Professional Documents
Culture Documents
Group: VINAMILK
Students:
1. Ho Huy Thanh
2. Chung Vinh Loc
3. Giang Bao Ngoc
4. Du Khanh Ngoc
5. Nguyen Nhat Hao
6. Nguyen Duc Tri
7. Nguyen Thi Dieu Linh
8. Nguyen Thi Thanh Truc
AGENDA
COMPANY INFORMATION
2. Head Office: 10 Tan Tao, Tan Phu ward, District 7, Ho Chi Minh City.
3. Representative:
Mrs. Le Thi Bang Tam - Chairwoman of the Board of Directors.
Mrs. Mai Kieu Lien - Chief Executive Officer.
4. Establishment: Since August, 1976.
4. Main products:
Main products of Vinamilk are milk and products made by milk.
6. Description of business:
Ex: Manufacturing and selling of a confectionery (Gum, Biscuits, Ice-Cream)
The company's business lines include:
Producing and trading in Liquid Milk (Fresh Milk 100%, Fortified Milk, UHT Milk, NUT
Milk), Powdered Milk for Children and Adults(Premium Powdered Milk for Children,
Special and Mainstream Powdered Milk for Children, Powdered Milk for Adults),
Baby Cereal, Eating Yoghurt(Premium, Specialty, Mainstream, for Children),
Drinking Yoghurt (Probi Yoghurt Boosts Immune System, Fresh Drinking Yoghurt,
Drinking Yoghurt for Women, Susu Drinking Yoghurt for Kid), Energy Drink and
Beverages (Energy Drink and Milk Tea, Fruit Juices and Beverages), Condensed
Milk and Ice-Cream (Condensed Milk, Ice-Cream).
Trading in food technology, spare parts, equipment, materials, chemicals and raw
materials.
Vinamilk's products are exported to a number of countries.
7. No. of employees: In 2019, total number of employees were 9.803.
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7. History:
1976: Thong Nhat diary factory, Truong Tho diary factory and Dielac powdered milk
factory were inaugurated and put into operation.
1994: Ha Noi sales office was opened.
1996:
Da Nang sales office was opened.
Binh Dinh dairy joint venture was inaugurated (currently known as Binh Dinh dairy
factory).
1998: Can Tho sales office was opened.
2001: Can Tho dairy factory was inaugurated and put into operation.
2003: Equitised and officially became a joint stock company under the name of Vietnam
Dairy Products JSC.
2004: Acquired Saigon Milk JSC (currently known as Saigon dairy factory).
2005: Nghe An dairy factory was inaugurated and put into operation.
2006:
Vinamilk was officially listed on HOSE on 19/01/2006.
An Khang Clinic was opened in Ho Chi Minh City. This was the first clinic that
managed information online in Vietnam.
In November, Vietnam Dairy Cow One-Member Ltd., was established.
2007: Lam Son dairy factory was inaugurated and put into operation.
2008: Tien Son dairy factory was inaugurated and put into operation.
2010:
Vinamilk contributed USD 10 million, as equivalent to 19.3% of the associate’s share
capital. In 2015, Vinamilk raised its share capital in the subsidiary, Miraka Holdings
Ltd., to 22.81%.
Vietnam beverage factory was inaugurated and put into operation.
2012: Da Nang dairy factory was inaugurated and put into operation.
2013:
Vietnam powdered milk factory and Vietnam dairy (Mega) factory were inaugurated
and put into operation.
Thong Nhat Thanh Hoa Dairy Cow Ltd., became a Vinamilk’s subsidiary with 96.11%
of share capital owned by the Company. In 2017, it became a wholly-owned
subsidiary of Vinamilk.
Vinamilk acquired 70% share capital of Driftwood Dairy Holding Corporation in
California, USA and officially owned 100% of stake in May 2016.
2014:
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Vinamilk contributed 51% share capital to establish a joint venture, Angkor Dairy
Products Co., Ltd., in Cambodia and owned 100% of stake in 2017.
Vinamilk contributed 100% share capital to establish a subsidiary, Vinamilk Europe
Spostka Z Ograniczona Odpowiedzialnoscia, in Poland.
2016: Contributed 18% share capital of APIS JSC.
