Saigon International School of Business

The collaborative training program

Between Banking University Ho Chi Minh City and the
University of Bolton (United Kingdom)

GROUP 2’S PROJECT: VINAMILK

Name Position ID Tasks Comment Done
- Support PowerPoint
- Compose content IV Complete the task on
Nguyễn Hiền
Leader 120604220039 - Support for content time. Excellent team 100%
Trí Dũng
writing III working attitude
- Presenter IV
- PowerPoint Complete the task on
Mai Nguyễn
Member 120604220006 - Compose content II time. Excellent team 100%
Hà Giang
- Presenter II working attitude
- Support PowerPoint
- Compose content IV Complete the task on
Trần Phạm
Member 120604220023 - Support for content time. Excellent team 100%
Mai Phương
writing III working attitude
- Presenter IV
- PowerPoint Complete the task on
Huỳnh Như Member 120604220020 - Compose content I time. Excellent team 100%
- Presenter I working attitude
- Support PowerPoint
Completing the task
- Compose content III
Nguyễn Thị well but not on time
Member 120604220038 - Support for content 85%
Hoài Dung Good team working
writing IV
attitude
- Presenter III
 1. Introduction of the organization
Name: Vinamilk, formally the Vietnam Dairy Products Joint Stock Company, which is the
largest dairy company in Vietnam.
History: It was first established in 1976 based on factories from the old regime.
After only 38 years, Vinamilk has
been proving itself with a strong
spirit of constantly improving,
innovating, and seeking new
directions, they have confirmed their
status and reputation by officially
launching their brand in Myanmar,
and Thailand and expanding
operations in ASEAN1.
By 2021, after 45 years, Vinamilk will not only become the leading dairy company in
Vietnam but will assert its brand position on the international map. The company climbed
to the top 40 world dairy producers with the highest turnovers (The UK-based Plimsoll
Publishing Company Limited).
Vision and Mission
Vision: To become a world-grade brand in the food and beverage industry, where people
put all their trust in nutrient and health products.
Mission: To deliver valuable nutrition to the community with our respect, love, and
responsibility.
Production and Services
The principal activities of Vinamilk are to produce and distribute condensed milk,
powdered milk, fresh milk, soya milk, yogurts, ice cream, cheese, fruit juice, coffee, and
other products derived from milk.

1
Association of South East Asian Nations
Board of Leaders
Vinamilk’s governance is managed by an enthusiastic and experienced team in the field of
the milk industry. Here are the three people who stand a special role in the firm.

CEO of BOD Ms. Mai Kiều Liên, was an Executive BOD member from 2015 to 2021, has
more than 30 years of experience in the milk industry at the company and has played a
major role in the company’s growth and development until this day.
Mr. Nguyễn Hạnh Phúc has assumed the Chairman of BOD since 2022. He started working
in 2015 and has years of experience in the field working in these roles in Finance.
Mr. Lê Thành Liêm has been Executive Director – Finance cum Chief Accountant since
2015. Over 12 years, he had experience working in these roles in Finance.
Achievements
After 45 years of establishment and development, with the mindset of creativity,
innovation, and non-stop efforts, Vinamilk has become one of the leading enterprises in
Vietnam. Vinamilk has constantly contributed to the development of the country in general
and the dairy industry in particular, elevating Vietnam’s dairy products in the global
market. With its significant achievements, the Company has been honored to receive the
noble titles and awards:
Domestic Achievements

International Achievements

Strategies to compete with other competitors

A better understanding of the internal and
external environment allows the
corporation to understand more about the
competition and about advantages the
competitors have over their business.
Competitors are Dutch Lady Vietnam (a
division of Friesland Foods), Nestlé
Vietnam, Abbott, Mead Johnson, Friso…
2. The business environment of the organization
Definition: A business environment is all the components that affect a business. These
include both internal factors and external factors. Each of these contributes to a company’s
working environment and can influence how the business functions.
2.1. The internal environments
Employees
Vinamilk’s employees are respected and treated equally, with no discrimination in favor
of somebody, including their gender, location, or religion. Employees can express their
beliefs and contribute to the organization’s success, no matter what position they are in.
Vinamilk was honored to be named one of the top 100 jobs in Vietnam, ranking second
overall and having the most appealing brand in terms of pay, bonus, and welfare.

