Vinamilk Company AnalysisPhân Tích Công Ty Vinamilk

TRƯỜNG ĐẠI HỌC KINH TẾ - TÀI CHÍNH KHOA: KINH TẾ BÁO CÁO ĐỀ ÁN CUỐI KỲ MÔN: QUẢN TRỊ MARKETING Giảng viên: Đỗ Thị Hoàng Mai Section 1: Vinamilk Company Analysis Section 1: Vinamilk Analysis I Company analysis: 1.1 INTRODUCTION - Vietnam Dairy Products Joint Stock Company (Vinamilk) - Founded: August 20th, 1976 - Headquarters: 10 Tan Trao, District 7, Ho Chi Minh City, Vietnam - Area served: Vietnam, Middle East, Africa, Asia, Australia, New Zealand, Europe, North America (Canada and the United States) - Products: Liquid milk, condensed milk, powdered milk, yogurt, infant cereals, special nutritional products for adults, beverages, ice-cream, cheese Viet sugar, soymilk - Website: https://www.vinamilk.com.vn/en 1.2 1.2.1 DEVELOPMENT HISTORY Development process 1976 Vinamilk was founded on August 20st , 1976 2003 Formally transformed into a Joint Stock Company and renamed as Vietnam Dairy Products Joint Stock Company (Vinamilk) with charter capital of over USD 100 million 1988 – 1989 Successfully restored the Dielac Powdered Milk Factory Launched its first batch of powdered milk and nultritional powder for children to the Vietnam market the first time 2006 Vinamilk was officically listed on Ho Chi Minh Stock Exchange (HOSE) on 19th January 2006 Inaugurated its first dairy farm (in Tuyen Quang Province) 1990 – 1991 Started the “White revolution” Pioneered in building fresh raw milk area First time introduced UHT milk products and yogurt to the Vietnam market 2013 Inaugurated two megadairy factories with large scale and applying the most modern technologies in Binh Duong Province: Vietnam Milk Factory and Vietnam Milk Factory (producing fluid milk) 1997 – 1998 Exported its first product batch of powdered milk and Dielac nultrional powder to Middle East market 2010 Vinamilk started its strategy of investment overseas by owning 22.8% of shares at Miraka Milk Factory in New Zealand 2014 The Dairy Farm in Nghe An Province was the first in Southeast Asia and one of three farms in Asia to qualify the the Global G.A.P standard certificate 1.2.2 Year 2016 Celebration for 40th anniversary of establishment Continued the strategy to reach out the world market with the inauguration of Angkor Milk Factory (Cambodia) Acquired 100% stake in Driftwood Diary Holdings Corp (US) and exported condensed milk product (with the Drifwood brand) to US market First time introduced Organic Fresh Milk product, which was directly produced by Vinamilk in Vietnam qualifying EU Organic standard and being certified by Control Union (Netherlands) Event Event Analysis 2006 Vinamilk is officially In 2006, the company had the best business listed on the Ho Chi result since equitization, earning after tax of Minh Stock Exchange VND4,601 per share, worth VND10,000, up 20.6% from the same period last year fiscal year 2005 2007 Vinamilk currently has 10 farms including farms following Global G.A.P Vinamilk has produced more than 50% of raw material to serve their whole production line Thus, there is a reduction of importing the raw materials for production 2011 Vinamilk exports dairy products to 15 countries around the world 1.2.3 Year 2007 In 2011, Vinamilk's revenue reached more than US $ billion, officially joining the team of large enterprises in Asia-Pacific Revenue increased by 37.2% over 2010, export turnover reached over 140 million US dollars, up 67.4% Crisis: Problems Detect moistureresistant powder and suspect iron filings in dozens of Dielac milk cartons Solution - Zoning crisis to prevent spreading risk + Recovery and verification of suspected products - Clearly identify affected areas and unaffected areas nationwide + The unaffected area organizes a promotion program to maintain the market in these provinces + Affected area: diluting adverse information by means of media such as TV, Newspaper Attempt to trust Dielac faith and quality by organizing reporters to visit the factory - Public press conference of test results are no impurities in suspicious shipments - However, the aftershock of this disaster is still smoldering, seriously affecting the off-take of Dielac, especially the Dielac Alpha mainstream Mothers with young children in the provinces Result _In 2007, the growth rate of Dielac revenue was 139% compared to 2006, while the Vietnamese powdered milk industry was 15% _After the Dielac milk scandal, many mothers still believe in consuming this item This shows that affected by this challenge have expressed reluctance to choose products that have been "published" and "may have problems" The safe solution that mothers give at that time is simply to choose another milk label for their child So Vinamilk implemented the "Mother's Love" campaign to reposition Dielac in July 2007 Vinamilk _ At the time of Fonterra's scandal evaporated of milk scandal, Vinamilk also tens of continuously informed consumers, trillions of including Fonterra's refusal to dong on the supply materials to Vinamilk stock market due to