2017:
Cu Chi Raw Milk Center went under operation.
Invested in the sugar industry by acquiring 65% share capital of Vietnam Sugar JSC.
Acquired 25% share capital of Asia Coconut Processing JSC.
2018:
Was the first company producing A2 milk products in Vietnam.
Invested a 51% share of Lao-Jagro Development Xiengkhouang Co., Ltd.
2019:
Started construction Phase 1 of Laos’ 5,000-hectare Organic dairy farm with 24,000
head cows.
Doubled the capital at Driftwood Dairy Holding Corporation, from USD 10 million to
USD 20 million.
Completed the acquisition of 75% share capital of GT-NFoods JSC, thus controlling
Moc Chau Milk JSC whose total head cows are 25,000 ones.
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Identifying business goals can be an exciting and often challenging process. It is, however, an
important step in planning your entry into the international marketplace. The following exercise
is an additional step to help clarify your short- and long-term goals.
1. What are your long term goals for this business in the next 5 years?
2. How will the international trade market help you reach your long-term
goals?
Increase research and development activities to promptly launch new products, which
meet diverse needs.
Prioritize investment to consolidate the main product, step by step develop new
products.
Prioritize the development of the domestic market with the promotion of high-end
products in urban areas and popular products in rural areas.
Ready for M&A activities with diary companies in other countries to expand market share
and sales.
1.For your international business, what are your first year goals?
Joining Gulfood Fair held at the Dubai World Trade Center (United Arab Emirates).
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Bringing key product lines that have been successful in the market such as powdered
milk to further promote Vinamilk's image in this market and have been welcomed and
loved by consumers here.
Coordinating with distributors, this unit focuses on taking time to meet each other to
learn and develop new product lines to meet the needs of consumers.
Focusing on potential customers such as children, moms, etc.
2. What are your two-year goals for your international business products/services?
Example: Modify product for metric definition; expand international opportunities from initial
penetration of a market to other similar markets.
List below the products your company sells which you believe have export potential. Write
down why you believe each product will be successful in the international marketplace. The
reasons should be based on your current knowledge, rather than any research.
Based on reasons for export success, select one or more products you believe might have the
best prospects for exporting.
To identify products with export potential, you need to consider products that are sold
successfully in the domestic market. The product should fill a targeted need for the purchaser in
export markets according to price, value to customer/country and market demand.
UHT Milk Fortified with micronutrients: For children - ADM+, For adult - Flex, Lactose - free
Flex.
Yoghurt:
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Milk powder:
Milk powder for mom and kid: Dielac Mama, Dielac Anpha Gold, Optimum, Organic gold.
Milk powder for adults: Daily Nutrition, Complete & Balanced Nutrition for Elders.
- Beverages (contribute nearly 5% of the Company’s total revenue) include: Soy milk, fruit
juices (apple, orange, grape, etc), tea (green tea, lingzhi tea, artichoke tea) and other
beverages (bottled drinking water, salty lemonade, soaked apricot, etc).
1.2. What product(s) do you feel have the best potential for international trade?
Yoghurt:
The increase in health consciousness among consumers has enabled them to opt for yoghurt,
as it has various health benefits, like improved digestion, enhanced immune function, and a
reduced risk of many diseases, including obesity.
Milk powder:
In Saudi Arabia the milk powder market continues to grow quickly due to changes in consumer
work and lifestyles, which as a result has encouraged people in the region to start depending
on packaged food items. Moreover, increasing consumption of infant formulas has added to the
demand for milk powder in the region.
Vinamilk has experiences and advantages of producing powdered milk in the domestic market
and international markets.
All products are produced on the world's most advanced dairy production line from Tetra Pak,
Sweden.
Cows are imported directly from the US, Australia and New Zealand.
Vinamilk is the only Vietnamese enterprise in the Top 50 of Asia300 - List of the best listed
companies in Asia
Vinamilk was honored at the Asian Export Award 2019 held in November 2019 in Singapore in
the category of Processed Food for Large Enterprises.