Owners
Vietnam's State Capital
Owners Investment Corporation (SCIC) holds
36% of the shares as of late 2017.
7,58% are owned by other
Vietnamese investors.
Of which 0,28% are owned by
CEO Mai Kiều Liên the only woman
who owns shareholders.
The remaining percentage is
owned by foreign investors. In
particular, F&N is one of the foreign
investors who have been holding
SCIC Vietnamese CEO Mai Foreign
investors Kiều Liên investors
shares of Vinamilk for a long time and
have two representatives on the BOD.
Board of Directors mission
Vinamilk’s governance regulation is a system of rules and principles to ensure the company
is directed, managed, and controlled effectively by shareholders and stakeholders.
The Board of Directors is responsible for developing strategies and identifying business
priorities of the company such as orientation and control of management, making decisions
Regulations on the operation of the Board of Directors stipulate the personnel organization
structure, operational principles, rights, and obligations of the Board of Directors and
members of the Board of Directors to ensure it is suitable for the law on enterprises.
Facilities
During the period from 2005 to 2011, the company invested about 4.500 billion VND in
upgrading and modernizing industrial machinery and equipment.
At the same time, Vinamilk also built 2 automation centers in the north and south of the
country. To exploit the potential of the dairy farming industry with high technology.
The development of technology
Vinamilk has continuously innovated technology over the past time, investing in modern
technological machinery lines, and improving management and quality of products. The
machines are imported from advanced European countries and were installed and operated
by highly skilled experts. From that, a series of high-quality products have been born.
2.2. The external environments
Government regulations
Vietnam’s politics are relatively stable, and low import policies support learning and
investment development are safer and easier. Milk consumption policies and regulatory
systems are gradually improving.
National institutions have relaxed market price management, focused on food safety, and
have not truly controlled the active substances in products.
Strong government commitment to the development of the dairy sector has greatly
contributed to a rapid expansion of dairy activities throughout the country. For instance,
the majority of smallholders who supply raw milk for Vinamilk took up dairying as a result
of government support, such as a government decision about a policy that sought to
increase domestic production and reduce dependence on the world market.
Natural environment
Vietnam's climate is characterized such as a hot and humid monsoon climate and a
temperate climate like Sapa, Đà Lạt… Fortunately, it is suitable for growing high-quality
grass and is appropriate for raising cows for milk, especially in the provinces of Ba Vì,
Lâm Đồng… Since then, the company has had materials that meet production needs, such
as fresh milk, and sugar, which are always in a fresh state.
Suppliers
Vinamilk relies on a large supply network of smallholder farmers and intermediary
collectors. Vinamilk has 86 ‘collecting points’ that belong to 3rd-party companies that own
chilling facilities and transportation trucks for delivering to Vinamilk’s factories.
Customers
Vietnam’s population is estimated to be more than 97 million people by 2020. Rapid
population growth is beneficial for expanding industries. Seeing that population growth,
Vinamilk did not hesitate to expand the market, build more factories, open retail
distribution locations, and research products with reasonable prices for people’s income in
each certain region.
According to a recent survey of Vinamilk about customer feedback, it can be seen that top
foreign customers are satisfied with the quality of products as well as the quality of
Vinamilk’s customer service. For domestic customers, 99% are satisfied with the speed
and quality of delivery, and 98% are satisfied with customer service.
Competitors
Vinamilk has its branches in different
countries thus this increases the
competition for Vinamilk. Following
are some of Vinamilk’s competitors:
With many years of experience,
Vinamilk constantly strengthens itself
to rise. In 2023, the dairy market giant
– Vinamilk has set a plan to achieve a
total revenue of 63.380 billion VND,
an increase of 5.5%, and profit after
tax of 8.622 billion VND.
 3. The business strategies of the organization
Definition: A business strategy outlines the specific ways in which an organization plans
to position itself, achieve its short-term and long-term goals, and grow over time.
3.1. Company Mission and Goals
Company Mission: Vinamilk constantly diversifies product lines and expands distribution
territories to maintain a sustainable leading position in the domestic market and maximize
the benefits of the Company’s shareholders.
Company Goals: The business started carrying out expansion and development projects
to become one of the leading food and beverage companies in Vietnam that promotes
health. Project to re-plan manufacturing scale for the healthy beverage business in the
South. Within the company’s long-term development strategy, these two projects are
crucial. The corporation wants to maximize wealth for shareholders.
3.2. Business strategies of the organization
Expanding domestic production scale abroad
The company focuses on exploiting the colonial market, building a large domestic
distribution system, maintaining Vinamilk’s leading position in the market, and becoming
the dairy company that creates the most value in the Southeast Asian market. In addition,
it helps in reducing costs, lowering product prices, and increasing competitiveness
compared to other units in the industry.
Researching nutritional ingredients in the company’s products
Vinamilk’s research and product development team always updates the latest knowledge
about technology, as well as in deep understanding of domestic and foreign markets to seek
opportunities and ideas for product development.
Marketing strategy
New brand identity
Changing from a badge-shaped logo to a new, simple,
and easily recognizable letterform, grasping the
“simplification” trend that is leading the wave of logo
changes of major brands around the world today such
as Bran Directory, Coca-Cola, Yakult, etc. The
addition aims to access the international market more
easily and increase brand coverage, and recognition.
Therefore, the new logo must be eye-catching, create
good visual effects to easily reach customers, and help
users remember Vinamilk’s brand faster.
Creating three new typefaces, designed specifically for the brand, with a system of motifs
and hand-drawn illustrations filled with color and imbued with the breath and spirit of
Vietnam. It is not a new strategy, in Vietnam, Baemin and Unilever have succeeded with
this strategy. However, this is an extremely effective strategy to convey the brand story,
create uniformity across media brands, and cannot be copied. Outstanding V-shaped visual
merchandising strategy. To bring a fresh atmosphere to the brand, creating happy and
excited emotions for customers.
4Ps marketing mix strategy
Marketing strategy for products
It has the goal of bringing clean, natural milk and meeting the diverse desires of consumers
from children to adults.
Product marketing strategy to improve and supplement product types with many different
items on the market. In addition to diversifying the product portfolio, the strategy also
focuses on improving product quality according to international standards.
For example, in 1999, successfully applied the Quality Management System according to
the international standard ISO 9002 and currently the 9001:2000 system. Reducing the
quality gap compared to imported milk, increasing brand reputation.
Marketing strategy on price
This is an important competitive factor. Vinamilk’s products all meet international
standards but their prices are lower than imported milk lines. The strategy plan reduces raw
materials imported from abroad to take advantage of abundant raw material sources,
ensuring quality in the country. Price products appropriately, and offer regular sales
discounts to attract customers.
Marketing strategy on distribution system
It has three forms: wholesale, retail (240,000 retail points), and direct distribution stores
(575 stores). The distribution system has 3 main channels. The first is supermarket channels
such as Big C, Metro… and small supermarkets such as Citi mart, Intimex, etc. The second
is channel account restaurants, hotels, schools, and agencies. The last is the traditional
channel: the VMS channel (Vertical Marketing System).
Marketing strategy for mixed promotion
It has a goal to increase awareness and attract customers to multi-channel product
advertising campaigns (television, outdoors, YouTube, etc.) and implement promotional
programs (increasing product capacity but keeping the price the same, accompanying gifts,
discounts, etc.). Last but not least to focus on social and charitable activities.

