(Tiểu luận) vietnam dairy products joint stock company vinamilk

Business model canvas of VinamilkBUSINESS MODEL CANVAS VINAMILKKey partnersKey activetiesValuepropositionsrelationshipCustomerCustomer segments... BUSINESS MODEL CANVAS VINAMILKKey partn

COMPANY STRATEGY

Product

VinamilkistheleadingproducerandtraderofmilkanddairyproductsinVietnamwitha widerangeofproductlinesincludingpowderedmilk(childrenandadults),nutritional powder,freshmilk,yogurt,andmilkpowder.Condensedmilk,icecream,cheese…To producepowderedmilkproducts(childrenandadults)andnutritionalpowders,in additiontousingdomesticingredients,Vinamilkalsoimportsrawmaterialsforservice. productiontomeettheneedsofdomesticandexportmarkets.

MilkmaterialsimportedbyVinamilktoproducepowderedmilkare100%sourcedor sourcedfromtheUS,Australia,NewZealand,EUandJapan.

Vinamilkhasbeenpromotingthedevelopmentoftherawmaterialarea.Thecompany owns12dairyfarms,cooperatesandsignsdirectcontractswithnearly6,000dairy households,managesnearly130,000cowswithanaveragerawmilkoutputof950-1,000 tons/day.AllVinamilk'sfreshmilkproductsareproducedfrom100% rawfreshmilk, ensuringcompliancewiththeprovisionsofCircular29/2017/TT-BNNPTNTdated

Inaddition,freshmilkproducts-100%Vinamilkbrandarecurrentlyleadingintermsof outputandsalesinthefreshmilksegmentandliquidmilkindustry(accordingtoa

Service

Themainbusinessactivitiesofthiscompanyincludeprocessing,manufacturingand tradingfreshmilk,cannedmilk,powderedmilk,nutritionalpowder,yogurt,condensed milk,soymilk,beverageandotherproducts.otherdairyproducts.Vinamilk'sproducts arealsoexportedtoanumberofcountriessuchasCambodia,thePhilippines,Australia andsomeMiddleEasterncountries.Exportrevenueaccountsfor13%ofthecompany's totalrevenue.In2011,Vinamilkexpandeditsproductionactivities,shiftingtothefruit andvegetablesegment.Notlongafterthenewproductsegment,theproductline

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Company

VietnamDairyProductsJointStockCompany,commonlyknownasVinamilk,isa companythatmanufacturesandtradesmilkanddairyproductsaswellasrelated machineryandequipmentinVietnam.

AccordingtostatisticsoftheUnitedNationsDevelopmentProgram,thisisthe15th largestcompanyinVietnamin2007.Vinamilkiscurrentlytheleadingenterpriseofthe dairyprocessingindustry,accountingformorethan54.5%ofthedairymarketshare. water,40.6%marketshareofpowderedmilk,33.9%marketshareofdrinkingyogurt,

220,000salespointscovering63provincesandcities,Vinamilkproductsarealso exportedto43countriesaroundtheworldsuchastheUS,France,Canada,Poland,

Germany,andJapan.Aftermorethan40yearsoflaunchingtoconsumers,Vinamilkhas built14productionfactories,2logisticsfactories,3branchesofsalesoffices,andone factory.milkinCambodia(Angkormilk)andarepresentativeofficeinThailand.In2018, Vinamilkisoneofthetop200companieswithrevenueover1billionUSDinAsia

Vinamilkwishestobecomeafavoriteproductinallregionsandterritories.Therefore,we keepinmindthatqualityandcreativityareVinamilk'scompanions.Vinamilkconsiders customersasthecenterandiscommittedtomeetingallneedsofcustomers.

Internal analysis

Theenvironmentthataffectsthebusinessincludestheexternalenvironmentandthe internalenvironment.Thestudyoftheenvironmentaffectingthebusinessisanimportant contentinstrategicmanagement,theresultsofthesestudieswillbeanimportantstepping stoneforthefuturemanagementprocessofthebusiness.

Theinternalenvironmentofanenterpriseusuallyincludessixfactors:production, finance,humanresources,marketing,researchanddevelopment,andinformation management.

Analysisoftheinternalenvironmentofanenterpriseisthereviewandassessmentofthe aspectsoftheenterprise,therelationshipbetweentheparts,pointingoutthestrengthsas wellastheweaknessesthattheenterprisestillsuffersfrom,whichisthepremiseforthe enterprise.Takingadvantageofandpromotingstrengths,limitations,overcomingand repairingexistingweaknesses,isoneoftheimportantstepsinforminganenterprise's strategy. a.Productionprocess

Vinamilkisaleadingenterpriseintheproductionofmilkanddairyproducts.Vinamilk holdsabout39%marketsharenationwide.Todothis,enterpriseshavemadehuge investmentsinproductiontechnology.Currently,theenterpriseisusingcurrent productionandpackagingtechnologyinallofitsfactories.Thecompanyhasimported technologyfromEuropeancountriessuchasGermany,ItalyandSwitzerlandtoapplyto theproductionline.Uptonow,VinamilkisalsotheonlycompanyinVietnamthatowns asystemofmachinesusingspraydryingtechnologymanufacturedbyNiroofDenmark- theworldleaderinindustrialdryingtechnology.Inaddition,thecompanyalsouses internationalstandardproductionlinesprovidedbyTetraPaktoproducedairyproducts andothervalue-addedproducts.

AprominentexampleofVinamilk'sinvestmentinproductiontechnologyisthe company'scompletionofconstructiontoexpandandincreasethecapacityofTienSon dairyfactory.Thefactoryusesthemostadvancedmilkproductiontechnologyfrom

GermanyandSweden,withacapacityofcondensedmilk:85millionboxes/year,yogurt: 360millionjars/year,liquidmilkandjuice:120millionliters/year.year,icecream:2 millionliters/year

Besides,Vinamilkalsomadeabigbreakthroughintechnologyinpurchasinginputmilk materials.ThisideacamefromtheGeneralDirectorofVinamilkcompany,shewasthe onewhostartedthemovementofraisingdairycowsinthecountry,creatingmaterial areastograduallyreduceimportedmaterialsinthe1990s.Todothis,Vinamilkboldly importedthemostmodernmachinerytoproducepasteurizedfreshmilkandpurchased milkfromfarmersatahigherpricethanimportedmilkmaterials. b.Wattage

Capacitydecisionsincludedecisionsaboutthebestlevelofoutputfortheorganization- neithertoomuchnortoolittle.Specificdecisionsinclude"prediction,workingconditions planning,generalplanning,programming,capacityplanning,queuinganalysis".

Vinamilkhasover200dairyproductsanddairyproductssuchascondensedmilk, powderedmilkforchildrenandadults,nutritionalpowder,freshmilk,yogurt,drinking milk,eatingyogurt,nafhmilk,icecream,cheese,fruitjuice,softdrinks Withtheright developmentorientation,dairyfactories:Hanoi,BinhDinh,CanTho,Saigon,NgheAn inturnwereborntoprocessandproduceproducts.milkproduction.

InAugust2010,VinamilkbrokegroundonthelargestdairyfactoryinSoutheastAsiain BinhDuong.Thisisafactoryspecializingintheproductionofliquidmilkwithaninitial capacityof400millionliters/yearandinphase2willincreaseto800millionliters/year, whichistheMegaFactoryprojectinMyPhuocindustrialpark.Thefactorywentinto operationattheendof2012,meetingthedevelopmentneedsofthesouthernregionof

SpeakingofVinamilk,thecompanycurrentlyhasalargeandsoliddistributionsystem. Vinamilk'sproductsnotonlycreateanameinthecountry,butalsoexpandexportstoa numberofcountries:theUS,France,Poland,Germany,SoutheastAsia, Vinamilk alwaysgivesconsumersthebestproducts.Thebestquality,nutritiousanddelicious productsforhealth.ConsumerswillnothavetoworrywhenusingVinamlik'sproducts. AllagesandsubjectsaresuitableforVinamilk.

Especially,inthepasttime,Vinamilkhasconstantlyinnovatedtechnology,investedin modernmachineryandequipmenttoimprovemanagementandproductqualitytomeet theincreasingdemandsofconsumers Thus,Vinamilkhasaverygoodsupplychainand productmanagement.Thatmeans,Vinamilkisdoingverywellwithitsinventory management. d.Rawmaterialsupply

Obviouslyinaproductproductionline,inputmaterialsoccupyaveryimportantposition. Inordertohaveproductswiththemostcompetitiveprices,enterprisesmustbe self-sufficientinrawmaterials.Incapturingthaturgency,rightfromtheearly1990s,Ms. MaiKieuLien-GeneralDirectorofVinamilkproposedtheideaofraisingdairycowsin thecountry,takingadvantageofdomesticrawmaterials.

"Currently,80%ofdomesticfreshmilkhasbeenpurchasedbyVinamilk.With100% irrigatedmilkVinamilkhascompletelymasteredtherawmaterialsandhasasurplusfor processingyogurtandotherdairyproducts."However,withagrowthrateof25%-30%, thecurrentdomesticmilkvolumewillnotbeenoughtomeetproduction.

NorthtoSouth.Eachfarmwillraiseabout2000cows.Fromhere,thebreedersand raisingtechniqueswillbetransferredtolocalpeople,eachhouseholdwillraiseabout3-5 animals.Thiswillcontributetoimprovingpeople'slives.

Ontheotherhand,inputmaterialsarethefirstimportantfactorthatdeterminesthe qualityofmilk,soVinamilkalwaysfocusesondevelopingthesourceofrawmaterialsto ensureproductqualitytoconsumers.Andtakinggoodcareofdomesticcowsisoneof thefactorsthatmakeupthesuccessofrawmaterials. e.Enterprisefacilities

Thearrangementofproductionfacilities,planningandutilizationoffacilitiesand equipment,andmanagementoftechnicalperformanceoffacilitiesandcapacity utilizationofproductionlines-equipmentandtechnologyProductionisafactorthat needsattention,itwillaffectthelaborproductivityoftheentireenterprise.analysis shouldbecarriedoutinordertoachievemaximumproductioncapacity.

Theabovementionedprocessesperformedwellisaprerequisitefortheorganizationto beabletomanageinputsaswellasmanagepre-productionactivitiesinthebestway, whichcloselyaffectstheproductionprocessandoutput.productlife. f.Quality

Qualitydecisionsensuretheproductionofhigh-qualitygoodsandservices.Detailed decisionsinclude:qualityinspection,sampling,testing,qualityassurance,andcost control.

Five forces model of Vinamilk

Lookingatthemarket,Vinamilkiscurrentlyfacingarelativelyhighcompetitioninthe dairyindustrywithdomesticandforeignbrands.Somecompetitorsarecreatingstrong competitivepressureforVinamilk,including:THTrueMilk,Nesle,Abbott,Mead

Jonson,etc.Inthefuture,thedairymarketwillcontinuetoexpandanddevelop. competitionincreased.

Specifically,indairyproducts,Vinamilkwateraccountsforahighproportionofsales, butfacesbigbrandssuchasTHTrueMilk,DutchGirl,MocChau,etc.Allofthese brandshavemanybrands.Impressivemarketingstrategy,strongfinancialresources focusingonproductresearchanddevelopment.

Inadditiontodairyproducts,Vinamilkalsoownsanumberofotherproductssuchas sugar,cheese,coffee,etc.toservetheincreasingneedsofcustomers.However,these productsdonothavemanyoutstandingpointsbecausetheyareproducedafterotherbig playersintheindustry.

Therefore,thepressurefromVinamilk'scompetitorsintheindustrymustincludethe extremelyhighnumberofcompetitiveenterprises.Fiercecompetitionamongbusinesses inthecompetitionformarketshare.Atthesametime,lowconversioncostsgreatlyaffect Vinamilk'scompetitiveness.

Thecompetitioninthedairyindustryisverylarge,leadingtothepricedifferenceinthe milkmarket.ThismakesswitchingcostsbetweenVinamilk'sdairyproductsandother brandsrelativelylow.

Therefore,customerscanchoosetousemanydifferentbrandsofmilkwhentheyneedto changethetasteorwanttotryanotherbrand.Moreover,today'sconsumersarealso becomingmoreknowledgeablewhenitiseasytosearchforcompleteinformationonthe Internetaboutproductsandcomparethemtomaketherightchoice.Thissignificantly affectsVinamilk'stotalrevenuebecauseoftheconsiderationofcustomers.

ThebargainingpowerofcustomerswhenbuyingatsmallstoreswillnotaffectVinamilk's sellingpricetoomuch.Instead,customerswhoaredistributionagentsandbuygoodsin largequantitieswillhavetherighttonegotiatepriceswithVinamilk.Becauseagentscan directlyinfluencethedecisiontobuydairyproductsofretailcustomersorultimately throughconsultingandintroducingproducts.

MilksuppliersnolongerhavetoomuchinfluenceonVinamilk.Inadditiontofocusing ondevelopingmarketingstrategies,Vinamilkalsopromotesthestrategyofbuildingdairy farmsinVietnam.Thisensuresthesupplyandcontrolsthequalityofitsdairyproducts.

Sinceitsdevelopmentuntilnow,thebrandhashad12largestinternationalstandardfarms inAsia,withaherdof130thousandcows.

Vinamilk'sentirefarmapplies4.0technologyindairycowfarmingandmanagement.The cowsareimporteddirectlyfromtheUS,AustraliaandNewZealand,creatingapremise forVinamilktoobtainthebestqualityfreshmilkproducts.Thisfarmsystemprovides

Vinamilkwith950-1000tonsofmilkperday.Inparticular,grassesexclusivelyforcows arealsoownedbythebrand.Asaresult,milksuppliersforVinamilkaregradually restricted,leadingtoaweakeningofthebargainingpowerfromsuppliers.

Inadditiontobeingself-sufficientinsupply,Vinamilkisstillcooperatingwithsuppliers whoaredairyfarmers.Vinamilk'srawmilkprocurementactivitiesfaceddifficultiesdue totheoutbreakofthecovidepidemic.Animalfeedhasahighcost,sometypesarenotin supply,sothedietofcowschangesgreatlyaffectinghouseholdfarming,leadingtomany farmersbeingforcedtoquittheirjobsbecausetheydonothaveenoughfundstofeed theirlivestock.contrive.Therefore,inthiscase,thepressurefromsuppliersonVinamilk becomesstrong.

Inordertomeettheincreasingexpectationsofconsumers,thefoodmarketisconstantly changingintermsofproductdiversification.Facedwiththissituation,Vinamilkisunder greatpressurefromsubstituteproducts.Theproducteasilyreplacesmilkbutstillfully addsnutrientssuchasnutmilk,soymilk,yogurt,cereal,beveragemixedwithmilk,etc.

Theseproductsareformedfromtheneedsofconsumerswiththedesiretousefat-free drinksbutstillensurehighnutritionalvalue.Thethreatcomesfromsubstituteproducts thatcanreduceVinamilk'smarketshare.However,thisimpactisstillweakbecausethe substituteproductshaveashortshelflife,arenoteasytodrinkanduselikeVinamilk milk.

