TABLE OF CONTENTS

BACKGROUND
1. 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

2. 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.

3. 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:
1. Integrity: Integrity, transparency and morals can be found in whatever we do.
2. Will : We dare to think, to do, to take responsibilities and to overcome
challenges to realize the committed targets.
3. Creativity: We always highly appreciate the passion, unique discovery and
innovative solutions.
4. Efficiency: We always focus on added-values in all our works, investments and
business activities.
5. 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.
7. 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 8 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
1. OBJECTIVE
Taking up at least 3 5 % of powdered milk market
segment in the next 2 years

The company’s ultimate goal is to maximize the values to shareholders and 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 2 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.

2. MARKETING STATREGIES

3. 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 2001-
2010. 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.

4. 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-tuoi-
dep.htm
Hieu moi thang. [Access on 30 August 2010] URL:
http://www.crmvietnam.com/index.php?
q=Case_Vinamilk_Hieu_moi_thang