the impact of the Fonterra scandal 2013 1.3 1.3.1 VISION, MISSION, CORE VALUES Vision Vinamilk has solved the scandal very well _ Business results for the first months increased by 22% in the same period (VND 3,355 billion), paid dividends with 20% and paid regularly, the profit fund was not distributed at the end of the second quarter, more than 6,100 billion dong To become a world grade brand in food and beverage industry, where people put all their trust in nutrient and health products 1.3.2 Mission To deliver the valueable nutrition to community with our respect, love and responsibility 1.3.3 - - 1.3.4 Core values Integrity: Integrity and transparency in actions and transactions Respect: ● To have self-respect, to respect colleagues ● To respect the Company and partners ● To cooperate with respect Fairness: To be fair with employees, customers, suppliers and other parties Ethics: To respect the established ethical standards and act accordingly Compliance: To comply with legal regulations, the Company’s Code of Conduct, and the Company’s procedures and policies Company Sustainable Strategy Vinamilk’s sustainable developmet orientation focuses on the following points: 1.3.4.1 Human nutrition ❖ Commitment Indentifying food safety as top priority, Vinamilk commits that each of its products is the result of a closed-loop production cycle which meets one of the most rigorous requirements for the quality, including: Reasearch and design for safe and nutritious products Safe materials Modern equipment and technologies Management and Quality control in compliance with the ISO standard Explicit and thorough information for consumers - RESEARCH AND DESIGN FOR SAFE AND NUTRITIOUS PRODUCTS Vinamilk’s product development strategy aims at safety and health benefits for its consumers, both intellectually and physically Therefore, we have been extremely careful in every production process, from establishing product formula, deciding materials to packaging design, in order to ensure the safety for consumers Moreover, we absolutely say “no” to unhealthy ingredients that can result in negative impacts on consumers’ health such as preservatives in all Vinamilk’s present and future products - SAFE MATERIALS Vinamilk Fresh milk 100% with immune system support is produced from farm fresh milk mainly sourced from our dairy farms, strictly selected and controlled to ensure food hygience and safety Imported raw materials are sourced from the prestigious suppliers of America, Australia, New Zealand, France, etc - MODERN EQUIPMENT AND TECHNOLOGIES To ensure the perfect quality of its products, Vinamilk has consistently been researching and investing in modern equipment and technologies We proudly own one of the most advanced manufacturing chains that keep up with the world’s leading milk production technologies - MANAGEMENT AND QUALITY CONTROL IN COMPLIANCE WITH INTERNATIONAL STANDARDS Vinamilk has highly paid attention to product quality control and management We have therefore applied advanced management systems such as BRC and ISO 17025 to strictly and thoroughly manage all manufacturing stages including pre, mid and post production in order to ensure the quality and safety of Vinamilk’s products In addition, a product tracking system has also been applied to the product recall and the disposal process of faulty products in order to minimize the possible negative impacts on consumers and society - EXPLICIT AND THOROUGH INFORMATION FOR CONSUMERS Vinamilk commits to deliver explicit and thorough information about its products including ingredients, nutritional values and preservation guidelines to help consumers choose and use Vinamilk’s products that fit and satisfy their needs ❖ Plan - INCREASING SOURCE OF RAW VINAMILK’S MAIN DAIRY FARMS MATERIALS FROM - Individual Customer: Every month, promotions should be organized, discount prize, increasing milk volume without price change, buy get 1, present toys or bicycle, … to encourage consumer to purchase product - Business Customer: Promotion goals for distribution systems ● Build and expand distribution and support networks for new products ● Improve image and support for products that are consumed ● Encourage retailers to exhibit and reserves ● Consolidate and maintain relationships with middlemen and salespeople Commercial promotions ● Contest: to increase motivation and productivity of sales through various forms: bonuses with cash, products, recognition of achievements ● Trade allowances: allowances for purchases and display grants Direct marketing: Goal: Increase sales and receive feedback directly from customers Direct Marketing Strategy: ● Frequency: Daily ● Build a strong and well-trained team of consultants, customer care, telesale to take care of customers, consult Vinamilk's products and receive direct feedback from customers ● Maintain care and sales via email, letter ● Develop and continuously develop a loyalty program Perceptual map Competitors: Direct competitors: The liquid milk segment has