Themarketisvolatileandhasmanycomplexchanges,itwillnotbeeasyfornew businessestoenterthedairybusiness.Tobuildastrongbrandandcompetewith countlesscompetitorsinthemarket,includingVinamilk,isaverydifficultthing.

ThereasonthatnewentrantscannotcompeteandoccupyVinamilk'smarketshare becauseitrequireshugecoststobuildbrands,operatemachinery,factories,etc.

Therefore,inordertosurviveanddevelopTodevelopandgainthetrustofcustomers, newbusinessesneedtohaveinnovationwithdifferentquality.However,thedifference needstobeparallelwiththecorevaluesofthebrandandcustomers.

Business model canvas of Vinamilk

Key partners Key activeties Value propositions Customer relationship Customer segments

-Develop farms,raise cows -Milking,milk collection,milk processing -Importand exportofmilk, milkmaterials -Milk productionand packaging -Advertising, marketing, sales

-Varietyof dairyproducts (200typesof products) -Highquality, goodfor health,increase height -Goodprice -Easy, convenientto use

-Consultation viawebsite -Consultation overthephone -Study promotion scholarships, schoolmilk, uplandfund,1 milliontrees forVietnam -Events (schools, )

+Accordingtospecial requests(new-bornbabies, mothers,donatingcalcium, )

+Packing(cannedmilk, powderedmilk,liquid milk)

+Distributor,wholesale agent,retailstore, supermarket +Domestic-exported

Key partners Key activeties Value propositions Customer relationship Customer segments

-Develop farms,raise cows -Milking,milk collection,milk processing -Importand exportofmilk, milkmaterials -Milk productionand packaging -Advertising, marketing, sales

-Varietyof dairyproducts (200typesof products) -Highquality, goodfor health,increase height -Goodprice -Easy, convenientto use

-Consultation viawebsite -Consultation overthephone -Study promotion scholarships, schoolmilk, uplandfund,1 milliontrees forVietnam -Events (schools, )

+Accordingtospecial requests(new-bornbabies, mothers,donatingcalcium, )

+Packing(cannedmilk, powderedmilk,liquid milk)

+Distributor,wholesale agent,retailstore, supermarket +Domestic-exported

Pestel

Thelawofacountryisafactorthatgreatly affects the business strategy of an enterprise.

In Vietnam, the element of food safety and hygiene is placed on top of the list and checkedandevaluatedextremelystrictly.

Moreover,eachbrandneedstomeetproductstandardsbeforebeingputonthemarketto providetoconsumers.Specifically,VinamilkhascompliedwiththelawinVietnam, especiallyinthedairyindustrysuchas:

NextistheeconomicfactorinVinamilk'sPestelmodel,theeconomicassessmenthelps businessessetshort-termandlong-termgoals.Vietnam'seconomyisgrowing,alongwith that,consumersarepayingmoreandmoreattentiontohealth.Therefore,ithascreated favorableconditionsforthedairyindustrytodevelop.

● Inaddition,increasinginflationsignificantlyaffectsVinamilk'srawmaterial sources.ThisfactoralsoaffectsthepriceofproductsthatVinamilksellstousers.

AccordingtotheforecastoftheNationalCenterforSocio-EconomicInformationand Forecast(NCIF),MinistryofPlanningandInvestment,onthebasisoftheassessmentof Vietnam'seconomyafterthe2016-2020period,consideringthefollowingfactors:

DomesticandforeignfactorsarelikelytoaffectVietnam'seconomyinthecoming period,NCIFforecaststhatintheperiodof2021-2025,Vietnam'sGDPgrowthratewill reachabout7%peryear,Vietnam'sGDPtrendgrowing,forecasttogrowby7.5%in

Theeconomyisbasicallystable,inflationisat3.5-4.5%/year.Averageannualinflation isexpectedtobearound3.8%attheendof2022,lowerthantheglobalinflationforecast for2022of5.7%inadvancedeconomiesand8.7%inemerginganddeveloping economies.Laborproductivityimprovedwithanincreaseofabout6.3%/year.Withthis growthresult,by2025,Vietnam'sGDPpercapitawillreachabout4,688USD,putting

Ingeneral,people'slivingstandardsarerelativelyimprovedandincreased.Theupward trendofaverageincomewillnotonlycreatehigherpurchasingpowerinthemarketbut alsoleadtodifferentneedsandwantsofconsumers.Theymaybemoredemandingor willingtoincreasespendingonfactorssuchasquality,variety,convenience,aesthetics, etc.Inaddition,anothertrendisincomedistribution.Manydivisionsinthepopulationare alsoanissuethatthecompanyneedstopayattentiontoaftertheoutbreakoftheCovid

19pandemic,increasingtheabilitytospendongoods.People'sincomeandqualityoflife isincreasing,whichmeansthattheneedtospendmoneyondairyproductsincreases, especiallyorganicproducts.

Social factors in Vinamilk's PESTEL model

AsaresultoftheVietnamPopulationCensus2022,thetotalpopulationofVietnam reached99,059,944people.AccordingtoVietnamPopulationpage,theestimated populationby2020ofVietnamis97,338,579people,ofwhichtheurbanareahas

36,772,248people,accountingfor37.70%;theruralareais60,611,331people, accountingfor62.3%.

→Thisisanecessaryfactorforthedevelopmentofthedairyindustryinourcountryand thefactshowsthatthisgreatpotentialhasagreatinfluenceontheincreaseinannualmilk consumptionbyupto30%.concentratedinurbanareas.Atthesametime,living standardsareincreasinglyimproving,whichalsocreatesopportunitiesfordairy businessesinapotentialanddevelopingmarketlikeVietnam.

● 65,823,656peopleaged15to64years(32,850,534men/32,974,072women)

Thepopulationislarge,thebirthrateishigh,theincomeisgraduallyincreasing, materiallifeisimproving,healthissuesaregettingmoreandmoreattention.The campaignstodrinkanddistributemilkforfreetodairycompaniesallcontributeto promotingandopeningexpandingbrandrecognitionandcreatingpotentialmarketsfor Vietnam'sdairyindustryingeneralandforVinamilkinparticular.Awarenessofthe benefitsofmilkincreases,inaddition,parentscareabouttheirchildren'shealthandtryto usemanydairyproducts.Awarenessaboutimprovinghealthandbeautyisalso increasinglyfocused.However,therearestillmanypeople(morethan60%)livingin ruralareaswhodonothavethehabitofdrinkingmilk.Milkconsumptionpercapitain

Inthe4.0era,witheasyaccesstoinformationthroughnewspapers,socialnetworks,the internet,etc.,contributingtoincreasinghumanneeds,Vinamilktookadvantageofthis opportunitytoofferadvertisementsthathitpsychology.,habitsofusingsweetsaswellas cannedgoodsofcustomers.ordairyproducts.Thismakesmarketing,advertisingand productdistributionactivitiesmoreconvenientforcustomers.Atthesametime,oneof thepsychologicalhabitsofVietnamesepeopleisthattheyarelessinclinedtochange theirchoicewhentheybelieveinacertainbrand,soVinamilkeasilyincreasessalesand hasmoreloyalcustomers.Ifthebrandimagequality,highreputation.Inaddition,

Technological factors in Vinamilk's PESTEL model

Science-technologyfactorscreatemanyopportunitiesandalsoexistmanychallenges, forcingbusinessestocarefullyunderstandtocomeupwithmarketingstrategies.Asone oftheinputfactorsoftheproductionprocess,thisisanimportantfactordetermining whethertheenterprise'sproductionactivitiesareeffectiveornot.Therefore,italsoaffects Vinamilk'smarketingstrategy.

Currently,theproductiontechnologyequipmentusedbyVinamilkallmeetinternational standards,usemodernpackagingtechnology,andimporttechnologyfromfamous equipmentsupplierssuchas:TrotaPak(Sweden).),APV(Denmark).Thesynchronous, newgeneration,modern,automaticorsemi-automaticcontrollinesmeettherequirements offoodqualityandsafety.Usingadvancedtechnologyforcattleraisingsuchas:Ethernet network,Bluetoothwirelessconnectiontechnology,Wi-Fiandremoteradiowave identificationtechnologywithRFIDcardautomaticidentificationchip,sensorsystem

Rotatethecowbrush(itstimulatesbloodcirculation,keepingcowshealthy.This improvesmilkproduction,asitproducesmoremilkwhentheyarecomfortable).

Environmental factors in Vinamilk's PESTEL model

Despitethetropicalclimate,ingeneral,naturalconditionsarequitesuitableforthe developmentofthedairyindustry,especiallyintheprovincesofTuyenQuang,Lam

Dong,BaVi,NgheAn,SonLa,etc.However,theclimatesituationinVietnamisa regionwithfrequentnaturaldisasters.

Sometrendsofthenaturalenvironmenthaveagreatinfluenceonthemarketingactivities ofenterprises:Scarcityofsomerawmaterials,increasingenergycostsandenvironmental pollution.Stateinterventionintheuseofrationalandreproducibleresources.

Milkisperishableandeasilydegradedifnotstoredandhandledintime.Thisadversely affectsthequalityofthemilk.Fromhere,itisrequiredtohaveaspecificstrategyto preservemilkandproducehighquality.

Legal factors in Vinamilk's PESTEL model

Thecompanyalwaysfollowsfoodsafetyruleswithproductqualityandhumanfactorsas thefirstpriority.Vinamilkwithaclearlegalpolicy,moderntechnologieswithreliable internationalcertificates,modernproductionlines,andtheabilitytostoreandpreserve milkanddairyproductsarehighlyappreciated.However,thelegalchallengehereliesin thesmalldistributors,theinabilitytohavethenecessaryandgoodenoughequipmentfor storageandtransportationwillreduceproductquality,therebyreducingthequalityofthe product.Affectthecompany'sreputation:

(political),Economic(economic),Social(social),Technological(technology),Legal

(legal).Environmental,majorfactorsthatdirectlyaffectVinamilk'sbusinessenvironment andgrowthability.

Swot

Vinamilk'sSWOTmatrixmodeltohelpyouunderstandmorehowthecompanyhas appliedSWOTinitsbusinessstrategicorientation:opportunities,challenges,advantages anddisadvantagesofVinamilk.

Vinamilkwasestablishedin1976withthemergerofthreeVietnamesedairycompanies atthattime,Dielac,TruongThoandThongNhat.During34yearsofdevelopment,under theingeniousleadershipandstrategicvisionofdirectorMaiKieuLien,Vinamilkhas becomeafamiliarbrandwithawidevarietyofproductlines,qualityandreliability.inthe heartsofdomesticcustomers.

Notonlyhasaningeniousleadershipteamwithastrategicvision,butVinamilkalsohas firmcommitmentsinapplyinganadvancedmanagementmodel.Thisisclearlyshown whenthecompany'smanagementstructureshowssuperiortransparencycomparedto otherVietnamesecompanies.Asaresult,Vinamilkhasachievedmanyoutstanding achievementssuchasthetop50mostvaluablebrandsinVietnamvotedbyForbes

(2016-2020),thetop10sustainabledevelopmententerprises(2016-2020),thetop50 enterpriseswithsustainabledevelopment(2016-2020).Vietnam'sbestlistedindustry (2013-2020),top20highqualityVietnamesegoods(1995-2020)…

Notonlyinvestinginpowderedmilkandliquidmilk,Vinamilkisalsocommittedto developingmorenutritionalproductsfordomesticcustomers.Forexample,in2014,

Vinamilklaunched29newproductsandimproved58existingproductlines.Products include,yogurt(blisterbox,oralform,nosugar,lowsugar),caramelcondensedmilk,soy milk,energydrinks,fruitjuices,fruiticecreamflavors,teadrinksgreen…

Thankstotherichnessinproductvariety,Vinamilk'srevenuehascontinuouslyincreased since2008.Especiallyfrom2014-2017,Vinamilk'srevenuehascontinuouslyachieved double-digitgrowthrate,from6trilliondong(2014)to10trilliondong(2017).In addition,Vinamilkcontinuouslystrictlymanagesitsfinancialsituation.Forexample, from2010-2014,Vinamilkhadnodebt,theprofitmarginwasalwaysabove30%,andthe cashflowconstantlyshowedpositivenumbers.Inrelationtoinvestors,Vinamilkalso constantlyorganizesfactoryvisitsforinvestorseveryyear.Forexamplein2014this numberwas18visitsfor250investorsandshareholders.

ThedistributionsystemisalsoanotherremarkablefactorofVinamilkwhenthis enterpriseisgraduallyexpandingitsdistributionsystemwidelyandspreadacrossthe country.Thisisconsideredadecisivefactorforthesuccessofaconsumergoods enterprisewhenitallowstheenterprisetoeffectivelybringitscoreproductsto consumers.

Vinamilkhasawidedistributionnetworkthroughoutthecountry.Asof2014,this businesshas268productdistributorsfor215,000retailpoints,650largeandsmall supermarketsand74showrooms.Inaddition,Vinamilkalsosignedacontractwith

VietteloperatortodevelopthedistributionmanagementsystemDMS.ONE,inorderto helpVinamilk'ssalesstaffanddistributorsconnectwitheachotherimmediatelyand continuously.

VinamilkownsEuropeanproductiontechnologythatmeetsglobalstandards,Vinamilk's sterilizationequipmentisimportedfromSwedenandotherequipmentissourcedfrom Europeancountries.InternationalstandardssuchasISO50001:2011andHACCPareall appliedtocontroltheproductionsystem.In2014,Vinamilkadded27transferstations thatwereupgradedtointernationalstandards,bringingthenumberofstationsmeeting globalstandardsto45stations.Withamodernproductionsystemthatmeetsglobal standards,Vinamilkhasbeenabletoprovideconsumerswithproductsofinternational quality,helpingthecompanyexpanditsbusinessandachievesalesgrowthexpectations. short-termsales.

ForVinamilktoachieveasmanyachievementsasitistoday,itisnecessarytomention thegreatleadershipeffortsofthedirectorMaiKieuLien.DirectorMaiKieuLienis consideredoneofthecountry'smostsuccessfulandinnovativeentrepreneurs,whohas beenincludedinthelistof50mostpowerfulwomeninAsiavotedbyForbesAsiafor fourconsecutiveyears(2012).-2015).ShehasbeenwithVinamilksinceitsfoundingand isavisionarybehindVinamilk'sprosperousdevelopment.Undertheleadershipof directorMaiKieuLien,Vinamilkhasdevelopedintooneofthemostprestigiousbrands withthehighestrevenueinVietnamandthroughoutAsia.

DependenceonimportedrawmaterialsisoneofVinamilk'sweaknesses.Whendomestic rawmaterialsonlymeetabout30%ofproductiondemand,70%ofsupplyandinput materialratiodependonthemilksupply-demandrelationshipoftheworld.

Currently,about33.6%ofthepopulationlivesinurbancities.Althoughtheproportionof urbanresidentshasincreasedinrecentyears,itisstillfarbelow54%oftheworld average.Intermsofincome,Vietnamesepeoplearestillmainlyinthelowermiddle class.Soifthereisacasewheretheeconomygrowsslowly,theriskofpeoplerestricting theconsumptionofdairyproducts(whichisnotthemainsourceofnutrition)increases.

