CHIẾN lược KINH DOANH của tập đoàn tân HIỆP PHÁT e

So what has made them successful in the business strategy of product Dr.Thanh - Tan Hiep Phat company?. Tan Hiep Phat products continuously won the title "Vietnam High Quality Goods" as

THE BUSINESS STRATEGY OF THE TAN HIEP PHAT

GROUP.

TABLE OF CONTENT

TABLE OF CONTENT 2

INTRODUCTION 3

RESEARCH OF CONTENT 4

1 History of establishment and development 4

2 Analysis of the Tan Hiep Phat Group's business environment 4

2.1 Economic environment 4

2.2 Environment political - law 5

2.3 Environmental Culture - Society 5

2.4 Environmental technology 6

2.5 Natural environment – environmental 6

3 Analysis of the competitive factors 7

3.1 Customers 7

3.2 Substitutes 9

3.3 Supplier 9

3.4 Competitors 10

3.5 Public 10

4 Proposed the business strategy for the Tan Hiep Phat Group 11

4.1 Focused growth strategy: 11

4.2 Differentiated strategy 13

CONCLUSION 16

We are living in a new world, the world of globalization, with major changes, diverse and complex, affecting any other country and any enterprise In social trends are developing at present, the economy is not unique Vietnam has many changes, but also influenced the change of the world economy Businesses are parts directly to race with such changes In the market economy, fierce competition as today, for now, the strategic planning is extremely important to be able to grow the business, increase revenues and profitability, maintain the prestige and position in the market

Enterprises in Vietnam on the path of integration is still looking for its proper direction and rebranding before the competition of multinational companies Many businesses have failed, but many businesses have succeeded in planning their business strategy In which Tan Hiep Phat Group with herb tea products Dr Thanh is an example Through sound business strategy and the proper investment in marketing activities, right from its launch in late 2008, Dr.Thanh has created a real craze for consumers

So what has made them successful in the business strategy of product Dr.Thanh

- Tan Hiep Phat company? What lessons can be drawn for other brands Vietnam can learn from and get the same success? Wishing Vietnamese brands will have much more success, I have made analytical essay "The business strategy of the Tan Hiep Phat Group - focus on tea Dr Thanh herbs products "

RESEARCH OF CONTENT

1 History of establishment and development

Founded in 1994, formerly known as Ben Thanh Brewery, Tan Hiep Phat (THP) has become stretched beverage conglomerate with strong product lines have health benefits Tan Hiep Phat is now a pioneer in the changing habits of the people refreshments Vietnam: friendly than bottled beverages with health benefits Products such as Green Tea Not Degrees, Dr.Thanh Herbal tea, energy drinks Number 1, Number 1 Soya Soya milk,etc, is the leading brand in the market, has proved Tan Hiep Phat always go beginning in approaching and understanding the ever-changing needs of consumers Tan Hiep Phat products continuously won the title "Vietnam High Quality Goods" as consumers voted honoring National Brands in 2010, and many other valuable prizes, which are widely used by news ensure quality management and environmental protection and integrated ISO: quality Management system ISO 9001: 2000 (in 1999), environmental Management system ISO 14001:

2004 (2006) and management systems food safety HACCP (in 2006)

With ambition "to become Asia's leading conglomerates in three main business areas: beverages, instant food, plastic packaging", Tan Hiep Phat has continually invest in developing production chain systems, modernization of technology, and are proud to be one of the domestic unit owns many production technology, the most modern lines as sterile lines aseptic cold extraction, European technology chain, Japan Add that, Tan Hiep Phat may be the team of 4000 staff, professional staff, are trained at home and abroad, experienced, enthusiastic, dedicated for the development

of the company

2 Analysis of the Tan Hiep Phat Group's business environment

2.1 Economic environment

During the last period of 2008, the time of the Dr.Thanh hit the market, the time of Vietnam is in the process of international economic integration, the global economy, complicated, global financial crisis exploded in September 2008 and the economy sank deep into Depression However, the government has made policies and measures to curb inflation in 2008, the support package of economic stimulus is done

to put the economy gradually stabilizing In fact, in late 2008 and 2009, our country's

economy has recovered clarity, overcome the economic crisis of the world's worst in

80 years and regain growth momentum

At the end of 2008 - 2009, industrial production began to recover and growth over the quarters Market prices were stable, demand still rising, though slowly Thus, one can see a time when the Dr.Thanh hit the market, the economy, though with difficulty, but there are good signs of resilience, overcoming the economic crisis and regain growth momentum

In early 2014, although economic growth in the first 6 months of the year reached a low level compared with the previous year, but from the second quarter, the industrial sector has made positive changes The exports and imports have positive changes, export turnover increased by 22.2% over the same period last year Consumer price index in June 2012 decreased by 0.26% from the previous month, the third consecutive month low earlier rose only 0.2% less than in the direction of diminishing growth, stable market

