INTERNATIONAL SCHOOL

VIETNAM NATIONAL UNIVERSITY

Topic 7: Doing business on the Sendo e-floor

Lecturers: Lê Văn Sơn

Group 1:
Đoàn Thu Ngân- 19071436
Tạ Trần Yến Nhi- 19071456
Hà Thị Phương Lan- 20070500
Nguyễn Phương Thảo- 19071501
Lại Thị Thu Hà- 19071138
Trần Quỳnh Trang- 19071534
Principles of marketing

Table of contents
I. Introduction ................................................................................................................................... 3
1. Vinamilk ..................................................................................................................................... 3
2. Sendo........................................................................................................................................... 3
II. Short-term goal ............................................................................................................................. 3
III. Market research analysis ............................................................................................................. 3
1. Technological environment ........................................................................................................ 3
2. Legal and political environment.................................................................................................. 4
3. Economic environment ............................................................................................................... 4
4. Natural environment .................................................................................................................. 5
IV. Competitor ..................................................................................................................................... 5
1. Direct competitor ........................................................................................................................ 5
2. Indirect competitors ................................................................................................................... 5
3. Potential competitors: ................................................................................................................ 6
V. Potential customers ....................................................................................................................... 6
VI. Internal situation analysis ............................................................................................................ 7
1. Accounting financial:................................................................................................................... 7
2. Personnel .................................................................................................................................... 7
VII. Research the company's product ................................................................................................. 8
1. Vinamilk 100% pasteurized fresh milk ........................................................................................ 8
2. Product design ............................................................................................................................ 8
3. Product pricing ............................................................................................................................ 8
VIII. Marketing strategy ...................................................................................................................... 8
1. Growth strategy .......................................................................................................................... 8
2. Product diversification strategy .................................................................................................. 9
3. Brand positioning strategy .......................................................................................................... 9
IX. Tools- means ................................................................................................................................ 10
1. Advertisement........................................................................................................................... 10
2. Sendo ........................................................................................................................................ 10
X. Implementation plan................................................................................................................... 10
1. Product design and implementation ........................................................................................ 11
2. Marketing and sales .................................................................................................................. 11
3. Advertising ................................................................................................................................ 11
4. Market testing........................................................................................................................... 11

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I. Introduction
1. Vinamilk
Vinamilk is the leading food company in Vietnam and is always in the
group of 5 companies with the largest market value on the Vietnamese
stock market.
In terms of sales and output, Vinamilk is the leading dairy producer in
Vietnam. Vinamilk's product portfolio includes: main products are liquid
milk and powdered milk; value-added products such as condensed milk,
edible yogurt and drink yogurt, ice cream and cheese. Vinamilk offers the
market the widest range of products, flavors and packaging options to
choose from.
The Company's products are mainly consumed in the Vietnamese market
and also exported to foreign markets such as Australia, Cambodia, Iraq, the
Philippines and the US.
2. Sendo
Sendo is the leading e-commerce platform in Vietnam, where Sellers can
easily set up an account to start a business and increase sales on the Sendo
e-commerce platform.
In September 2012, Sendo launched to consumers, which was originally
an e-commerce project developed by FPT Online Services Joint Stock
Company (FPT online). On May 13, 2014, Sendo Technology Joint Stock
Company was established, under FPT Corporation, which is the owner of
Sendo application.
II. Short-term goal
2012 is the beginning of a new development phase for Vinamilk after
surpassing the milestone of US$1 billion in revenue. Meanwhile, the world
situation in general and Vietnam, in particular, are still facing difficulties
with the impact expected to continue in the coming years, leading to the
purchasing power of consumers being affected. In terms of the business
environment, competition is increasing with more companies participating
in the dairy industry.
In that context, Vinamilk expects average revenue to increase by 20%/year,
profit before tax to increase by 13%/year.
III. Market research analysis
1. Technological environment