Lowdairyproductivityandhighpriceofrawmilkintheworldalsoaffecttheprofitof theCompany.Inaddition,theimportofrawmaterialsfromabroadcausesVinamilk's revenuetobesignificantlyaffectedbythedomesticandforeigneconomies.Theworst scenarioiswhenVinamilkisaffectedbytheglobaleconomiccrisis,causingthepriceof rawmaterialstoincrease,andatthesametime,itisaffectedbythehighinflationratein

Notonlythat,changesinforeignexchangeratesarealsoafactoraffectingVinamilk's revenuewhen50%oftheCompany'srawmaterialsareimportedand30%ofrevenue comesfromexports.Ifthereisanyfluctuationoftheexchangerate,itwilldefinitely affectthebusinessactivitiesofthecompany.

Opportunities (Opportunities) of Vinamilk company

ManydemographicanalysisarticlesinVietnamhaveshownthatVietnamisstillafertile groundfordairycompanies,especiallyforVinamilk.Vietnam'stotalmilkconsumptionis stillverylowcomparedtoothercountriesintheregionandtheworld.Dairyproductsfor specialneedsarestillnotpopular,whilethecostofimportedproductsishigh.Therefore, Vinamilkstillhasmanylong-termdevelopmentopportunities.

Nottomention,Vietnamhasahighpopulationdensity,theproportionofpeopletending tourbanizeinrecentyearshasincreased,educationlevelshaveincreased,andtheincome ofthemiddleclasshasgraduallyimproved Theabovefactorscauseanamazingchange intheshoppingbehaviorofcustomerswhoaretargetedbyVinamilk.

Forexample,withanincreasedlevelofeducation,Vietnameseyoungpeoplehavethe opportunitytointeractwithWesternknowledgeandcultures,betterunderstandtheeffects ofmilkonthebody,sotheytendtoconsumedairyproducts.moredairyproducts.The rapidurbanizationofthepopulation,theincreaseinthenumberofthemiddleclass makesthemilkconsumptionrateincrease.Thisistheclassthathasincomeandiswilling tospendonhealthynecessities.

Notonlythat,thenuclearfamilymodel(smallerhouseholds)alsobringsopportunitiesfor Vinamilkwhenparentshavetheopportunitytotakecareoftheirchildren,whichhelps increaseVinamilk'schancesofwinningwhenthecompanyisgrowing.targetingthe children'smarketsegment.Inaddition,thecustomersegmentinruralareasisalsonotout ofsightofVinamilkwhenthisclassaccountsfor46%ofthetotalconsumptionproducts oftheconsumergoodsindustry.Vinamilkispromotinganddistributingmoreproductsin ruralareastoraiseawarenessofthehealthvalueofdairyproducts.・Changesindairy

Specifically,afterVietnambecameamemberofASEANandWTOin1995and2007.In July2010,theMinistryofHealthofVietnamapprovedregulationsrequiringdairy products,especiallymilkforchildren.mustmeetcertainstandards.Orthebudgetforthe developmentofthedairyindustryof2billionVNDby2020,aswellastheapprovalof theinitiativeprogramtoincreasetheaverageheightforVietnamesepeople,orthepolicy ofprioritizingdomesticgoodswiththecriterion"VietnamesepeopleuseVietnamese goods”….

ThesechangeshavehadagreatimpactonVinamilk,actingasbothachallengeandan opportunity.WiththecooperationfromtheGovernment,relevantministriesandagencies, Vinamilkcanappearbeforeconsumersasanorganizationthatcarriesoutcampaignswith manysocialresponsibilities,helpingtoincreasethepluspointsoftheVinamilkbrand.in themindoftheuser.

Currently,Vinamilk'sproductshavebeenexportedtomorethan16countries, contributingabout14%oftotalrevenue.However,Vinamilkstillhasmanyopportunities toexpandexportmarketsanddobusinessabroad.

VinamilkisplanningtoopenmoreretailpointsandstorestointroduceVinamilk's productsinthecountry.Inaddition,Vinamilkalsoplanstodevelopthedomesticsupply ofdairycows,helpingtoreducethefinancialburdenofimportedmaterials.

Asofthesecondquarterof2019,Vinamilkcurrentlyhasmorethan200distributorswith atotalof251,000retailpoints.Forsupermarketchainsandconveniencestores,this businessistryingtocovertheentirenetworkinthecountry.Thenumberofbananamilk

Alsointhesecondquarterof2019,Vinamilkhad12dairyfarmsthatmetGlobalGAP standards.Twoofthe10farmsaremanagedbyThongNhatThanhHoaDairyCompany. ThetotalnumberofdairycowscurrentlyraisedbyVinamilkis30,000.Vinamilk'sdairy farmsystemstillmeetsinternationalstandards,withspecialcareandnutritionaldiets.

Vinamilk,helpingthecompanyreduceitsdependenceoninternationalsupply,thusbeing lesssusceptibletoexchangeratefluctuations.Furthermore,dominatingdomesticsupply givesVinamilkgreatpowerinpricing,allowingthecompanytoofferproductsatvery affordableprices.VinamilkisbyfaroneofthemostaffordablebrandsinVietnamand thismayexplainwhythecompanycompletelydominatesthedomesticdairymarket.

Asmentionedabove,theincreaseinincomeofVietnameseconsumers,especiallythe middleclass,createsagreatopportunityforVinamilk.AccordingtoNielsen'sconsumer report,today'sconsumersaredeeplyconcernedabouttheirhealthandtendtobuyhealth products.Andwhenitcomestohealthsupplements,mostconsumerswillmentionmilk,thesecondfoodinnutritionalproducts.

Inthecontextofarisingconsumermarket,VinamilkhasbeenrecognizedbytheBritish RetailConsortiumforfoodsafetystandards,contributingtotheincreaseinadvantages, salesgrowthandmarketexpansion.school.Itisthebeliefinnutritiousfood,the developmenttrendofthehealthy,high-incomefoodmarketthathasbecomethenext factorforthedevelopmentofVinamilk.

Thetwobiggestanddirectcompetitors,DutchLadyandTHTrueMilk,hold25.7%and 7.7%marketshare,respectively.NottomentionemergingcompetitorslikeLoveInFarm andforeignbrandslikeMeadowFreshorTableCove.

Vinamilksuchasreducingthevarietyofdairyproducts(competitioninnichemarkets), difficultyinmaintainingloyalcustomers,lossofmarketshares.milkintothehandsof competitors…

Notonlycompetingintensivelywithdomesticmilkbrands,Vinamilkisalsofacingmany challengesfromincreasinglyfiercecompetitioninthedairymarket,especiallyfor famousdairycompaniesintheworld.gender.

Vinamilkincompetingwithinternationalbrands.economics.Accordingly,Vinamilkwill facestiffercompetitionormaylosemarketsharetoglobalbrands.However,alongwith theopeningofintegration,Vinamilkcanbuildprocessingplantsinneighboringcountries, therebyhelpingtoreduceproductioncosts.

Astheweaknesshasalsoshown,thedifferencebetweenforeignexchangeratesbetween countriesisalsoathreattoVinamilkinthefuture.With50%ofrawmaterialsimported and30%ofthecompany'srevenuefromexports,fluctuationsinforeignexchangerates haveahugeimpactonthecompany'sproduction.

MilkconsumptioninVietnamisstillverylowwhencomparedtoothercountries.For example,theaverageVietnamesepersonconsumesonly15litersofmilkperyearon average,whiletheThaipeopleconsume23litersandtheChineseconsumeupto25 liters.

ThereasonforthismaylieintheperceptionofVietnameseconsumersthatmilkteethare productsonlyforchildren,drinkingmilkisnotasgoodasrice Thethoughtsingrained inthesubconsciousofconsumersarestillneeded.Vinamilk'singeniousadvertisingand marketingcampaignstry.

MARKETING STRATEGY

Marketing objective

VinamilkisoneoftheleadingdairybrandsinVietnamandisconsideredaleaderinthe country'sdairyindustry.Vinamilknotonlyprovidesdairyproductsandfunctionalfoods forthedomesticmarketbutalsoexportstoothercountriesintheregionandtheworld.To achievethatgoal,Vinamilkhaslaunchedaseriesofmarketingobjectivestomaintainand strengthenitspositioninthedairyandfunctionalfoodmarket.

OneofVinamilk'sMarketingObjectivesistobuildandmaintainaleadingpositioninthe Vietnamesedairymarket.Toachievethisgoal,Vinamilkcontinuouslyupdatesand improvesproductiontechnologytoproducehighqualitydairyproducts,ensuringfood safetyandhygieneandmeetingtheneedsofcustomers.Vinamilkalsoinvestsheavilyin researchanddevelopmentofnewproductstomeetthediverseneedsofthemarket.

Besides,Vinamilkstrengthensexportactivitiestoexpandinternationalmarketsand increaserevenueandprofitforthecompany.Vinamilkhasbeencontinuouslyexploiting anddevelopingexportmarkets,focusingonpotentialmarketssuchasChina,Japan,the USandEuropeancountries.

OneofVinamilk'sotherimportantmarketinggoalsistodevelopnewdairyproductsand functionalfoods.Withthedevelopmentofscienceandtechnology,theneedsof consumersarealsomoreandmorediversified,especiallyfordairyproductsand functionalfoods.Vinamilkhasbeencontinuouslyinvestinginresearchanddevelopment ofnewproductstomeetdiversecustomerneedsandimprovequalityoflife.Vinamilk hasalsodevelopeddairyproductlinesandfunctionalfoodsfordifferenttypesof customerssuchaschildren,theelderly,bodybuilders,andconvenience-seeking consumers.

OneoftheimportantmeanstohelpVinamlikachieveitsMarketinggoalsisthe communicationandadvertisingstrategy.Vinamilkhasbeenusingdifferent communicationandadvertisingchannelstoenhancebrandrecognitionandinteraction withcustomers.Inparticular,Vinamilkhaseffectivelyusedsocialmediachannelssuch asFacebook,InstagramandYoutubetointeractwithcustomersandpromoteitsproducts.Infact,Vinamilkalwaysstrivestodevelopandfulfillitsmarketinggoals,meettheneeds ofcustomersandmaintainandstrengthenitspositioninthedairyandfunctionalfood market.TheseeffortshavehelpedVinamilkbecomeoneoftheleadingdairybrandsin

Marketing mix

Vinamilk'sproductsareverydiverseandrichincategorieswithmorethan200dairy productsanddairyproducts:condensedmilk,powderedmilk,nutritionalpowder,fresh milk,icecream,yogurt,andcheese.Andotherproductssuchas:soymilk,fruitjuice, cake,instantcoffee,bottledwater,tea,instantchocolate.Withawiderangeofproducts, Vinamilkhasfullymettheconsumptionneedsofcustomersandcontributedtospreading risksforthecompany.However,therearealsodifficultiessuchas:management,product preservation,productdistribution Thesolutiongivenistofocusonproductsthatare beingconsumedalot,andremovethosethatarenot.favorandimproveproductquality. Vinamilk'sproductlines:

CondensedmilkistheproductlinethataccountsforthehighestproportioninVinamilk's domesticrevenuestructure.In2007,thisproductlineachievedagrowthrateof38%and accountedfor79%ofthemarketshare.Theaverageincreaseintheperiod2004-2007 was22.7%.

In2007,FreshMilkachievedagrowthrateof18%,accountingforabout26%ofthe company'stotalrevenueandhavingthesecondhighestproportionofrevenue contributioncomparedtoallotherproductlines.Vinamilkfreshmilkaccountsfor35%of themarketshare.Thisisahighlydiversifiedproductlinewithmanybrands.However,

Powderedmilkaccountedfor24%ofVinamilk's2007revenue.Vinamilk(alongwith

AbbottandDutchLady)isoneofthethreeleadingcompaniesintheVietnamesemarket intermsofpowderedmilksales,inwhichVinamilkholds14%marketshare.Salesof powderedmilkarehighlydependentonexports.

Vinamilkdrinkingyogurtaccountedfor26%ofthemarketshareandeatingyogurt accountedfor96%ofthemarketshare.In2007,thisproductlineachievedagrowthrate of10%comparedto2006.Andhadanaveragegrowthrateof26.2%/yearintheperiod

Thisproductgroupincludesmanydifferentproductssuchas:icecream,cheese,flan,soy milk,fruitjuice,purifiedwaterandtea.CoffeeisVinamilk'snewestproduct,withbrands suchasMomentCoffee,TrueCoffeeandKolac.

Proportion of revenue of product lines in the period 2009-2010

Itmaychangeinthedirectionthattheproportionofrevenuefromliquidmilkand powderedmilkproductswillincreaseandbecomethemostimportantproducts;The proportionofcondensedmilkandyogurtsaleswillbelowerbecausethemarketgrowth potentialofpowderedmilkandliquidmilkproductsisgreaterthanotherproducts.The mostimportantcompetitorofVinamilkinthecountrywillstillbeDutchLady,whichhas strongabilitytocompetewithVinamilkonallfourproductlinesofcondensedmilk, liquidmilk,powderedmilkandyogurt.

Vinamilkhascomeupwithsomequitesuccessfulstrategiesincontrollingthequalityof freshmilksuchas:re-signingcontractswithmandatoryterms,absolutelynotaccepting milkfromhiredmilkers…Inaddition,Vinamilkalsocombineswiththejointventure companyCampiatobuildatechnicaltrainingcenterfordairycowsinLamDong Tobe proactiveaboutthesourceofrawmaterialsformilkprocessingfactories,toensurestable andlong-termproductionanddevelopmentpolicy.sourceofdomesticrawmaterials, graduallyreducingimportedmaterials.Thecompanydecidedtoinvestindeveloping formsofclosedindustrial-scaledairyfarmswithmoderntechnology.Itisexpectedthat

Vinamilkwillbuildhigh-techdairyfarmsintheprovincesofNgheAn,BinhDinh,Binh Duong,SocTrang withthescaleofeachfarmraising2,000cows,providinganaverage of30millionliters.milk/year.Thus,basicallysolvingtheproblemofVinamilk'smilk materials.

Thecurrentconsumertrendisveryfocusedonproductdesignandpackaging.Grasping thattrend,manycompanieshavenothesitatedtopourinvestmentcostsintopackaging. Althoughafterthiscampaign,theymaylosetheirpriceadvantage,butinreturn,sales increasemorestronglyandconsumersrememberthebrandmore.

TopreparefortheholidaysandTet,Vinamilkdoesnothesitatetodesignandprintnew packagingtobringmessagestoconsumers.ThecostVinamilkspendsforthismodel changeprogramusuallyaccountsforabout10%ofthetotalcost.Alongwith participatingintheworldmarketaswellasdomesticcompetition,design-packaging alwaysoccupiesanimportantpositioninthemarketingstrategy.Becausethecurrent consumertrendisveryfocusedonproductappearance,beautifullydesignedproducts alwaysreceivetheattentionofcustomers.

Aftermorethan30yearsofoperationanddevelopment,thecompany'sproductssuchas OngThomilk,PhuongNamStar,Dielac,Vinamilkyogurtandotherproductshave becomefamiliarbrandsinthedomesticmarket Byproducinghighqualityproductsand sellingthematreasonableprices,VinamilkisabletoattractalltypesofVietnamese customersofallages.In2007,Vinamilkwasonceagainvotedinthelistoftop100 brandsofVietnam.

