand, accounting for the largest market share

in the dairy industry in Vietnam

Vinamilk's report shows that up to 9/10 households in Vietnam are using this company's products In other words, Vinamilk brand coverage is at a very high level, thanks to which it easily builds loyalty brand for its customers, while creating great pressure on competitors in marketing communications and consolidating market share

In addition, in 2022, Vinamilk's brand is valued at 2.8 billion USD (about 700billion VND) by Forbes Vietnam magazine, while Brand Finance also ranks Vinamilk in the Top 3 Vietnamese enterprises with recognized brands highest price, only behind Viettel and VNPT

With the advantage of being the leader when accounting for more than 50%

of the dairy market share in Vietnam, Vinamilk holds the initiative inpartnerships with domestic suppliers to optimize production costs

1.2.1.4 Owning the largest multi-channel distribution system in Vietnam

Vinamilk has a distribution channel network throughout Vietnam with 3 types

of distribution:

Traditional channel (GT): includes 200 exclusive distributors, 210 thousand retail points at grocery stores and traditional markets along with about 650 Dream Mo Viet Milk stores and 60 Moc Chau Milk stores

Modern channel (GT): includes 8 thousand retail points at supermarkets and convenience stores

Online channel (OL): has online stores on 8 e-commerce platforms in Vietnam such as online sales website of Dream Mo Sua Viet, Shopee, Lazada,Facebook

This advantage helps Vinamilk easily promote the brand and bring products

to each household no matter where they are in Vietnam

1.2.1.5 Exported to more than 50 other countries

Vinamilk focuses on exporting powdered milk and condensed milk to more than 50 other countries in the Middle East and Southeast Asia markets, contributing up to 8% of total revenue for the group

Exporting to many countries shows that Vinamilk's products can meet the standards of many countries around the world, while also helping the company build brand value globally, thereby making it easier to penetrate the world enter new markets

Not only direct export, Vinamilk also directly establishes milk production businesses abroad to focus on serving the market in the host country, such as Angkor Milk company in Cambodia (accounting for 2% of revenue) ) or Driftwood in the US (accounting for 5% of revenue)

1.2.1.6 The human resources leadership and corporate

management system are highly appreciated

Vinamilk's leadership staff includes many people with experience working in business management and operations, with long-term strategic vision, as well

as long-term commitment to the company through many stages of

1.2.2 Weaknesses

1.2.2.1 Vinamilk investor confidence is declining

Although it is the brand with the largest market share, this advantage is created thanks to Vinamilk building a very broad product portfolio with 250 different SKU codes

In other words, Vinamilk is spreading its resources across many different product lines, making it much more difficult to gain more market share than its competitors in the lower group

This huge growth pressure has caused Vinamilk's stock price to continuously decline since 2021 until now even though the VN-Index is still growing, thereby causing the company's market capitalization to decrease reduce another 1 billion USD in just the first 6 months of 2023

Market capitalization represents investors' expectations for the future growth

of a business, so this shows that investors' confidence in Vinamilk is seriouslyreduced

1.2.2.2 Advertising and market research budgets continue to be cut as revenue bottoms out

Despite holding the largest market share in the market, data shows that Vinamilk is gradually losing the market to competitors, and one of the main reasons for this is the decline in operations advertising and market research.The reason why Vinamilk's board of directors decided to cut advertising and market research costs may be because Vinamilk's profits in recent years have been continuously declining, even slipping below the 9 thousand mark for the first time billion VND in 2022, the lowest in the past 7 years

Vinamilk's profit after tax in the period from 2012 to 2022

(Image source: Ychoc.com)However, this policy can be seen as a weakness of Vinamilk, because for the food market in particular and the fast-moving consumer goods industry in general, manufacturing enterprises need to constantly research customer tastes customers as well as promoting continuous information to customers ifthey want to maintain and develop market share in the market

With a reduction of about VND 51 billion in costs for advertising and market research activities in Q1/2023 compared to Q1/2022, it can be seen that Vinamilk's market share will continue to decline in 2023

Costs for Vinamilk's advertising and market research activities from 2019 -

2022 (Source: Vinamilk's financial reports over the years)

Vinamilk invests a lot of budget in creating videos and advertising them on mass media channels such as TV and Youtube However, focusing too much

on videos makes Vinamilk seem to forget that its target customers are My target has been using many different channels to collect information such as Google and websites

This means that Vinamilk is devoting a lot of resources to a single

communication method at extremely expensive costs, while advertising and market research budgets are increasingly decreasing, leading to reduced market access

For a business with a debt-to-total capital ratio of more than 32% like Vinamilk, this is a huge opportunity to help this business reduce the burden of

interest, thereby having more money to invest for production and business activities

1.2.3.2 Policy to stimulate demand by reducing VAT

Besides the opportunity to reduce the burden of loan interest, Vinamilk also has the opportunity to boost sales in 2023, thanks to the government and the National Assembly agreeing to cut value added tax (VAT) for many businesses different industries, including products that Vinamilk is

producing

With the official VAT reduction from 10% to 8% from July 1, 2023 to December 31, 2023, the selling price of nutritional products such as fresh milk and powdered milk will definitely decrease, thereby Dairy companies like Vinamilk have the opportunity to boost revenue in the second half of 2023

1.2.3.3 Vietnam's population growth rate has recovered to the time before the Covid-19 outbreak

As an enterprise that sells essential nutritional foods for everyone, Vinamilk's ability to develop its market in the long term depends greatly on the country's population growth rate

Therefore, when Vietnam's population growth rate in 2022 begins to increase again to 0.9%, equal to the time before the Covid-19 epidemic, Vinamilk will have the opportunity to increase its sales in the coming years according to

1.2.3.4 The proportion of people using the Internet is increasing over the years

According to the We Are Social Vietnam 2023 report, the proportion of Vietnamese people using the Internet has increased to 79.1%, an increase of 6% compared to the previous year, giving Vinamilk the opportunity to quickly convey messages, news, events and incentive programs for domestic consumers