Báo cáo kết quả thực hiện bài tập nhóm vinamilk

Vinamilk business market Vinamilk is one of the leading enterprises in Vietnam and has a solid position in the milk and dairy products market.. • Dominating the milk market: Vinamilk hol

TRƯỜNG ĐẠI HỌC NGÂN HÀNG TP HỒ CHÍ MINH

BÁO CÁO K T QU Ế Ả THỰC HIỆN BÀI T P NHÓM Ậ

VINAMILK

Giảng viên: TS PHẠ M H ƯƠNG DIÊN

Mã lớp: MAG313_2411_1 0_ TA27

H Chí Minh, ngày ồ 26 tháng 09 năm 2024

NGÂN HÀNG NHÀ NƯỚC VIỆT NAM B GIÁO D Ộ ỤC VÀ ĐÀO TẠO

NHÓM B

Lê Trần Anh Thư (Leader) 050610220589

Nguyễn Thị Thuý Ngân 050610220339

Nguyễn Trần Yến Nhi 050610221184

Nguyễn Thị Kim Dung 050610220099

M C L C Ụ Ụ

1 Introduce about Vinamilk 1

1.1 Introduce about Vinamilk 1

1.2 Main Products of Vinamilk company 1

1.3 Vinamilk business market 1

1.4 Vinamilk's strategy 2

2 Five opportunities for Vinamilk from the external environment 3

3 Five threats to Vinamilk from the external environment 4

4 Formulate the EFAS table using the factors above and complete the calculations 5

4.1 EFAS table 5

4.2 Explanation 6

4.2.1 Opportunity 6

4.2.2 Threats 7

4.2.3 Conclusion 8

5 Suggest 4 suitable actions to Vinamilk to take the opportunities and to overcome the threats 8

5.1 Diversify into functional foods 8

5.2 Enhance technological innovations and automation 8

5.3 Expand into international markets 8

5.4 Sustainable development 9

REFERENCES 10

1 Introduce about Vinamilk

1.1 Introduce about Vinamilk

Vinamilk’s Company full name is Vietnam Dairy Products Joint Stock Company and was founded in 1976 A company that produces and trades milk and dairy products

as well as related machinery and equipment in Vietnam, is the 15th largest company in

2007

The company is a leading enterprise in the industrial sector milk processing industry, currently accounting for 75% of the milk market share in Vietnam In addition

to strong domestic distribution with a network of 183 distributors and nearly 94,000 sales points covering 64 provinces and cities, Vinamilk products are also exported to many countries such as the US, France, Canada, Poland, Germany, and the Central region East, Southeast Asia…

1.2 Main Products of Vinamilk company

Milk and dairy products:

• Fresh milk: This is Vinamilk's key product, with many different types of fresh milk such as sterilized fresh milk, unsweetened and sweetened fresh milk, fresh milk for children

• Yogurt: Vinamilk offers many types of eating yogurt and drinking yogurt, with many different flavors, from traditional to modern

• Powdered milk: Vinamilk powdered milk is for children and adults, providing all the necessary nutrients

• Condensed milk: Vinamilk condensed milk is one of the traditional products loved by many people

• Cheese: Vinamilk produces many types of hú cheese with a variety of flavors and shapes, used to eat directly or prepare dishes

Beverages:

• Juice: Vinamilk provides a variety of 100% pressed juices and mixed juices to meet everyone's thirst for refreshment

• Fresh coconut water: Vinamilk fresh coconut water is conveniently bottled, helping you enjoy the natural flavor of coconut

Other Products include: Ice cream, Vegetable heavy cream powder, Soy milk

1.3 Vinamilk business market

Vinamilk is one of the leading enterprises in Vietnam and has a solid position in the milk and dairy products market To better understand Vinamilk's market, we need

to consider some of the following factors:

Domestic market:

• Dominating the milk market: Vinamilk holds the largest market share in the Vietnamese milk market, especially products such as fresh milk, yogurt, and powdered milk

• Wide distribution: Vinamilk's distribution system stretches across the country, from big cities to rural areas, helping products easily reach consumers

• Product diversification: In addition to milk, Vinamilk also provides many other products such as soft drinks, confectionery, and functional foods, meeting the diverse needs of consumers

• Focus on traditional and modern distribution channels: Vinamilk distributes products through traditional channels such as markets, grocery stores and modern channels such as supermarkets and convenience stores

International market:

• Vinamilk is not only a leading domestic dairy brand but also affirms its position

in the international market The company has been continuously expanding its business activities to many countries, contributing to bringing Vietnamese dairy products to the world level

• Exporting to many countries: Vinamilk products are present in more than 60 countries around the world, including demanding markets such as the US, Japan, Korea and China

• Focus on potential markets: Vinamilk prioritizes markets with high demand for dairy products and great growth potential

• Investing in brand building: Vinamilk constantly invests in building and promoting its brand in international markets

1.4 Vinamilk's strategy

Vinamilk has been applying many diverse strategies to affirm its leading position

in the country and expand international markets

Product strategy:

• Product diversification: Not only focusing on milk, Vinamilk constantly expands its product portfolio into areas such as soft drinks, confectionery, and functional foods

• New product development: Vinamilk always researches and develops new products, consistent with consumption trends and needs of each market Private label: Vinamilk owns many famous brands such as Ong Tho and Dutch Girl, helping to enhance brand recognition and diversify products

Low-cost strategy:

• Cut costs: Reduce unnecessary costs and optimize production processes This helps them maintain competitive prices without compromising product quality

• Cover retail points evenly: Increase operational efficiency, bringing practical benefits to consumers Products are delivered to consumers in the shortest time after production, ensuring freshness and quality

Distribution strategy:

• Extensive distribution system: Vinamilk builds an extensive distribution system, helping products easily reach consumers and more people know this brand

• Diversified distribution channels: Vinamilk distributes products through traditional channels such as markets, grocery stores and modern channels such

as supermarkets and convenience stores

• Export: Vinamilk promotes exports to many countries, expanding markets and increasing revenue

2 Five opportunities for Vinamilk from the external environment

Growing Demand for Functional Foods:

• According to a report from Euromonitor, the functional food market in Vietnam

is expected to reach $1.8 billion by 2025, with an annual growth rate of 10% Consumers are increasingly focused on health, creating opportunities for Vinamilk to develop products such as nutritional milk, probiotic milk, and supplements containing vitamins and minerals

Expansion of Export Markets:

• In 2022, Vinamilk's export revenue reached approximately $300 million, accounting for about 10% of total revenue The rising demand for dairy products

in markets like China, the United States, and Europe allows Vinamilk to strengthen its export activities and expand its global market share

Technological Innovation and Automation:

• Vinamilk has invested over $10 million in production and management technology in recent years The adoption of automation technology helps Vinamilk increase productivity, reduce production costs, and improve product quality, while quickly meeting market demands

Government Support for Agriculture:

• The Vietnamese government has allocated over 5 trillion VND to develop the dairy cattle industry during the 2021-2025 period These supportive policies not only enhance livestock conditions but also create opportunities for Vinamilk to scale up production and strengthen its supply of high-quality fresh milk

Increased Environmental Awareness:

• According to a Nielsen survey, 66% of global consumers are willing to pay a premium for sustainable products Vinamilk can develop environmentally friendly products, such as recyclable packaging or organic ingredients, thereby attracting consumers who prioritize environmental protection

3 Five threats to Vinamilk from the external environment

Competition with domestic dairy brands:

• Overall, Vinamilk is a leading brand in Vietnam's dairy industry, with a market share of 48.7% However, the brand is also facing more and more different competitors from the domestic dairy market The two largest and direct competitors are Dutch Lady and TH True Milk accounting for 25.7% and 7.7%

of the market share, respectively That is not to mention emerging competitors such as Love In Farm and foreign brands such as Meadow Fresh or Table Cove and other potential competitors

Competition with international brands:

• With Vietnam's accession to international trade organizations such as ASEAN

or the WTO, tax reductions on imported milk products and so on, have created significant challenges for Vinamilk in terms of competing with international brands Accordingly, Vinamilk will face tougher competition or may lose market share to global brands

Changes in food safety regulations:

• Changes in food safety regulations, both domestic and international, in recent years have become more and more stringent, so it may increase operating costs for Vinamilk Compliance with these regulations requires Vinamilk to invest significantly in increasing quality control and production processes For example, new food safety regulations may require staff to more strictly inspect dairy products or handle contaminants or require packaging changes to ensure better preservation These regulatory changes may lead to increased costs for Vinamilk, affecting the company's bottom line

Economic downturns and changes:

• Consumers in today’s life may change their spending behaviors due to global recessions or local economic instability During these period, they tend to cut down on non-essential and premium, high quality products, this also may include high-end dairy items As a result, this can lead to Vinamilk’s premium dairy products have to face large quantities of ever-decreasing in demand’s rates, affecting the company’s sales and profitability

Low milk consumption habits of consumers and the shift to plant-based dairy products:

• Compared to Western countries, Vietnamese consumers still do not have the habit of drinking milk regularly and this is considered an important cultural model for Vinamilk Milk consumption in Vietnam is still very low when compared to other countries For example, the average Vietnamese only consume

an average of 15 liters of milk per year while Thais consume 23 liters and Chinese consume up to 25 liters In addition, the growing popularity of

plant-based milk substitutes, such as almond milk and soy milk, also poses a threat to Vinamilk's traditional dairy products

4 Formulate the EFAS table using the factors above and complete the calculations 4.1 EFAS table

External Factors Weight Rating Weighted

OPPORTUNITIES

Growing Demand for

Functional Foods 0.15 4.5 0.675

Functional foods like nutritional milk, probiotic milk, and supplements can increase sales growt

Expansion of Export

Growing demand in China, US and Europe can strengthen export potential

Technological Innovation

Automation enhances productivity, reduce costs and improve product quality

Government Support for

Facilitate scaling operations to meet rising demand

Increased Environmental

Attract consumers who prioritize environmental protection

THREATS

Competition with domestic

dairy brands

0.15 4.5 0.675

Dutch Lady, TH True Milk, and emerging brands create tough domestic competition Have to change a lot of strategic plans due to

market’s changes

Competition with

international brands 0.1 3.0 0.3

Global brands may capture market share du

to reduced tariffs and global trade agreements

Changes in food safety

Changes or new regulations and laws about food safety can affect production process and costs

Economic downturns and

Economic uncertainty affects demand for dairy products People tend to cut down due to their financial problems

Low milk consumption

habits of consumers and the

shift to plant-based dairy

products

0.1 2.5 0.25

Low domestic milk consumption and growin plant-based alternatives could erode traditional dairy sales

4.2 Explanation

4.2.1 Opportunity

Growing demand for functional foods:

• Weight: 0.15 | Rating: 4.5

• This factor has a high weight because the market for functional foods is expanding rapidly, and the rating reflects strong consumer interest This growth potential aligns well with Vinamilk's ability to innovate in health-focused products, indicating a significant opportunity for increased sales

Expansion of export markets:

• Weight: 0.10 | Rating: 3.9

• The weight is moderate, as expanding into new markets can be challenging but presents substantial growth opportunities The rating of 3.9 indicates a positive outlook, driven by rising demand in key markets like China and the U.S., which

Technological innovation and automation:

• Weight: 0.10 | Rating: 4.0

• This factor is crucial for enhancing operational efficiency The moderate weight shows its importance, while the high rating of 4.0 shows that technological advancements are a strong opportunity for Vinamilk to reduce costs and improve quality

Government support for agriculture:

• Weight: 0.10 | Rating: 2.0

• The weight reflects some importance but not as high as others The lower rating indicates that while government support is beneficial, its direct impact may be less significant compared to other opportunities Having said that, this still facilitates scaling operations

Increased environmental awareness:

• Weight: 0.05 | Rating: 3.5

• The weight is lower because while this trend is growing, it may not yet be a main focus for Vinamilk The rating of 3.5 shows that there is potential for innovation

in sustainable products, aligning with consumer preferences

4.2.2 Threats

Competition with domestic dairy brands:

• Weight: 0.15 | Rating: 4.5

• This factor is weighted heavily due to the considerable threat posed by strong competitors The high rating reflects the intensity of competition in the domestic market, requiring strategic adaptations for Vinamilk

Competition with international brands:

• Weight: 0.10 | Rating: 3.0

• This factor carries moderate weight because international competition can lead

to market share loss The rating of 3.0 indicates a recognized challenge, though Vinamilk's established brand may provide some competitive advantages Changes in food safety regulations:

• Weight: 0.05 | Rating: 3.5

• The low weight shows that while regulatory changes are very important, they may not be as immediate a threat as competition The rating indicates a moderate concern, emphasizing the need for compliance and quality control

Economic downturns and changes:

• Weight: 0.10 | Rating: 3.5

• The weight signifies the potential impact of economic conditions on consumer spending The rating of 3.5 reflects concerns about purchasing power, highlighting the necessity for Vinamilk to diversify its product offerings