"Vinamilk",whichwasvotedasa"FamousBrand"andoneofthe100strongestbrands votedbytheMinistryofIndustryandTradein2018.2006.Vinamilkwasalsovotedin thegroupof“Top10HighQualityVietnameseGoods”from1995to2007.

Tomeettheincreasingdemandsofconsumers,Vinamilkhasconstantlyinnovated technology,improvedmanagementandproductquality.In1999,Vinamilksuccessfully appliedtheQualityManagementSystemaccordingtotheinternationalstandardISO

Currently,Vinamilkhasover200productcategories,allofwhichareofhighqualityand havebeentestedbyinternationalorganizations.Therefore,itiseasytogettheattention ofcustomers.

NationalInstituteofNutrition.Accordingly,thequalityofVinamilkproductswillbe guaranteedbytheprestigeoftheNationalInstituteofNutrition.Thiscreatestrustamong consumers,makingtheconsumptionofgoodsfaster.

Currently,Vinamilkhaslaunchedsomeveryeffectivenewproducts.Inwhich,itmustbe mentioned:weightlossmilk,beerandmomentcoffee.

Currently,obesechildreninVietnamareincreasing,combinedwiththeresearchonthe weightlossmilkmarket,Vinamilkfoundthattherearefewcompetitorsparticipatingin thismarket,thishascreatedtheimpetusforVinamilktolaunchthemarket.newproduct market–“Vinamilkweightlossmilk”andimmediatelyreceivedthesupportof consumers.

Unlikeotherproductsonthemarket,Vinamilkweightlossmilkisbuiltwithaneffective formulaandascientifictreatmentregimeninstages,supportingoverweightpeopleto controltheirweightappropriatelywhilestillmaintainingahealthyweight.Maintainall dailyactivities.

Withthegoalofresearchingandprovidinganeffective,safeandsuitableweightloss solutionforVietnamesepeople,thisproductisanewbreakthroughthatbringspractical benefitstoconsumers.

Currently,beerisaverypopulardrinkinVietnam,asevidencedbytheincreasing productionandconsumptionofbeerinthepastfewyears.Recognizingthistrend,

Vinamilkimmediatelyjumpedintothisexcitingmarketbyformingajointventurewith SABMiller(theworld'ssecondlargestbrewingcompanyintermsofbeervolume)to produceZorokbeerwithatotalinvestmentof27milliondollars.Inearly2007,Zorok beerwasintroducedtothemarketandquicklyattractedtheattentionofcustomers.

Theincreasinglyintegratedeconomy,thepressureofworkalsoincreases.Thisrequires everyonetostayawakeatworkandthemostchosensolutionistodrinkcoffee.Sothe coffeemarkethasheatedupnoticeably.Soonafter,in2005,Vinamilkenteredthecoffee marketwiththemomentcoffeeproduct.However,duetobeingnewtothemarketand facingstiffcompetition,Vinamilkdidnotmakeabigsplash.Unyielding,alongwiththe advantageofveryhighspendingonmarketing(morethan2millionUSD),Vinamilkhas launched seriesofstrategiestodominatethemarket.

Accordingly,momnetcoffeewillaccountforabout5%marketsharein2008,15% marketsharein2009and30%marketsharein2010.

Inshort,Vinamilkhasbeenverysuccessfulinitsproductstrategies.Thesestrategiesare basedonactualneeds,sotheyareeffectiveimmediately.Inaddition,thehugeinvestment costsforadvertisingandintroducingnewproductscreatefavorableconditionsfor bringinginformationtoconsumers.Productqualityisalsoveryfocused,soithascreated trustwithcustomers.Vinamilk'spackagingissimplebutcompleteandbeautiful,soit alsoattractstheattentionofmanyconsumers

Priceisconsideredanimportantcompetitivefactorinattractingcustomersofevery business.Therefore,itisespeciallyimportanttocomeupwithasuitablepolicymaker, helpingVinamilktohaveaneffectivebusinessstrategy.

Vinamlik'smainobjectiveistomaximizeshareholdervalueandpursuebusiness developmentstrategy.Thenthesellingpricewillbecalculatedsothatmaximumrevenue andprofitcanbeincreased.

Inordertoachievethegoalofbecomingadairyandhealthyfoodcompanywiththe fastestandmostsustainablegrowthintheVietnamesemarketwithproductlineswith long-termcompetitiveadvantages,Vinamlikacceptedtolowerthesellingpricetothe lowestlevel.possibletoreachthelargestmarketsize.

Vinamilkfocusesonmakingproductsofinternationalquality,alwaysaimingforthemost perfectresponsetoconsumers,alwayssatisfyingandresponsibleforcustomersby diversifyingproductsandservices,ensuringquality,foodsafetyandhygienewith competitiveprices,respectingbusinessethicsandcomplyingwiththelaw.Inthiscase, Vinamilkoftensetsahighprice,besidestryingtoinfluenceconsumerpsychologyinthe interactionrelationshipbetweenpriceandquality.

In2008,theinvestmentcost(e-Government)wasabout600billionVND(36million

USD)whilethee-Governmentin2007and2006was744billionVND(44.6million

USD)and610billionVND(36.5millionUSD).Totalinvestmentcostsin2008included VND325.6billionfornewinvestmentprojects,VND243.9billionforongoing investmentprojects,andVND30.5billionforannualrepairandmaintenancecosts.

Vinamilkhasusedmanytypesofmodernandadvancedtechnologiesintheworld,with highinvestmentcostsandhighcost.Thesetechnologiesaremostlyimportedfrom famousdairyequipmentsuppliersintheworld.Theequipmentlinesaresynchronous, belongtothenewandmoderngeneration.Vinamilkalsofocusesoninvestingheavilyin InformationTechnology.

The cost of raw materials (mainlypowderedmilkandfreshmilk):usedforproduction accountsforalargeproportionofVinamilk'stotalcostofgoodssold(about89%of productioncosts).Currently,about60-70%ofVinamilk'srawmaterialsareimported

The ability to dominate raw milk prices:Vinamilkiscurrentlypurchasingabout44.5%of domesticfreshmilkproduction(equivalentto30-40%ofrawmaterialsusedin production).Duetotheadvantageofnetworkandpurchasingpolicy,Vinamilkhasa certainadvantageinpriceregulationwhenpurchasingfreshmilk.

Meanwhile,advertisingandpromotionexpensesrangefrom1%to19.2%.Vinamilk's advertisingcostsarehigherthanthecontrolledlevel(10%accordingtoregulations) whichisalsolikelytopushupmilkprices

1.4 Demand, consumer psychology of dairy products

Moreandmorepeopleareinterestedintakingcareoftheirhealth,sodairyproductsare preferred.(especiallypowderedmilk,liquidmilkandyogurt).Thetendencytobuythe mostexpensivetype(psychologicalassociationbetweensellingpriceandquality)also contributestotheincreaseinmilkprices.

Therefore,Vinamilkconductsresearchoncosts,costsandsellingprices,productquality ofcompetitors.

Despitetheraceforprofitsofforeignmilkfirms,Vinamilkhasmaintainedastable sellingpricesincemid-2008untilnow.Currently,Vinamilk'ssellingpriceinthemarket isonlyabout1/3ofthepriceofforeignmilk.

Whenthecurrentproducthasahighvaluetobepositionedinthemindoftheconsumer, thepositioningofthenewproductiscompletelyfavorable.AseriesofVinamilk'sbrands havebeenupgradedsuchas:DielactoDielacAlphawithVinamilkcolostrumcolostrum, FrisotoFrisoGold,DumextoDumexGold.

Forproductswithlowpositioningvalue,Vinamilkusestheformofhighervalue positioningbutkeepsthepriceunchanged.Typicalisthepositioningofpasteurizedmilk andyogurtlines.

Policy:Areaswithlotsofgrasslands,nourbanization,goodbreedingconditionsbut lowerpricesforlong-distancetransportation.Atthesametime,alwaysadjustthe purchasingpriceaccordingtotheseasonandtheworldmilkpricesituation.

Vinamilk'srevenueisforecastedtoincreasebyanaverageof12.84%peryearinthe period2009-2012anddecreaseto7.72%intheperiod2013-2017.Costofgoods sold/revenueratiosareforecastat68.44%in2009andgraduallyincreasetoanaverageof 72.94%in2005-2008,totalsellingandadministrativeexpenseswillbestable.fixedat

15.74%ofrevenue.Idlefundsareassumedtobeusedbythebusinesstorepaydebt, reducingthefirm'scostofborrowing.Thesizeofthefinancialinvestmentisassumedto remainunchanged.

Conclusion:Vinamilk'spricepolicyisquitereasonable.Thedistinctcompetitive advantagecomparedtosimilarproductsistheabsoluteadvantageinmeetingthemajority ofconsumerneedsinallplaces,allgendersandallwalksoflife.

Vinamilk'sdistributionnetworkisacompetitiveadvantagethatisstrongerthanother competitorsintheVietnamesemarket.Thecompanyownsanetworkextensive distributionthroughoutthecountry,whichisfavorableconditionstobringtheproductto alargenumberofconsumers.

Vinamilkhasincentivesforagentssothattheybecomeclosefriendsandloyaltotheir products.Incaseofbreachofcontract,thecompanyresolutelycutitofftosetan exampleforotheragents.

-Theproductgroupoficecream,freshmilk,yogurt:policyofwideexpansionandnot strictrestrictionsonconditions.

Distributionviatraditionalchannels:(220independentferryoperatorsin64provinces andcitiesandmorethan140,000retailpointsnationwide)distributemorethan80%of thecompany'soutput.Vinamilkhasopened14productshowroomsinmajorcities.

Distributionthroughmodernchannels:(supermarketsystem,Metro )Vinamilkhasthe advantagethroughasystemofinvesteddairyfactoriesinmanylocalitiesthroughoutthe country.Withanetworkdistributedevenlythroughoutthecountryaswellasotherdirect channelssuchashospitals,supermarkets,schools Vinamilkhastheabilitytotransfer disadvantagesfromexternalsupplierstocustomers.

OracleEBusinessSuite11isystem:officiallyputintooperation1/2007.Connectto13 locationsincluding:headquarters,factories,warehousesnationwide.

Management-SAP):thisisaneffectiveapproachtoVinamilk'sowncustomers,helping thecompanytofullycollectinformationandcustomerneedsfromthere.makethemost appropriatepoliciestobuildanddevelopthedistributionnetwork.

EnterpriseResourcePlanning(ERP):atooltosupportemployees,allowingVinamilk's distributionnetworkacrossthecountrytoconnectinformationtothecenterinboth situations:onlineoroffline.CentralizedinformationhelpsVinamilkmaketimelyactions aswellasaccuratelysupportplanning.Thecollectionandmanagementofdealersales informationistobeabletorespondpromptly,bringingsatisfactiontocustomersata higherlevel.

Vinamilktherebyalsomanagesthroughoutthepriceandpromotionpoliciesinthe distributionsystem.Meanwhile,theimportantobjectistheendcustomerwhoalso benefitsfromtheincreasinglyimprovedservicequality.

-In2008,Vinamilkinvestedmorethan7000freezersandrefrigeratorsforcoldgoods distributionsystemandmorethan300smalltrucksfordistributors.

-Tosupportitsdistributionnetwork,Vinamilkhasopened14showroomsinbigcities suchasHanoi,DaNang,andHoChiMinhCity.HoChiMinhandCanTho.

-Vinamilkplanstoopenmoremarketingcampaignsanddevelopmoreretailpointsto increaserevenue.Besidesthedomesticdistributionnetwork,thecompanyalsohas officialdistributorsintheUnitedStates,Europe,AustraliaandThailand.Inthefuture, continuetoestablishdistributionnetworkinCambodiaandotherneighboringcountries.

-Experiencedsalesteambothsupportdistributorstobetterserveretailstoresand consumerswhilepromotingthecompany'sproducts.Heisalsoresponsibleforsupporting distributionactivitiesanddevelopingrelationshipswithnewdistributorsandretailers. Salesteamwithexperienceinanalyzingconsumertastesandtrendsregularlyreachesout toconsumersatthepointofsale.

-Vinamilkhasapowerfulandambitiousmanagementteamthathasbeenwiththe companysinceVinamilkwasa100%state-ownedenterprise.Thankstotheleadershipof thismanagementteam,Vinamilkhasachievedmanysuccessessuchasbeingincludedin thelistof10companieswinningtheawardofhighqualityVietnameseproducts continuouslyfrom1995to2007,winningtheInnovationTechnologyAwardofthe company.WorldIntellectualPropertyOrganizationin2000and2004aswellasmany otherawardsoftheVietnamesegovernment.

UnderstandingtheimportanceofAdvertisinginitspromotionstrategy,Vinamilkalways focuseson,promotes,constantlyinnovatesandhasachievedgreatsuccessinincreasing itssales.

-Asacompanyspecializingintheproductionofdairyproducts,whosemilksourceis mainlyfromcows,theimageofcowsisconsideredasthecoreandcharacteristicofeach advertisingclipofVinamilk.Butnotbecauseofthat,theimageofcowsismonotonous andduplicated,butonthecontrary,theyarealwaysvibrant,funny,uniqueandleavean unforgettableimpressionintheheartsoftheaudience(especiallychildren).Dairy productsareobtainedfromthelaborofVietnamesefarmers,hard-working,gentleand cheerfulandhealthycows.Theembodimentofrefreshment,physicalstrength,thereby bringingjoyandhappinessinspirit,thatisatrulybeautifullife.

-Strategiestopersonifytheimageofhealthy,funandactivedairycows.Theimageof green,immense,sunnygrasslands associatedwithitarecheerfulcowsdancing,singing, showingtheirclosenesstonature.Thisisreallyanemotionalimagethathastheeffectof connectingconsumers'feelingswiththeVinamilkbrand.

Forthepasttwoyears,Vinamilk'scommercialshavebeentransformed,notjust"small reminders"whentheyhaveregainedacertainmarketshareagainstheavyweight competitorDutchLady.Vinamilkalsohasverymeaningfuladssuchas:advertisingusing TrinhCongSon'ssongwiththeperformanceofLeCatTrongLyisquitestrange"Living inliferequiresaheart,forwhatdoyouknow?,letthewindblowitaway,letthewind blowitaway”…Thefilmisnotaboutthegoalofintroducingproductsbutpromotingthe labelbecausetheaudiencealready"knows","understands"and"tick"abouttheproducts. byVinamilk,thefilmonlyfulfillstheultimategoalof"action".Skillfullyharmonizing emotionandreason:theaffectionbetweenpeoplewithasharedheart-thegiver,the receiver-andrationalaction…usingmoneytobuyVinamilkmilk.

Investinginbuildingconsumertrustisalong-termprocessthatrequiresahugeand long-terminvestmentinmarketing.TheincreaseinbrandvalueforVinamilkaswellas theincreaseinsales,marketshareandprofitintheshortandlongtermhasconfirmed: theresultsobtainedexceedthecosts.

Regardingadvertisingmedia:withtheaimofbringingitsproductstothemajorityof consumers,Vinamilkusesallformsofadvertisingsuchastelevision,radio,newspapers, outdooradvertising

Inaddition,Vinamilkhasreceivedlifelongsupportfor20VietnameseHeroicmothersin BenTreandQuangNamsince1997(todate,thereare13VNAHmothersleft).

