topic please work in your groups and construct a report regarding the marketing aspects of a corporation brands product service

This requires Vinamilk to grasp and adapt to changes in customer needs and preferences to maintain and increase market share in the powdered milk market.Second, Vietnam has a large numbe

FPT UNIVERSITY – CAMPUS CAN THO

Trần Kim Lộc Đặng Vân Anh Khưu Thúy QuỳnhNguyễn Ngọc TuyềnPham Minh KhánhPhạm Phú Cường

Lecturer: Nguyen The Hien

Can Tho 29/10/2023

I Introduction about the history of Vinamilk company and aspects related

to their products and/or service.

1 Introduce:

VNM, established on August 20, 1976, has become a symbol of Vietnam's dairy industry Starting from continuing to manage 3 existing dairy factories, VNM has continuously developed and expanded its production scale VNM's independence lies not only in providing high-quality dairy products but also in animal care and advanced production processes The company not only boasts

a strong reputation in the domestic market but has also expanded its reach internationally, including demanding markets VNM has not only expanded its production scale but also created US USDU-certified organic dairy products, setting new standards for the Vietnamese dairy industry This is not only interesting to domestic consumers but also attracts attention in the internationalmarket With its listing on the stock exchange since 2006, VNM has affirmed its position in the main financial market In 2019, VNM continued to demonstrate its commitment to quality by opening a modern dairy farm in Tay Ninh This is not only a big step forward in the production process but also a strong commitment of the company to providing nutritious and safe milk to consumers, not only in Vietnam but also in the market International VNM is not only a leading dairy company in Vietnam but also a symbol of quality and innovation in the international dairy industry

VNM is the leading dairy manufacturer in Vietnam, offering more than 250 diverse products Products include fresh milk (ADM GOLD, Flex, Super SuSu), yogurt (SuSu, Probi, ProBeauty), powdered milk for children and adults(Dielac, Alpha, Pedia Grow Plus, Optimum Gold), milk (Southern Star, Ong Tho), ice cream and cheese (Subo yogurt ice cream, Delight ice cream, Twin Cows, Ribboned Cow cheese), soy milk and soft drinks (Vfresh juice, bottled water Icy, GoldSoy soy milk) and baby food powder (Ridielac Gold, Optimum Gold) This variety encapsulates Mother Dairy's commitment to the quality andnutritional needs of its customers https://www.bachhoaxanh.com/kinh-nghiem-hay/gioi-thieu-cong-ty-vinamilk-982798#hmenuid1

2 Analysis SWOT:

VNM's SWOT analysis continues to be a member source for success With a large market, strong reputation, and diverse products, their strengths lie in product variety and quality At the same time, it is important that research and innovation help them address weaknesses and take advantage of opportunities

in evolving

markets The combination of quality along with large-scale production is a notable strength, placing them in a leadership position in the dairy industry

Strength:

VNM, a leading dairy brand in Vietnam, has many important strengths Their famous brand, built in 1976, is visible to Vietnamese consumers An effective marketing strategy using many advertising channels and attractive content helps VNM attract and retain customers VNM's diverse products, from fresh milk to powdered milk and soy, serve all consumers and businesses Wide network distribution helps them reach many customers and maintain a strong presence across the country Their investment in modern technology as well as maintaining food safety standards puts them at the forefront of the dairy industry.

Weakness:

In Vinamilk's SWOT model, the main weakness includes dependence on imported raw materials, when only about 30% of milk raw materials are supplied domestically and 70% must be imported, creating instability in production This dependence causes businesses to be affected by international market fluctuations and factors such as inflation and economic crises In addition, Vinamilk's powdered milk market share also faces challenges due to the increase in imported powdered milk and the appearance of many foreign milk brands, posing a big challenge to its previous monopoly position This requires Vinamilk to grasp and adapt to changes in customer needs and preferences to maintain and increase market share in the powdered milk market

Second, Vietnam has a large number of potential customers and the demand formilk is increasing Urbanization, income growth, and high education levels increase the demand for milk, especially from young people This is an opportunity for VNM to expand its market and attract more customers.Third, the demand for quality products that are beneficial and healthy is increasing Companies that are recognized for food safety standards can take advantage of this trend to develop nutritional products and health supplements The growth of the nutritional health product market creates great opportunities for VNM to expand its reputation and sales revenue

These opportunities not only help Vietnam strengthen its position in the domestic market but also open the door for international expansion, placing it

in a favorable position to exploit international markets and increase its influence enjoy all signal requirements.

