PHÂN TÍCH SWOT VÀ KẾ HOẠCH MARKETING SẢN PHẨM CỦA CÔNG TY SỮA VINAMILK Introduction In order for Vietnam Dairy Products JSC (Vinamilk Corporation) to obtain daily sales and inventory reports from its retailers, this leading producer of dairy products in Vietnam had to station one staff member permanently at each of the 260 distributors that it works with countrywide The History Significant events in our business are set out below: 1976: Our Company was founded under the name of Southern Coffee-Dairy Company, a subsidiary of the General Food Directorate and had six factories in operation, namely Thong Nhat Dairy Factory, Truong Tho Dairy Factory, Dielac Factory, Bien Hoa Coffee Factory, Bich Chi Powder Factory and Lubico 1978: The management of our Company was transferred to the Ministry of Food Industry and our Company was renamed United Enterprises of Milk Coffee Cookies and Candies I 1988: Introduced powdered milk and cereal with milk powder at the first time in Vietnam 1991: Launched UHT milk and spoon yoghurt to Vietnam market 1992: The United Enterprises of Milk Coffee Cookies and Candies I was formally renamed Vietnam Dairy Company and came under the direct management of the Ministry of Light Industry We started focusing on the manufacturing and processing of dairy products 1994: Hanoi Dairy Factory was built in Hanoi as part of our Company’s expansion and market development strategy to cater to the market in the northern region of Vietnam 1996: Binh Dinh Dairy Joint Venture Enterprise was founded as the result of our joint venture with Dong Lanh Quy Nhon Joint Stock Company This joint venture enabled our Company to successfully gain access to the market in the middle region of Vietnam 2000: Can Tho Dairy Factory, which is located in Tra Noc Industrial Zone, Can Tho City was built to better meet the demands of consumers in the Mekong Delta In the same year, we set up the Logistics and Warehouse Enterprise located in 32 Dang Van Bi St., Ho Chi Minh City 2003: Was formally converted into a joint stock company in December 2003 and changed its name to Vietnam Dairy Products Joint Stock Company to reflect its change in status 2004: Acquired Saigon Milk Joint Stock Company Increased share capital to VND 1,590 billion 2005: Bought over our joint venture partner’s remaining shareholdings in Binh Dinh Dairy Products Company Ltd (as Binh Dinh Dairy Factory was then known) and inaugurated Nghe An Dairy Factory, located in Cua Lo Industrial Zone, Nghe An province, on 30 June 2005 * Entered into a joint venture agreement with SABMiller Asia B.V and established SABMiller Vietnam Joint Venture Company Ltd in August 2005 Our first joint venture product, Zorok, was also launched in the first half of 2007 2006: Vinamilk was listed on the HOSE on 19 January 2006 with the SCIC holding approximately 50.01% of our Company’s shareholdings * Opened An Khang Clinic in Ho Chi Minh City in June 2006 This is the first clinic in Vietnam managed by a sophisticated electronic management system The clinic offers a diverse range of services such as nutritional consulting, gynecology testing, pediatrics consulting and health screening * Commenced our dairy cow farms program with the acquisition of Tuyen Quang dairy farm, a small scale farm with 1,400 heads of cows in November 2006 The Tuyen Quang dairy farm was operational at the time of acquisition 2007: Acquired a 55% interest in Lam Son Milk Company Ltd in September 2007, located in Le Mon Industrial Zone, Thanh Hoa province Core Mission and Values 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 MISSION Vinamilk continues to expand its existing geographical coverage and product portfolios to maintain its sustainably dominant position in the local market and maximizing its shareholder value Vinamilk wish to be the most favourite product in all areas, territories Therefore, we meditate that quality and creation is the companion of Vinamilk Vinamilk considers customers our focus and commit to meet all demands of customers Vietnam Dairy Products Joint Stock Company’s quality policy Always satisfy customers with high-quality, safe, and diverse products, the best service and competitive prices Organisational Structure Products Brand Name Vinamilk Dielac Ridielac Vfresh Condensed Milk Product Fresh Milk Yoghurt Drinking Yoghurt Fermented Yoghurt Ice-Cream Cheese Milk powder for elders Milk powder for mothers Milk powder for babies Cereal powder for kids Soy-bean milk Fruit juice Smoothie Atiso Tea Vfresh Aloe Vera Longevity Southern Star External Analysis Headquartered in Ho Chi Minh City, Vietnam, Vinamilk only had an enter-prise resource planning (ERP) system that managed the data and process flow between the company and its distributors “We did not have a system that tracked and managed the data that was ex-changed between our distributors and the 90,000 retailers that they distribute our products to,” says Tran Nguyen Son, IT director at Vinamilk “Our staff had to manually collect data and collate it in Microsoft Excel spreadsheets every day As a result, the information would sometimes be inaccurate Our staff also spent a long time consolidating the data.” Staying on Top of the Game Vinamilk has 4,000 employees and one of the largest portfolios of dairy products in the country Its offerings range from core dairy products, like liquid and milk powder, to value-added dairy products, such as condensed milk, yogurt, ice cream, and cheese Voted by consumers as the number-one brand in the “Top Ten HighQuality Vietnamese Goods” survey every year since 1995, Vinamilk decided in 2006 that it needed to address this inefficiency before it affected the company’s leadership position in the long run This prompted the company to implement the SAP® Customer Relationship Management (SAP CRM) application and the SAP NetWeaver® Business Warehouse component and integrate them with its existing ERP and distribu-tion management systems The SAP NetWeaver Process Integration technology was also included in this system upgrade exercise “The goal of this SAP project was to increase the visibility of sales information from our retailers, as well as lever-age the information to better under-stand our customers’ needs We also wanted to increase the effectiveness of our trade promotions program,” adds Tran “More important, we wanted to reduce operations cost.” Immediate Savings After evaluating the SAP offerings, Vinamilk selected them because of their rich CRM functionality and powerful integration capability “We com-pared SAP software with what was available in the market, and the SAP solutions were best suited for our needs,” says Tran The implementation took 10 months to complete for 70 users at Vinamilk The integrated system went live in June 2007 and, with this, ended the inefficient and costly process of gathering