+Building72housesofgratitude,120housesofcompassion,contributingtogratitude funds,fundsforthepoor,fundsforhungereradicationandpovertyalleviation,fundsfor youngtalents,fundsforvictimsofAgentOrange,supportforthecompatriotsfloods, tsunamivictims…

-Advertisewiththemessage"100%purefreshmilk"(hundredpercent,hundredpercent, hundredpercentpurefreshmilk)toattractandregaincustomers'trustafteraseriesof articlesaboutthefreshmilkproductswithaveryhighpercentageofpowderedmilk.

Vinamilkwasthefirsttoexploitthispointinitsadvertising.Thisisastrategytofollow publicopinion,totakeadvantageofopportunitieswhileconsumersaredisappointed becausetheyhavebeendeceivedbymanufacturersforsolong.Themessage"hundred percent"repeatedoverandoverwillbeengravedinthecustomer'smindwhetherthe customeraccidentallyorintentionallyhearsit.Fromthisad,perhapsVinamilkhopesthat customersofotherbrandswillturntosupportVinamilkwith100%purefreshmilk.

SALE STRATEGY

Sales activities

The line and staff sales department is often found inlargeandmedium-sizedfirms,employing substantialnumbersofsalespersonnel,andsellingdiversifiedproductlines over wide geographic areas In contrast to the line organization, the line and staff organization provides the top sales executive withagroupofspecialists-expertsindealer and distributor relations, sales analysis, sales organization, sales personnel, sales planning, salespromotion,salestraining,ser-vice,trafficandwarehousing,andsimilar fields This staff helps to conservethetopsalesexecutives’timeandfreesthemfrom excessively detailed work Theymakeitpossiblefortheirchiefstoconcentratetheir effortswheretheyhavethemostskill.Ifthetop sales executive is not equipped, through prior training or experience, to handle certain problems, staff specialists assist in increasing over-all effectiveness ofthedepartment.Similarly,bydelegatingproblems involving considerable study or detailed, analysis to staff executives the top sales executive has more time for planning and for dealing with higher-priority matters.Therefore, this organizational structure is verysuitableforVinamilk,because Vinamilk is a large enterprise and hasawiderangeofproducts,itisveryreasonableto applythissalesorganizationalstructure.

There are two major types of features in a line-staff organization They include: Line positions

Theemployeesthatfulfilllinepositionsmakedirectcontributionstothemissionofthe company.Theyhandletheresponsibilitiestohelpthebusinessrunsmoothly.Line positionscaneitherincludemanagersorentry-levelemployees.Thelinemanagermay designobjectivesforimprovingthequalityoftheworkandcreatemilestonesforthe departmentortheorganizationasawhole.Thelinepersonnelmembercompletesthe tasksthelinemanagerdesignates,whichmayincludebuildingaproducttosellto consumersorfulfillingaclientrequest.

Forexample,aVinamilkretailstoremightuseanonlineemployeeorganization.Line managersmayincludestoremanagerswhooverseesalesgoalsandjobcreationforall employees,aswellasdepartmentalsupervisorswhomanageproductiondepartments. product.Onlinestaffcanincludepart-timeassociateswhorestocktherightdepartment andprocesscustomerpayments.Eachonlineemployeecompletesthejobendingthe maingoaloftheretailstore,whichistoselldifferentproductstothecustomers.

Staffemployeesassistthelineprofessionalsinachievingorganizationalgoals.Thereare alsomanagerialandlower-levelemployeeswhoholdstaffpositions.Thestaffmanagers areexpertsintheindustry,providingrecommendationstolinemanagersonhowtolead theirdepartmentstosuccess.Theyalsoholdahigherrankoverallpersonnel,including lower-levellinemembersandstaffmembers.Thestaffemployeessupporttheirline counterpartswithhandlingtheiroccupationalresponsibilities.

Forexample,inaVinamilkretailstore,anemployeemanagermightbeaquality assurancecoordinatorwhoevaluatesthevisualpresentationofmerchandiseand recommendsproductpositioningtoAttractcustomersbetter.Staffmayincludean employeewhokeepsthesalesareatidy,Preventsandtrackspurchasesmadeinaday.

The advantages of a line-staff organization include:

Professionalsinstaffrolescanbeself-sufficientintheworkenvironment.Sincethey oftenhaveexpertiseintheirindustry,theycansupporttheworkoflineemployees withoutclosesupervisionstructures,whichiscommoninlineorganizationalstructures. Theindependencecanenablestaffemployeestobemoreproductive,allowingthemto increasetheirconfidenceintheirrolesandleadtheirlinecounterpartsintheright direction.

Anotheradvantageoftheline-stafforganizationisthepresenceofexpertsinthe company.Lineemployeescanhandletheirworkloadsunderthequalifiedadvisementof professionalswithindustryknowledge.Theexpertisecanenhancethebusiness's operations.Anexampleofastaffprofessionalisahumanresourcesmanager.Theymay understandemploymentlaw,organizationalbudgetingandcompanypoliciesmorethan anyotheremployeeintheorganization.Theycanadviselinemanagersonbestpractices forcommunicatingwithlinepersonnel,addressingtheirneedsandrecruitingnew employeestothedepartment.Theirguidanceenablesthelinesupervisorstoadopta bettermanagementstyle.

Publicrelationspractitionersrepresentanotherexampleofstaffmanagers.They're expertsatbuildingrelationshipswiththemediaandpreservingacompany'sreputation. Theycanworkwiththemarketingdivision,agroupoflineemployees,andrecommend waystoattractpositivepublicityandimprovethecompany'sstandingwiththepublic.

Theflexibilityofaline-stafforganizationcandecreasetheworkloadoflineemployees. Inatraditionalorganizationalstructure,leadersmaydependonlineprofessionalsto applyindustryknowledgetotheirworkwhilesatisfyingthecompany'scoreneeds.Yet,a line-staffstructurealleviatestheneedtodoboth.Instead,thestaffemployeessharethe responsibilityofgatheringinformationaboutthefield,whichallowslinemembersto focusonattainingthecompany'spurpose.

The potential disadvantages of a line-staff organization include:

Adrawbackofaline-stafforganizationisthepossibilitythatpersonnelwouldbeunable todifferentiatebetweentheauthorityofstaffsupervisorsandlinesupervisors.The overlappingleadershipcancauseconfusionintaskassignmentsandworkexpectations. Toremedythedisadvantage,businessescaninformlower-levelemployeesoftheidentity oftheirdirectmanagers.Theycanalsoadvisestaffmanagerstoprovide recommendationsonlytotheirlinecounterparts,allowingthelinemanagerstodirect entry-levelstaffwithoutinterference.

Anotherdisadvantageofaline-stafforganizationismisusingtheexpertiseofstaff professionals.Companiesmayhireindustryexpertstocompletetheworkofline employeesandnotgivefieldadvice,whichcandefeatthepurposeoftheline-staff structure.Duringtherecruitmentprocess,organizationalleaderscandiscussdetailsofthe positionandhireprofessionalsaccordingly.

Managerialpositionsoftengarnerhigherwages,whichrequiresmoremoneytoattract qualifiedcandidates.Likewise,staffemployeesmayrequestgreatersalariesduetotheir industryknowledge.Themoreemployeescompanieshire,themorefundstheymayneed toallocatetowardsalariesandbenefitspackages.Ifreservingfundsisapriorityforyour organization,itmaybebeneficialtohireonestaffmemberatatimetoexperiencethe benefitsofaline-staffstructurewithoutcommittingabulkofyourfinancialresources

Vinamilk'sproductlinesaredevelopedforchildrenandteenagersbecausethisagegroup hasthegreatestdemandformilkanddairyproducts.Vinamilkdividescustomersintotwo targetgroups:

Individualcustomers:aretheendconsumerswhohavetheneedtobuyandarewillingto paytobuydairyproducts,especiallyfathersandmotherswithsmallchildren.Thisisa groupofcustomerswithrelativelydiverseproductneeds(goodproductquality, nutritionalvalue,reasonableprice,packagingdesign,etc.)andusagerateaswell.so important.High.

Customerorganizations:aredistributors,wholesalers,retailers,shops,supermarkets,etc., whowantandarewillingtodistributethecompany'sproducts.Thisisagroupwith requirementsfordiscounts,salesbonuses,ordersonschedule,etc.relatedtoproduct distribution.

Vinamilkapproachescustomerswithmulti-channelproductadvertisingandmarketing strategiesOneofVinamilk'smarketingstrategiesistoutilizeavarietyofchannelssuch asTV,radio,billboard,fanpage,television,etc.toadvertiseproducts.itsproducts.With themulti-channelproductadvertisingstrategy,thecoveragehashelpedVinamilk successfullydeployitsMarketingcampaigns.

OnthesocialnetworkFacebook,Vinamilk'sFanpagehas626,267likesand637,313 followers.Thisisachannelforthecompanytospreadthebrandtoreachmore customers.

Vinamilkregularlypublishespoststoadvertiseproducts,promotions,contests,etc.onits fanpage.Inproductadvertisementposts,Vinamilkalwaysemphasizesonthebenefitsthat customerscanownwhenusingthisbrand'sproducts.Besides,theattractive,uniqueand eye-catchingimagesarealsoaUSP(UniqueSellingProposition)ofVinamilk.

Vinamilk.Theadvantageoftelevisionadvertisingisthatitcanbothplayaudioand imagestohelpcustomerseasilyrecognizethemeaningsandcommunicationmessagesof thebusiness,helpingVinamilk'sadstoattractcustomers.

InVinamilk'sadvertisements,imagesofgreen,vast,sunny,close-to-naturegrasslands oftenappearalongwithimagesofhealthyandactivedairycows.Thesearereallyvivid andemotionalimagesthathavetheeffectofconnectingconsumers'feelingswiththe

AtypicalTVCadvertisingcampaignofVinamilkcanincludethecampaign"6million glassesofmilk".Inthisadvertisement,theimageofballsbringingVinamilkmilkcartons topoorchildrenwithboldhumanityalsohelpsVinamilkattracttheattentionof customers.

Determinetheneedsofcustomerstousetheproductthroughthepurposeofusingtheir product.Then,thesalespersondeterminesthebuyingstyleofeachindividualcustomerin thefollowing4buyingpatterns.

Asthenamesuggests,inthisbuyingbehavior,customersoftengothroughtheprocessof learning,selectingandevaluatingalotofdifferentinformation.Thedecision-making processforthisbehaviorisoftenlengthy,andrepetitive.Theeasiestexampletoimagine isbuyingrealestateorbuyingacar.Intheprocessofbuyingrealestate,customershave togatheralotofinformationsuchasarea,location,utilities,legaldocuments, procedures,fees,charges worksforreference,observationandthendecision-making. Sofortheseproducts,marketersneedtobepatient,providecustomerswithallthe informationtheyneed,andguidesellerstosuccessfullyclosesales.

Inthisbehavior,customerswilloftenseekvarietythroughbuyingmanydifferenttypesof productsandbrands.Thisbehaviorisnotenoughevidencethatcustomerslackloyalty, butsimplythattheyliketodiscovernewfeaturesofdifferenttypesofproducts,or simply,theyarechangers.Forthistypeofbehavior,inordertominimizethe

"changeability"ofcustomers,marketersshouldfocusonspreadingwidelyonstore shelves,presentineverydistributionchanneltocreateconvenienceforcustomers, therebyreducesbrandcomparison,graduallypushingthemtowardsmorehabitualbuying behavior.Incontrast,competitorscanpreventthisbyofferingdiscounts,promotionsat thepointofsale,creatingnewvalues,compellingreasonstobuythatattractinterested customers.

Forthisbuyingbehavior,customersusuallydonottaketoomuchtimeandefforttomake adecision.Habitualbuyingdecisionstakeplacewithessential,everydayconsumer products,thedifferencesbetweenbrandsarenegligible.Therefore,marketersneedto createpromotionsatthepointofsaleto"pull"customerstowardsthem.Ordesign productsthatarepricedsothatthereisarelativedifferencetoattractcustomers.

Forthisbuyingbehavior,customersoftengothroughtheprocessofsearchingand filteringinformationaboutproducts,buttheyfinditdifficulttofeelthedifferenceofeach brandtheychoose.Therefore,customersareofteninclinedtodecidewheretobuy convenientoraffordable.Typicalforthisbehavioristhegroupofproductsandservices. Becauseoftheintangiblenatureoftheservice,itisdifficultforcustomerstotellthe differenceunlesstheyhavetoexperiencetheproduct.ForexampleInsuranceservice.

Therefore,whatmarketersneedtodoisincreasecustomerconfidence,helpcustomers reduceanxietywhenbuyinganunsatisfactoryproductbygivingitatry,orgiving enthusiastic,thorough,warrantyandguaranteeadvice.guaranteeforcustomers.

-VinamilkOrganicfreshmilkhasmanynutrientstohelpthebodyprovideenough nutrientsandincreaseresistance.Inparticular,inchildren,italsohelpstoincreaseheight, weightandbraindevelopment.

-OrganicVinamilkfreshmilkcontainsalargeamountofOmega-3.Thisisanessential fattyacidforgrowthandphysicalimprovement.Dairyproductsarealsorichin antioxidants,whichhelpslowdowntheagingprocessandimproveeyesight.

-Accordingtoresearchbyscientists,thecompositionofLinoleicacidinOrganicmilkis upto500%higherthanmilkfromnormalcows.Inparticular,thisacidhastheabilityto limitandpreventthegrowthofcancercells.

-Bringingabsolutesafetytothehealthofusers:Withthestandardof3noinanimal husbandry,inthecompositionofmilk,therearenoresiduesofgrowthhormones, antibiotics,orfoodprotectiondrugs.

-AspecialfeaturehereisthattheproductionofVinamilkOrganicpasteurizedfreshmilk isveryenvironmentallyfriendly.Becauselivestockfarmingiscompletelyfree,cowscan freelyrunandjumpinthefield,withoutusingpesticides,orpesticidestosprayonthe grassorplantfoodofcows.Thiscontributestoreducingpollutionofwater,soil,air,etc.

In case a customer refuses to use Vinamilk's products because they are using a competitor's product, the sales staff should:

Salesstaff:“Sir,it'sgoodthatyouareusingthissolutionfromacompetitor.ButIalso hopeyouconsidermoreaboutmycompany'sproducts.Ifirmlybelievethatmy company'sproductswillhelpyouachieveyourgoals(health)evenbetterthankstothe product'sstrengths(Vietnam'sleadingorganicVinamilkmilk).

Inaddition,youshouldalsodigdeeperintothesatisfactionlevelofpotentialcustomers withcompetitors'productsandjudgeifthereisanythingthatcustomersarenotsatisfied with.

Ex:Whydidyouchoosethisproduct?Didtheproductmeetyourneeds?Whatareyou notsatisfiedwithabouttheproduct?

Cleverlyaskingquestionsthatexploitcustomerdissatisfactionaboutacompetitor's productwillmakethemthinkaboutaspectstheydon'tlike(possiblythingstheyhaven't thoughtofbefore).).

