Vinamilk's

internal
analysis
GROUP 1

Nguyễn Lê An - 11210232
Nguyễn Đoàn Huy Hoàng - 11219060
Trịnh Thị Thanh Thúy - 11215630
Hoàng Hồng Minh - 11219094
Table of contents
1 Key capabilities

2 Key resources

3 Value chain and value created

4 Core compentency

5 Competitive advantages

6 Strengths and weaknesses

1
KEY CAPABILITIES
Marketing and branding capabilities
Succeeds in building its brand-awareness with marketing
campaigns and advertisements.
Vinamilk 40 nam - Vuon cao Viet Nam.
Sua tuoi Vinamilk Organic.
→ Successfully conveyed the message that promise to bring
nutrition to the Vietnamese families thanks to our products.
Also improves its brand recognition by exclusively focusing on
environmental problems and social responsibility:
Quy 1 trieu cay xanh cho Vietnam (2012) → planted nearly 1
million of trees.
Trieu buoc di, day lui Covid (2020) → gave away masks, hand
sanitizers and milk to more than 6000 underprivileged
children.
 Distribution capabilities
Three main
distribution channels

The supermarket Schools, hotels, Dealer stores

system restaurants,...

Co.op Mart 220,000 stores

Mega Mart all over
Vinmart Vietnam
...

These channels and distributors nationwide have

brought Vinamilk’s products to every corner of
Vietnam with the same quality.
 Distribution capabilities
Due to the development of e-commerce, Vinamilk also
sells its products through online networks such as Shopee,
Lazada, Vinamilk website.
Vinamilk also has overseas subsidiaries and associates:
Driftwood Dairy Holding Corporation (USA).
Angkor Dairy Products Co., Ltd (Cambodia).
Vinamilk Europe Spóstka Z Ograniczona
Odpowiedzialnoscia (Poland).
Lao-Jagro Development Xiengkhouang Co., Ltd (Laos).
Mikara Holdings Limited (New Zealand).
Del Monte Vinamilk Dairy Philippines Inc.
(Philippines).

→ With great distribution channels, you CAN'T find any

supermarkets or grocery stores in Vietnam that don’t have
Vinamilk products.
2
KEY RESOURCES
 Physical Resource:
Suppliers
VNM's supply chain includes both domestic and foreign parties.

Most of VNM cows were imported from Australia and New Zealand.

Apart from self-constructed dairy farms, Vinamilk gets its raw materials
from domestic suppliers.

Vinamilk has access to 50% of total domestic raw milk supply, claiming
vital control over raw milk prices.

These suppliers provide the company with high-quality, price-competitive

raw materials .
Reputational resource
According to the annual report
of the "Food and beverage"
industry of Brand Finance 2022,
the Vinamilk brand is valued at
$2.8 billion

Vinamilk is also present in major

food rankings in general such as
Top 30 most valuable food
brands (24th place), Top 10
strongest food brands (8th
place).
 Value chain
Primary Activities
High quality products such
Nationwide Thoughful as Liquid milk, Powder milk,
Huge investments
Inbound logistic: distribution system Customer care Yogurt, Condensed milk,
in R&D department Closed production
Raw fresh milk form Releasing
Widespread mobile Has a website that Beverages and ice cream.
procedures sales
Vinamilk's own gives
numerous new (ISO_2001 standard) Many attractive Product value is
health advice for
farms products promotions acknowledged by
client
Imported milk everyone,
powder VINAMILK becomes more
famous domestically and
internationally

Good supply
Modern Stable Information management Abundant
system that reduces the domestic human
infrastructure
always guaranteed preservation cost resources
that is well High quality
Customer High quality
suited for products that engineers
update information
production fast and efficiently
meet customers' Smart manager
demand

Support Activities
4
CORE
COMPETENCIES
 Strong
brand
recognition
& reputation
 High market share

Vinamilk takes the lead in both

attributes consisting of high
company shares and brand
recognition with 40% (2020) of
total market shares.
Low brand awareness High brand awareness Meadow Fresh and Love In Farm
are new brands penetrating into
Newcomer in
the Vietnamese market.
the market
TH True Milk, even though it
joined the dairy industry quite
late (2010), but tried to keep up
with the fast pace.

