Asian marketing management marketing management for vinamilk

Company’s mission The mission statement of Vinamilk reads, “To deliver the valuable nutrition to the community with respect, love and responsibility.” The vision statement of Vinamilk re

VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

ĐẠI HỌC TON BUC THANG

TON DUC THANG UNIVERSITY

Asian Marketing Management Marketing Management for Vinamilk

Lecturer: Mr Hoang Kim Chuong

Group members Nguyen Pham Bang Bang 719V0147

Tran Phuong Uyen 719V0135

Vo Tan Lac Thien 719K0137

Nguyen Van Tuan 719K0142

Le Thi Van Truc 719V0145 Huynh Bao Ngoc 719V0130

Group 05 Shift 02 Saturday

Class: 19170401

Ho Chi Minh City, December 2021

No | Student ID Name Tasks Contribution

1 719V0130 Huynh Bao Ngoc - Chapter 1 Define Objective 100%

- 2.1 Market potential evaluation

2 719V0135 Tran Phuong Uyen ; 100%

- 2.2 SWOT analysis

- 2.3 Marketing hypothesis

- 3.1 Strategic objectives and plan

- 3.1 Strategic objectives and plan

4 719V0147 | Nguyen Pham Bang Bang 100%

- 3.2 Revenue projection and tactical plan

- 3.3 Contingency plan

5 719K0137 Vo Tan Lac Thien - 4.1 Budget proposal & approval 100%

- Edit and synthesis the Final Report

6 719K0142 Nguyen Van Tuan - 4.2 Details action plan 100%

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Chapter 1 Define Objective 1.1 Company’s mission

The mission statement of Vinamilk reads, “To deliver the valuable nutrition to the community with respect, love and responsibility.” The vision statement of Vinamilk reads, “To become a world grade brand in the food and beverage industry, where people put all their trust in nutrient and health products.” Vinamilk focuses all resources to build the dairy and food company with health benefits By building strategic product lines with a long-term competitive advantage, Vinamilk has become the company's rapid growth and most sustainable Vinamilk is constantly diversifying product lines, expanding the distribution territory in order to maintain the leading position on the domestic market Vinamilk concentrates all resources to become a dairy and food company with healthy and rapid growth, Vietnam's most sustainable building strategies by-product lines have competitive advantages long term Vinamilk would like to become the most favorite product of all regions, territories So, Vinamilk minds that quality, creativity is a companion of the company and see customer-centric and committed to meeting the needs of customers

1.2, Company’s objective

Vinamilk constantly develops production activities, trade and services in the area's business activity in order to maximize profits that can get the company to shareholders, enhance the value of the company and not constantly improve and raise the living standards, working conditions and incomes for workers, and fulfill their obligations to the State budget Besides, the company mounted a processing industry with raw materials in order to increase the independence of the materials in the present and future In addition, Vinamilk has many customer gratitude programs, so it attracts large customers to consume products To become a business with a working environment in which employees can bring out their full potential, contribute to common achievements, and become one of the top businesses that employees consider ideal to work for Building a long-term and sustainable development goal for major domestic and foreign suppliers is Vinamilk's main goal to ensure a stable supply of raw materials not only in high quality but also at low prices The prices are very competitive The milk obtained from the farms always meets the quality standards Building the best quality because customers are the final destination of the company The company's goal is to diversify products and develop into a strong corporation in Vietnam through building a system of stylish products.

Chapter 2 Marketing Analysis 2.1 Market potential evaluation

Constantly affirming its position globally, Vietnam Dairy Products Joint Stock Company (Vinamilk) is the only representative of Southeast Asia to participate in 4 global rankings, according to Brand Finance's annual report on the most valuable and most vital brands in the food and beverage industry in 2021 (Kim Anh, 2021) Specifically, Vinamilk is the only representative of Southeast Asia in the top 10 most valuable dairy brands globally in 2021 with 8/10 Vinamilk's brand value is valued at nearly 2.4 billion USD, up to 12% compared to 2020 In addition, Vinamilk 1s also one of the three most potential brands of the dairy industry globally, with the second-highest score This is a significant result when it shows the development potential of Vinamilk in the challenges posed by the pandemic to businesses and the dairy industry globally (Kim Anh, 2021)