Giveyourprospectthespaceandtimetothinkaboutthesequestions.Thenit'stimeto startsowingdoubtsinthemindsofpotentialcustomersaboutwhetheryourcompetitors arereallythebestserviceproviders.

Forexample:Whenbuying1cartonofVinamilkmilk,customerswillhavethe opportunitytoown1setoflearningtoolsandbackpacksforchildrentogotoschool.

Thisisaneffectivewaytoclosethesalethatyoushouldapply.Becausemostcustomers willwonderalotabouttheprice,thedecisiontobuyornotorotherfactorsthatindirectly affectcustomers,theyarenotsure.

Ex:Thereareonly10promotionalgiftsleft(schoolkitsandbackpacks)forthelast10 customers,youshouldregisternow.

Provideinformationaboutproducts,nutritionalvalues,effectscombinedwithchildcare advice.Fromthere,youcanlistentocustomersmoredeeply.

D–goal-oriented,results-oriented,work-oriented,proactive,dynamic

Step3:Lookatyoureyes,shoulderwidth,gestures,etc.

1.Yessir/madam,afterIintroducedmyproject,Idon'tknowifyoustillhaveanydoubts abouttheproject'soperationprocesssothatIcanexplainitinmoredetail?Ornext,Iwill presentabouttheresultsandbenefitsthatafteryouusemyservice?

2.Yessir,mayIaskthatbeforeyouusemyservicesandadvice,Idon'tknowwhatmakes yousatisfiedorunsatisfiedwhenusingtheservicesandadvice.questionbefore?

1.Salestaff:Yessir/madam,afterIintroducedmyproject,Idon'tknowifyoustillhave anydoubtsabouttheproject'soperationprocesssothatIcanexplainitinmoredetail?Or next,Iwillpresentabouttheresultsandbenefitsthatafteryouusemyservice?

Customer:Idon'thavemuchtime,Iwilltalkabouttheprofitaftertheinvestmentthat youwillgetwhenyouinvestinyourproject.

Customer:Before,Iinvestedintheothersideoftheland,buttheproceduresweretoo cumbersomeandtheproducttherewasnotgood.

-Inthefirstquestion,basedonthecustomer'sanswer,theyaremoreinterestedinthe resultsandprofitsachievedthantheproject'soperationprocess.

-Inthesecondquestion,basedonthecustomer'sanswer,aretheyinterestedinthe project'sproductornot?Morethanwhotheywillbeconsultedandworkedby(the humanfactor)

Therefore,wecanconcludethattheabovecustomerbelongstogroupDintheDISC model.Becausetheycareaboutthebestresultsandproductswhentheyusetheir services.

Step 1: Start conversation with customer

Introduceyourname,sayhellotogettoknowcustomers.Dependingonthecustomer group,salespeoplehavedifferentwaysofoffering.

Step 2: Start the conversation with the most effective customer: Understand the potential customer (identify the common problem)

-Whydoyouwanttobuyahomerightnow,andwhatisyourbiggestrequestforthis home(helpingtheclientsolvetheproblem-wanttoheartheclient'sstory[previous pain]that]–startaconversationwithaquestion)

(Askaminingquestion):Yes,mayIaskthis?Ialsoknowthatinthemarketthereare manypartiesthatareprovidingsimilarproductstome,whydoyoucometome?(Are products,companies,salessuitableforcustomers?)Idon'tknowhowtheprevious experiencewas,areyousatisfied?(Difficulty“painpoint”–pastorpresentexperience)

(Askanexploitativequestion):Yes,soallowmetoaskwhatcriteriawillhelpyouchoose asatisfactoryproduct/suitableforyou?(Expectations–criteria)[Findoutwhatcustomers wantabouttheproduct]

Step 3: Present your solution (overall)

Combiningstep2andstep3,afterlisteningtothecustomerandpresentinganoverview oftheproject,thisisthetimewhenthesalespersoncomesupwithaproductthatmatches thecustomer'swishes,highlightingthebenefits.thatthecustomerwillreceivewhenthe customerusestheproject'sproduct.

(Providingasolutionthatbenefitscustomers):Afterpresentinganoverviewofthe project,Ifindthatthisproduct(1unit2bedrooms)isverysuitableforyourneeds.Idon't knowhowdoyoufeel?

Commoncustomerobjectionscanbeclassifiedinto5maingroupsofreasons,including:TH1:Groupofreasonsforprice

Salestaff:Here,Iinviteyoutorefertothisapartment,thisisanapartmentwith1 bedroom,1kitchen,however, [iftheproduct'sadvantages],stillmeettheexpectations. Mywishisabouttheprice.

Ifapotentialcustomersaystheyneedtimetothinkabouttheirpurchase,thatmeans they'restilluncertainaboutthevalueofyourcompany'ssolution.Sodon'tletyour customersthink,findoutwhatthey'renotsureabout.

Example:"Yes,ma'am,Iunderstand.Sisterlikewediscussed,nowyouarewanting

[customerneeds].Idon'tknowifyoucansharewithmewhatyouneedtothinkabout more?Iwilltrymybesttohelpyou.”

Aresponseliketheoneabovecanhelpyoubuildastrongerrelationshipwithapotential customer,asitshowsconfidenceinthesolutionyou'reselling.Fromthere,customers willhavelesschanceofrejectingyou.

Inthiscase,youcanhandleitbycontactingthedecisionmaker.Asktheprospectforthe nameandinformationoftherightpersontotalkto,andthendivertthecalltothem.

VD:"Yes,thankyou.Canyougivemethecontactofthepersonresponsibleforthis issue?CanyouhelpmeconnectwithMr.A?"

-Inquireandtakestepsintheprocessoftakingcareofrealestatecustomersinorderto buildareputableandqualityimageofthecompany.Thisisthebestimage-building promotionandafreesourceofadvertisingyoucanuseinthelongrun.Don'tjustignore thelong-termbenefitsforthesakeofshort-termgain.

-Theapplicationofmoderntechnologytotherealestatecustomercareprocesssuchas emailmarketing,facebook,zalo, aregreatwaysforyoutocommunicateandinteract withcustomersregularly.

-Thecontentofemails,messages, maycontaininformationsuchas:fluctuationsinthe realestatemarketinthearea,attractiveprojects,realestateinvestmenttrends,market prices,etc

-Inorderforcustomerstorememberyourbusiness,youneedtoprovideinformationand remindersaboutthesystemofrealestateproductsthatyouareproviding,whichisthe laststepintherealestatecustomercareprocessthatyoumustnotignore

Lũykếcảnămnăm2022,tổngdoanhdoanhthuầnđạt60.075tỷđồngvàlợinhuậnsau thuế8.600tỷđồng,giảmlầnlượt1,5%và19%sovới2021.Năm2021,Vinamilkcán mốcdoanhthucaokỷlụctronglịchsửhoạtđộng61.012tỷđồng(tăng2,2%sovớicùng kỳnăm2020),tuynhiêngiánguyênliệuvàcướcphívậnvậnchuyểntiếptụctănglà nguyênnhânnhânchínhkéolợinhuậnđilùi.

Biểu đồ doanh thu từng năm của Vinamilk

Doanh thu từng quý năm 2022 của Vinamilk

Doanh thu thuần năm 2022 và mục tiêu doanh doanh thu những năm tới của Vinamilk

Trongbốicảnhkhókhănchungcủanềnkinhtếvàngườitiêudùngđangthắtchặtchi tiêu,Vinamilkđặtmụctiêudoanhthunăm2023tăngtrưởng1chữsố,lợinhuậntrước thuếđingang.Năm2023,Vinamilkđặtkếhoạchtổngdoanhthu63.380tỷđồng,tăng

~5%sovớithựchiệnnăm2022.Lợinhuậnsauthuếdựkiếnđingangsovớinămngoái, ởmức~8.600tỷđồng.Lợinhuậnsaucổđôngcôngcôngtymẹkỳvọngđạt8.500tỷ đồng.

Mục tiêu doanh thu và lợi nhuận theo từng quý năm 2023 của Vinamilk Trongnămnay,cùngbốicảnhnhucầutiêuthụsữakhóhồiphục,banlãnhđạokỳvọng nhucầutiêuthụsữaghinhậnmứctăngtrưởngmộtconsố,dưới5%sovớinămngoài trongnăm2023.Bêncạnhđó,Vinamilkđangphảiđốimặtvớiáplựccạnhtranhngày càngtăngởhầuhếtcácdòngsảnphẩm,đặcbiệtlàởphânkhúcsữabột.

Training and recruitment programs of the company

Thenextstepistodecidehowmanytasksthebusinesswillneedtocomplete.Businesses willhavetoevaluatetheamountofworktobedoneinthefieldofSales.This informationwillhelpbusinessesplantheiremployees.Identifydifferentwaystofulfill thoseskills. b) Identify sources and methods of recruitment

Vinamilkisespeciallyinterestedinfuturehumanresourceswhoarestudentsstudyingat universitiesacrossthecountry.Especiallyforstudentswhoarepassionateaboutsales becauseVinamilkisthelargestdairygroupinVietnamwithmanyproducts,sotheneed torecruitsalesstaffisverylarge.Therefore,businesseshavemanymethodsand recruitmentprogramsspecificallyaimedatthisaudience.Specifically,theVinamilk

TraineeAdministratorProgram2020andtheAnnualInternshipProgram.Inaddition, Vinamilkhassponsoredscholarshipsformanyexcellentinternationalstudents,creating favorableconditionsforthemtocompletetheinternshiprequiredbytheUniversity program,manyofwhichhavebeendiscoveredbyVinamilk.andchoosetowork long-termwiththeCompany.

Recruitmentactivitiestakingplaceoncampuspartlyhelpstudentsconfidentlyshowtheir abilitiesinfrontofemployers.(AccordingtotheannouncementonVinamilkwebsite) c) Prepare procedures for the organization to recruit sales staff

Stepstopreparetherecruitmentorganizationneedtoidentify: ãTypesofdocumentsandregulationsonrecruitmenttofollow. ãNumberofemployeesrequired. ãStandardsofstafftoberecruited. ãNumberandcompositionoftherecruitmentcouncil. ãPowersandresponsibilitiesoftherecruitmentcouncil. d) Recruitment Notice

Vinamilkhasappliedthefollowingformsofrecruitmentnotice: ãRecruitingovertheinternet. ãThroughtheintroductionofthestaff. ãAdvertiseinnewspapers,radioandtelevision. ãThroughsendingrecruitmentstafftotraininginstitutions. ãThroughjobfairs. e) Evaluation of the recruitment process

2 Sales selection activities at Vinamilk

Thecontentofthisprocessistoguideandassignresponsibilitiesinlaborrecruitment,to ensuretheprovisionofresourcesinaccordancewiththeCompany'splansandpolicies. Step 1: Make a recruitment request

Itistheopeningstepintherecruitmentprocessandisconsideredanimportantstep mostimportantofallthesteps.Becauserecruitingpersonnelisaprocess complexandresource-intensive(time,effort,cost ),requires

Stage 2:Recruitmentannouncement:Thisisthetimewhencandidatessubmittheir application,itwillbe10days.

Stage 3:ReceiptandprocessingofCVs:Thisisthetimewhenemployersreceiveall applications.screenthoseCVstoremoveunsuitableones,itwilltakeabout5days

Arrangeandscheduleinterviewswithcandidateswithdifferenttypesofinterviews together.Thisisastepthathelpsemployersassessthecandidate'sabilityandactual experience.Withadurationof5-10minutes,boththerecruiterandthecandidatewill giveQ&Ascreenstobetterunderstandtheposition.

For example: Employers may pose a number of situations that can happen in reality and ask sales candidates to solve, such as:

The next shift employee has an unexpected problem, so he comes to work late or can't come to work in time to tell the manager or he himself has an unexpected problem, so he is late or can't come.

The customer asked to buy milk but it was out of stock.

Customers come to complain because the milk has a problem, the milk has expired

Inaddition,throughprofessionaltests,IQ,logic,leveltests foreignlanguageandpersonality,employerswillbeabletoassesstheactualcompetence of candidate.Testsandtestsareoftenusedtoevaluatecandidates

Forcorporationsinthesameindustry,onlyVinamilkhasthisround buthardlyanydifferencefromstandardprocedure(interviewround deep).ForSalescandidates,thisisprobablythemostdifficultroundbecauseinthispart, candidatesshouldnot"fakeup",saythingsthatarenottrueofthemselvesandhaveto think.

Investigationverificationshedsmorelightonunknowns candidateswithgoodprospects,throughcontactwithformercolleagues,friends,teachers teacherorwiththecandidate'sformerleader(accordingtotheaddressesintheprofile).

Stage 8:Medicalexaminationisanextremelyimportantstepbeforethecandidateis appointedtothejob.Acandidatewhogetsgoodresultsinaninterviewbutisinpoor healthisnotagoodcandidate.Usually,intheapplication,thereisusuallyarequirement tosubmitacopyofthegeneralmedicalexamination(validfrom6-12monthsfromthe dateofsigningthehealthconclusion).

* (However, depending on the position, the level or requirements for recruitment are different, usually if you apply for the position of a salesperson, the interview only stops at the first stage)

Noticeandinterviewdate:SuitablecandidateswillreceiveCVs,screenthoseCVsto removeunsuitableones,itwilltakeabout5days.decidein2-3daysthemanagerwill decidewhichcandidateissuitableafterthesalestestandgive

Oncethecontracthasbeencompleted,thefinalstagemarkstheend ofthisrecruitmentroundistheemployeewhostartedtoparticipateintheactivity inthebusiness,intheorganization.Thisemployeewilldowhathasbeenordered outinthejobdescriptionaswellasunderthedirectionofsuperiors.

Step 3: Integration, probation & probation assessment

● Integrationwork:Fornewemployeestounderstandtheworkingenvironmentand InthecultureoftheCompany,theHumanResourcesDepartmentwillcarryout theintegrationworkincluding:

Whentestingnewemployees,theunitwishingtorecruitwillcoordinatewiththehuman resourcesdepartmenttoapplyappropriateassessmentmethodsduringtheprobationary period.Employeeswhopasstheprobationaryperiodwillbeofficiallyrecruitedbythe decisiontosignalaborcontract

Fromthemissionandstrategicgoalsoftheorganization,themanagementdepartmenthas determinedthatthegoalofsaleshumanresourcesistoinvestintrainingknowledge humanresources.Withthecurrentdevelopmentstrategyofthedairyindustry,Vinamilk MilkCompanyhasidentifiedthe"human"factorthatwilldeterminethesuccessor failureofthebusiness.Buildingasuccessorworkforcethatwillstickwiththecompany inthefuture,Vinamilkhasboldlychosenthisdevelopmentdirectionandhasreally succeededduetohavinggoodanddynamicsaleshumanresources.

Recruitment chart for sales staff at Vinamilk

Highschooldiploma.(beforetheBachelor'sdegreeinbusiness(marketing,business management,…)

Butthisisstillnotasufficientcondition,tobeabletocatchtheeyeoftheemployer,if youwanttoapplyforahigherpositionsuchassalesmanager,salesdirector, the application'sresume.Membersneedtohaveoutstandingpoints,orinotherwords, prioritypluspoints.