2.2. What do you believe international buyers will purchase your company’s products?
- Production of fresh milk with modern equipment and advanced production technology:
Vietnam Dairy Factory is equipped with a pasteurized fresh milk production line with
modern equipment and leading advanced production technology today. The factory
operates on an automatic, closed line, from input materials to output products.
- Vinamilk does not stop studying and improving products: Vinamilk's product research
and development team is always up-to-date with the latest technology knowledge, as
well as deeply researching domestic and foreign markets to seek opportunities and
product development ideas.
- Production of milk powder with modern equipment and advanced production technology:
Vietnam Powdered Milk Factory is equipped with powdered milk production line with
leading modern equipment in Asia with leading advanced production technology today.
The factory operates with a completely self-contained process, 100% automation from
processing, canning, and packing, ensuring absolute safety and hygiene for consumers.
In addition, the factory is also equipped with a barcode traceability system from the input
material to the finished product to easily track if there is any product-related complaint.
Top quality ingredients that are tested against stringent standards will be stocked. The
factory has a highly qualified product quality control team, equipped with advanced and
modern inspection equipment and methods.
- Certification of quality and management system: Research on ingredients, improving and
standardizing testing methods are regularly carried out by the Research and
Development Center, Food Safety & Manufacturing Operations Division of Vinamilk. In
addition, Vinamilk also coordinates with the National Institute of Nutrition and testing
centers to develop and complete the testing process and methods, and check the
indicators of food hygiene and safety. The system of Vinamilk laboratories fully meets
the requirements of ISO / IEC 17025: 2005. In addition to quality standards, Vinamilk
also applies other advanced management systems on environment and energy.
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Brainstorm a list of pros and cons for expanding your market internationally.
Advantages:
- Entry to new markets: open borders provide businesses with access to more untapped
- Access to local talent: gives opportunities access to a pool of potential workers with unique
- Increased business growth: By extending the businesses global footprint, new audiences
- Stay ahead of the competition: Expanding abroad is also a benefit to get out of a saturated
Disadvantages:
Each country’s government operates differently. Therefore, to work legally and compliantly, you
may need to hire lawyers, local tax accountants and international HR experts. In addition,
- Compliance risk: a business must adapt and operate accordingly to the country’s
regulations.
These regulations may be very different from your home country. Therefore, it’s important to
partner with the right people who will help you to remain compliant and ensure the correct
business procedures are in place from day one. Remaining compliant is key to successful
- Business practices and cultural barriers: Culture and business operations are different in
each country and as such can present some challenges. If you are expanding to a
country that has a different business culture to your own, it’s best to receive some
cultural training in their business practices as well as social customs. Language issues
Hiring international employees requires a new level of HR support and administration. If you do
not have the capabilities in-house, then you will need to outsource. business and employment
regulations may be different than in your home country. Therefore, it’s vital that you partner with
an international HR expert who will ensure your workers are legal and compliant to work.
Based on your current assumptions about your company, your company’s products and any
75%
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1.1. Why is your business successful in the domestic market? Give specific reasons.
"We always consider ourselves a part of the value chain. As long as we get the pricing, quality
and services right, we will win the exporting markets. There are obviously challenges at the
penetrating point as competition is fierce, however, playing by our strengths upon entry will
eventually ensure success," Mai Kieu Lien, CEO of Vinamilk, said.
She also attributed part of Vinamilk's recent success in international markets to its
proactiveness. This includes investing in modern production infrastructure, being proactive in
raw material procurement and maintaining a strong domestic ground for overseas expanding.
This Vietnam dairy manufacturer is the owner of Asia's largest international standard farm
system with 12 farms across the country. After the successful acquisition of Moc Chau Milk in
2019, Vinamilk's cow herd has increased to 150,000 heads, with the daily raw milk output
reaching over one million liters. Vinamilk is not only able to fulfill demands of Vietnam's
consumers but enabling the company to penetrate foreign markets.
Regarding production facilities, Vinamilk’s 13 factories across the country are equipped with
modern, automated machinery imported from G7 countries and Europe ensuring product quality
to meet international standards.
With a sustainable development strategy and continuous investments in dairy farm and factory
systems, Vinamilk has created the foundation for its growth and expansion both in Vietnam and
overseas.
