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

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_L23 Nhóm: 03 Lê Thị Ngọc Hân 050608200050 Hồ Thị Bích Kiều 050609210593 Lê Khánh Huyền 050609211964 Võ Thanh Huyền 050609211970 Nguyễn 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 1 INTRODUCTION "In many households, dairy products and ingredients are an important part of daily diets and nutritional needs." The amount and scope of milk transactions are expected to rise in the modern world because to the growing demand for milk and the trend of globalization Vietnam is regarded as one of the Asian nations with a thriving milk production and processing sector in recent times Like many other nations, Vietnam's dairy sector is experiencing a shortage of supplies to fulfill demand from both local and international markets Actually, though, dairy farming was not a historical development in Vietnam; rather, it emerged in the early 20th century In the agriculture sector as of 2021, milk plays a major leadership role As a result, according to Deputy Minister of Agriculture and Rural Development Phung Duc Tien, "the ratio of dairy farming chain links accounts for nearly 100% - the highest ratio in the industrial production industry today." Numerous multinational corporations are leading the way in investing in cutting-edge, high-tech projects; they are also fast to assimilate the world's scientific and technological advancements in technology and are importers of high-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, which has been in place since 2008 In addition, the business consistently provides each client with the advantages that milk unquestionably offers to people of all ages worldwide Dairy products from Vinamilk have been exported to overseas markets, mostly to wealthy nations like the US, New Zealand, Australia, and others, as well as developing nations 2 In particular, to better understand the company's founding history, the workings of the supply chain, and the reasons for Vinamilk's dominant position in the Vietnamese dairy market We will discover more about Vinamilk, the national brand that has been the top nutrition firm in Vietnam for over 45 years Vinamilk has contributed to the growth of the dairy sector and achieved the objective of introducing Vietnamese milk to the market worldwide 3 1 THE INTRODUCTION OF VINAMILK On August 20, 1976, Vinamilk was established on the basis of taking over 3 milk factories left by the old regime and now the company has been operating for more than 45 years Vinamilk not only became the leading nutrition company 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 dairy companies with the highest revenue in the world (Plimsoll Statistics, UK)  Vision “Becoming Vietnam's leading symbol of trust in nutritional and health products serving human life”  Mission "Vinamilk is committed to providing the community with top quality nutrition and quality through its respect, love and high responsibility to human life and society"  Core Values “Becoming the leading symbol of trust in Vietnam in nutritional and health products serving human life”  Integrity Integrity, honesty in behavior and in all transactions  Respect Respect yourself, respect colleagues, respect the company, respect partners, cooperate with respect  Fair Be fair to employees, customers, suppliers and other stakeholders  Morality Respect established standards and act in a manner of morality  Follow Comply with the Law, Code of Conduct and the Company's rules, policies and regulations  Business Philosophy Vinamilk wishes to become a favorite product in every region and territory Therefore, we believe that quality and creativity are Vinamilk's companions Vinamilk views customers as the center and is committed to meeting all customer needs 1.1 Analysis of the Marketing and Management Capabilities Vinamilk has demonstrated strong marketing and management capabilities that have contributed to its success in the dairy industry Key aspects of its capabilities include: 4 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 customer base 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 Document continues below Discover more fQroumản: trị kinh doanh MAG2410 Trường Đại học… 3 documents Go to course Trắc nghiệm None 3 Sca - Nothing 1 None Pttcdn D01 HOA PHAT - Phân tích tài… 26 phương 67% (3) pháp… Tiktok ok - de tai nghien cuu khoa hoc 234 phương 100% (3) pháp… Mid-term test - Không có gì coi 6 phương 100% (1) pháp… Trading HUB 3 5 36 Xác suất 96% (28) thống kê 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 international standard farms, along with 6,000 exclusive revenue contracts Thanks to that, Vinamilk is 100% proactive in the supply of raw fresh milk to ensure 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's herd of 40,000 cows can meet 50% of fresh milk demand raw materials, equivalent to the number of 100 thousand cows through milk purchasing contracts from farmers Outstanding technologies being applied by Vinamilk at cow farms include: Kaizala software: informs farmers about milk quality and milk prices to increase the efficiency of information exchange, thereby helping farmers 6 update news quickly and promptly to take measures to improve quality milk, selling price and income Ration management system (DTM Daily TMR Manager Software Advanced): Helps measure and ensure food quality for cows according to age and stage of development Maintenance software system: Helps manage and plan effective operations for more than 60 motor vehicles and 300 pieces of machinery and equipment on farms Large-scale milking system & Health control system and electronic chip operation: Helps Vinamilk identify, collect and manage data automatically Automatic food pusher (Lely Juno): Automatically pushes food and plays music for cows to relax while eating In addition, Vinamilk's farms are also designed and operated according to environmentally friendly standards, helping businesses effectively use production resources, ensuring the supply of quality raw materials for dairy factories 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, and 5.14% of water usage is a result of circular economy operations Rotate crops on livestock land, and use organic fertilizers instead of chemical and inorganic fertilizers to minimize waste into the environment Biogas systems are used at all Vinamilk farms to reuse waste and reduce carbon emissions into the environment Solar battery systems are installed on farms to save electricity and increase the use of green energy Besides, there are many automation technologies from Europe applied by Vinamilk to optimize milk quality and production costs such as: production lines using German, Italian, and Swiss technology; Danish Niro spray drying technology; 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 7 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 700 billion 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 in partnerships 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 12 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 13 Also according to this report, Google, Youtube and Facebook are the channels that attract the most traffic in