group assignment introduction to management analysis of task environmental factors affecting vinamilk

Currently,consumers pay great attention to their health, they always choose reputable andfamous brands of milk, and consumers always choose healthy nutritionalsupplements such as yogurt,

FPT UNIVERSITY- CAMPUS CAN THO

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Group Assignment:

ANALYSIS OF TASK

ENVIRONMENTAL FACTORS AFFECTING VINAMILK

NAME ROLL NUMBER

1 TRAN KIM YEN CS171665

2 VO TRONG TIN CE170201

3 NGUYEN H THAI DƯƠNG CS170575

4 MA ANH TUYET CS171051

5 DANG THI AI HAN

6 NGUYEN ANH THU

CS171252

CE171987

I Introduction 1

II Analytics 1

1 Overview Vinamilk 1

2 Task environment 2

- Customers: 2

- Competitors: 3

- Suppliers 4

- Substitute Product 5

- Pressure from customers 6

- Strategic partners 6

3 What opportunities and threats does the task environment offer Vinamilk? 7

Opportunities: 7

Threats: 8

III Solution 9

1 Suppliers: 9

2 Customer: 9

3.Competitors: 9

4.Social pressures: 9

IV Conclusion 10

Reference: 10

I Introduction

The dairy sector in Vietnam is growing and putting an increasing amount

of emphasis on product quality There are numerous large-scale, globally renowned dairy firms emerging Vinamilk is the biggest corporation in Vietnam's dairy industry and one of the top dairy brands on the list that consumers rely on The high level of brand recognition in the home market and the propensity to grow more in the foreign market are two of this company's greatest achievements Vinamilk has largely taken over the dairy industry despite fierce rivalry from other brands because of its comprehension of consumer needs, the combination of production models, cutting-edge technology, and effective business tactics

What possibilities and obstacles has Vinamilk faced along the way to becoming one of the companies with significant consumer influence and strong enterprise competition?

The study report that follows analyzes the macro and microenvironments that have an impact on Vinamilk's businesses, laying the groundwork for identifying the opportunities and difficulties that companies are currently facing From there, assess, discuss, and offer suggestions for business goals that might improve the governance environment With the intention of clearly examining a company's or firm's strengths and weaknesses as well as the impact

of several elements on that enterprise or business

II Analytics

1 Overview Vinamilk

Vinamilk is a business that manufactures and trades milk and dairy products, as well as related machinery and equipment, in Vietnam It is a Joint Stock Company called Vietnam Dairy Products According to data from the

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United Nations Development Program, this business was the fifteenth-largest in Vietnam in 2007

The Ho Chi Minh City Stock Exchange's trade symbol is VNM The company currently holds a 75% market share in the Vietnamese dairy sector, making it the market leader In addition to the enormous domestic distribution system, which consists of a network of 183 distributors and almost 94,000 sales outlets covering the entire country, Vinamilk's products are exported to other nations, including the US, France, Canada, Poland, Germany, and the Middle East 64 provinces Asia-Pacific and the East,… .Vinamilk has created eight factories, one factory, and is currently constructing three more factories with a range of goods Vinamilk has more than 200 dairy products and pasteurized milk products available now, more than 30 years after it was first offered to consumers

2 Task environment

- Customers:

Vinamilk's consumption customers are divided into two types: consumers (who are individual customers); agency and branch (who are customers who buy and trade to make a profit)

Consumers: Consumers now often pay attention to the quality of milk, and the brand, then the price, the price must be reasonable with the selling price of the distributors to avoid the situation above price deviation Currently, consumers pay great attention to their health, they always choose reputable and famous brands of milk, and consumers always choose healthy nutritional supplements such as yogurt, organic milk, walnut milk, and nut milk, Consumers are faced with many choices because now there are many types of

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milk on the market, typically TH true milk, Dutch Lady, Nestle, Nutifood, Fami, With other types of milk, customers consider and compare different milk lines to choose the most suitable product