What are the competitive advantages of your products or business over the domestic
List them:
- Vinamilk is the largest dairy company in Viet Nam with a market share of 37%. Factory
of raw materials.
- Capacity to research and develop new products according to the market trends and
consumer demands.
3.1. What is your level of commitment and that of your company’s top management to
Opportunities:
- The quality of milk is guaranteed and the price is quite low, so it is accessible to the
- Along with a variety of products, it will be easy to reach many people with different
tastes.
- The import-export industries are being expanded and well developed in Vietnam, and the
Challenges:
- The difficulty is how to preserve the best milk while still maintaining the best quality and
- It will be difficult to compete with big and long-standing competitor companies in other
countries.
3.2. How much preparation time, planning and resources are you willing to commit to
Preparation time and plaining is 1 years. Resources are 8 people: Three person learns about
Middle East culinary culture and Milk consumption habits, two person learns about laws and
government in Middle East, two-person research about commercial market barriers and the
other person find information about your company competitors in he Middle East.
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Research the www.export.gov website for U.S. Department of Commerce Country Commercial
Guides for each country in which there is a Foreign Commercial Service presence. In addition,
the Department of State has background reports on each country at www.state.gov, as does
the Central Intelligence Agency’s World Factbook which can be accessed at www.cia.gov
(1) Select 3 countries you think have the best market potential for your product;
(4) Rate each factor on a scale of 1–5 with 5 being the best; and
expenditure patterns
Social/Cultural
5 12.0%
Environment:
5.1 Literary rate,, educational level 2.0% 2 0.04 3 0.06 4 0.08
5.2 Existence of middle class 3.0% 2 0.06 4 0.12 3 0.09
Similarities and differences in
5.3 3.0% 1 0.03 3 0.09 4 0.12
relation to home market.
Language and other cultural
5.4 4.0% 3 0.12 2 0.08 4 0.16
considerations
6 Market Access: 15.0%
Limitations on trade: high
6.1 2.0% 2 0.04 3 0.06 4 0.08
levels, quotas
Documentation and import
6.2 3.0% 1 0.03 2 0.06 3 0.09
regulations
Local standards, practices,
6.3 3.0% 2 0.06 3 0.09 4 0.12
and other non-tariff barriers
Patents and trademark
6.4 2.0% 1 0.02 5 0.1 2 0.04
protection
6.5 Preferential treaties 2.0% 1 0.02 3 0.06 5 0.1
Legal considerations for
investment, taxation,
6.6 3.0% 3 0.09 2 0.06 4 0.12
repatriation, employment,
code of laws
7 Product Potential: 16.0%
7.1 Customer needs and desires 3.0% 5 0.15 3 0.09 3 0.09
Local production, imports,
7.2 3.0% 3 0.09 5 0.15 2 0.06
consumption
Exposure to and acceptance
7.3 3.0% 4 0.12 3 0.09 1 0.03
of product
7.4 Availability of linking products 1.5% 3 0.045 5 0.075 4 0.06
Industry-specific key indicators
7.5 2.0% 4 0.08 3 0.06 2 0.04
of demand
Attitudes toward products of
7.6 2.0% 5 0.1 4 0.08 2 0.04
foreign demand
7.7 Competitive offerings 1.5% 4 0.06 5 0.075 3 0.045
Local Distribution and
8 9.0%
Production:
8.1 Availability of intermediaries 1.5% 1 0.015 5 0.075 4 0.06
Regional and local
8.2 1.5% 1 0.015 5 0.075 4 0.06
transportation facilities
8.3 Availability of manpower 3.0% 3 0.09 5 0.15 3 0.09
Conditions for local
8.4 3.0% 1 0.03 3 0.09 2 0.06
manufacture
Total 100.0% 2.25 3.32 3.44
According to statistics, Vinamilk currently holds about 55% market share of liquid milk, more than 80%
market share of yogurt, more than 80% market share of condensed milk and more than 30% market share
in the powdered milk industry.
2.2. What are the projected sales for similar products in your chosen international
markets for the coming year?
The total revenue of Vinamilk in Peru will reach 10 million USD in the next year.
2.3. What sales volume will you project for your products in these international markets
for the coming year?
I predict sales volume in these international markets for the coming year is about 5.000 boxes.