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In the dairy industry, science and technology play an important role in

providing effective technical support for the rapid development of dairy
breeds and breeding. Embryo transfer technology has been successfully
implemented to create many rare and good dairy cow breeds with high
fertility, increased milk yield, and shortened breeding time.
Cow feed also achieved certain achievements, high-quality complete
rations.
The dairy cow crib model is built more and more professionally, applying
high technology; organizing close cooperation in production according to
the product chain, reducing the number of small-scale breeding
households, increasing the farming scale, reducing costs, and increasing
production efficiency.
In order to promote growth, the company chose to take the lead in applying
new technologies, installing modern processing machinery and equipment,
increasing processing capacity, expanding production facilities, and
developing domestic raw material areas. ...with a total investment capital
of 5 years from 2005 to 2010 is 4,469 billion VND. The above investment
has created high labor productivity, strongly developed production scale,
contributing to large revenue and high profit.
In addition, many foreign enterprises have been and will be investing in
Vietnam's dairy industry in terms of dairy feed production technology and
dairy product processing technology.
2. Legal and political environment
Taxes on imported dairy products are high, which increases the price of
imported milk, creating favorable conditions for domestic milk production
to develop.
The regional economic integration and globalization create favorable
conditions for milk production and processing enterprises to access
advanced and modern production technology.
3. Economic environment
Currently, with the development of the economy, people's income levels
increase, living standards are improved, making consumers pay more
attention to food quality and safety, especially food safety. the use of dairy
products.
Thanks to the high living standard of the people, the consumption of dairy
products in households is also increasing, creating favorable conditions for
the development of Vietnam's dairy industry.

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4. Natural environment
• Effect of temperature on dairy cows: temperature affects behavior,
ability to receive and digest feed, growth, reproduction and wax
production of dairy cows.
• Temperature and humidity affect feed availability and changing
weather conditions are causative agents of dairy cow disease.
• Temperature affects the fermentation of yogurt.
• Environmental conditions also affect the storage of raw milk and dairy
products.
IV. Competitor
1. Direct competitor
Vietnam has 60 dairy production and trading enterprises with more than
300 brands. However, Vinamilk is still the company with the largest market
share in Vietnam, accounting for more than 50% in the dairy industry,
followed by Friesland Campina Vietnam. Next are products imported from
companies such as Mead Johnson, Abbott, Nestle... with the main products
being powdered milk. Finally, there are small-scale dairy companies such
as Nutifood, Hanoi Milk, Ba Vi...
Powdered milk is currently the most fiercely competitive segment between
domestic and imported products. Vinamilk is currently leading the market
with a market share of 40.6% (in 2019). While the market shares of both
Abbot and Friesland Campania have remained the same or decreased
slightly over the past 3 years, Nutifood has emerged as a major threat to
Vinamilk in the affordable segment. Currently, domestic dairy companies
are still suffering. Competitive pressure is increasing due to the reduction
of tax on imported milk according to Vietnam's tariff reduction policy
when implementing CEPT/AFTA commitments of the ASEAN region and
commitments with the WTO Trade Organization.
2. Indirect competitors
Vinamilk competes with competitors with replaceable products such as
cereal flour, anti-aging nutritional drink, chlorophyll water to stimulate
eating, digestive support, Twister orange juice..., some soft drinks… These
are really good substitutes for milk.
Fruit juice market: Tan Hiep Phat, Twister, Coca Cola, Pepsico, Tropicana,
Tipco,...
Cereal flour market: VinaCafe, Callbe, Tue Minh,…
Nutritional drink market: Tan Hiep Phat, Coca Cola,...