Low market share

 Innovation
in
production
and
pakaging
to different market
segments
 02

Liquid milk
Icluding 100% fresh milk imported from
Europe, ultra-high temperature milk,
pasteurized Milk, organic milk, roasted rice
milk, etc. Each type of milk has its own
distinctive characteristics as well as its own
taste suitable to the taste of consumers.
 02

Powdered milk
Diverse and for all ages, from children to
adults or the elderly, and also for pregnant
and lactating mothers, each age group is a
separate food with different uses and
nutrients.
 02

Yogurt
Vinamilk yogurt helps to support the digestive
system, eat deliciously, and nourish
the skin. Vinamilk yogurt with many different
flavors such as aloe, orange, strawberry, etc.

Vinamilk understands consumers' demand, so

it has made products with different qualities,
from sugar-sweetened for ordinary people,
sweet to low-sugar and sugar-free for dieters,
weight loss.
 02

Sweetened
condensed milk
Vinamilk condensed milk with two major
brands, Ong Tho and Phuong Nam Star, each has
its own qualities and flavors, but each has the
favor of consumers about the value of these two
brands of condensed milk.
Seed milk
Vinamilk has introduced to the market
including walnut soybean milk, almonds and
red beans. Vinamilk nut milk products are self-
contained according to European standard
technology with selected 100% non-GMO raw
materials. Products are invested in research
and development to both "standardize" nuts,
and meet the quality and nutritional
requirements of consumers.
5
COMPETITIVE
ADVANTAGE
 Superior
technology
&
production
lines
Meet consumer
needs
Vinamilk is applying
international standard
production equipment and
technology, modern packaging
technology at all factories

Imports technology from

European countries such as
Germany, Italy and Switzerland
to apply to production lines
Competitors tend to use
technology and equipment within
the country → non-international,
since it is costly to imitate VNM

The only company in Vietnam using spray

drying technology in milk powder production
lines manufactured by Niro of Denmark


Constant
innovation
based on consumer
needs
45 years of establishment → A perceptive and experienced market research team
Identify consumer trends and tastes
→ develop new products based
on consumer tastes → good impression & feedback → success
Competitors neither have a market research team as visionary and
experienced as Vinamilk does nor have one at all
pay for an outsider market research team which is costly and
unreliable
2019
launched nearly 20 new products
captured advanced and high-class nutritional trends


Good
Reputation
& Brand
equity
 A strong and well known brand

advantage in bringing new contact and work with

products to the market, many reputable suppliers
customers and consumers.

sustainable strategic partnership with suppliers

stable and reliable source of raw

ability to bargain
materials at the most competitive
with farmers
prices in the market
6 Strengths and Weaknesses in the market

Strengths
Has a nationwide distribution channel with 250
distributors and 20,000 outlets over 63 provinces and
taken ~75% of the milk industry based in Vietnam.
Diversity in options for the consumer causes an
increase in sales of Vinamilk.
Vinamilk is a long-standing name in the industry
with a familiar trademark.
Uses quality equipment and technology on par with
the global big-name industries (European techniques
for manufacturing and Niro Denmark technology for
eject desiccation).
Has a large number of subsidiary companies that
promote several other products.
6 Strengths and Weaknesses in the market
Weaknesses
The raw materials required for manufacturing
several products are imported from outside of
Vietnam. Nearly 65% of raw materials are imported
giving rise to a large capital use.
Rumors have always surrounded Vinamilk regarding
the various products but none of them has been
proven to date. Competitors have always targeted
Vinamilk and spread unfounded rumors among the
people and caused panic.