Applyforjobs(eg:CertificateofInformatics,CertificateofCommercialSkills, accountingcertificate, )

Candidateswithexperienceworking/operatingininternationalcompanies/organizations nationalandinternational,especiallyasateamleader/leader.

-Candidateswithscholarships,certificatesofmerit,certificatesfrom universities/contests/organizations prestigiousinstitutionbothathomeandabroad.

Vinamilk'soverallgoalistoincreasesalesandprofit,especiallyin-lineproductssuchas pasteurizedmilk,yogurt,condensedmilk,etc.,successfullymaintainthenumberofloyal customersandeffectivelyimprovetheabilityofthoseemployeestocompletetheirKPIs ontime.

Atrainingplanandprocessisonlysuccessfulwheneachenterpriseidentifiesitsneeds andgoalsofthistrainingplan.Thisisalsoaveryimportantfactortohelpmanagersbuild asuitabletrainingprogramthatnotonlyadherestotheneedsanddesiresofemployees, butalsomeetstherequirementsofthecompany.

•ThefirstgoalistoensurethatallVinamilk'ssalesstaffclearlyrememberaboutthe company'sorientation,marketanddairyindustryinVietnamandourtargetcustomersin ordertobetterservethem.

•Thesecondistoimprovethesalesstaff'sabilitytocommunicatewithcustomersand presentproductinformationtocustomers.Therearemanycaseswheresalesstaffarenot skilledinemphasizingproductfunctionsandotherdescriptiveinformation,leadingto customersfeelingboredwhenreceivingadvice.Therefore,attheendofthistraining course,allsalesstaffofVinamilkwillbeabletoconfidentlycommunicateandintroduce productstocustomers.

•Thethirdgoalistohelpsalesstaffacquireskillsindealingwithcustomerfeedbackand complaints.Inordertounderstandexactlywhatcustomerswantwhentheygivefeedback toVinamilk,sellersneedtounderstandVinamilk'ssalesandwarrantypoliciesinorderto offerreasonablesolutionsorcompensationtocustomers.

•ThenextgoalistohelpVinamilksalesstaffsuccessfullycapturecustomerpsychology toeasilyclosethesale.Havetechniquestoknowopinions,thoughtsand expectationsofcustomerswhenlookingforVinamilk'sproducts.Understandingthis, salesguyscaneasilyconvincecustomerstobuyourproducts.

•Next,wewanttomakesurethatoursalesstaffunderstandalllegalandethicalissues, sotheycanknowwhattoavoidintheprocessandcomply.Theimportantprinciplesare strictprinciples.

•TheultimategoalistohelpeachVinamilksalespersonknowtheirstrengthstokeep themmotivatedandtoimprovetheirweaknesses.Soeachofthemwillknowhowto cooperatewithcolleaguestoaccomplishKPIsperfectly. b)Trainingcontent

Thebasicattitudeandwayofgreetingcustomerswhentheyenterandexitourstoreis veryimportant.Afriendlysmile,apositiveenergythatsalesguysbringtocustomerswill contributetoboththeirpurchasingdecisionandwhethertheywillbecomeourloyal customersornot.

AtVinamilk'ssalestrainingsession,weorientouremployeestomaster4mainsales skills:

● Sellingwiththefirstcompliment:Salesstaffwillneedtohaveabriefobservation ofhowoldtheircustomersarebecausetheageofVinamilk'spotentialcustomers isaround25-35yearsold,thisisaloyalcustomerfile Thefirstcomplimentwill giveapositiveimpressionandperceptionofthecustomer,encouragingtheir purchasedecision.

● Discountbasedonproduct'sscarcity:Byemphasizingonthenutritional compositionofmilk,especiallyfreshmilkorbrandedmilkforchildren,itaimsto hitthepsychologyofcustomersbecausetheyaretheoneswhotakecareoffamily

● Salesontheprincipleofreciprocity:Salesstaffwillgivediscountvouchersor givemoreproductsofthesametypesuchasbuying2packsofyogurtandgetting ajarof25.Thishelpscreateafeelingof"indebtedness"ofcustomers.customers tothemselves,therebyincreasingtheirpurchaseratebecausetheywanttodo somethingforthosesellersinreturn.

● Offersbasedoncurrentpromotions:Customersareoftenattractedtodiscounts promotionsandincentives,that'swhythefirstsaleofferwithpromotionwillincreasethe customer'sinterestintheproduct,therebyeasilyconvincingthemtobuymilk.

Anothercomplementarywayofpitchingthatweaimtotrainouremployeesisthe businessletter.WhileitiscommonlyusedinaB2Bmodel,it'sfreeandtime-saving,so wecanleveragecollectedcustomerdatatosendthoseemailstocustomers.Vinamilk's salesstaffwillbetrainedonhowtoproperlyarrangethegoodssentbycustomers,howto createanimpressivetitle,therightcompanytointroduce,promoteandespeciallythe price,andfinally,howtoattachalinktobuy.appropriateordersothatcustomerscan providemoreinformationabouttheirexpectationsforVinamilkdairyproducts.

Makesureallsalespeoplerememberallproductlinescorrectly,eachproductlinebeing differentandspecialabouteachproductlineandespeciallytheprice.Otheradditional informationthatsalespeopleneedtokeepinmindistherightfunctionality,technology, andaudienceforeachproductline.

Inordertomemorizethehugeamountofinformation,weaimtodevelopmemorization guidelinesandmethodsforfastermemorizationandtestourmemoryasoften(1timea weekorevery2weeks)asoftenasneeded.dependingondifferentlevelsofstaff).

Therearemanycaseswhere,justbecauseofinefficienttimemanagement,the productivityofsalespeopleplummets,sotrainingintimemanagementskillsisalso necessary.Weplantodividethistraininginto2parts:

● Personaltimemanagement:Vinamilk'ssalesstaffwillbetrainedonhowto arrangepersonaltime,workandresttimereasonablytonotbestressedand performworkeffectively.Thisincludesaweeklyplanofwhatyouwillhavetodo forthenextweek,arrangetheminorderofpriorityandoccurrence,estimatethe appropriatetimetospendoneachtaskandhavefun.mind.

● Timemanagementreviewsalltraining:Thereisalotoftrainingcontentandnot allsalespeoplecanrememberallofthem.Therefore,weneedtodividethetimeto reviewthoseexercisesandallocatetimetoreviewthemappropriately.

● Timemanagementforhealthandbeautycare:Youshouldspendacertainamount oftimetakingcareofyourselfsuchasskincare,dailybodycareandextracarefor yourselfontheweekendlikegoingtoaspa,texting,washinghair,etc.Also,tryto scheduleatleast20minutesofdailyexercisebecausesalespeopleneedtolook good.

Ethicsisalwaysanissuewhenitcomestosales.Therearesomesalespeoplewhowilldo anythingtoachievetheirsalesKPIsandthisisseenasunsustainabledevelopmentof theirjobs.Vinamilk'ssalesstaffwillbeclearlytrainedonthiscontent.Herearesome ethicalissuesthat arecommonandshouldbeavoided:

Therearesomecustomerswhodon'tknowanythingaboutourproductsandthey reallyneedouradvice.However,therearesomecaseswhereasalespersonwants toclearinventoryearlyandrecommendadifferentproducttoacustomer. productstoclosesaleseasily.

● Otherethicalissues:Lyingaboutthenumberofproductssoldtogeta commission,defamingcolleaguestocustomers,etc.

Teamworkisconsideredaveryimportantsoftskillwhenweworkforacompany.That's whyeffectiveteamworktrainingisessential.Herearesomeofthethingsthatourtrainers willinformoursalesstaffwhenconductingthistrainingsession:

● Listeningisalwaysapriority:Weshouldnotassumethatallofyouropinionsare Correct.Everyonehaslimitedknowledgeincertainareas,soit'simportantto listentoeveryoneelse.Whenwelisten,wecanlearnalotofthingsthatwelack.

Moreover,listeningistheshortestwayforcolleaguestounderstandandrespect eachotherbetter.Workingtogetheriseasierbecauseweareworkingasateam,not individually.

● Organizationalskills:Thisisveryimportantforthosewhowanttobemanagersin thefutureanditisalsogoodtodelegatetherighttaskstotherightpeople.Insome emergencysituations,quickandefficientassignmenthelpstosolveproblemsor achieveKPIsfaster.

● Responsibility:Thetrainerwillhavetoemphasizetheimportanceofresponsibility inactingirresponsiblytonotonlyharmtheindividualbutalsonegativelyaffect others.Insomecases,beingirresponsiblealsomeansbeingselfish.

● Helpingeachother:It'simportanttogetthingsdoneontimeandperfectly,butit's alsoimportantthatwecanhelpotherscompletetheirtasksiftheymeetwith mutualhelp.eachother,includingimprovingourco-workerrelationshipsand expandingourknowledge(becausewecanknowmorebysupportingothers). c)Trainingmethods

● Roleplay:Thisbeginswiththetrainerdescribingthesituationandassigningroles toeachstaffmember.Thistypeoftrainingmakesiteasierformanagerstoassess howwellemployeessolvereal-lifeproblemsandmakesiteasierforemployeesto correcttheirmistakesforthebetter.

● Roleplay:Thisbeginswiththeteacherdescribingthesituationandrole-playing foreachemployee.Thistypeoftrainingmakesiteasierformanagerstoassessthelevel ofemployees,solvereal-lifeproblemsandmakeiteasierforemployeestocorrecttheir mistakesforbetterperformance.

● On-the-jobtraining:Thisisconsideredano-costtrainingmethod.Thecoachwill explainandmodelthesecondtimefirstandthenguidesalesstafftodoitrightafter.

● Onlinecourses:Thisisthemosttime-andcost-effectivewaytotrainsalespeople. Onlinecoursesarealsosuitableforemergencytrainingsessionsandtraining contentonhowtousesalestools.

Promotion and evaluation program

WhenitcomestothebestworkingenvironmentsinVietnam,onecanhardlyignorethe nameVinamilk-adairytycoonwithnearlyhalfacenturyofestablishment.Notonly becauseofitsfriendlycultureandprofessionalenvironment,butVinamilk'ssalary,bonus andtreatmentpolicyarealsoamongtheTop.

Vinamilk – Top “Best place to work in Vietnam”

Over45yearsofdevelopment,Vinamilkhasnotonlyproveditselftobetheleading qualitydairyenterpriseinVietnam,butalsooneofthe40highestturnoverdairy enterprisesintheworld.

Especially,for3consecutiveyearsfrom2018to2020,Vinamilkhasexcelledasa

Withthisachievement,Vinamilkhasconstantlyimprovedandenhancedthequalityofthe workingenvironment,builtprofessionalandmethodicalhumanresourcepoliciesand receivedthetrustandsatisfactionofthemajorityofemployeesinthecompany.company.

Vinamilkisrecognizedasoneofthefewbusinessesorientedtowardsemployeesand communityvalues.Here,thehumanfactorisidentifiedasaprerequisiteforthesuccess andsustainabledevelopmentofthebusiness.Theremunerationforemployeesisalways updatedinthemosttimelymannerandVinamilkalwaysaimstobuildacorporateculture basedon6principles:

In2021,attheVietnamBestPlacestoWorkConference2021,Vinamilkwashonoredto participateinthenewroleof"CompanionPartner"withthesurvey.Here,Vinamilkand theOrganizingCommitteewillconductin-depthresearchonnewhumanresourcetrends, newhumanresourcepolicies,andnewjobopportunitiesinthecontextofthecurrent competitivemarketeconomy.

Remuneration policy makes the difference of Vinamilk

1 Timely recognition of employee contributions

AtVinamilk,alleffortsandachievementsofemployeesarerecognizedandrewarded promptlyfromsmallcontributionstogreatinitiativesandachievementsatwork.This createsagreatmotivationtopromotethespiritofwork,creativityandpassioninthe workoftheemployees.ComingtoVinamilk,youwillnolongerhavethementalpressure togotoworkeveryday,butinsteadyouwillhavejoy,loveandexcitementtocometothe workplace.

Inaddition,Vinamilkalsoregularlyorganizesperiodicsurveyprogramstocollect employees'opinionsontheworkingenvironment,remuneration,corporatecultureand personneltraininganddevelopmentpolicies.Fromthere,theCompanywillrespondand makeadjustmentstobestsuitthewantsandneedsofemployees.

2 Ensure transparency and publicity in salary and bonus regulations

Vinamilk'ssalaryandbonuspoliciesalwaysensurecompliancewiththelaw, transparency,publicityandfairness.Thesalaryandbonusarecompetitiveandhighly appreciatedinthelabormarketofthesameindustryinVietnam.

TheprincipleofequalityregardlessofgenderisalsocommittedbytheCompanyinall activities:recruitment,training,salaryandbonus,careerdevelopmentroadmap, promotionopportunitiesandotherregimes.

Thecompanyhasdevelopedcertainpreferentialpoliciesforfemaleemployeessuchas childcaresupport,maternityallowance,etc.Itisnotinanyenterprisethatpoliciesand welfareregimesforfemaleemployeesaresofocused.Thisisalsooneoftheattractive incentivesattractingmuchattentionandenthusiasticresponsenotonlytoemployeesat

3 Develop attractive and diversified financial and non-financial remuneration policies 3.1.Financialrewards

● SalaryandbonusforpositionsatVinamilkalwaysreceivetheattentionofthe labormarket;Inparticular,someemployeesandotherbusinessesalsotakethe salaryofemployeesatVinamilkastheirstrivinggoal.Accordingtotheactual surveyin2020,upto89.3%ofemployeesaresatisfiedwiththesalary,bonusand welfareregimeatVinamilk.

● ThecriteriaforbuildingincomeatVinamilkareidentifiedspecifically,including: Jobposition,Personalcapacity,JobcompletionresultsandCompany'sbusiness results.Theestablishmentofcleartargetstopayemployees'salariesensures fairness,transparencyandcreatesmotivationforemployeesthroughoutthe

● Vinamilkcommitstoreviewandadjustsalaryandincomeforallemployees throughouttheCompanyeveryyear;However,Vinamilkstillhasincome characteristicsforvalueinitiativestocreateleverageforemployeesto continuouslycontributetothebusiness.

● Inparticular,duringtherecentCovid-19epidemic,manybusinesseshadtoclose down,cutpersonneltomaintainoperations,Vinamilkstillensuredincomeand welfareforemployeessuchasnosalaryreduction,nosalaryreduction,nosalary reduction,nosalaryreduction,nosalaryreduction,nosalaryreduction,nosalary reduction,nosalaryreduction,nosalaryreduction,nosalaryreduction,nosalary reduction,nosalaryreduction.reducedworkinghours;therearealwaysdiverse culturalprogramstopromoteworkingspiritforemployees.

● Working environment, modern facilities: ReferringtoVinamilk,itisreferringtoan attractiveworkingenvironment,thetopworkingenvironmentinVietnamwitha systemofmodernfacilities,equipment,andmodernmachinery.Thenew technologyapplication4.0helpsemployeestobereintegratedandexposedtothe world'sleadingadvancedtechnologies.