2.4. What is the projected growth in these international markets over the next five years?
Tramasa, Schaff, Neptunia, AUSA, Hansa Aduanas, Andina Freight, Branko, DPA, Thais
Corporation S.A.C, Corporacion Fabaroc SAC, Comercializadora Matias Jesus, Alpha Naturals,
E hoyle international trading, How2Go Consultoría de Internacionalización, Peacock Trading,
Fartrouven, LDA, AW Sunny steel, AD Global Group, Grupo cap logistic,...
Plaza San Miguel, La Rambla, Parque Lambramani, Centro Comercial El Polo, Centro
Comercial Arenales, Real Plaza, Mall de Sur, Molina Plaza, Plaza Lima Sur, Real Plaza
Juliaca,...
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3.2. What companies, agents or distributors have made recent requests for information
on similar products?
FWD Companies: Crespo Global Trade, Thais Corporation S.A.C, AD Global Group, How2Go
Consultoría de Internacionalización, Peacock Trading, Alpha Naturals,...
Supermarket/Mall: Plaza San Miguel, La Rambla, Parque Lambramani, Centro Comercial El
Polo, Centro Comercial Arenales, Real Plaza, Mall de Sur, Molina Plaza, Plaza Lima Sur, Real
Plaza Juliaca,...
3.3. What companies, agents or distributors would most likely be prospective customers
for your export products?
4.1. How do other Vietnamese firms sell in the markets you have chosen?
Export in fishing and mining can greatly benefit under the TPP. After the TPP comes into effect,
Vietnam will remove 66 percent of its tariffs on exports of salmon, mackerel, tuna, codfish,
anchovies, and fish oil.
Main process of exporting milk from Canada to Peru:
❖ Production controls and inspection requirements:
- Certification requires a mandatory inspection of each lot.
- Negative alkaline phosphatase test results may be required unless the milk
underwent pasteurization with a system approved by Servicio Nacional de
Sanidad Agraria (SENASA) and the Canadian Food Inspection Agency (CFIA).
❖ Documentation requirements:
- Certificate.
- Health certificate for the export of milk and dairy products from Canada to Peru.
- To be used for products that are categorized as risk level two by SENASA.
- Health certificate for the export of dairy products and dairy based products for
human consumption.
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❖ Note: Certification is not required for products categorized as risk level one by SENASA;
however, due to the frequent regulatory changes in Peru the standard health certificate
can be issued.
4.2. Will you sell direct to the customer?
Vinamilk’s SBU in Peru and our retailers (Supermarket, Store,...) + distributors (EMC
companies,...)
The distributors and retailers cooperate with Vinamilk and Vinamilk’s SBU in Peru.
Will you appoint an agent or distributor to handle your export market? Consider legal advice
from the Export Legal Assistance Network (ELAN). A free initial consultation is available by
request through an SBA District Office, SBDC, SCORE or U.S. Export Assistance Center.
5.1. What facilities does the agent or distributor need to service the market?
The local partner should provide updated information on consumer trends, and identify niche
markets, possible market development activities, and business practices.
5.2. What type of client should your agent or distributor be familiar with in order to sell
your product?
Family with small children is a segment that our client or distributor should be familiar with
because our product is milk powder and it supports children growth and children account for the
majority of the market.
In the first steps agent or distributor should cover the area that has many children, it can help
agents or distributors easier to access, easily convey the value of the product to children’s
parents.
5.5. What other competitive or non-competitive lines are acceptable or not acceptable
for the agent or distributor to carry?
Imaginative distribution systems: Vinamilk can use imaginative distribution systems to take
competitive advantage.
Difficult to Replace, high prestige: this can help Vinamilk to keep their loyal customers, and
customer awareness
Value Addition – Distribution Channel Members can provide greater efficiency in making
availability of goods to the target markets through their Contacts, Specialization, experience,
and scale of operation. This can add value to the products at each level of distribution.
Unable to rearrange to scale up, increase individual point-of-sale satisfaction and achieve high
efficiency by leveraging on their scale.
5.6. How many sales representatives does the agent or distributor need and how often
will they cover the territory?
