Vinamilk marketing plan

TABLE OF CONTENTS BACKGROUND INTRODUCTION a Summary The Vietnam Dairy Products Joint Stock Company was established on the basis of Decision No 155/2003QD- BCN October 1, 2003 of Ministry of Industry to transfer State-owned Enterprises Company Vietnam Dairy Products Joint Stock Company Vietnam Dairy Products Nam Certificate of business registration No 4103001932 by the Company for Planning and Investment of Ho Chi Minh City on November 20, 2003 Before December 1, 2003, the company is state-owned enterprises under the Ministry of Industry - Full name: The Vietnam Dairy Products Joint Stock Company - Name: VINAMILK - Logo: - Head office: 36-38 Ngo Duc Ke Street, District 1, Ho Chi Minh - Office: 184-186-188 Nguyen Dinh Chieu, District 3, Ho Chi Minh - Tel: (08) 9300 358 Fax: (08) 9305 206 - Web site: www.vinamilk.com.vn - Email: vinamilk@vinamilk.com.vn b Organization Chart c Factories d Awards and Achivement Business Activities: - Production and sales of milk boxes, milk powder, nutrition powder, bread, fresh milk, bean milk, meal, beverage and other dairy products; - Sales of food technology, equipment and spare parts, materials, chemicals and raw materials - Trading houses, brokers leasing real estate; business warehouse, wharf beach; Business goods transportation by car; loading and unloading of goods; - Production of alcohol sales, beer, beverages, food processing, tea drinks, coffee-roasting grind-phin - soluble; - Production and sales packaging, printed on the packaging; - Production and sales of plastic products - Clinic Message of Vinamilk: a Vision: Vinamilk will be the fastest and sustainable growing healthy dairy and food company by building a long-term competitive advantaged product portfolio across the scale b Mission: Vinamilk continues to expand its existing geographical coverage and product portfolios to maintain its sustainable dominant position in the local market and maximizing its shareholder value c Core Values: Integrity: Integrity, transparency and morals can be found in whatever we Will : We dare to think, to do, to take responsibilities and to overcome challenges to realize the committed targets Creativity: We always highly appreciate the passion, unique discovery and innovative solutions Efficiency: We always focus on added-values in all our works, investments and business activities Respectability: Self-respecting, equality and dedication to the growth of the company are what we really appreciate at Vinamilk 6 Harmony of interests: Interests of Vinamilk are also the interests of its employees, partners, government and society Openness: Constructive and straight communication is the base for ourteam to become more united and stronger II CURRENT STATE OF VINAMILK 1) OVERVIEW OF MILK INDUSTRY IN VIETNAM Vietnam's economy continues to grow with the growth of GDP in 2009 is very high, reaching 8.5% and expected to reach 6.4% in 2010 The growth is higher than the average growth rate in during 2001-2005 and is one of the highest growth rate worlds at that time GDP per capita of Vietnam in 2007 is 835USD, up 103 USD compared to 2006 In addition, with revenue increasing, consumers tend to purchased products than healthy such as milk Trend of milk consumption growing dairy industry helped to thrive in recent years According to figures from the Ministry of Industry and Commerce, production average milk consumption of a Vietnam today is liters / person / year and could increase to 10 liters in 2010 These are modest figure compared with consumption of the Japanese 44 liters of milk per year, Singapore 33 liters per year and Thailand 15 liters per year So industry processing of milk is expected to thrive in the future Special the distribution sector has a remarkable growth of fresh milk (20%), milk tomatoes (15%), milk powder (10%) and cream (10%) In addition, the government also plans to invest in dairy farms and processing technology milk to increase milk production in fresh water and reduce dependence on milk powder imported 2) COMPETITOR III MARKETING PLAN OBJECTIVE Taking up at least % of powdered milk market segment in the next years The company’s ultimate goal is to maximize the values to shareholders a nd to keep up with strategy for business development basing on following key factors: • Reinforcing and developing a system of powerful brands to satisfy the demand and consumption trends of Vietnamese consumers • Developing Vinamilk to the most reliable and trusted brand on nutrition products and scientific credibility by application of scientific researches on specific demands of Vietnamese on nutrition in order to develop and launch the best products to Vietnamese consumers • Making more investment into expanding its business and market of healthy beverage products through the core brand of Vfresh to meet the increasing demands for healthy and natural beverages • Strengthening its distribution quality and network coverage to expand its market share in the market where Vinamilk’s segment is not high, especially in rural area and small towns • Exploring the power and reliability of Vinamilk as “most reliable and trusted brand on nutrition products and scientific credibility to the Vietnamese” in order to take up at least 35% of