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3. Potential competitors:
Technology-technique: Quality management technologies (KCS),
complex mixing technology, requirements on product packaging to ensure
milk quality.
Finance: Requires a large amount of capital to invest in machinery,
equipment, factories, warehouses, etc.
About the brand: In Vietnam, there are many famous brands that create
trust with customers such as TH True Milk, Dutch Lady, Abbott, Vinamilk,
etc. All of these businesses already have products. Unique positioning
differentiates from other products in the market. Building a brand name is
not easy, so this will be a big barrier for businesses that want to enter the
industry.
About distribution channel: Enterprises in the market currently have a wide
distribution system. Owning a good distribution network is the key of the
business, through which goods go from the producer to the final consumer
at a competitive cost.
Regarding market share, Vinamilk is currently leading in both powdered
milk market segments (27%, 2017) and liquid milk (55%, 2017). Followed
by familiar names such as Abbott, TH True Milk, etc. About customer
loyalty: Vietnamese consumers tend to use products of big, reputable
brands that have certified safety.
Specific resources: Enterprises now have a team of quality nutritionists,
sources of input materials, especially imported ingredients.
V. Potential customers
Vinamilk's customers are divided into two main markets: the consumer
market (individuals and households buying goods and services for personal
consumption) and the agency market (supermarkets, buying agents). and
service)
• Consumer market: Consumers are now paying attention to the quality,
variety of products, brand strength.. then the price. The price must be
reasonable with the selling price of the distributors. distribution to avoid
price differences that lead to a different view of consumers. Consumers
are increasingly concerned about their own health, increasing
awareness of nutritional products. As a result, the demand for yogurt
products, premium liquid milk (organic, A2 milk) and plant-based milk
alternatives (soy milk, walnut milk, almond milk, etc.) increased, while
whole milk products decreased somewhat. The ability to convert

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customers' purchases: The product lines of Vinamilk and other

competitors are now very diverse, including yogurt, powdered milk,
liquid milk, condensed milk, etc. Customers have a wide choice of lines
to choose from. products such as TH True Milk, Ba Vi, Dutch Lady,
etc. to compare suppliers.
• Dealer market: Retail agents, supermarkets, nutrition centers, etc. have
the ability to influence the behavior of shoppers. Domestic dairy
companies and the exclusive agents of foreign firms must compete for
strategic distribution points, mainly through discounts and reseller
commissions… in order to win. significant power over competitors, as
they can influence retail customers' decisions on which dairy products
to buy through consulting and product introduction.
VI. Internal situation analysis
1. Accounting financial:
In 2011, Vinamilk also achieved impressive business results with sales of
more than 1 billion USD (22,279 billion VND), an increase of 37%,
payment to the state budget reached 2,400 billion VND, an increase of 45%
compared to the previous year. 2010. In this year, Vinamilk reached the
milestone of 1 billion USD one year earlier than the target set out for the
3-year plan 2010-2013. In the context of high input material prices,
Vinamilk still participates in the price stabilization program for consumers
nationwide.
Especially, in the first 3 months of 2012, Vinamilk has made a spectacular
impression on domestic and foreign markets with total revenue of more
than VND 6,051 billion, an increase of about 30% compared to the same
period in 2011.
2. Personnel
Over the past years, over 50 children, employees of the company and
excellent students have been selected through the entrance exams on dairy
technology to be the core of the future successor force to send for training
abroad. More than 100 scientists and engineers were sent to acquire
domestic technology for a short time; 12 people attended director training
classes; 15 staff trained in high-level political theory; 9 cadres follow
training courses for trade union cadres. Implement salary increase, grade
promotion on time for employees. Appointing 7 executive directors, 15
unit directors and 17 specialized directors of factories, enterprises and
branches; 12 Directors of Departments and Centers. The average annual