2.2 Environment political - law

Political, political stability and consistency in policy stance big that investors have the optimism of the market, so this is a factor in attracting large amounts of foreign investment in Vietnam On the other hand, political stability and contributing

to the production of enterprises Enterprises do not have the pressure of political instability, with the condition basis for production Political stability brought foreign investment flows into the enterprise, businesses can rely on that funding to develop production and business to expand market share and develop business strategies Legal, with the integration into the world economy, Vietnam legal system has been modified to fit more and more complete and create a legal framework for economic activity in order to protect rights and mutual benefits for all businesses and consumers The legal system simultaneously maintains political stability, create confidence for investors as well as business activities of enterprises effectively

2.3 Environmental Culture - Society

Social and cultural environment of our country are varied and complex, Vietnam is a developing country with a population of over 88 million people (ranked 13th in the world) Population growth rate per year over the period 1999-2014 was 1.2%/year, Vietnam is still a developing country with 54 ethnic groups, live with

agricultural cultures is essentially why Vietnamese were very close to those of products from natural beverages like green tea, squash , coconut cream,etc, Special tea culture is a longstanding tradition of Vietnamese people

The trend of increasing urbanization going strong, people's lives and their incomes rising (according to AsiaPanel, the number of households entering the high-income group (over 6.5 million VND/month ) has increased from 7.3% to 11.9% of total households Vietnam) and consumer trends are essential for their lives has risen, leading to increased demand considerable refreshment According to some assessments of the investment in the beverage industry, Vietnam currently consumes a large volume of beverage products, approximately about 4.2 billion liters / year and the market is growing very strongly A study of Vietnam AsiaPanel about taking drinks to see the trend of using the beverage has health benefits is booming in Vietnam, especially in big cities When the money in the bag becomes more abundant, the people turned to the choice of products derived from natural healthy nutritious as milk, dairy products, juices, smoothies, bottled water,etc, Besides consumer tastes of each region each other, hustle, more modern lifestyle, it is out of working hours is still very concerned about health care for their families and themselves, participating many activities and sports, social activities,etc, So the consumer enjoys consumption products usability fast, action that is good for health, it requires companies to the business in the field of refreshments should have specific strategies, research clearly tastes of each customer to meet customer demand

2.4 Environmental technology

THP group is the first in the beverage industry bia- certified quality management system ISO 9001-2000 Environmental Management System ISO 14001:

2004 management system and food safety according to HACCP standards Tea Dr.Thanh have inheritance in the design of packaging, PET bottles, the production line and distribution channels from other products of THP Group, typically green tea No.0 level Dr.Thanh tea is bottled in the special production conditions in order to retain the nutrients, beneficial for the body PET bottles for tea withstand high temperatures due to the hot filling Right at the outset, Tan Hiep Phat has invested its own PET bottle production line of this

2.5 Natural environment – environmental

Favorable geographical location to make it easier to trade with partners across the country and in the region and around the world by land, waterways and airways However, distance north - south rather large distribution, providing products for the North difficulties of transportation costs, promote products, requires companies to have an appropriate strategy

Besides, Vietnam is characterized by tropical monsoon climate, with large annual precipitation and mean temperature at a high level: climate characteristics, making the need for refreshment of people across the territory very high, Tan Hiep Phat provides a vast consumer market

The main raw material used to produce tea Dr.Thanh include herbs such as honeysuckle, chrysanthemum, Arhat fruit, dry down draft, licorice, birthday flowers, wood free, hybrid extract, herbal, 6/9 herbs over there in Vietnam However, most products still have to import from China, because in this country prior stop at the small production However, the introduction of the herbs are grown in Vietnam to enter is entirely feasible because our country has a tropical monsoon climate, the north has 4 distinct seasons, southern hot and humid climate with much rain besides, our country also has a number of sub-temperate regions such as Da Lat, Sapa,etc, Climatic conditions in line with a lot of herbs In addition, the hot and humid climate typical of our country also has a positive effect on the consumption of the product

3 Analysis of the competitive factors

3.1 Customers

The customer is the enterprise market, a change in demand, purchasing decisions of customers are now forced to take the positive actions that can adapt They can create pressure on manufacturers to reduce prices or improve product quality and better service When research on customer Tan Hiep Phat Group is divided into 3 main groups:

- Individuals, households and collective purchasing products and services

- International markets: foreign customers - consumers, distributors, foreign partners

- The system of wholesale and retail distribution, supermarket

- The effects of corporate customers is demonstrated by the following factors: Number of customers:

+ Buy retail consumers: the more crowded the better benefit enterprises that consume so many products, less the cost of consuming more, fast product is known, market Vietnam has a large population (over 88 million people) Products Dr.Thanh suitable for all ages, body purification negligent hot "with 9 royal herb" This slogan hit sentiment Vietnamese people who live in hot tropical climates want health care with natural methods