powdered milk market segment in the next years • Developing comprehensively the portfolio of dairy products, targeting the extensive quantity of various consumers and expanding value-added products with high selling prices in order to increase the company’s profitability • Continuing improvement of the supply network management capacity • Keeping expansion and development of a stable, active and effective distribution network • Developing material sources to ensure a stable fresh milk supply with high and reliable quality and competitive prices MARKETING STATREGIES SWOT ANALYSIS a) Strength • Economies of scales when Vinamilk is well positioned as a leader in dairy market of Vietnam • Vinamilk is undoubtedly a familiar and trusted brand in the mind of Vietnamese consumers during the last 34 years • An extensive distribution network located nationwide and continued being expanded over time allows Vinamilk to bring its core products to consumers in a fast and effective way • Vinamilk’s high-quality products are the favourite brand of consumers • A range of modern factories located along Vietnam that helps to reduce transportation expenses and a system of the state-of-the-art machinery and equipment, being improved and expanded every year, that helps to ensure the output products meeting the international standards • The loyal and cooperative relationships with both local and overseas suppliers allow the company to have a stable material source at the reasonable prices At present, Vinamilk is the purchaser of about 60% of all cow milk produced in Vietnam • Vinamilk owns a management team deeply experienced in dairy business and production, a transparent internal management system and tight and detailed management procedures A strong spirit of self-renovation for improvement of operation quality is absolutely penetrated from every managers to each employee b) Weaknesses In case the economy slowing growth in the coming period, as lower income people will affect the consumption of milk in the country, reducing profits and sales revenue of the company Vietnam's WTO accession will create conditions for foreign companies to penetrate into the domestic market, increasing competitiveness among companies in the industry In addition, reducing import duties for dairy products will favorable conditions for imported dairy products With 50% of raw material to the company's import and 30% of the company's revenues are from exports, the fluctuations in exchange rates affect the operation of the Company c) Opportunities Recognizing the importance of the dairy industry, on October 26, 2001 Prime Minister's Decision No 167 on development policies dairy Vietnam period 20012010 Same time, Minister of Industry is the decision of 22/2005/QD-BCN approved development plan Vietnam Dairy industry 2010 and oriented to 2020 Supply of raw materials are quite stable in the future, Vietnam Dairy milk will gradually decrease the proportion of imported raw materials, instead of cow's milk fresh source material, ensuring quality dairy products for consumers and contribute to promoting the domestic industry support These factors have a positive impact to production and business operations of the company In addition, the company has invested 11 billion VND to build 60 tanks and milk processing factories have profile equipment storage fresh milk Vinamilk a leading company in the investment area has all the ingredients and follow the plan d) Threats Raw milk prices on the world market will remain near current high levels of short-term, but currently there are signs of supply will increase, which can reduce price pressures to rise in 2010 4P ANALYSIS PRODUCT All factories have been implementing quality controls according to ISO 9001:2000 and Hazard Analysis and Critical Control Points (HACCP) Food safety and hygiene is one of the top quality policies that Vinamilk set out in the business All factories were built Vinamilk Construction and application of HACCP system for food hygiene and safety, the factory has been the international organizations such as SGS, BVQI assessment and certification systems meet HACCP standard RVA of the Netherlands Below are product lines of Vinamilk: • Group of fresh milk – drinking yoghurt • Group of condensed milk • Group of powdered milk • Group of frozen product • Group of refresher (Vfresh) • Group of coffee PRICE In order to maintain profit in difficult times while prices of many raw materials strongly increased, Vinamilk has been following a policy of controlling and tightening costs and expenses All monthly cost items were well planned in detail at the end of the previous year At the end of each month, actual cost was compared with the approved cost to understand causes of divergence and to fix the problem immediately Cost control is also one of the criteria to evaluate monthly performance of the managers Each channel retail company has a separate rating system consistent with the characteristics of each channel of business to meet consumer purchases are the most satisfied For distributors: distributors specified products distribution company's price policies according to certain markets and revenue from commissions, products Overall, the company's pricing is quite reasonable