The agent/ distributor needs as much as possible in each country. So it helps to increase the
coverage frequency significantly and people in each country can see everyday.
5.7. Will you use an export management company (EMC) to do your marketing and
distribution for you? Yes No
EMCs do not have to represent your company exclusively on a worldwide basis. Rather, they
sometimes can represent you in specific regional markets. For example, you might contract
with an EMC to sell your products in Latin American markets, while you continue to handle
direct export sales to Europe and Asia.
If yes, have you development an acceptable sales and marketing plan with realistic goals you
agree to?
YES.
The marketing goal that we set out, maybe we will cooperate with EMC to be able to continue
hitting other markets without worrying too much. Currently we focus on development in a few
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countries and through EMC to develop more in other countries in a certain period of time. After
the countries in which we are developing products have stabilized their consumption, we may
consider terminating our contract with EMC to further develop our own product marketing in the
countries, that EMC represents our company.
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Vinamilk is the largest dairy company in Vietnam with a market share of 37%. Factory scale is
also the largest, reaching 70% efficiency
Having a sustainable strategic relationship with suppliers, ensuring a sustainable source of raw
materials.
Our product is focus on growth of children so we have to build trust of their parents which can
take long time to achieve.
Their product can be well known at the country if they are domestic company and the flavor is
more suitable because they live in Peru and they know what flavor children like.
● Low price
● Milk quality is high because it is extracted from nature and goes through many strict
processing stages
● Reviewed and tested according to rigorous process
● Many nutrients are good for health
● No preservatives
● Can be easily used anywhere and the shell is recyclable with no pollution to the
environment
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Plenty of nutritional products and foods are sold at Peru at different prices.
The target audience is also relatively wide but the market for milk is still only for the young and
the elderly.
How complex is your product? What skills or special training are required to:
Sterilize the tools to make milk bottles by placing the pot to boil water, then put the bottles to
boil for another 15 minutes.
Then, you put the nipples, and caps to boil for another 5 minutes. Note that the boiling water
must be filled so that the nipples and bottles do not touch the bottom of the pot.
In case you use a glass bottle for your baby, do not pick it up right after cooking to avoid the
change in temperature breaking the bottle.
After you've cleaned the feeding utensils, make sure you wash your hands well too.
First, you boil the water to cool to the appropriate temperature, usually from 40 to 50 degrees
C, pour the amount of water needed into the bottle. Before mixing, you should put a few drops
on the back of your hand to test the temperature of the water, avoiding too hot or too cold water
to make the formula lose the nutritional balance of the milk.
After adding enough milk to the water, cover the bottle and shake well until it is completely
dissolved. If you shake forever and the milk is still lumping, you should check the shelf life of
the milk, avoid letting your baby drink milk with problems.
If your baby does not finish drinking, you can drink it for them or discard any excess milk.
Absolutely do not let your baby drink again that amount of milk to avoid infection.
After each use, you should keep the carton tightly closed and store it in a cool, dry place, away
from direct sunlight and should be used up within 1 month.
Do not leave powdered milk in the refrigerator as this is not a proper storage method. It is a
humid environment in the refrigerator that makes powdered milk very easy to absorb moisture.
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If stored in the refrigerator for a long time, powdered milk will not only easily become moldy but
also cause the baby's milk to clump, change the milk quality and lose its use value.
Pay attention to tightly close the lid after mixing milk so as not to make the milk moist and
clumping.
When mixing milk for babies, mothers should pay attention not to let water fall into the milk
because it will cause the milk to clump, change color, change taste or make the milk smell
strange, making the baby uncomfortable. If you see milk in these conditions, you absolutely
remember not to let your baby continue to use it.
Mother should pay attention and use milk within the allowed use period, usually 18 months with
powdered milk and 2 years with canned milk. However, if you have opened the lid, you should
pay attention to use within 30 days.
2. What other equipment does the buyer need to use your product?
Chocolate chip cookies, baked goods, coffee, Oreos, peanut butter sandwiches, cereal, etc.
The use or shelf life of a product is influenced by the climate because the overflowing air will
cause the milk to become wet, moldy, and evaporate its original aroma. Should cover tightly
after taking the milk used to limit dust wet, insects… fall into the powdered milk box.