Unstable input material sources are also a problem Dependence on imported raw materials and farmers changing jobs create great pressure, requiring Vinamilk to focus on developing domestic raw material sources

In addition, the tendency of Vietnamese consumers to prefer foreign milk is another challenge They often believe that imported products have better quality and safety, placing high requirements on Vinamilk to prove the nutritional value and safety of domestic products

These challenges require continuous innovation, creative marketing strategies, and efforts to improve product quality to maintain and expand Vinamilk's influence in the market as well as internationally

2010, on average each Vietnamese person consumed about 15 liters of

milk/year It is forecast that by 2020, this number will nearly double, up to

28 liters of milk/year/person This shows that people's average income is increasing, so they will have more needs for milk, including health, quality

or aesthetic requirements This can be an advantage to help Vinamilk develop further and when Vinamilk has a reasonable marketing strategy, it will develop further Economic factors (n.d.) Vbcsd

https://vbcsd.vn/detail.asp?id=477

* Technologycal factors:

Science and technology factors play an important role in promoting the development of businesses In addition, this factor can also create a competitive advantage for a business Vinamilk is one of the leading enterprises in technology Vinamilk uses modern production and packaging technology equipment that meets international standards such as from factories and imported technology from European countries (Germany, Italy,Switzerland) Vinamilk uses spray drying technology produced by Denmark's Niro - the world leader in industrial drying technology In addition, Vinamilk also owns a synchronous, closed, automated equipment line system from raw materials to finished products, applying advanced technology from reputable companies in the processing industry milk in the world such as: Tetra Pak, Delaval (Sweden), All of them satisfy consumer standards for food quality and safety

Technologycal factors (2018, August 25) Khoa Hoc Cong Nghe Retrieved October 23, 2023, from https://khcncongthuong.vn/tin-tuc/t985/nganh-sua-viet-nam-dau-tu-cong-nghe-huong-toi-tuong-lai.html

* Political fators:

A country's laws have a significant impact on a business's operations In Vietnam, food safety factors are tested and evaluated extremely strictly Therefore, before products reach consumers, a business must meet product standards Specifically, Vinamilk has complied with the laws of the Vietnamese government such as registering business in accordance with Vietnamese law, having food safety certificates, and fully fulfilling tax obligations and other obligations according to the laws of other countries

In addition, businesses also benefit from government policies such as tax exemption for importing milk materials for businesses investing in the dairy industry In addition, thanks to trade agreements signed by Vietnam, businesses can expand their markets Specifically, after Vietnam joined the WTO and the TPP Agreement was signed, Vinamilk has penetrated deeply into the markets of many countries such as expanding its market to Europe, Africa and South America.

In addition, businesses also benefit from government policies such as tax exemption for importing milk materials for businesses investing in the dairy industry In addition, thanks to trade agreements signed by Vietnam, businesses can expand their markets Specifically, after Vietnam joined the WTO and the TPP Agreement was signed, Vinamilk has penetrated deeply into the markets of many countries such as expanding its market to Europe, Africa and South America

Baochinhphu.Vn (2021, June 26) Political factors baochinhphu.vn Retrieved October 23, 2023, from https://baochinhphu.vn/vinamilk-thanh-cong-den-tu-tam-nhin-chien-luoc-102252865.htm Political factors (n.d.) Vinamilk https://www.vinamilk.com.vn/vi/phat-trien-ben-vung

* Demographic factors:

As of 2020, the average Vietnamese population is estimated to be 97.58 million people, an increase of 1.14% compared to 2019 (96,208,984 million people) Of the total population, the urban population is 35.93 million people, accounting for 36.38%, the rural population is 61.65 million people, accounting for 63.2% (48.59 million people) and the male population accounts for 49.85% and women are 50.2% (48.99 million people) With a rapidly growing population size, it is increasingly easier for the dairy industry to expand its market create sales opportunities, and increase revenue This is very favorable for Vinamilk to develop in the dairy market and increase revenue https://vtv.vn/xa-hoi/het-nam-2020-dan-so-viet-nam-la-bao-nhieu-20201227164252118.htm

* Natural factors:

A favorable climate is an advantage for Vinamilk's business, it is a conditionthat helps Vinamilk grow high-quality grasslands and raise dairy cows One

place chosen by Vinamilk to develop its organic milk line is Da Lat Da Lat

is a place with a temperate and cool mountainous climate all year round; with lush natural grasslands That's why they used this place to build the first organic dairy farm that meets European standards in Vietnam https://www.anninhthudo.vn/day-la-ly-do-da-lat-duoc-vinamilk-lua-chon-lam-noi-xuat-phat-diem-cho-dong-sua-organic-post410825.antd

* Cultural and social factors:

Milk drinking habits:

Vietnamese people do not have the habit of consuming milk, so Vietnam is acountry with no tradition of milk production When children are born, they drink breast milk to have enzymes to digest lactose, but when they grow up, they no longer use breast milk and the undigested lactose will cause illness Therefore, young children should be trained to drink milk to avoid getting sick In other countries, with high income levels, drinking milk becomes a normal daily thing Countries with economic conditions have built school milk programs, providing free or low-cost milk to kindergarten and elementary school students Specifically like the US, UK, etc This contributes to helping children develop physically and creating the habit of drinking milk for children http://vusta.vn/chitiet/tin-tuyen-sinh-dao-tao/Thi-truong-sua-o-Viet-Nam-va-nhung-van-de-lien-quan-den-phat-trien-chan-nuoi-bo-sua-1011

Micro environment:

* Suppliers factors:

Suppliers are an important input factor for the Company Input factors will affect the quality of the product as well as affect the business of the enterprise Therefore, Vinamilk must build sustainable relationships with suppliers to obtain a guaranteed source of raw materials Vinamilk has two main sources of raw materials: fresh milk from domestic farmers and powdered milk from abroad

Regarding fresh milk: Vinamilk will become a center for purchasing fresh milk from farmers and cow farms, weighing and measuring milk volume,

checking quality and applying preservation and transportation processes to factories manufacture They will then make payments to farmers and ranchers To ensure the quality of this supply, Vinamilk supports farmers with technology to develop their dairy herds Furthermore, Vinamilk also proactively sources fresh milk by investing in dairy farms Currently, the total herd of cows providing milk for the company is nearly 150,000 cows and provides more than 1,000 tons of fresh milk for production.

Regarding powdered milk: Vinamilk selects its raw material suppliers from nations with developed agriculture and food quality assurance systems, such

as the US, New Zealand, and Europe, as well as from some typical suppliers, like Fonterra (SEA) Pte Ltd, Hoogwegt International BV,

Any business needs suppliers to support them in their business operations Vinamilk also needs to have strategies for finding potential suppliers to develop in the dairy market Yen, K (2022) Supplier factors Ego Express https://egoexpress.vn/chuoi-cung-ung-cua-vinamilk

* Marketing intermediaries factors:

Distributors:

The distribution and sales network of a business is frequently important to its ability to build a sizable customer base Distributors are essential in getting goods to customers In order to improve its position in the dairy market, Vinamilk has created a robust distribution network both

domestically and abroad Domestically, Vinamilk's goods may be found in all 63 provinces and cities, with three sizable branches located in Hanoi, Da Nang, and the company's head office in Ho Chi Minh City Vinamilk exportsits goods to more than 40 nations across the globe, including parts of Southeast Asia, the Middle East, and Africa

Vinamilk applies two main distribution methods: traditional channels and modern channels Traditional channels account for more than 80% of the company's distribution output Regarding modern distribution

channels,Vinamilk products are present in 3,899 large and small

supermarkets, 1,356 convenience stores, over 1,500 level 1 agents, 251,000 small agents, 200 Vinamilk distributors In addition, Vinamilk also reaches customers in places such as hotels, schools and hospitals To keep up with technological advances,Vinamilk also takes advantage of e-commerce sites such as Shopee, Lazada, and Tiki to serve customers who do not have time

Hai (2023, September 26) Distributors factors Quang Cao Sieu Toc Retrieved October 23, 2023, from https://quangcaosieutoc.com/kenh-phan-phoi-cua-vinamilk/

* Competitors factors:

The dairy processing sector is a very cutthroat one Numerous significant dairy firms are operating in the Vietnamese dairy market today, including Vinamilk, Dutch Lady, Nestle, Nutifood, Moc Chau, etc Powdered milk, condensed milk, liquid milk, and yogurt are the major focal items Due to the potential and high consumer demand for milk in Vietnam, there are an increasing number of fierce competitor

Vinamilk's fierce competitor is Dutch Lady Dutch Lady is a milk brand from the Netherlands and although it entered the milk market late after Vinamilk, it still affirms its position as not inferior With effective marketingstrategies, Dutch Lady frankly wanted to target its rival Vinamilk The products of Dutch Lady and Vinamilk have similarities and the most competitive segment is fresh milk Dutch Lady focuses on promoting products on mainstream media channels and the most successful is Dutch Lady milk The Dutch Lady is associated with many people's childhood memories, so it can be said that the Dutch Lady has built an extremely successful brand in Vietnam

In short, the market is increasingly competitive, so Vinamilk needs to analyze competitors' or customers' desires to have reasonable marketing strategies.

