Thuyết trình Vi mô về Vinamilk

a) INTRODUCTION SUPPLY, DEMAND & COMPETITION OF VINAMILK IN VIETNAMESE DAIRY MARKET Group LOOKING FORWARD TO RECEIVING YOUR COMMENTS AND OPINIONS Click to edit Master text styles Second level Third level Fourth level Fifth level Human resources slide B) DISCUSSION I) DAIRY MARKET COMPETITION 1) THE REALITY OF VINAMILK COMPETITIVENESS IN THE DAIRY MARKET Human resources slide 50% 80% MARKET SHARE Market share of yoghurt 80% 30% Market share of Condensed milk Powdered milk industry Revenue of some big milk companies in Vietnam in 2016 (million dong) Human resources slide 2) Market structure of general dairy products 2.1) Definition of monopolistic competitive market Monopolistic competition is the market structure with many manufacturers and providing products that are interchangeable at a high level but different special 2.2) The specific characteristics of monopolistic competition  There are many small sellers  Firms' products differ slightly from each other  There is freedom to enter and exit the market  Firms apply strong forms of non-price competition through advertising, product differentiation 3) The competitive market characteristics of Vinamilk dairy products in Vietnam 3.1) This is a market with many suppliers and products of each company are differentiated from the products of the remaining firms • • No genetic modification, no growth hormone, no antibiotics Produced from organic fresh milk from cow herds grazing on natural grassland 3.2) Non-price competition forms are adopted by the company • • • Advertising on mass media Promotional costs Product packaging costs, … II) VINAMILK DAIRY goods market 1) Demand of vinamilk dairy products in vietnam 1.1) Overview of Vinamilk’s demand in Viet Nam • Become the leading enterprise of the dairy processing industry • Accounting for 75% of the dairy market share in Viet Nam • The brand that consumers choose to buy the most in main cities and rural areas of Vietnam 1.2) Determinants of demand 1.2.1) Price of related goods • • • Vinamilk milk is substitute goods Vinamilk has many competitors who choose the same target: TH true milk , Dutch lady… Using foreign food is deeply ingrained of Vietnamese Affect Vinamilk’s demand, reduce the demand of products 1.2) Determinants of demand 1.2.2) Consumer income Normal goods Goods Inferior goods Vinamilk 1.2) Determinants of demand 1.2.3) Tastes and Preferences of consumers Each customer has the right products For children under years of age : 110 ml canned milk, children aged and older and adults : boxes of 180 ml , 200 ml Many ways to pack: paper boxes, paper bags Ordinary people : sugar free, strawberry flavored milk, chocolate… 1.2) Determinants of demand 1.2.4) Expectations 1.2) Determinants of demand 1.2.5) Market size  Vinamilk mart branches are often distributed in big cities and urban areas  Expanding the market: Products are present in more than 40 countries and many continents and regions : US, Europe, Southeast Asian… 2) Supply of vinamilk dairy products 2.1 current situation of vinamilk market  Strong position: 55% market share  Strong brand: 40 years development  A wide distribution system: 224,000 retail points 2.2) determinants of supply 2.2.1) Input cost The price of production factors directly affects the cost of production and thus affects the amount of goods that producers want to sell Typically, on February 12, 2010, Vinamilk raised milk prices as input materials such as powdered milk increased by about 50%, to USD 3,750 / ton compared to September 2009 price, the sugar price of this company use for production also increased to 100% A sharp increase in input costs of enterprises, which forced Vinamilk to raise milk prices 2.2) determinants of supply 2.2.2) Technology Not only ensure the development but also create a competitive advantage for businesses 2.2) determinants of supply 2.2.3) Government policies Government policies also have a strong impact on supply • • In 2014, the Government imposed a ceiling price for milk for children under years of age, which made Vinamilk milk prices fall • In addition, the Government also has policies to support cow raising to increase Vinamilk dairy products On February 4, 2016, Vietnam officially signed the Trans-Pacific Partnership Agreement (TPP) in Auckland, New Zealand After signing, the taxes of many foreign dairy products are much reduced and by 2018, when New Zealand and Australian dairy products enter the market with zero tax rates will certainly affect the dairy and business markets 2.2) determinants of supply 2.2.4) Seller expectations Expectations are the predictions and forecasts of producers about future market developments which affect the current supply After changing Slogan “Niem tin Viet Nam” in 2010, Vinamilk: • • Set revenue of 3602 billion after tax, increased by 51% compared to 2009 Was voted as the best operating enterprise in Asia 2.2) determinants of supply 2.2.5) Number of sellers in the market Export Traditional sales channel: 226 agents; 224,000 retail outlets Distribution Channels Domestic Modern sales channels: 600 supermarkets, 60 stores, sales office Directly affects the number of goods sold in the market 3) Growth expectation in the coming years The market share of Vinamilk House in the next years is expected to be higher: 60% Three reasons below: Domestic Domestic demand demand in in recent recent years years has has increased increased quite quite steadily steadily Strong Strong advantage advantage thanks thanks to to its its distribution distribution channel channel Other Other advantages: advantages: marketing marketing capacity, capacity, competitive competitive pricing,… pricing,… c) CONCLUSIONS I) STRENGTHS II) RESOLUTIONS LONG LONG HISTORY HISTORY STRONG STRONG BRAND BRAND IMPROVE IMPROVE PRODUCT PRODUCT QUALITY QUALITY IMPROVE IMPROVE THE THE CAPACITY CAPACITY IMPLEMENT IMPLEMENT PROGRAMS PROGRAMS Looking forward to receiving your comments and opinions! ... Promotional costs Product packaging costs, … II) VINAMILK DAIRY goods market 1) Demand of vinamilk dairy products in vietnam 1.1) Overview of Vinamilk? ??s demand in Viet Nam • Become the leading enterprise... milk is substitute goods Vinamilk has many competitors who choose the same target: TH true milk , Dutch lady… Using foreign food is deeply ingrained of Vietnamese Affect Vinamilk? ??s demand, reduce... of age, which made Vinamilk milk prices fall • In addition, the Government also has policies to support cow raising to increase Vinamilk dairy products On February 4, 2016, Vietnam officially