4. Will geography affect product purchase; for examples transportation
problems?
5. Will the product be restricted abroad; for examples tariffs, quotas or non-tariff
barriers?
1. Who will consume it? How frequently will the product be bought?
- Vinamilk’s customers are diverse from adults to children, but mainly children.
- Children need to be provided many nutrients, so they will consume on average
180ml of milk/ day.
2. Is consumption affected by climate?
Our product isn’t affected by climate change because it is a nutritious food, which the body
needs to be replenished.
4. Will the product be restricted abroad; for example, tariffs, quotas or non-tariff
barriers?
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Pricing strategy depends on “terms of sale” and also considers value-added services of
bringing the product to the international market.
Based on similar products selling in the country and our product selling in other countries.
● While product, place and promotion affect costs, price is the only element that affects
revenues, and thus, a business’s profits. Price can lead to a firm’s survival or demise.
● Adjusting the price has a profound impact on the marketing strategy, and depending on
the price elasticity of the product, it will often affect the demand and sales as well. Both a
price that is too high and one that is too low can limit growth. The wrong price can also
negatively influence sales and cash flow.
● Problems occur if the marketer fails to set a price that complements the other elements
of the marketing mix and the business objectives, as pricing contributes to how
customers perceive a product or a service. A high price indicates high quality. The term
luxury comes to mind. If, however, a firm wants to position itself as a low-cost provider, it
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will charge low prices. Just as they do with high-end providers, consumers know what to
expect when they see low prices.
1.5. What are your discount policies?
+ For each retail channel: Vinamilk has a unique pricing system that is consistent with the
business characteristics of each channel to meet the needs of consumers.
+ For distributors are assigned to distribute Company's products under certain pricing
policies to the market and earn commission profits.
1.6. What terms of sales are best for your export product?
+ More expensive policy to get better products: With this policy Vinamilk easily pushed
higher product prices, quality that come with the product. Products that are high quality,
secure, reputable, creating trust for consumers will allow business to set high prices
without causing reactions from customers. A number of brands have been upgraded to
Dielac Alpha with Vinamilk Non Colostrum, Friso's Friso Gold, 123 456 upgraded with
Dutch Lady's ratio, Dumex upgraded to Dumex Gold by Dumex. Dielac Alpha's dairy
products are of international quality. This is mandatory for children's nutrition products
and the interests of Vietnamese consumers. With a domestic price but quality is
accepted in the European countries, the Middle East, consumers can fully trust the
choice.
+ Vinamilk's price policy on fresh milk: policies of grassland, not urbanization, good
livestock conditions, but transportation of milk is far cheaper.
+ Price retention policy but higher quality: If the current products have a low positioning
value, then companies usually use higher value positioning but keep the price constant.
The most obvious is Vinamilk when Vinanmilk locates its line of pasteurized milk and
yogurt.
2.2. What trade shows or trade missions will you participate in, if any?
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2.3. What time of year and how often will foreign travel be made to customer markets?
Expoalimentaria, Latin America's largest annual international trade food and beverage fair,
receives special attention from global businesses because it is an opportunity to promote and
promote exports to the US market. This is also the opportunity to learn from other competitors
in this market and reach the new customers.
- Target: Continue to better promote the image of Vietnamese agricultural products, foods
and beverages, Vietnamese brands in a large scale in the Vietnam National Pavilion.
- Information of the last fair: In 3 days from September 25 to September 27, 2019.
- Location: Centro de Exposiciones Jockey, Av. J.prado Este Nro. 4200, Santiago de
Surco, Lima, Peru.
- Participate: the participation of more than 650 domestic and international companies to
seek business opportunities.
- 30.000 pavilions.
- 45,000 visitors, 35% foreign.
- We will take only 2 foreign travel to be made to customer markets.
- Earn points for redemption such as bicycles, teddy bear, weaning chair, etc
7
- Give bonus products when buying enough target quantity, the number of purchases or
the required amount on the bill.
Cash, Bank Card, Credit Card, Visa Card, Online Payment, ect.
Exchange a new product for the customer if there is a problem with the production and
shipping, provided the customer has to keep the invoice for that product.