The Marketing Strategy of Dutch Lady (2023, October 9) Navee

Corporation Retrieved October 23, 2023, from

https://www.navee.asia/kb/chien-luoc-marketing-cua-dutch-lady/

* Company:

Vinamilk's organizational structure encompasses the Board of Directors and the Executive Board, in addition to various functional departments such as Planning and Strategy, Finance, Marketing, Sales, Research and

Development, in addition to support departments including Human Resources, Quality Management, Engineering, and Investor Relations Each department and management level at factories and branches carry distinctiveresponsibilities, thereby facilitating Vinamilk's efficient operation, fulfillment of market demands, and sustainable development within the dairy industry

The functional departments within the company encompass the Planning and Strategy Department, which assumes the responsibility of strategic planning, market analysis, and the establishment of long-term

developmental strategies The Finance Department oversees financial management, accounting, budget control, and financial reporting, ensuring adherence to financial regulations The Marketing and Sales department is entrusted with marketing initiatives, advertising, brand management, product distribution, and the identification of potential customers Lastly, theResearch and Development Department focuses on product innovation, enhancement of production technology, and optimization of production processes in order to uphold the company's standard of product quality

The selected course of action is to implement a comprehensive anti-bullyingprogram This approach tackles the issue from various perspectives, providing explicit guidelines, support, and education to prevent future

incidents It fosters a secure and all-encompassing educational environment, aligning with the aforementioned criteria, particularly in terms of efficacy incurbing bullying, long-term viability, and community engagement By actively working towards the prevention of bullying and promoting empathyand understanding among students, the school can cultivate a positive and secure environment for all its students.

The various support departments of the company encompass the Human Resources Department which oversees employee management, recruitment, training, and the development of labor policies Furthermore, the Quality Management Department ensures the adherence to international standards during the production process to maintain product quality The Engineering Department is in charge of the management and maintenance of machinery systems and production technology to ensure efficient operations within the factories Lastly, the Investor Relations and Information Disclosure Department handles shareholder-related information, establishes

connections with securities regulators, and discloses company-related

information These departments play a pivotal role in supporting the core activities of the company and fostering positive relationships with

shareholders and the market

The management structure of Vinamilk extends beyond the Board of Directors and Executive Board to encompass departments and divisions at each manufacturing plant and branch Each specific location of the companypossesses its own departments responsible for production, operations, quality, and sales management This organizational structure is designed to guarantee effective organization and management, from the strategic decisions made by senior leadership to the functional departments and various levels of management responsible for the execution of tasks Consequently, Vinamilk is able to operate effectively, adaptably, and adequately meet market demands while achieving sustainable development within the dairy industry https://accgroup.vn/so-do-to-chuc-cong-ty-vinamilk

* Client:

Consumer demand: In 2021, Vinamilk recorded a record revenue of VND 61,012 billion, continuing to affirm its leading position in Vietnam's dairy

industry Despite facing the impact of the Covid-19 pandemic on consumer demand and the supply chain, Vinamilk still maintains the trust and affection

of domestic and foreign users In 2021, Vinamilk for the 10th consecutive time leads the "Most Purchased Brand" ranking of the Dairy and Dairy Products industry, according to the Brand Footprint - Kantar WorldPanel report This proves the trust of consumers, with about 90% of Vietnamese families using at least one Vinamilk product, including familiar products such as Ong Tho condensed milk, yogurt, and fresh milk This continuity is

a source of great encouragement and pride for Vinamilk

VNM products: VNM specializes in producing 5 main product categories, including milk (fresh milk, sweetened condensed milk, powdered milk ), dairy products (ice cream, cheese, yogurt ), along tea, coffee, and fruit juice The company is committed to providing the best and highest quality products to consumers By using new technology, VNM constantly improves high-quality products to meet user needs In particular, VNM meets the special requirements of customers by producing diverse products such as VNM low sugar and VNM fragrant milk with fat for anteaters, as well as 100% organic products for customers high-end goods Thanks to these efforts, VNM maintains its leading position in the diverse fresh milk market, emphasizing its commitment to quality and health for consumers (Vinamilk 2020)

Product price classification: VNM has chosen the strategy of keeping the price of milk powder unchanged since 2008, not participating in the race to increase prices like many other foreign dairy companies Although there is

an opinion that

foreign milk has better quality, most Vietnamese milk ingredients are imported from abroad, making many families choose domestic milk for theirchildren VNM, with stable quality and prices, has become the top choice of many Vietnamese families Furthermore, VNM not only maintains the same quality but also continuously improves products such as Dielac - Dielac Alpha, Dumex - Dumex Gold, and Friso - Friso Gold, improving quality andvalue for consumers

VNM's distribution to customers: VNM builds its Marketing strategy by developing a widespread distribution network, ensuring dairy products reachconsumers quickly Using 3 main channels including supermarket systems from large to small, important accounts such as schools and hotels, restaurants, and more than 220,000 agents in 63 provinces and cities in Vietnam VNM also opened online stores on platforms such as Shopee and Lazada to take advantage of the development of e-commerce In addition,