+ Distributor: Tan Hiep Phat Group has an extensive distribution network of over 268 provinces with the distributor level 1, which is an advantage in the market launch of the product, consumers have access to a quickly

Price sensitivity:

+ With life and income levels improve a consumer has more boldly in her shopping and they still have concerns about the price:

* Customers who want to buy affordable prices affordable

* Distributors, supermarkets want profits and enjoy higher discount

So now also need reasonable pricing, discounts accordingly, price strategy for each stage of the product life cycle

+ Customer requirement for quality products, services, packaging design,etc, Today, with the abundance and diversity of consumer product market, consumer demand of customers is increasing So we need to study the tastes of the consumer to grasp the new trend Therefore companies must constantly develop innovative products to suit customer needs

Requirements for safety, brand reputation:

+ Consumers increasingly more knowledgeable and demanding about the safety norms and standards for product quality is getting higher

+ Clients react very sensitive to the information relating to food safety and always ready to shift their consumption of substitute product if the product does not trust the old

+ Customers also preferred the familiar brands, prestigious and widely advertised The building brand reputation based on the quality and safety of the products can be quite expensive, but it offers long-term benefits and sustainability for enterprises, especially the position in the minds of consumers

For products Dr.Thanh, need more rigorous in controlling the quality of products, to avoid errors and poor product quality was launched, as this will impact negatively on reputation and brand of the company Information about the customer: The customer understand the product information will create great pressure on bargain now, especially the distributors

3.2 Substitutes

- Product replacement product can be used interchangeably in meeting certain needs one man

- For products Dr.Thanh, we focus on the beverage market, especially the bottled tea products, herbal tea On the market today, with over 3000 products beverages In particular, bottled tea products have the following brands: C2 Green Tea (URC), Lipton (Unilever),etc, Particularly with herbal tea product line has brand Tam Thanh (Bidrico), Teafres (ICP), Yinyang (URC),etc,

3.3 Supplier

- Suppliers are organizations that provide products, materials and services for business input to ensure the business is the production and business activities

- Suppliers provide inputs for production and business processes should have considerable influence on the business Quality and price of supplies affect the quality and price of products Therefore, the supplier is one important factor affecting the business activities of enterprises

- The number of suppliers is now as much less pressure from suppliers and vice versa Besides, the proportion of first home buyers commodity supply increasingly higher now under pressure from suppliers there, especially the pressure on prices But conversely, if businesses are major customers of suppliers, enterprises have been many advantages Tan Hiep Phat grasp this, so that Tan Hiep Phat has 23 strategic suppliers and each type of material has a lot of different suppliers

- Tan Hiep Phat customers have regular relationships and long term with favorable supplier in the purchase process Purchasing department of raw materials of Tan Hiep Phat always understand the market, regular monitoring of price and supply

of raw materials to stabilize production inputs

- The next factor affect businesses is quality input materials We can say the quality of input materials, the new well to facilitate the production and consumption of

products Quality input materials as possible are increasingly producing products of high quality, create the competitiveness of the companies producing goods and creating competitive advantage for Tan Hiep Phat Thus creating the brand for Tan Hiep Phat Because of this reason that all the raw materials which the company purchased are imported from reputable suppliers and higher quality materials than before

- Although Tan Hiep Phat can buy raw materials from local companies but the majority is imported from abroad, causing higher transport costs this is one disadvantage to the Tan Hiep Phat Especially most of the raw material is imported Dr.Thanh from China This creates higher costs led to cost and pricing of the products

is also high, which reduces the competitiveness of products

3.4 Competitors

- Competition on price: Dr Thanh Herbal tea have far higher rates than other types of other bottled beverages However, customer acceptance of products because

it is beneficial for health Dr.Thanh help us identify product strategy of Tan Hiep Phat for this trademark was skimming lightning, or launch new products to market with high prices and high levels of promotional: High price calculation to ensure gross margin on product unit at the highest level, for the promotional spend to convince the market of the product benefits even at high prices Promotional activities at a high level is to increase the pace of market penetration

- Competition in the alternative: Tea is the material used to make the drink popular in the world for thousands of years, especially in Asian countries like China, Taiwan, Japan, Korea,etc, Vietnam market in the world and in the region, bottled tea flourished since the 80s of last century All major brands available in Vietnam are already available products in the market green tea Europe, America, Japan, Korea, such as Lipton, Pepsi, Coca Cola, URC,etc, For its own product lines have herbal tea brands Tam Thanh (Bidrico), Teafres (ICP), Yinyang (URC),etc,

- Competition in variety: With the Dr.Thanh herbal tea of Tan Hiep Phat Group has created a difference compared with competitors by pioneers in exploring herbal tea market, and still is the market leader of bottled tea

3.5 Public