Agency and branch: Agents and distributors large and small, shopping malls and supermarkets, etc have the ability to influence consumer behavior Domestic dairy companies and agents in foreign countries are often interested in discounting commissions and profits when selling products In order to gain their trust, their agency customers can influence the purchasing decisions of consumers, by recommending and advising them on products

- Competitors:

According to market research firm Kantar Worldpanel, liquid milk is currently less competitive than powdered milk, because domestic firms will have a supply advantage In this segment, Vinamilk continues to lead, accounting for 55% of the market share However, with some potential forecasts

of the liquid milk market, especially the fresh milk market, it only meets 35% Meanwhile, the rest depends mainly on imports, causing other businesses to find ways to penetrate this segment Vinamilk's major domestic competitors in this segment include TH True Milk and Nutifood:

TH True Milk: Right from its inception, TH True Milk has set a goal to

account for 50% of the fresh milk market by 2020 This group has withdrawn

$1.2 billion as well as a lot of human resources to build the largest dairy farm project in Asia and the largest dairy processing factory in Southeast Asia Focusing on new product lines has helped TH true Milk have many development steps Only 5 years after the launch of the first product, as of 2015,

TH true Milk is the enterprise that owns the largest dairy herd in Vietnam with a

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herd size of up to 45,000 heads With a farm area of up to 8,100 hectares, concentrated in Nghe An

Nutifood: Nutifood has been focused on the liquid milk segment with

numerous audacious ideas in addition to concentrating on the powdered milk segment, following consumer trends and upholding the brand's pedestal Featuring the constructed a raw fresh milk area with over 120,000 dairy cows, able to produce up to 1.2 million liters of milk per day, in collaboration with Hoang Anh Gia Lai (HAGL) However, as of right now, the aforementioned cooperation program has not worked out as planned, which has resulted in a relatively small amount of fresh milk sold by Nutifood This is because the company's cow farming area only has a few thousand cows, which is not very many compared to other businesses

Additionally, companies like Coca-Cola, Masan, and others will have little trouble competing in the dairy industry in the future because to their economic potential, expertise, manufacturing size, and established distribution routes They might develop into Vinamilk's rivals

- Suppliers

Sources of raw materials for Vinamilk milk include materials imported and purchased from domestic cow farms

Regarding fresh milk Vinamilk is self-sufficient in its source of fresh milk without much dependence on foreign countries, Vinamilk buys milk from cow farms that meet quality standards Currently, Vinamilk has more than 10 cow

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farms operating on a very large scale to provide enough supply for the domestic and foreign Vietnamese markets The farm size is 685 hectares with an initial capital of 1,200 billion VND

About powdered milk: Vinamilk imports materials from leading companies in the world, Fonterra is the supplier of powdered milk to many famous companies in the world As a result, the quality of Vinamilk's powdered milk is not inferior to other types of milk in the world

- Substitute Product

Dairy products are nutritional products in addition to daily meals, with children, teenagers, and middle-aged people, milk has the effect of supporting health

Low switching costs also make it easy for consumers to switch to substitutes for Vinamilk's dairy products Modern life makes consumers more and more interested in their taste and health and a lot of milk substitutes have also been introduced such as nut milk, soy milk, cereal drinks, and other dairy products This product in terms of quality and nutrition cannot completely replace milk This factor can have a strong impact on the company as well as the dairy industry, but this impact is weak because substitute products are hardly available, and the storage time is short

Currently, on the market, there are many products that compete with dairy products such as green tea, coffee, soft drinks, some types of ice cream, etc However, due to the cultural and health characteristics of dairy products, Vietnamese people, there is no substitute for milk The characteristics of substitute products are unexpected and unpredictable, so despite being in a high position, dairy industries still face pressure from substitutes, so they always try

to improve their products suit the tastes of consumers

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Substitutes limit the industry's profit potential by imposing a ceiling on the price at which firms can sell The more attractive the substitute products are, the greater the pressure on the industry, which is reflected in the following aspects:

+ Switching costs in using the product

+ The trend of changing substitute goods of customers

+ The correlation between the price and the quality of the substitute product

- Pressure from customers

Vinamilk customers include consumers and even wholesale, retail, supermarket, distributor as milk is an essential commodity needed for young children, mothers, elders, patients pricing factors are not so important to consumers What they are more interested in is quality, flavor, and variety with the other brands That's why Vinamilk focused on building image products associated with positioning a 100% brand of pure fresh milk Simultaneously, there were new products that served customers with delicious flavors

In terms of quality, the firm partnered with the National Institute of Nutrition to study nutrient product lines This strategy helped Vinamilk gain full consumer confidence

- Strategic partners

FPT

Vinamilk and digital retail holding company FPT have agreed to work together to build dairy chains throughout Vietnam

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Together, the two parties will fully utilize one another's strengths in retail, wholesale, and manufacturing in an effort to enhance public health and give Vietnamese consumers safer dairy options

The first two resellers were formally inaugurated by Ho Chi Minh, FPT Retail, and Vinamilk After a trial period, both parties sought to nationalize the system

Vietnamese consumers will profit more from the collaboration between the two parties if dairy products are safe

Over 350 FPT Shops and 63 provinces are served by FPT Retail's F.Studio by FPT by placing the retail locations of Vinamilk close to those of FPT As a result, it greatly increased both sides' earnings

Vietnam Airlines

Five years of strategic cooperation agreement between Vinamilk and Vietnam Airlines (2018-2023) On Vietnam Airlines' flights leaving Vietnam, Vinamilk products will be displayed in a separately designed package with a co-branded image, ensuring quality to support the country's 4-star airline Vietnam Airlines and Vinamilk expect to cooperate closely, as evidenced by the overall value of goods that are expected to increase by 10% per year

With this agreement, Vinamilk provided not only nutrition products to Vietnam Airlines and member units, but the two companies also cooperated in areas such as co-branding, marketing campaigns, co-branding, logistics and operational experience, data storage mechanisms, market consumer data, and brand evaluation

3 What opportunities and threats does the task environment offer Vinamilk?

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Strategic partner: The two parties take full advantage of each other in manufacturing, distribution, and retail with the objective of improving public health and providing for Vietnamese customers Cooperation will serve as a basis for consensus on community and community support initiatives to set up the widening Vietnamese dreams

The size of the market and its broad customer enables Vinamilk to increase its market share more efficiently

The supply of fresh milk raw materials is not dependent on imported raw materials from abroad

Most Vietnamese have a demand for dairy products Besides nutritional supplements, many also use dairy products for beauty or cooking Thus, this is the great opportunity and potential for Vinamilk to continue to grow stronger in the dairy industry

Threats:

Customers, including wholesale, retail, supermarket and end customers can put pressure on the business, especially the end customer, there are many different dairy brands with different patterns, flavors, and perfectionism of information

And in particular, price, consumers are able to consider items in the market for comparison and be able to buy the vinamilk product Just one bad job factor can turn customers away from your business

There's pressure from alternative products

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Vinamilk's customer segment is diverse so milk quality requirements must always be considered without an issue

Sometimes there are entanglements of false information about the product due to the existence of fake and fake goods

Competitors put competitive pressure on Vinamilk's milk products in the market because they are of a high financial scale and their ability to advertise the product also impressively in consumers' minds

III Solution

1 Suppliers:

- Building a long-term and sustainable development goal for domestic and international suppliers remains Vinamilk's main goal to ensure that the supply of raw materials is not only stable in high quality but also at very competitive prices

- Expanding aggressively create relationships with big investors to increase credibility

2 Customer:

- Product modification Product differentiation and diversification

- They're lowering prices.

- Empowering yourself by campaigns that come closer to the community

- Develop the Vinamilk brand into a scientifically prestigious and most

reliable nutritional brand

3.Competitors:

- Analyzing and capturing your opponents' strengths and weaknesses

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