STRATEGIC

MANAGEMENT
Proposal Report
Group 1

VINDRINK IMPORT EXPORT TRADING

JOINT STOCK COMPANY
 ACKNOWLEDGEMENT

The final outcome of this proposal report required a lot of guidance and assistance
from many people and we extremely fortunate to have got this all along the
completion of our proposal. Whatever we have done is only due to such instruction
and support and we would not forget to thank them. We respect and thank lecturer
Steve Pham for giving us an opportunity to do this proposal work and providing us
all support and guidance which made us complete the proposal report on time.

This proposal cannot be completed without the effort and co-operation from our
group members. Group members: Sơn, Thịnh, Trung, Minh, Dương, Linh. In
addition, we would like to thank VID Company which provides us valuable
information as the guidance of our project. Last but not least, we would like to
express our gratitude to our lovely friends for support and willingness to spend some
time with us.

Hanoi, 02 November, 2018

I. INTRODUCTION TO VINDRINK

1. About Vindrink

VID - VINDRINK IMPORT EXPORT TRADING JOINT STOCK COMPANY

Vindrink was established in 2017, with headquarter in Hanoi. They mainly

distribute the leading FMCG products from Thailand, Australia... in Vietnam. With
a dedicated logistics network, their professional distribution team is committed to
providing the highest quality products at the best prices to you. Distributing the
world famous products to the consumers is their passion. The desire for Vietnamese
people to always use healthy products is their goal.

Until the end of 2018, Vindrink is selling Red Bull glass bottle, which is a well-
known energy drink from Thailand. With the net content is 150ml, familiar taste,
Red Bull Krating Daeng brings consumers Vitamin C, A, B6, B12 which play an
essential role in improving consumers’ health.

“We always try to produce and provide good quality products in accordance with
safety laws, meet the needs of consumers and improve the quality of life of
employees through the continuous development of the quality system.”

2. Vision and Mission

Vision

Sales and distribution on food and beverage to meet the need of customers, with
social and environment responsibility.

Mission

To make people see the real value of life, in both economic values and spiritual
values. Customer’s success is Vindrink’s success.
3. Proposed Vision and Mission Statement

Vision

To become one of the most famous Vietnamese company providing fast moving
consumers goods with continue sustainable and quality growth.

Mission

We bring the customers the best quality products with competitive prices; make a
difference and create real value of life through these products.
II. INPUT STAGE

The IFE Matrix

WEIGHT
Key Internal Factors WEIGHT RATING
SCORE
Strengths
1. Exclusive distribution Red Bull glass 0.07 3 0.21
bottle and Play candy from Thailand in
Vietnam.
2. Products have high quality and 0.08 4 0.32
reasonable price.
3. Good employee management system. 0.05 2 0.1
4. The import system ensures quality 0.06 2 0.12
requirements.
5. The quality of products meets global 0.07 3 0.21
standards (FDA, ISO…)
6. Catch up on trend quickly. 0.05 2 0.1
7. Products: Nice packaging, convenient 0.05 3 0.15
to carry, good preservation.
8. The taste and flavour match to the 0.06 3 0.18
majority of Vietnamese consumers.
Weaknesses
1. Late establishment. 0.04 2 0.08
2. The transport capacity is small. 0.06 2 0.12
3. International shipping takes 4 weeks 0.07 4 0.28
and shipping cost accounts for 6% of
revenue.
4. Main business lines are few. 0.05 2 0.1
5. Marketing strategy is not really 0.07 3 0.21
effective.
6. Large workload but lack of human 0.06 2 0.12
resources.
7. Taste of the products is not too unique, 0.08 3 0.24
distinct.
8. Price of Red Bull is unchanged but less 0.08 4 0.32
net volume.
TOTAL 1 2.86
The EFE Matrix