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income of the following year is 10 - 20.3% higher than the previous year;
organizing more than 2,000 laborers to visit at home and abroad; 10
periodic health checks for all employees in the company; participate in the
city 5 times of Sports Festival; 2 times of cultural performances; health
insurance, social insurance, political and professional education
improvement regimes are fully guaranteed.
VII. Research the company's product
1. Vinamilk 100% pasteurized fresh milk
Vinamilk 100% pasteurized fresh milk is a combination of raw materials
from pure fresh cow's milk and advanced pasteurization processing
technology.
The fuel source is premium pure fresh cow's milk, which is taken from
healthy, happy cows that are carefully cared for to deliver the best quality
products to consumers.
In particular, the advanced "centrifugation separation technology" first
appeared in Vietnam to help dislodge the most harmful bacteria before
pasteurization, ensuring the best milk quality for you and your family.
2. Product design
Usually, when it comes to a festival, something special, there is a
packaging innovation to suit that day and also an advertising campaign to
stimulate consumption. As in the holidays, Vinamilk does not hesitate to
design and print new packaging to bring the message to consumers. The
cost Vinamilk spends for such design change programs usually accounts
for 10% of the total cost.
3. Product pricing
27.500 VNĐ/ bottle1L
Price is considered an important competitive factor in attracting customers
of every business. Therefore, having a suitable price policy is of special
significance, helping Vinamilk have an effective business strategy.
VIII. Marketing strategy
1. Growth strategy
The company uses the growth strategy of consolidation, which means
Vinamilk acquires Lam Son Dairy Company. It is known that at the 2010
shareholder meeting of Lam Son Dairy Joint Stock Company, shareholders
agreed to transfer all shares to Vinamilk.
Previously, since 2007, Lam Son Dairy Joint Stock Company has become
a subsidiary of Vinamilk, in which Vinamilk holds 55%.

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Lam Son Dairy Joint Stock Company has a charter capital of 80 billion
VND, and its head office is in Le Mon Industrial Park, Thanh Hoa. The
company's main business activities are in the following fields: production
and trading of canned milk, powdered milk, nutritional powder and other
dairy products, trading in cakes...
2. Product diversification strategy
Vinamilk uses the strategy of diversifying products Vinamilk Milk With
Sugar Supplemented with New Micronutrients - Bright eyes, Tall body,
Vinamilk Milk Chocolate Flavored with Supplements New Micronutrients
- Bright eyes, Tall, Strawberry Flavored Vinamilk Milk With
Micronutrients New - Bright eyes, tall figure based on existing products
such as: 100% FRESH MILK WITH WHITE SUGAR, FRESH MILK
100% PURE PURE...
3. Brand positioning strategy
To affirm the Vinamilk brand, Ms. Mai Kieu Lien - General Director of
Vinamilk affirmed "Vinamilk is a brand of Vietnamese people, built by the
hands and minds of Vietnamese people, so we are strong enough to
compete. healthy for enterprises in the WTO community, because only
competition can bring development”
Vinamilk is a brand that is currently ranked in the Top 10 strong brands in
Vietnam. Operating for more than 10 years in the subsidy mechanism, like
many other enterprises only producing according to the plan, but when
entering the market economy, Vinamilk quickly seized opportunities,
constantly innovated technology and invested. infrastructure, diversifying
products to prepare for a new journey.
From 3 factories specializing in milk production, namely Thong Nhat,
Truong Tho, Dielac, Vinamilk has constantly built a distribution system to
create a premise for development. With the right development orientation,
dairy factories: Hanoi, joint ventures of Binh Dinh, Can Tho, Saigon, Nghe
An in turn were born, processed and distributed milk and dairy products
covering the domestic market.
Constantly expanding production, building more factories across the
country (currently 5 more factories are under construction), Vinamilk has
become the leading enterprise in the dairy processing industry, accounting
for the largest share of the dairy industry. large market share of milk in
Vietnam, achieving revenue of more than 6,000 billion VND/year, paying
over 500 billion VND to the state budget each year. Vinamilk currently has