Long-term development strategy

Prioritizing focusing on exploiting the domestic market with huge development potential,
expanding penetration, coverage of rural areas with popular product lines, promoting focus
on the high-end product segment with lots of added value, especially in urban areas,
developing superior products, experiencing for consumers, and continuing to strengthen its
leading position in the dairy market.
4. The business activities of the organization
Definition: Business activities include any activity for some profit purposes. This is a
general term that encompasses all the economic activities carried out by a company during
business. Business activities, including operating, investing, and financial activities, are
ongoing and focused on creating value for shareholders.
 4.1. International production facilities
To meet domestic consumption and export
consumers’ needs, Vinamilk’s raw material
area development projects are still being
implemented on schedule. Dairy cows
imported from the US to Vinamilk’s new
farm in Quang Ngai.
In addition, in 2021, Vinamilk focused on
investing in large projects to expand the
scale, specifically, the high-tech dairy farm
project combined with eco-tourism in Moc
Chau, Son La… to Lao-Jargo, a dairy farm in
Laos. Milk is exported to the Chinese market,
and fresh milk containing bird’s nests is
exported to the market of Singapore.
Vinamilk has established manufacturing
plants in other countries. For example, the
company has production facility in
Cambodia allows it to cater to the local
market and expand its presence in the region.
Vinamilk’s International production
facilities help optimize the supply chain,
reduce transportation costs, and meet
different market demands.
4.2. Branding and Marketing Strategies
Vinamilk employs various branding and marketing strategies to promote its products and
connect with consumers.
 - Engaging in advertising campaigns.
On the first day of its appearance, Vinamilk’s new
brand identity received many comments from
consumers and experts. The majority of
consumers’ reviews say that a new identity is too
simple and boring, especially not inheriting
anything from the previous, long-standing identity.
According to some assessments from over 100
people, this can pose a risk to the brand, causing
consumers to not be able to adapt to the brand’s
completely different identity image than before.
However, things quickly changed when on the evening of July 9th, Vinamilk created a new
trend for social networks, consumers can create their designs and receive many reactions.
Immediately after that, social networks in Vietnam were covered with blue and white
colors and Vinamilk’s font.