WEIGHTED
Key External Factors WEIGHT RATINGS SCORE
Opportunities
1. Unique products from Thailand. 0.06 2 0.12
2. Young population age structure. 0.04 3 0.12
3. Life style of consumers is 0.05 3 0.15
changing.
4. Higher living standard. 0.06 2 0.12
5. Asean trade in goods agreement 0.06 3 0.18
(tax-free import)
6. Large and potential market. 0.07 3 0.21
7. Red Bull glass bottle will make the 0.07 4 0.28
difference while there is a variety
of fake cans in the market.
8. Total revenue is expected to be 15 0.05 3 0.15
billion in November, 40 billion at
the end of 2018.
9. FMCG market is projected to grow 0.05 2 0.1
5% in 2018.
10. Cooperate with large supermarket 0.08 4 0.32
establishments such as Vinmart,
Circle K, …
Threats
1. Higher revenue. 0.04 3 0.12
2. Vietnamese people are familiar to 0.07 2 0.14
Red Bull can.
3. Increase in the number of new 0.05 2 0.1
competitors and existing
competitors such as Pepsico, Coca
cola, Tân Hiệp Phát, Vinacafe,
Doublemint.
4. Diverse drink flavours from 0.04 3 0.12
competitors.
5. Changes in consumer tastes. 0.07 4 0.28
6. Consumers also become busier and 0.06 3 0.18
less likely go to shop for FMCG
goods, this will lead to fewer
opportunities to approach the
buyers physically.
 7. Access to customers is becoming 0.05 3 0.15
increasingly difficult in FMCG
industry especially the costs are
rising, such as advertisement,
market research and promotion
8. Inflation rate increased over the 0.03 3 0.09
period which leads to a lower
value of VND.
TOTAL 1 2.93

Based on calculations above, it has been concluded that the company Total
Weighted Score of IFE and EFE Matrix are 2.86 and 2.93 respectively, which show
that the company is quite good in utilizing its strengths and weaknesses,
opportunities and threats around it.
III. MATCHING STAGE
SWOT Analysis
Opportunities
1. Unique products from
Thailand.
2. Young population age
structure.
3. Change in life style
4. Higher living standard
5. Tax-free import.
6. Large and potential
market.
7. Red bull glass bottle
will make the difference
while there is a variety of
fake cans in the market.
8. Total revenue is
expected to be 15 billion
SWOT in November, 40 billion at
the end of 2018.
9. FMCG market is
projected to grow 5%.
10. Cooperate with large
supermarket
establishments such as
Vinmart, Circle K, …
Threats
1. Higher revenue.
2. Vietnamese people are
familiar to Red bull can.
3. Increase in the number
of new competitors and
existing competitors such
as Pepsico, Coca-Cola,
Tân Hiệp Phát, Vinacafe,
Doublemint.
4. Diverse drink flavors
from competitors.
5. Changes in consumer
tastes.
6. Consumers also become
busier and less likely go to
shop for FMCG goods,
this will lead to fewer and
fewer opportunities to
approach the buyers
physically.
7. Access to customers is
becoming increasingly
difficult in FMCG
industry especially the
costs are rising, such as
advertisement, market
research and promotion.
8. Inflation rate increased
over the period which
leads to a lower value of
VND.
Strengths
1. Exclusive distribution
Red bull glass bottles and
Play candy from Thailand
in Vietnam.
2. Products have high
quality and reasonable
price.
3. Good employee
management system.
4. The import system
ensures quality
requirements.
5. The quality of products
meets global standards
(FDA, ISO…)
6. Catch up on trend
quickly.
7. Products: Nice
packaging, convenient to
carry, good preservation.
8. The taste and flavor
match to the majority of
Vietnamese consumers.
Weaknesses
1. Late establishment.
2. The transport capacity
is small.
3. International shipping
takes 4 weeks and
shipping cost accounts for
6% of revenue.
4. Main business lines are
few.
5. Marketing strategy is
not effective.
6. Large workload but
lack of human resources.
7. Taste of the products is
not too unique, distinct.
8. Price of Red bull is
(S2, S7, O10) (S1, T2)
Display products on the Raise people’s awareness
right position on that fake product is
supermarket shelves. existing on the market
(S4, S5, O5, O9) which is not good for
Expand new product line health.
such as healthy drink, (S7, S8, T6, T7)
cafe, cake for consumers Approach customers
with high quality and through promotion on the
affordable. Internet.
(S6, O10)
Monthly promotion at
each supermarket system,
giving stickers to
approach the customers.
(S3, O2)
Create an ideal working
environment, recruitment,
suitable human resource
arrangement and
encourage workers.
(S6, S7, O3)
Create core value is
convenient because people
tend to be busier,
overloaded.
(W5, W8, O1, O7) (W4, W7, T3, T5)
Explain why this product Bring customers different
is different and bring flavor choices to satisfy
benefits to customers customer needs and
(taste, quality, vitamin, compete with existing
etc). products in the market.
(W6, O8)
Spend more money on
improving labor’s life in
the future.
(W5, O2)
Concentrate on marketing
strategy because
youngsters are future
consumers.
(W5, O4, O9)
Market penetration in
unchanged but less net small cities in order to
volume. increase loyalty to beat the
local manufacturers.