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over 200 dairy products and dairy products, such as condensed milk,
powdered milk for children and adults, nutritional powder, fresh milk,
drinking yogurt, soy milk, ice cream, cheese, and water. juices, biscuits,
purified water, coffee, tea... All products must meet international
standards.
Vinamilk has made continuous efforts to ensure 3 core issues at the same
time, which are quality - price - service style.
IX. Tools- means
1. Advertisement
In recent times, public opinion has been quite harsh about the fact that
many businesses trading in reconstituted milk powder products but label
them as fresh milk to deceive consumers. Before such information,
consumers feel confused and doubt the quality of milk of companies such
as Vinamilk, TH true MILK, Dutch price... Therefore, Vinamilk has
pioneered in influencing the perception of consumers. consumers about the
quality of their company's dairy products by advertising 100% Pure Fresh
Milk. The cute images of cows and the fun melody of the song, it has
strongly influenced consumers' perception in terms of information that
Vinamilk's fresh milk is made from 100% pure fresh cow's milk. Besides,
the advertisement has brought love to the children when they see it because
they feel the cuteness of the cows like the images of children and their
friends. That affects the emotions of the children when watching the
advertisement and it affects the parents when they know that their children
love the advertisement and keep asking to drink a lot of Vinamilk milk.
And the results received from that advertisement helped Vinamilk
gradually affirm the trust in the hearts of consumers and significantly
increase sales for the company.
2. Sendo
Build sales channels: Take advantage of social networking channels such
as Facebook, Instagram, Tiktok, Youtube... to attract potential customers.
At the same time pull traffic to the floor, Sendo is selling.
Implement online marketing: The promotion of products and booths is
extremely important. To reach potential customers, expand brand
awareness and products that drive revenue. Use social media channels to
promote, collaborate with influencer marketing… to help drive
conversions and revenue.
X. Implementation plan

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1. Product design and implementation

Outstanding characteristics of Vinamilk milk such as: nutrition factors of
Vinamilk, quality factors…” Made from 100% pure fresh milk, Vinamilk
fresh milk contains the most essential and pure nutrients from nature, gives
you an abundance of vitality to fully enjoy a beautiful life.”
The second is to pay attention to the shelf life of the product. Normally,
Vinamilk fresh milk has a shelf life of 6 months. And need to know the
nutrition of the product. Specifically: In 100ml of Vinamilk fresh milk,
there are: energy 70.6 kcal, fat: 3 g, protein: 2.9 g, Hydrar Carbon: 8g,
vitamin A: 130 IU, Vitamin D: 35 IU, Pantothenic acid: 250 mcg, Vitamin
B2: 150 mcg, Vitamin PP: 80 mcg, Vitamin B1:25 mcg, Vitamin B6: 25
mcg, Flic Acid: 5.5 mcg, Biotin 110 mcg, Calcium: 110 mg, Magnesium:
10 g, Zinc: 300mcg, Iron: 120 mcg, Iodine: 12mcg.
Store milk in a cool, dry place. After opening the box, store at 8-10 degrees
Celsius and use up within 3 days. Shake well before drinking.
2. Marketing and sales
Selling expenses include many component costs such as advertising costs,
promotions, commissions, freight, sales staff costs, etc.
According to current regulations, expenses for advertising, marketing,
promotion, reception, ceremony, transaction costs, external relations,
brokerage commissions, conference costs and other expenses Lawful
invoices and documents associated with business results shall be included
in reasonable expenses, but not exceeding 10% of the total reasonable
expenses.
3. Advertising
Vinamilk's milk advertising strategy recently focused on the message
"bright eyes - tall". This strategy of Vinamilk has the opinion that it is
offensive. It's a picture of a dairy cow. There is an opinion that just need to
have a picture of a cow and a black dot to know that it is a cow, and then
you don't need to have such stretchy breasts to be considered a dairy cow.
Really, the ad just wants to emphasize the quality of dairy products that are
sourced from healthy cows. It proves that Vinamilk is always interested in
the quality of milk to provide the market with the best quality dairy
products. That's why the ads take the image of a funny cow. In addition,
the use of music and cheerful songs to attract everyone, especially children.
4. Market testing

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Vinamilk brings the joy of drinking milk to schools is a program that aims
to give students and parents more playgrounds, improve understanding of
the benefits of drinking milk regularly every day, which is very important
in the growing age group. development of baby fish.
On March 29, 2012, Vietnam Dairy Products Joint Stock Company
Vinamilk chose Thang Nhi Primary School, Vung Tau City to implement
the Milk program for schools and for students in the Ba Dinh area. Ria
Vung Tau.
That is the first test point this year for a product with the message "bright
eyes - tall figure" and promises that Vinamilk will have a test program in
some other places as well.

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