secondary sales data “There is no need for us to dedicate 150 staff members just to sit at our dis-tributors’ offices to the menial task of collecting information Imagine the savings there,” says Tran Enhancing Control and Visibility With the CRM feature and a tighter integration of Vinamilk’s key business functions, distributors are able to consolidate secondary sales data into their systems and send the information directly across to Vinamilk’s headquarters without human intervention When the information reaches Vinamilk, it is automatically synchronized with the company’s ERP system This information from the distributors is sent three times daily, giving Vinamilk enhanced visibility of its sales performance and greater control of its sales channels “The SAP solution has improved business transparency across our enterprise It allows us to easily track and monitor our sales performance closely, and data integrity is ensured as well,” adds Tran Industrial Analysis Improving Effectiveness of Trade Promotions Previously, Vinamilk also faced challenges in executing its trade promo-tions scheme Trade promotions are temporary price cuts that manufacturers typically offer retailers to encourage them to reduce retail prices For Vinamilk’s trade promotions program, distributors will undertake the trade promotions that the company gives to its retailers Vinamilk will then pay its distributors for the price difference at the end of the month The amount it pays will be based on documents sub-mitted by distributors at every month’s end “Before the SAP solution was in place, the information that we received was not 100% accurate This affected payment processing and resulted in payment delays,” explains Tran “But things are different now With improved visibility of our sales performance, we are able to better control our product prices and the discounts that we give Every sale that our distributors push through under trade promotions is also recorded in a centralized system This allows us to pay our distributors on time,” he adds Empowering the Sales Force The SAP CRM application and SAP NetWeaver Business Warehouse component have empowered Vinamilk’s sales force too, giving them a clearer picture of their retailer’s sales performance and stock position “Our sales force people carry with them a personal digital assistant that contains data that is synchronized with our central enterprise system With this, they are able to better engage our retailers and drive sales,” says Tran “Vinamilk operates in a very tough and highly competitive environment We have to manage our margins very care-fully, and we must all that we can to drive revenue and reduce cost The SAP solutions that we have implemented will help us achieve our business goals and enhance our competitive edge.” SAP: Delivering IT-Powered Business Innovation As the world’s leading provider of business software, SAP delivers products and services that help accelerate business innovation for our customers We believe that doing so will unleash growth and create significant new value for our customers, SAP, and, ultimately, entire industries and the economy at large Today, customers in more than 120 countries run SAP applications from distinct solutions addressing the needs of small businesses and midsize companies to suite offerings for global organizations Knowledge, Experience, and Technology for Optimizing Business We leverage our extensive experience to deliver a comprehensive range of solutions that empower every aspect of business operations By using SAP solutions, organizations of all sizes – including small businesses and midsize companies – can reduce costs, improve performance, and gain the agility to respond to changing business needs SAP also has developed the SAP NetWeaver technology platform, which enables our customers to achieve more value from their IT investments Our professionals are dedicated to providing the highest level of customer service and support Internal Analysis SWOT Matrix S W In business since 1976 Junior Manager has no experience or MD has xx years of experience in education for his position of Sales the industry and as head of the Manager company Marketing assistant has little marketing Sales and profits have grown experience steadily MD says that he is not a good Sales and profits were $xx million executive and $y00,000 in 2007 Employees feel free to complain MD responds personally to all directly to MD customer complaints MD can’t find a good General Manager MD wants to get involved in at the salary he wants to pay marketing Company is having trouble selling “We run a tight ship”, MD Derf1 (its new product) “We have an excellent reputation MD is worried about converting 5,000 for quality,” MD Derf1 into cash “Manufactured Products,” Stock held increased too much during “Modifications” and “Repairs” recent months with resulting interest cost have Gross Profit margins greater of $4,000 a month than 50% O T “The opportunities (for growth) are there,” MD Professional help is available for are going elsewhere for the controls designing new products Reliable manufacturers are There was a business recession available for producing new What is your competition doing that There is a market for 1500 Derf1 Are the required specifications for your job, products or services MD can’t break the habit of changing The sales compensation system a) Pays out too much money b) Is too complicated c) Does not motivate sales reps to you should be worried about at $45 a unit getting involved in everything The $50,000 Derf1 designer did not a good job products Many of their industrial customers Is changing technology threatening your position\ Do you have bad debt or cash-flow problems Could any of your weaknesses seriously threaten your business sell Derf1 Political effects Sales reps not present Derf1 Legislative effects because they not know it well Environmental effects Derf1 is priced higher than IT developments competing products Competitor intentions – various The company does not appear to have historical trend data They spent $192,000 advertising Derf1 and they have trouble selling it There is a conflict between Sales manager and Marketing manager regarding pricing policy on Derf1 ... NetWeaver Business Warehouse component have empowered Vinamilk s sales force too, giving them a clearer picture of their retailer’s sales performance and stock position “Our sales force people... companies to suite offerings for global organizations Knowledge, Experience, and Technology for Optimizing Business We leverage our extensive experience to deliver a comprehensive range of solutions... HighQuality Vietnamese Goods” survey every year since 1995, Vinamilk decided in 2006 that it needed to address this inefficiency before it affected the company’s leadership position in the long