Competitive advantage compared with the special product is the absolute advantage in meeting most of the needs of consumers everywhere, the entire world and all walks PLACE (DISTRIBUTION) Distribution system of the company products cover wide territory of Vietnam, from the provinces to the districts lying and coastal and mountainous areas Distribution system of the company through the following main channels: Traditional Channel: This is the distribution channel home power, is distributed over 90% of the production companies Traditional channels are made through distributors to retail outlets throughout the country We now have 220 company with more than 90,000 Distributors at retail in 64/64 provinces and cities across the country Modern channels: through supermarkets, office blocks, factories, blocks for The system stores Featured Products of the company: So far the company has developed 16 product showrooms in major cities like Hanoi, HCMC, Can Tho, Da Nang, In addition to market countries, the company has exported products to several countries in the world for many years Currently the company has official distributors in international markets in the U.S., Europe, Australia and Thailand are in the stage set up distribution systems coordination official of the company's products in the market in Cambodia and some neighboring countries in the region PROMOTION CONCLUSION Vinamilk are the leading producer of dairy products in Vietnam based on sales volume and revenue Vinamilk offer one of the largest dairy portfolios in Vietnam, across a wide selection of products, flavors, and packaging sizes Since commencing operation in 1976 Vinamilk have built the largest distribution network in Vietnam and have leveraged our network to introduce new products to the market, such as juices, Soya milk, bottled drinking water and coffee Vinamilk market the majority of the products under our “Vinamilk” brand, which has been designated as both a Famous Brand and one of the Top 100 Strongest Brands by the Vietnamese Ministry of Industry and Trade in 2006 Vinamilk have also been voted the top brand in the “Top Ten High-quality Vietnamese Goods” for each year from 1995 to 2007 Vinamilk currently focus on business activities in the fast growing Vietnamese dairy market By some directions such as quality control, cost control, human resource, marketing activities, and information technologies that Vinamilk have the leading distribution network in Vietnam, giving us broad access to consumers Vinamilk generate a substantial majority of our revenues from sales of our products in Vietnam comprising both dairy and non-dairy products and export to countries such as Australia, Cambodia, Iraq, the Philippines and the United States REFERENCES Main website [Accessed 30 August 2010] URL: http://www.vinamilk.com.vn Thuong hieu hang dau [Accessed 30 August 2010] URL: http://www.vnbrand.net/Thuong-hieu-hang-dau/vinamilk-cuoc-song-tuoidep.htm Hieu moi thang [Access on 30 August 2010] URL: http://www.crmvietnam.com/index.php? q=Case_Vinamilk_Hieu_moi_thang [...]... bottled drinking water and coffee Vinamilk market the majority of the products under our Vinamilk brand, which has been designated as both a Famous Brand and one of the Top 100 Strongest Brands by the Vietnamese Ministry of Industry and Trade in 2006 Vinamilk have also been voted the top brand in the “Top Ten High-quality Vietnamese Goods” for each year from 1995 to 2007 Vinamilk currently focus on business... Cambodia and some neighboring countries in the region PROMOTION CONCLUSION Vinamilk are the leading producer of dairy products in Vietnam based on sales volume and revenue Vinamilk offer one of the largest dairy portfolios in Vietnam, across a wide selection of products, flavors, and packaging sizes Since commencing operation in 1976 Vinamilk have built the largest distribution network in Vietnam and have... activities in the fast growing Vietnamese dairy market By some directions such as quality control, cost control, human resource, marketing activities, and information technologies that Vinamilk have the leading distribution network in Vietnam, giving us broad access to consumers Vinamilk generate a substantial majority of our revenues from sales of our products in Vietnam comprising both dairy and non-dairy... the United States REFERENCES Main website [Accessed 30 August 2010] URL: http://www .vinamilk. com.vn Thuong hieu hang dau [Accessed 30 August 2010] URL: http://www.vnbrand.net/Thuong-hieu-hang-dau /vinamilk- cuoc-song-tuoidep.htm Hieu moi thang [Access on 30 August 2010] URL: http://www.crmvietnam.com/index.php? q=Case _Vinamilk_ Hieu_moi_thang ... District 3, Ho Chi Minh - Tel: (08) 9300 358 Fax: (08) 9305 206 - Web site: www .vinamilk. com.vn - Email: vinamilk@ vinamilk.com.vn b Organization Chart c Factories d Awards and Achivement Business... also plans to invest in dairy farms and processing technology milk to increase milk production in fresh water and reduce dependence on milk powder imported 2) COMPETITOR III MARKETING PLAN OBJECTIVE... quality and competitive prices MARKETING STATREGIES SWOT ANALYSIS a) Strength • Economies of scales when Vinamilk is well positioned as a leader in dairy market of Vietnam • Vinamilk is undoubtedly