- The company sponsors sports events.

Vinamilk has pledged to support the teams for
three years starting from 2019. Speaking at the
event, the Vietnam Football Federation
President Lê Khánh Hải said nutrition was one
of the most important elements that strongly
contributed to the success of sports including
football. In recent times, Vietnamese players’
physique has improved a lot thanks to nutrition.
As one of the leading companies in the field of
nutrition, Vinamilk is aiming to push Vietnam
on the regional and international football maps.
Mai Kiều Liên, general director of Vinamilk, said the company hoped to help players
improve their physique and continue writing new chapters in national footballing history.
- Collaborating with celebrities and influencers to raise brand awareness.
Vinamilk invests and creates trendy videos recording the prevailing moments of public
culture and has the presence of famous creators on YouTube such as Huỳnh Lập, Thu
Trang… The music video features singer Trúc Nhân – judge of the show “Super Talent
Kids” loved by millions of Vietnamese children. With extremely catchy vocals and music,
and super impressive dance moves, Trúc Nhân and his team of SuSu guards took the young
audience on a journey to explore an exciting multiverse.

Vinamilk’s marketing efforts aim to position its products as healthy, high-quality, and
trusted choices for consumers.
4.3. E-commerce and digital initiatives
Vinamilk has embraced e-commerce and digital technologies to strengthen its sales and
distribution channels. The company operates its e-commerce platform, allowing customers
to purchase Vianmilk products online. Vinamilk also utilizes digital marketing techniques,
social media platforms, and mobile applications to engage with consumers and provide
them with convenient access to its products.
Vinamilk officially launched its e-commerce website. This is the first Vietnamese
enterprise in the fast-moving consumer goods industry to develop an e-commerce business
to meet the shopping demands of customers quickly and more conveniently. When buying
on Vinamilk eShop, along with promotions applicable at showrooms, customers will also
be offered special deals for online purchases only.

Vinamilk has invested in and created extremely interesting videos. The goal of Vinamilk’s
digital marketing is to retain viewers. Vinamilk has created video series such as the “Clean
Farm” series and a video series of songs for children. After being posted on YouTube, these
series have been well received and interested by everyone, helping Vinamilk’s name
become a topic that is spread and discussed everywhere.
The highlight that drew the most attention from Vinamilk in this PR campaign was the
“Vươn cao Việt Nam” TVC launched on July 31st. It must be said that Vinamilk was very
clever in handling both the audio and visual aspects of the entire TVC. The lyrics of the
song in the music video do not talk much about the product or brand. Instead, it focuses
excellently on the message of “Vươn cao Việt Nam”. It fully exploits the image of the
country, people, and dreams of the Vietnamese people to rise high and far.
4.4. Product Diversification
Vinamilk continuously diversifies its product portfolio to
cater to evolving consumer preferences and capture new
market segments. The company introduces product
variations such as low-fat or sugar-free options to meet
the needs of health-conscious consumers. Vinamilk also
expands into non-diary products, including beverages and
functional foods, to broaden its offerings and tap into new
market opportunities.
Vinamilk emphasizes the nutritional value of its dairy products and actively engages in
nutritional research. The company collaborates with Nutritionists, scientists, and research
institutions to study the health benefits of dairy consumption and develop products that
meet specific nutritional needs. Vinamilk also purifies its products with essential vitamins
and minerals to enhance their nutritional content.
4.5. Food safety and quality assurance
Vinamilk adheres to rigorous food safety and quality assurance standards to ensure the
safety and integrity of its products. The company implements strict quality control
measures, including regular testing and monitoring of raw materials, production processes,
and finished products. The company has obtained certifications such as ISO 22000 and
ISO 9001. Vinamilk’s commitment to quality and compliance with international standards
enhances its credibility and enables it to compete in global markets.
4.6. Research partnerships
Vinamilk collaborates with various research
institutions, universities, and scientific
organizations to foster innovation and
knowledge exchange in the dairy industry.
These partnerships help conduct studies,
explore new production methods, and develop
new dairy-based products that align with
consumer trends and preferences.
4.7. Future Growth Strategies
Vinamilk is focused on long-term growth strategies to expand its market share and
strengthen its position in the global dairy industry. The company aims to leverage its strong
brand reputation, distribution network, and product innovation capabilities to enter new
markets and drive international growth. Vinamilk also explores potential mergers and
acquisitions to enhance its product portfolio and gain access to new technologies.