an average gross annual growth rate of 14.6% in the last years and increased by 13% last year Liquid milk market is less competitive than powdered milk because domestic enterprises have advantages in supply VNM is the business that holds the No market share in this segment Liquid milk accounts for about 42% of the company's revenue and 42% of its gross profit in 2017 Fresh milk (or liquid milk): accounting for 26% of revenue, achieving 18% growth, Vinamilk's fresh milk accounts for about 48% of market share Other major businesses in the industry are Friesland Campina, TH true Milk, Nestle, IDP and Moc Chau Indirect comprtitors: Other powdered milk, coffee for youth, such as: Dutchlady, Milo Customers awareness about liquid milk Vinamilk's product lines are developed for children and adolescents because this age has the greatest demand for milk and consumption of dairy products Besides, there are still some consumers who are not satisfied with this liquid milk product line Recommendation: Nowadays, VINAMILK has become a famous brand, stronger attachment to theirdomestic consumers In order to achieve more the success in Vinamilk’s operations in the future, the role insupply chain as well as production activity are more and more enhancing, and continue to improve better products That is a sound basic in order that Vinamilk’s product is approaching domestic and global market Increasing of the product’s quality meets the special demands of the finished customers, but it still ensures that stable price competes with other suppliers 10 Yogurts Vinamilk dairy product catalog and features Naturally fermented yogurt which made from secret natural recipe, provides good skin, nice body shape and increases immune system Yogurt contains easily absorbed vitamin for the body Yogurts product line description ● Vinamilk yogurt Vinamilk yogurt are produced under natural fermentation technology with calcium and vitamin D3 for strong bones ● Vinamilk drinking yogurt New Vinamilk Aloe Vera Drinking Yogurt, rich in nutrients which come from milk naturally fermented with pure European Bulgaricus cultures, now added with tasty crunchy fresh aloe vera cubes, helps to repair and refresh your skin so that your skin will be beautiful The gentle cool sour and sweet taste well blended in each yogurt drop will bring you delightful enjoyment Vinamilk Aloe Vera Drinking Yogurt – Delicious and good for your skin ● Vinamilk Probi yogurt boosts immune system Vinamilk Probi yogurt is fortified with Probiotics CHR.HANSEN L.CASEI 431™ which help enhance the body's digestion and immune system for the whole family Vinamilk's top nutrition experts share advice on how to enhance your family's immume system and stay healthy every day ● Vinamilk SuSu yogurt for kid Vinamilk SuSu Drinking Yogurt has a wonderful sweet and sour taste, now with added Vitamin A to help boost eyesight Moreover, the soluble dietary fiber (Prebiotic) in SuSu Drinking Yogurt supports the digestive system, helping your kids stay healthy and active every day ● Vinamilk Probeauty Flavor ProBeauty Yogurt, enriched with collagen and vitamin C, helps your skin to be firmer and smoother The blackberry extract not only tastes delicious, but also contains plenty of antioxidants as well as other nutrients to help you slow down the ageing process and maintain youthful skin Market segmentation B to C: ● Geographic segmentation: Based on the population density and product distribution potential divided into two segments, urban and rural ● Market segmentation by income: Fresh milk line is usually priced in accordance with the salary of million - million / month ● Market segmentation by age: Age categories are divided into children, adults and the elderly It also classifies milk for home and personal use B to B: ● Geographic segmentation: Domestic partner and foreign partner ● Objective segmentation: Product distribution partners and corporate customers use Vinamilk products as raw materials for them ● Consumption segmentation: wholesale and retail Product strategy Targeting Purpose: VINAMILK wants to bring yogurt products to all consumers in all subjects, young children, women, men and the elderly by diversifying product lines and making the most of the health benefits of yogurt Goal: In Vietnam, Vinamilk is known as a leading dairy producer The company currently holds the majority of market share of businesses such as yogurt (90%) According to the latest published data of Nielsen Market Research Company, Vinamilk's fresh milk is the first in terms of both sales volume and sales in the segment of fresh milk brands Promotion strategy Vinamilk yogurt products leave a lot of impression on consumers about the message of good health and beauty for women Yogurt is also diversified by Vinamilk, bringing the convenience of using yogurt products such as drinking yogurt, traditional yogurt,… VINAMILK yogurt as a beauty method that why VINAMILK uses the slogan "Healthy secret from Greece" Communication plan: Age categories are