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Vinamilk Businesss structure Essay

jor factor for the company. They support Vinamilk to find customer to promote, sell, and distribute the prosducts to the final buyers. Vinamilk can obtain a competitive advantage by using distribution channels. In fact, Vinamilk has covered 178,000 retailers and 240 wholesalers nationalwide. Vinamilk received respond to improve quality through sastifaction level of retailers surveys quarterly process.

The Customers of a firm is an important issue of Micro environment because Customers are the key to sales. Vinamilk managers should track customer needs and try to predict how these will develop so that they can satisfy these demand effectively now and in the future. Also, they should try to develop relationships with customers to ensure customers will come back.

http://www.vinamilk.com.vn/?vnm=market&id=28 Public is the final aspect of microenvironment. Public can assist or against the company’s effect in order to serve the market. It impacts on an organization’s ability to achieve business’s objectives. Vinamilk has held Nurturing Young Vietnamese talent, For Higher Vietnam and many other programs. Among them, “One Million Glasses Of Milk For Vietnamese Poor Children” which was organized thanks to cooperation with Children Support Fund is one of the remarkable activies. This program not only provides milk for poor children but also intensifies awareness of consumers of ensuring health and sharing responsibility with the community.

http://vnexpress.net/gl/kinh-doanh/doanh-nghiep-viet/2008/07/3ba043ce/ Inconclusion, When dealing with the marketing, it is important for a company to become proactive. It is obvious that Vinamilk can not always control Micro Environment as well as Macro Environment. However, it should endeavour to manage them together efficiently. It is important to place equal emphasis on both the macro and micro environment and to react accordingly to their changing. Table 2: Swot Analysis

SWOT ANALYSIS

Internal

Strengths

Weaknesses

– Long history (established in 1976) -The most powerful brand name and the Leading Vietnamese diary company with 39% domestic market share. (1)

-Continously advertise to improve Vinamilk’s image

– Strong domestic distribution

-Good relationship with suppliers to ensure high quality milk

– Diversity of products. (more than 200 kinds of product) (2) -> satisfy various demands. – Competitive price

-International standard in equipment and technology.

-Wide distribution network with 178,000 retailers and 240 wholesalers. Moreover, Vinamilk export abroad such as American, Canada, France….. (3)

-Vinamilk is the biggest milk purchaser, so it can bargain with farmers. -Vinamilk staff have ability to research and orient the market.

– Vinamilk can not entirely active in raw material. It has to import more than 50% material -> influences turn over of Vinamilk due to fluctuation in exchange rate (4)

-Although Vinamilk has strong brand name and good products, its marketing is weak and is not equivalent its advantage. For example, Vinamilk has 70% – 90% fresh milk while competitors have 10%, but Vinamilk do not have strong message to affirm its strength to consumers. (5)

-Marketing mainly in Southern of Vietnam

-Vinamilk primary focuses on domestic market (80%). Abroad market is low (20%) (6)

External

Opportunities

Threats

– Abundant labour resource

– Stable sercurity and politics

-Vietnam joints WTO will offer chance for Vinamilk to expand the market. Also, it is a good chance for Vianmilk to enquire experience from the others.

-After Vietnam joints WTO, milk imported tax lessens 2% contribute to decrease cost. (7)

– Stable raw material supply now and in the future will decrease quantity of import.

-Improvement in living standard helps citizen care of about their health and understand benefit of diary products

-Vietnam joins WTO and import tax reduce -> more foreign companies penetrate into Vietnam -> Vinamilk faces with many international brand name such as Abbott, Mead Johnshon, Friso….

– Consumers tend to use imports

-Vinamilk exports product to Thailand, Irag, Asian, Europe. The demand of these countries depends on their stability of economy and politics -> if there is any fluctuation in economy and politics (corruption, inflation, economic crisis…), Vinamilk’s turnover will be affected. (1), (3) http://www.vinamilk.com.vn/?vnm=market&id=18

(2)http://www.vietnambranding.com/danh-ba/danh-ba-thuong-hieu/110/Vinamilk (4) http://www.baomoi.com/Vinamilk-nam-2011-muc-tieu-doanh-so-dat-1-ty-USD/50/5472918.epi (5) http://dddn.com.vn/15588cat70/vinamilk-vuot-kho.htm

(6)http://tintuc.xalo.vn/00885566846/Phan_tich_co_phieu_VNM_cua_Vinamilk. html ?id=560dcc&o=228 (7) http://www.anninhthudo.vn/Utilities/PrintView.aspx?DistributionID=437978 Table 3: Five Forces Analysis

FIVE FORCES ANALYSIS

New entrants

Vietnamese milk market is still young and great potential. Dairy industry is forecast to grow at an average of 15% / year for 5 years)(1). With growth rates and fat margins, Vietnamese dairy market become an attractive market -> attract many new entrants. This competition will certainly be a great threat of Vinamilk. Among these new entrants, the biggest competitors are Abbott, Mead Johnson, or TH Milk – company is invested with more than $ 100 million from the Israeli government to develop the dairy herd in Vietnam.


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