Not only achieving high rankings in the dairy industry, but according to this report, in the food industry, Vinamilk has also conquered two rankings as the top 5 strongest food brands in the world and the top 30 of the 100 most valuable food brands globally with 27th position, increase sharply to 9 places compared to 2020 Before that, Vinamilk has also appeared in many prestigious world rankings with high rankings Most recently, Vinamilk was ranked 36th in the top 50 dairy companies globally in terms of revenue and the only representative of Southeast Asia (Kim Anh,

2021)

In 2020, export revenue reached more than 5,500 billion VND, up to 7.5% compared to 2019 In the first six months of 2021, Vinamilk's export activities recorded double-digit revenue growth, reaching nearly 2,800 billion VND, a rise of 13.1% compared to 2020 (Kim Anh, 2021)

It can be said that behind the success of international business contracts worth millions of dollars is a combination of seizing growth opportunities and affirming business reputation These two factors show Vinamilk's business bravery during 25 years of international "war" and especially the “fire test" period lasting nearly two years when the Covid-19 incident occurred With the motto of taking quality - price -

service as a success factor in international business, the company always spends many years researching markets and consumption habits to improve the nutritional quality of each product, maintaining the trust of partners and customers In addition to traditional products with strengths such as condensed milk, baby milk powder, and nutritional powder, Vinamilk invests in research and development to introduce unique products to serve local tastes (Vinamilk, 2021)

From the starting point that Vietnam is a dairy importer, Vinamilk has not only taken the lead in the domestic market but also brought its products to 56 countries and territories, with a total turnover of accumulated exports of more than 2.5 billion USD and increasingly affirmed the brand and reputation of Vietnamese milk in the international market (Vinamilk, 2021)

in the Vietnamese market

+ The Vinamilk brand has been used since the company was first established and is now a widely known dairy brand in Vietnam Vinamilk dominates the market by focusing on advertising and marketing, constantly innovating products, and improving quality (Misa, 2021)

Effective Marketing Strategies:

+ One of Vinamilk's marketing strategies is to take advantage of various channels such as TV, newspapers, billboards, fan page, television to advertise their products With the multi-channel product advertising strategy, the coverage has helped Vinamilk successfully implement the business's marketing campaigns

+ Besides, Vinamilk also invests in advertising content in Marketing campaigns and provides valuable information to customers To produce excellent and attractive

content, Vinamilk has effectively applied the Hero - Hub - Help (3H) model in its content strategy to achieve specific successes (Misa, 2021)

Diversified product portfolio:

+ Vinamilk provides diversified dairy products with over 200 dairy products, serving a wide range of consumers Product lines target specific audiences such as children, adults, and the elderly, along with products for households and businesses such as coffee shops

+ Vinamilk's products are diversified with different packaging sizes, providing customers in the Vietnamese market with convenient dairy products Vinamilk also diversified product categories to increase serviceability and maximize profits in the market segment that Vinamilk targets (Misa, 2021)

Wide distribution network:

+ With a vast distribution network, Vinamilk can reach many customers and ensure the launch of new products and effective marketing strategies nationwide + In 2021, Vinamilk has sold products through more than 240 distributors and more than 240,000 points of sale through conventional channels, 465 “Giac Mo Sua Viet” stores, 2.400 points of sales through convenience stores, and 5.400 points of sales through supermarkets in all 64 provinces and cities A labor force of around 9,361 employees with an experienced sales team of 1,787 shop assistants around the country has helped distributors better serve retailers, consumers and promote the company's products (Vinamilk, 2021)

High-tech applications:

+ Vinamilk owns European production technology that meets global standards, Vinamilk's sterilization equipment is imported from Sweden, and other equipment is made from European countries International standards such as ISO 50001:2011 and HACCP are applied to control the production system

+ Vinamilk also built more factories with modern and advanced equipment in key economic regions of the country, creating an initiative in production and business

(Misa, 2021).

2.2.2 Weaknesses

Besides strengths, Vinamilk also has weaknesses that need to be overcome Some of the main weaknesses in Vinamilk's SWOT model can be mentioned as follows (Misa, 2021)

Unable to control the source of raw materials:

+ When domestic raw materials only meet about 30% of production demand, 70% of supply and input material ratio depend on the world milk supply-demand relationship With this dependence, the production and business situation of Vinamilk will be affected by the external environment and factors such as inflation and economic crisis (Misa, 2021)

The market share of powdered milk is not high:

+ Currently, users tend to use imported powdered milk higher than domestically produced powdered milk In addition, the market appears more and more foreign milk brands imported from Europe, so Vinamilk's powdered milk market share, which holds

a monopoly position, tends to decline (Misa, 2021)