BCG Matrix Analysis

Strategic Revenue % Biggest SBU’s Relative Industry

Business (Billion Corporate Competitor’s Market Market Growth
Units VND) Revenue Market Share Share Rate
Share
Red Bull
glass 26.8 67% 40% 15% 0.37 7%
bottle

Candy 13.2 33% 35% 5% 0.14 10%

Vindrink said that total revenue is expected to be VND 40 billion at the end of 2018.

BCG Matrix

By making the analysis of BCG Matrix, we come to know Red Bull glass bottle and
Play Candy are Question Mark product of Vindrink because they have captured low
market share and making growth by utilization of resources and making strategies
according to the situation. Furthermore, Red Bull and Play Candy can make a
growth because there is a potential in the market and more growth and market share
can be captured by making further strategies such as market penetration.

IE Matrix

According to the graph studied above, Vindrink is lying in the 5th cell which means
they are using hold and maintain strategy. They should increase these numbers and
use grow and build strategy in order to achieve the maximum market share and
growth. In this situation, Vindrink can use certain strategies such as market
penetration, market development and product development.
IV. CORPORATE STRATEGY

After conducting the research, we suggest that Vindrink should focus on penetrating
into the market and diversified product line in order to gain market share as well as
profit. For this purpose, they can use:

1. Intensive Strategy

Market penetration

The FMCG market is currently experiencing strong growth, which is projected to

increase by 5% in 2018, especially in small cities. Vietnam's population structured
by age is quite young, the quality of life is improving so the demand for fast moving
consumer goods is increasing. As of April 2018, growth in beverage and packaged
food in big cities was 5.4% and 0.2%, while in small cities 7.2% and 4.5%
respectively. Therefore, it is necessary to exploit the existing market. Vindrink
should intensify their marketing and PR activities to further stimulate demand and
increase the number of buyers.

Market development

Small cities have a lot of potentials but have not been invested. However, in this
market, the living standard of people is not high so the ability to pay for products is
low. Therefore, promotion should be offered to increase sales, leading to the
increase in revenue.

Product development

Today, consumers can choose to drink a supplemental ion to bring a sense of well-
being, boosting the body's energy without needing any caffeine content such as
tonic. Beverage industry in Vietnam as of April 2018 has a growth rate of 5.4%
while Pocari Sweat ion replenishment has not really developed in Vietnam.
Therefore, Vindrink should import Pocari Sweat - the favorite and widely used
product in Asia, the leading product in Japan.
In addition, Vindrink should consider importing dairy products (eg, walnut and
almond milk from 137 Degrees - Thai origin) because nowadays not only older
people concerned about the intake of healthy beverages, young people due to the
demand for exercise have also considered carefully about their diet, including milk
from grains, skimmed milk, barley milk, etc. Convenience stores can only provide
quite a few of these items. To meet this demand, which must be the large
supermarket chain can be full of these foods but have not yet popular.

2. Cooperative Strategy

Collaboration

Collaborate with sports companies to sell energy drink products for athletes; with
gaming center to provide gamers energy drink.

Joint Venture

After intensive strategy, focusing on increasing profit, Vindrink should joint venture
with other corporation to produce instant rice, which is not really popular in
Vietnam.
V. CONCLUSION

VID Company is a newcomer in the market with Red Bull glass bottle as its first
product, which is a famous energy drink in the world. Vindrink could do a better job
with the marketing technique of the company in order to meet the ultimate goal of
every company, to maximize its profits. In addition, it can expand its products to
meet the demands of more consumers, especially in the untapped market where
tastes vary. The target marketing could work on satisfying more age groups and
people that are in less developed areas. Every company always has room for
improvement. Vindrink will be prosperous as long as it continues to put its
customers at the top of its priority list.
 GROUP CONTRIBUTION SHEET

PLEASE COMPLETE AND ATTACH TO THE GROUP REPORT

MODULE: Strategic Management 2018 GROUP: 1

(E.g. 100 means that the student will receive 100% of the Final
Grade, 50 means the student will receive 50% of the Final Grade.)

Name & Student No. Contribution (%)

Phạm Xuân Sơn 100
Nguyễn Đức Thịnh 100
Nguyễn Bảo Ngọc Trung 100
Hoàng Ngọc Minh 100 All group
members
Nguyễn Thị Thùy Dương 100 contributed
equally
Nguyễn Thùy Linh 100 (Please Tick)

DATE: 06/11/2018

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MODULE: Strategic Management 2018 GROUP: 1

Group Members Signatures (Should correspond to candidate numbers given above):