● Corporate culture activities: Withtheviewthatthespirituallifeofemployeesis thefocusofitsremunerationpolicy,Vinamilk'sBoardofDirectorsisconstantly changingandapplyingnewmodelssuchasworkspaces.GREENwork–notonly meetsaestheticcriteria,butalsohelpsrelievestressforemployees.

Inaddition,internalcontestsarealsoperiodicallylaunchedsuchas:onlinephotocontest tocelebrateInternationalWomen'sDay,contestforchildrenofemployeesinthe

InternationalWomen'sDay.TocelebrateTet,thecontestaimstocelebratethe establishmentoftheCompany creatingaplaygroundfornotonlyemployeesbutalso theirrelativesandchildren.

● Health care program: Thecomprehensivehealthcareprogramforemployeesat Vinamilkismentionedasfollows:

+All100%ofemployeesattheCompanyarecoveredbyHealthinsurance,24/24 accidentinsurance,Healthinsurance.Inaddition,formanagersandabove,therewillbe healthinsuranceand24/24accidentinsuranceforrelatives(father,mother,spouse, children).

+Organizeperiodichealthcheckprogramsforemployees:formaleemployees:1 time/year;femaleemployees:2times/year.

● AnKhangClinicisanelectronicclinicinvestedbyVinamilkin2006witha systemofadvancedandmodernmachinesandfastandconvenientelectronic services.AllemployeesattheCompanycanvisitandusemodernmedicalservices attheclinicthroughtheCompany'sannualhealthcheckprogramsateachlevel; +Sportsprogram:Vinamilkalsoorganizesprogramsandclassesandencouragesall employeestoparticipateindevelopingfitness,sports,healthpromotion:swimming,gym, yoga,zumba.

● Other regimes:Everyyear,Vinamilkorganizesvacationprogramstoconnect employees,givesgiftsonholidays,Tet,birthdays,awardstochildrenof employeesinthecompanywithhighachievementsinschool.practice.

Theformsoftrainingareimplementedflexiblyanddiverselydependingontheactual needsandexistingcapacityofemployees,therebybuildingappropriatetrainingprograms suchasinternaltraining,internaltraining.externaltraining,distancetraining ensuring employeesatVinamilkalwayshavetheopportunitytodevelopskillsanddevelop careers.

Accordingtothe2020SustainabilityReport,thecapacitybuildingtrainingcoursesfor Vinamilk'sstafffocuson04contents:

● Professional,professionalandskilltrainingcoursesfocusonallareas:Production, FuelAreaDevelopment,HumanResources,Legal,Medical,Finance…

Followingthesuccessinimplementingtrainingprogramsin2019,in2020,although affectedbytheCovid-19epidemic,thecompany'strainingprogramsandcourseshave beendeployedmoresimultaneously.Inthatcontext,thecompanyhasflexiblyapplied technologyandsoftwaretosupportuninterruptedworkduringtheepidemicseason, therebycontributingtoensuringthattrainingprogramsareimplementedoptimallyas planned

2021istheyearmostheavilyaffectedbytheCovid-19pandemic,manyprovincesand citieshaveimplementedsocialdistancingdirectivesforalongtime,leadingtolimited organizationoftrainingprogramsandlimitedtrainingcourses.Trainingaswellas traineesparticipatingintrainingdecreasedcomparedto2020.Besidessuccessfully organizing externaltrainingprograms,trainingatthecompany,especiallyatunits applying"3on-site",Thecompanyalsoimplementedaseriesofonlinetrainingprograms withalargenumberofparticipants.

Thenumberoftraininghoursforemployeesisincreasinglypromotedandfocusedinthe periodof2020-2021,therebyshowingthatVinamilkisconstantlyimprovingthequality oftrainingforstafffromthelowestleveltothehighestlevel.seniormanagement positions.

Accordingtoactualsurveydata,43%ofthetraineeadministratorsfromtheprogramhave becomethemanagementlevelofthecompany.Thisshowsthesuccessinimplementing thetalentdevelopmenttrainingprogramandattractingtherecruitmentbrandatVinamilk.

AccordingtoactualreportsatVinamilkin2021,upto8%ofnewmanagersarepromoted tointernalpromotions.ThisnumberisagreatmotivationforVinamilkemployeesto constantlytryandimproveeverydaytoachievetheirsetgoals.Managementlevelsare promotedinallindustriesintheCompany:Productionandprocessing(atthefactory), sales,agriculturalactivities(farm),supportactivities(administration,office,etc.) accountant)…

Inaddition,thenewlypromotedmanagementlevelsin2021aredistributedamongall workingagesintheCompany.Thegroupofyounghumanresourcesisincreasingly provingtheiroutstandingability,youth,qualificationsandconfidencewhenupto7.2%of managementpersonnelareunder30yearsold(equivalentto40people,23men,17 women).Thisnumbershowstheeffectivenessofthemanagementtraineeprogramand thesuccessionplanningprogramatVinamilk.

Buildingasuccessionplanningprogramisnotaneasythingforanybusiness.For effectivehumanresourceplanning,itisnecessarytohaveaprofessionalhumanresource informationmanagementsystem.Aprofessionalhumanresourceinformation managementsystemwillbeabigpicturetohelpleadersuseandplanhumanresources mosteffectively.

Income: Do not mistreat talents!

Accordingtopreliminarystatisticsin2020,Vinamilkhasmorethan10,000officialsand employees;Workinginmorethan30unitsincludingfactories,branches,subsidiaries, farmsspreadacrossthecountry.Inwhich,70%ofthetotalemployeeshaveworkedfor morethan5years,30%ofthetotaltrainedtalentsarepromotedtomanagementlevel.

Althoughitisnotofficiallydisclosed,mostemployeesworkingatVinamilkaresatisfied withtheirincome.AtVinamilk,initialincomeandannualsalaryincreasearealways reviewedbasedonproductivity,notperiodically.Themorevaluablecontributionsand initiativesyouhave,thequickeryou'llgettoalucrativeincome.Itistheconsiderationof salaryincreaseonproductivitythatcreatesleverage,makingemployeesconstantly contributetothebusiness.

TheannualbonusatVinamilkcanbesaidtobeadreamnumberformanypeople.On holidaysandTet,Vinamilkemployeeswillbegivenmanygiftsinkind,includingcash. Monthly,quarterly,andsoonforeachpositioninadditiontothehardsalary,thereare alwaysfixedbonusesandhotbonuses.Especiallyinthepositionofsalesstaff,youwill havealotofopportunitiestopayyourself.Thosearethecommissionsbasedonsales, workingallowances,phonecalls.WithTelesalesstaff,periodicallytherewillberevenue bonusesfromcustomerswhouseproducts,introducenewcustomers,rewardproductivity whenexceedingworkquotas,bonusovertime,etc.Allarewithinthepolicy.Incentives foremployeesofVinamilk,raisingtheminimumaverageincomeofthedivisionsis alwaysabove10milliondong.

Vinamilkalwaysrespectsemployees,ensuringthatemployeesarefullysatisfiedwith benefitsaccordingtostateregulationssuchaspayinghealthinsurance,socialinsurance, andunemploymentinsurance.Inaddition,thecompanyalsoorganizesperiodicalhealth checksforallemployees,providingnecessaryequipmentduringtheworkingprocess

(gloves,workwear,labortools, ),Officestaffaresupportedwithcomputers,salesstaff aresubsidizedphonecharges.Thosewhostudywhileworkingarealsofullysupported, aimingtohavethebestopportunityforpersonaldevelopment.

Inordertocreateavibrantandpositiveworkingculture,thespirituallifeofemployeesis alsothefocusofVinamilk'semployeeremunerationpolicy.Vinamilk'smodern equipmentandgreenworkspacenotonlyensureaesthetics,butalsomaximizecreativity andrelievestressforpeoplehere.OneoftheotherbenefitsatVinamilkisalotof entertainmentfacilitiesincludingswimmingpool,yogaroom,footballfield,amusement park,etc.,createdtogiveemployeesmomentsofrelaxation.slightlyafterastressful workingday.

Currently,Vinamilkisgraduallycompletingsuperfactoriesequippedwithaclosedand fullyautomatedoperatingsystem.Newmachineryandequipmentapplying4.0 technologyherealsoallowsworkerstointegrate,learnandinteractwiththeworld's leadingadvancedtechnologies.

"Howtokeepemployeeshappyduring8workinghours"-that'swhatVinamilk'sleaders alwaysaskthemselves.Andbecauseofthat,countlessmusicfestivalsandresort programsaredesignedtocreatesolidarityandclosenessintheinternalcollective.

Thefirstisremunerationforwork:Thejobbringsasalarythatiscommensuratewiththe efforttheyputin.Thejobcompensationpolicyhelpsemployeespromotetheirfull potentialwithoutbeingconstrainedinthesalesframework,takingmoneytomakethem satisfiedwiththeirworkandsalary.

Thesecondistheopportunityforadvancementasweallknowthatpeoplehavemany differentlevelsofneeds,thatneedisgettinghigherandhigher,materialfactorsarethe firstprerequisites.Whenpeoplehavereachedacertainlevelofneedforit,whatthey needistoexpressthemselves,needapositioninsociety,wanttoberespectedforthe benefitstheyhavebroughttosociety.

Thefourthistoorganizephysicaltraining,sports,culturalandartisticmovements,these areextracurricularactivities,bothtopracticehealthandlifeskillsandtoconnect membersinthebusinessmore.

Compensation for sales manager ã Salaryandbenefits:Vinamilk'ssalesmanagersenjoyacompetitivesalaryand attractivebenefits,includinghealthinsurance,socialinsurance,13thmonthsalaryand otherbenefits. ã Advancementopportunities:Vinamilkofferspromotionopportunitiesforsales managers,fromseniormanagementpositionstootherleadershippositionsinthe company. ã Trainingandcareerdevelopment:Vinamilkinvestsheavilyintrainingandcareer developmentforitsemployees,includingsalesmanagers.Thesetrainingand developmentprogramshelpemployeesimprovetheirskillsandimprovetheir performance. ã Sponsorshippolicy:Vinamilkalsoprovidesemployeesponsorshippolicies, includingloansandtrainingsupporttohelpemployeesachievetheircareergoals. ã Professionalworkingenvironment:Vinamilkcreatesaprofessionalandfriendly workingenvironmentandencouragesthepersonaldevelopmentofemployees.The companyalsoregularlyorganizesextracurricularactivitiesandemployeeengagement events. ã AlloftheseincentiveshelpVinamilkattractandretaintalentedandexperienced employees,ensuringthecompanyhasateamofhighlyqualifiedandefficientsales staff.

Remuneration for interns ã Attractiveinternshippolicies:Vinamilkoffersattractiveinternshippolicies, includingreasonablefoodandotherincidentalexpenses. ã Trainingandcareerdevelopment:Vinamilkinvestsheavilyintrainingandcareer developmentforitsemployees,includinginterns.Thesetraininganddevelopment programshelpemployeesimprovetheirskillsandimprovetheirperformance. ã Promotionopportunities:Vinamilkprovidespromotionopportunitiesforinterns, fromofficialstaffpositionstootherleadershippositionsinthecompany. ã Professionalworkingenvironment:Vinamilkcreatesaprofessionalandfriendly workingenvironmentandencouragesthepersonaldevelopmentofemployees.The companyalsoregularlyorganizesextracurricularactivitiesandemployeeengagement events. ã AlltheseincentiveshelpVinamilkattractandretaintalentedandcapableinterns, ensuringthecompanyhasateamofqualifiedandhigh-performingemployees.

Leadersneedtodeterminewhichareas,skills,andoutcomestoevaluateandhowthese relatetotheachievementofbusinessgoals.Usuallytheserequirementscanbeinferred fromthejobdescriptionandconsistoftwoparts:behavioralstandardsandperformance standards.Ajobperformancestandardisasetofcriteria.toexpresstherequirementsof thejobthatcompletesajobbothinquantityandinquality.

-Research,buildanddevelopdistributionchannelnetwork,distributionpolicy,pricing policy;

-Organizethecollectionofmarketinformationinthemanagementarea:competitors, products,prices,regionalbusinesssituation.

-Makeweekly,monthly,quarterlyandyearlysalesreports,businesssituation,market information.

-Planningbrandingstrategiesforproductsandproductgroups,formulatingpricing, product,distribution,promotionstrategies ;

Salespeople can be evaluated based on the following criteria:

Sales management evaluation can be based on criteria such as:

The evaluation of interns depends on many criteria, including:

1.Performance:thedegreeofcompletionofwork,accuracy,creativity,problem-solving abilityandcontributionincompletingtasks.

3.Communicationskills:abilitytoconveyinformation,persuade,listentoopinionsof colleaguesandcustomers.

6.Autonomy:theabilitytoself-manage,organizeworkandcompletetaskstoensure progress.

7.Workingattitude:progressivespirit,enthusiasm,responsibilityandrespectfor colleagues.

Vinamilkkỳvọngnhucầutiêuthụsữaghinhậnmứctăngtrưởngmộtconsố,dưới5%so vớinămngoàitrongnăm2023.Bêncạnhđó,Vinamilkđangphảiđốimặtvớiáplựccạnh tranhngàycàngtăngởhầuhếtcácdòngsảnphẩm,đặcbiệtlàởphânkhúcsữabột.

Vídụnhưgiábộtsữa(nguyênliệuđầuvào)toàncầudựkiếnsẽgiảmtrongnăm2023, việcTrungQuốcmởcửatrởlạisẽkhôngcónhiềutácđộngtớixuhướngnày.Côngtyđã chốtxonggiábộtsữađầuvàochogiaiđoạnnửađầunăm2023.

KếhoạchdoanhthutăngvàlợinhuậnđingangđượcVinamilkđưaratrongbốicảnhthị trườngdựbáonhiềusứcépvìnhìnthấykhảnăngphụchồitiêudùngsữakhôngkhảquan vìngườitiêudùngthắtchặtchitiêu.Bêncạnhngànhkinhdoanhsữachủđạo,Vinamilk vẫnđangtìmcơhộikinhdoanhtạicácthịtrườngmớithôngquacáchoạtđộngmuabán

Alongwiththedevelopmentandrenewalofthecountry.VietnamDairyProductsJoint StockCompanyVinamilkhasalsomadegreatstrides.Themostprofoundmarkofthis journeyisthecreationofaVinamilkbrandthatisnotonlynationalbutalsointernational. Formorethantenyearsofdevelopment,Vinamilkhasalwaysbeentheleadingflagand pioneeringVietnameseenterpriseintheprocessofbuildingagrowingdairyindustryin Vietnam,therebycontributingtotheconstructionanddevelopmentofthecountry.home.

Vinamilkneedstomakefulluseofexistingcompetitiveadvantages,anticipatethewave ofintegrationtoadapttotheday-to-daychangesoftheincreasinglyfiercebusiness environment,andatthesametimecomeupwithappropriatedevelopmentstrategies.to overcometheexistinglimitationsinrecentyearstobeabletomaintainthedevelopment withahighgrowthrateliketoday,alsothroughintegrationtobringthecompany's products,bringVietnamesebrandstoASEANandAsianmarkets.

Thebusinessstrategiesoutlinedaboveareforreferenceonly,buthopefullythroughthe analysis,assessmentandstrategyformulationbasedonthelatestdata,wecanhelp