divided into children, adults and the elderly Advertising strategy: Making customers remember the image of Vinamilk About the content: yogurt products always bring a healthy message to consumers and always refresh the traditional yogurt dishes with fruits, aloe vera, About costs: Vinamilk budget for advertising product lines is decided according to the phases of the product life cycle About advertising frequency: Vinamilk advertises with high frequency on mass media, affirming Vinamilk brand is one of the leading brands in Vietnam Public Relation: (Source: http://quysuavuoncaovietnam.com/hinhanh.aspx#viewImages) Vinamilk has many successful community activities such as: Vinamilk scholarship fund for Vietnamese young talents: This is one the programs that Vinamilk devotes its great dedications During consecutive years, Vinamilk has funded over 650,000 USD with total 25,040 scholarships nationwide (Vinamilk Annual report 2010) Milk fund for poor children in Vietnam: In 2009, the fund of “Six Million Glasses of Milk for Children in Vietnam” with the cooperation between Vinamilk and the Ministry of Labor, War Invalids and Social Affairs, National Fund for Vietnamese children, National Institute of Nutrition and Ministry of Education and Training Through this program, there were over mill glasses of milk, equivalent to 1.25 million USD brought to nearly 50,000 children in 62 provinces across the country Promotion: - Increasing revenue is the goal - Promotion for every month Individual Customer: Every month, promotions should be organized, discount prize, increasing milk volume without price change, buy get 1, present toys or bicycle, … to encourage consumer to purchase product Business Customer: − Promotion goals for distribution systems ● Build and expand distribution and support networks for new products ● Improve image and support for products that are consumed ● Encourage retailers to exhibit and reserves ● Consolidate and maintain relationships with middlemen and salespeople − Commercial promotions ● Contest: to increase motivation and productivity of sales through various forms: bonuses with cash, products, recognition of achievements ● Trade allowances: allowances for purchases and display grants Direct marketing: Goal: Increase sales and receive feedback directly from customers Direct Marketing Strategy: ● Frequency: Daily ● Build a strong and well-trained team of consultants, customer care, telesale to take care of customers, consult Vinamilk's products and receive direct feedback from customers ● Maintain care and sales via email, letter ● Develop and continuously develop a loyalty program Perceptual map Competitors: Direct competitors: Yogurt contributes about 14% of Vinamilk's revenue and 16% of gross profit in 2017 The yogurt market is growing at an average annual rate of 13.1% in the last years and up 16% last year The competitive pressure is increasing for yogurt, even with Vinamilk even though the company has dominated the market VNM's market share of yoghurt has dropped from 90% in 2012 to 84% in 2017 The second largest enterprise in this piece is Friesland Campina with about 8% -9% market share Friesland Campina: with about 8% -9% market share • Strengths: As a long-standing global brand of Holland, Dutch Lady of FrieslandCampina has a great strength in capital, experience in trading dairy products and the ability to develop products and promote fertilizers coordination • Weaknesses: Like Abbott, as a multinational company, the localization of FrieslandCampina's products also faces many difficulties At the same time, the cost to manage and research their new products is also very high Indirect competitors: Another product from the brand TH True milk, Mote such as icecream, milk scum customers awareness about yogurt There are still some criticisms for Vinamilk yogurt Recommendation: Nowadays, VINAMILK has become a famous brand, stronger attachment to theirdomestic consumers In order to achieve more the success in Vinamilk’s operations in the future, the role insupply chain as well as production activity are more and more enhancing, and continue to improve better products That is a sound basic in order that Vinamilk’s product is approaching domestic and global market Increasing of the product’s quality meets the special demands of the finished customers, but it still ensures that stable price competes with other suppliers ... because Vinamilk uses less debt than using equity to finance assets But the company does not take advantage of financial leverage and loses the opportunity to save taxes from debt use (Debt / Equity... Mission To deliver the valueable nutrition to community with our respect, love and responsibility 1.3.3 - - 1.3.4 Core values Integrity: Integrity and transparency in actions and transactions Respect:... Compliance: To comply with legal regulations, the Company s Code of Conduct, and the Company s procedures and policies Company Sustainable Strategy Vinamilk s sustainable developmet orientation focuses