The marketing system is not good:

+ Weak marketing, leading to not creating an effective message to advertise to consumers about the company's strengths Although there is 70-99% fresh milk in the products, Vinamilk does not know how to exploit the brand, so Vinamilk does not have

a message for consumers to understand the difference between fresh milk and reconstituted pasteurized milk Even all other strengths have not yet been conveyed to consumers (Mirumiru, 2011)

Customer care and product quality need to be improved:

+ Dairy products are susceptible to the stages of preservation and transportation If these steps are not done well, consumers will receive milk products that are not the same quality as the original Therefore, customer care is a top priority However, Vinamilk's products and customer care services are still poor because there are still many shortcomings in customer care (Mirumiru, 2011)

Unselected distribution and retail system:

+ The distribution and retail systems of domestic dairy companies in general and Vinamilk, mainly, are not tight in selecting and signing distribution contracts with agents Agents and retail outlets are the direct sales channels to consumers If there are

no strict regulations on storage, and service conditions, the company's reputation will

be discredited Many milk cartons are not correctly preserved, so the packaging has been deformed and expired before reaching consumers Vinamilk should make specific recommendations and announce genuine distribution agents on the mass media for everyone to know At the same time, there is a commitment to compensate for infringing products purchased at the company's agent if there is a good reason, helping consumers feel more secure with domestic dairy products (Mirumiru, 2011)

2.2.3 Opportunities

To capitalize on strengths and overcome weaknesses, Vinamilk can seize several beneficial opportunities to develop its brand and increase sales as follows (Misa, 2021)

The Government is supporting the source of raw materials; imported materials have a reduced tax rate:

+ After Vietnam became a member of ASEAN and WTO in 1995 and 2007 In July 2010, Vietnam's Ministry of Health approved regulations requiring dairy products, especially baby milk, to meet specific standards

+ Currently, the Government is also supporting the supply of raw materials and reducing import tax on raw materials to help businesses reduce the burden of production costs (Misa, 2021)

A high number of potential customers and great demand:

+ Vietnam has a high population density, the proportion of people tending to urbanize in recent years has increased, the education level has increased, and the income of the middle class has also gradually improved

+ With an increased level of education, Vietnamese young people have the opportunity to access knowledge and cultures in the West, understand more about the effects of milk on the body, so they tend to consume more dairy products Besides,

parents are more and more concerned about their children and pay attention to their children's nutrition (Misa, 2021)

Vietnamese people's demand for milk increases:

+ Most Vietnamese people need to use dairy products Besides nutritional supplements, many people also use dairy products for beauty or cooking Therefore, this is a great opportunity and potential for Vinamilk to grow more vital in the dairy industry (Misa, 2021)

Customers who have a need to consume quality and healthy products: + According to Nielsen's consumption report, today's customers are deeply interested in health and tend to buy health products And when it comes to health supplements, most consumers will mention milk, an essential food in nutritional products (Misa, 2021)

2.2.4 Threats

Besides opportunities, Vinamilk also needs to face some challenges The main challenges in the SWOT analysis of Vinamilk can be listed as follows (Misa, 2021) Many competitors enter the market:

+ Increasing demand for products leads to the appearance of new competitors With a long-standing brand like Vinamilk, this is both an opportunity and a big challenge Currently, Vietnamese consumers are facing many choices of dairy products Especially foreign brands are landing in Vietnam, leading to Vinamilk's position in the market gradually "shaken"

+ Some of Vinamilk's main competitors can be mentioned, such as TH True Milk, Dutch Lady, and emerging brands such as Meadow Fresh or Table Cove

(Misa, 2021)

Unstable input materials:

+ Although owning international standard dairy farms, Vinamilk's raw materials still depend on imports In addition, because the profit from livestock production is not high, farmers tend to change jobs This has created much pressure on Vinamilk, requiring the brand to develop domestic raw materials and avoid dependence on imported materials abroad (Misa, 2021)

Vietnamese customers tend to prefer foreign milk:

+ For health-related products, customers tend to prefer foreign products They believe that portable products’ nutritional content and safety are higher than that of domestic products With this situation, Vinamilk needs to strengthen more brand promotion campaigns, affirming that the product's nutritional value is not inferior to any famous foreign brand (Misa, 2021)

2.3 Marketing hypothesis