Vietnam, however, Vinamilk has only focused on Youtube through Video Marketing campaigns Therefore, Vinamilk has many opportunities to reach customers on the Internet if there is investment commensurate with the development potential of Google and Facebook in Vietnam One of the ways to help Vinamilk take advantage of this opportunity is to learn Unilever's Digital Marketing method to attract potential customers to its Cleanipedia website 1.2.4 Threats 1.2.4.1 The FED is gradually increasing interest rates, putting pressure on foreign exchange rates and operating interest rates in Vietnam The first challenge that Vinamilk faces is the negative consequences of the Federal Reserve - FED's policy of increasing interest rates In order to curb inflation in the US, the FED has continuously increased interest rates from the beginning of 2023 until now, making the USD more valuable when compared to other countries' currencies In other words, for international payment contracts using USD, importing businesses will have to pay more money than before This is a serious problem, because Vinamilk imports a lot from abroad, including raw milk powder and sugar, the most essential ingredients for powdered milk production, which can increase production costs and price of the product Meanwhile, the tool most often used by the Vietnamese government when it wants to keep the exchange rate stable is to adjust the operating interest rate, so it can cause domestic lending interest rates to increase again, thereby increasing interest costs of businesses borrowing from banks like Vinamilk 1.2.4.2 The rising cost of living makes consumers carefully consider spending 14 Vietnam's consumer price index has increased continuously in recent years, which has caused the cost of living of consumers in Vietnam to increase significantly According to McKinsey's 2023 consumer behavior survey results, Vietnamese people tend to save money if the product is not a truly essential item, and they also consider prices more carefully value we receive before considering quality and sustainability factors Therefore, this poses a significant challenge for Vinamilk, because quality and sustainability are the top factors committed to by the company, while the investment budget for promotion, sales, Advertising and market research are being reduced due to revenue and profit problems 1.2.4.3 Economic difficulties after the Covid-19 epidemic caused distribution channels to reduce inventory Another challenge for Vinamilk in 2023 is regulating and balancing inventory and production needs Reality shows that most Vietnamese businesses are being strongly affected by the economic recession caused by the Covid-19 epidemic, including Vinamilk's intermediary distribution channels, and these units must implement currently reducing inventory As a result, Vinamilk's inventory increased in January 2023, while demand for Vinamilk milk in the market has not shown signs of positive recovery, so it will certainly affect production plans of Vinamilk in the second half of 2023 2 MARKETING STRATEGY OF VINAMILK 2.1 Market segmentation 2.1.1 Geographic segmentation Vinamilk clearly understands that geographical areas have different needs and markets Therefore, they conduct market segmentation based on the area Vinamilk provides products based on geographical distribution, from developed urban areas to remote rural areas This 15 helps the company build a strong presence across the country and meet the diverse needs of consumers from all over the country 2.1.2 Demographic segmentation Vinamilk focuses on the group of children, adolescents, adults and the elderly For children is fresh milk, yogurt and useful nutritional products for the best development For teenagers and adults, the company creates fresh milk and dairy products to support health and nutrition For the elderly, Vinamilk focuses on dairy products rich in calcium and useful for bone health Vinamilk meets the needs of customers with different income levels by providing products with appropriate prices and diverse options For high-income customers, the company provides premium fresh milk and yogurt products with high quality and nutritional value For middle and low income customers, the company provides dairy and nutritional products at more suitable prices to meet the basic needs of consumers 2.1.3 Behavioral segmentation Vinamilk has segmented the market according to customers' buying behavior depending on the health status of customers Vinamilk has segmented the market according to the buying behavior of customers who are normal, malnourished and people with obesity, diabetes 2.2 Market targeting Vinamilk's Marketing strategy has successfully applied a focused Marketing strategy to effectively dominate the high-income segment The main segment that Vinamilk's Marketing strategy targets is children from 5 to 14 years old (Vinamilk 2014), this is the age of the developing body, which needs to be physically and intellectually enhanced Vinamilk wishes to improve children's physical fitness and aims to incubate young talents like preschools that are considered the pillars of the national tomorrow (Vinamilk 2016) The first reason why Vinamilk 100% organic chooses this segment is because children make up about 23.2% of the population (Statistic 2020) Second, the middle class 16 population is increasing, and they are starting to focus more on the value of the product than on the price This will result in a 100% organic Vinamilk being able to have more customers (Euromonitor 2020) 2.3 Market position 2.3.1 Market share and Brand positioning Vinamilk ranked first in brand recognition (accounting for 40%) (Euromonitor, 2020) and high-value stocks Regarding rivals Love in farm and Meadow Fresh, these two brands are considered quite new in the market, so the competition is not high As for TH True Milk, this brand has a fast growth rate, is currently trying to take market share from Vinamilk, and is developing sustainably (Positioning map: Brand awareness and market share) 2.3.2 Price positioning In terms of price, Meadow Fresh has both the highest price (40,000 VND / 3 boxes) and the highest calcium level (120 mg) while Dutch Lady has the lowest price (30,500 VND / 4 boxes) compared to other milk brands 17 On the other hand, Vinamilk has a fairly reasonable price (35,000 VND / 4 boxes) and the calcium level (110 mg) suitable for the pocket of most Vietnamese consumers today Because Vinamilk is a popular and leading dairy brand in Vietnam, consumers can easily find this milk in supermarkets, markets, grocery stores or any other retail store In contrast, Meadow Fresh tops both attributes, but because it is considered premium milk, the product on display remains at medium frequency compared to other products (Positioning map: Price and Level of Calcium) 2.4 Product strategy 2.4.1 Product mix Vinamilk is constantly developing its product portfolio to meet the diverse needs of consumers From infants, children, teenagers to middle-aged people, the elderly, and even groups of people with special physiological needs.Vinamilk's product lines always bring nutritional solutions to consumers & this is most evident in the dairy product lines that are committed