MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS & FINANCE HO CHI MINH CITY



FINAL REPORT: VINAMILK

SUBJECT: SALES MANAGEMENT

Student’s Name: Hoang Kieu Vy - 205017993

Class: A03E

Lecturer: Ph.D Nguyen Tien Huy

TP. HỒ CHÍ MINH – 2023

THANKS

First of all, I would like to thank lecturer Nguyen Tien Huy for your dedication to
teaching, imparting and reinforcing the knowledge of Sales Management in recent
days. While studying with you, I have gained many useful experiences and know how
to make a sales process. These are essential to me for future work development.
Despite my best efforts, I still have some shortcomings in the report. I look forward to
receiving comments and suggestions from you so that I can learn from experience for
future reports.

Sincerely thanks.
 Table of Contents
I. ABOUT VINAMILK................................................................................................................5

1. General Information...........................................................................................5

2. Corporate Model of Vinamilk...........................................................................6

3. Develop process of Vinamilk............................................................................7

4. Business philosophy, Core values and Management policy..............................8

5. Product & Service..............................................................................................9

6. Feedback..........................................................................................................11

II. SALES ORGANIZATION.....................................................................................................13

1. Organization chart of Vinamilk.......................................................................14

2. Feedback..........................................................................................................15

III. SELLING PROCESS...........................................................................................................17

1. Prospecting.......................................................................................................17

2. Preparation.......................................................................................................17

3. Approach..........................................................................................................18

4. Presentation......................................................................................................19

5. Handling object................................................................................................20

6. Closing.............................................................................................................20

7. Follow up.........................................................................................................21

8. Feedback..........................................................................................................21

IV. SALES TARGET.................................................................................................................22

1. General Targets................................................................................................22

2. Feedback..........................................................................................................22

V. SALES BUDGET...................................................................................................................23

1. Sales Budget of Vinamilk in 2022...................................................................23

2. Feedback..........................................................................................................23
VI. SALES STAFF RECRUITMENT......................................................................25

1. Personal recruiting...........................................................................................25

2. Description about sale personnel.....................................................................25

3. Requirement about PNJ’s sale personnel.........................................................26

4. Feedback..........................................................................................................26

VII. SALES STAFF TRAINING...............................................................................28

1. Overview of Vinamilk’s training.....................................................................28

2. Training process...............................................................................................28

3. Evaluation of training effectiveness................................................................29

4. Feedback..........................................................................................................29

VIII. MOTIVATION................................................................................................31

1. Total salary......................................................................................................31

2. Bonus...............................................................................................................31

3. Other welfare regimes......................................................................................31

4. Team building..................................................................................................31

5. Talent Cultivation............................................................................................32

6. Feedback..........................................................................................................32

IX. EVALUATION...................................................................................................33

1. Vinamilk's sales staff evaluation criteria.........................................................33

2. Behavior-based assessment method.................................................................33

3. Classification...................................................................................................36

4. Feedback..........................................................................................................36

Bibliography..................................................................................................................38
I. ABOUT VINAMILK
1. General Information

 Name of Company: Vietnam Dairy Products Joint Stock Company

 Style of Business: Joint Stock Company
 Stock Code: VNMA
 Charter capital: 12.006.621.930,000 VND
 Head office:10 Tan Trao, Tan Phu Ward, District 7, Ho Chi Minh City
 Phone: (84-8) 54 155 555
 Fax: (84-8) 54 161 223
 Email: vinamilk@vinamilk.com.vn
 Website: https://www.vinamilk.com.vn
http://www.vuoncaovietnam.com
https://www.youtube.com/user/Vinamilk
 Main business field:
o Producing and trading in soft drinks
o Processing and trading milk and dairy products
o Raising dairy cows, producing fresh milk (through a 100% owned
subsidiary)
o Trading in food technology, equipment and spare parts, supplies, chemicals
and raw materials;
o Packaging production and sales
o Printed on the packaging
o Producing, trading in plastic products (except for recycling plastic waste)
 Outstanding achievement:
o National Brand (2012-2020)
o Top 200 Asia’s best over a billion by Forbes Asia (2019)
o The Global CSR awards (2020)
o Top 10 World’s most valuable Dairy brands
o Top 30 of 100 most valuable Food brands Worldwid
2. Corporate Model of Vinamilk

Figure 1: Corporate Model of Vinamilk

3. Develop process of Vinamilk

 Vietnam Dairy Products Company was officially established on August 20,

1976, with the name Southern Milk - Coffee Company. The company belongs
to the General Department of Food Industry in the South.
 In 1982, the Company was transferred to the Ministry of Food Industry and
renamed Milk - Coffee - Confectionery Enterprise I.
 In March 1992, Dairy - Coffee - Confectionery Enterprise I, was officially
renamed Vietnam Dairy Products Company (Vinamilk) - under the Ministry of
Light Industry. The company specializes in the production and processing of
dairy products.
 In 1994, Vietnam Dairy Products Company built one more factory in Hanoi to
develop the market in the North region, and the total number of factories of the
company is 4.
 In 1996, Joint Venture with Quy Nhon Frozen Joint Stock Company to
establish Binh Dinh Dairy Joint Venture Enterprise. This has helped the
company successfully penetrate the Central market in the most favorable way.
 In 2000, Can Tho Dairy Factory was built in Tra Noc Industrial Park to better
meet the needs of consumers in the Mekong Delta. Also during this time, the
Company also built a Logistics Enterprise with the address at 32 Dang Van
Bi, Ho Chi Minh City.
 In November 2003, the company was transformed into Vietnam Dairy Products
Joint Stock Company. Also in 2003, the Company inaugurated more dairy
factories in Binh Dinh and Ho Chi Minh City.
 In 2004, the Company acquired shares of Saigon Dairy Products Joint Stock
Company, increasing its charter capital to VND 1,590 billion.
 In 2005, the Company continued to buy shares of joint venture partners in Binh
Dinh Dairy Joint Stock Company. In June 2005, the company inaugurated a
dairy factory in Nghe An.
 In 2009, the enterprise has developed more than 135,000 distribution agents, 9
factories and many dairy farms in Nghe An and Tuyen Quang.
 In the period 2010 - 2012, the enterprise built a powdered milk factory in Binh
Duong with a total investment capital of 220 million USD. In 2011, Da Nang
 Dairy Factory was put into operation with an investment capital of 30 million
USD.
 In 2016, inaugurated the first dairy factory abroad, Angkor Milk Dairy Factory
in Cambodia.
 In 2017, inaugurated Vinamilk Organic Dalat farm - the first organic dairy farm
in Vietnam.
 After more than 40 years of launching to consumers, so far Vinamilk has built
14 production factories, 2 logistics factories, 3 branches of sales offices, a dairy
factory and office in Cambodia (Angkormilk) and an representative office in
Thailand. In 2018, Vinamilk was one of the Top 200 companies with the best
revenue of over 1 billion USD in Asia Pacific (Best over a billion).

4. Business philosophy, Core values and Management policy

4.1. Vinamilk’s Core Values

“Becoming the leading symbol of trust in Vietnam about nutrition and health
products serving human life”

4.2. Vinamilk’s Vision & Mission

 Vision: To become a world-class icon in the food and beverage industry, where
everyone places their trust in safe and nutritious products.
 Mision: Bringing to the community the most valuable source of nutrition with
all respect, love and responsibility for life.

4.3. Physolophy

Continuously develop production, trade and service activities in the fields of business
activities in order to:
o Maximize benefits and enhance the value of the Company
in harmony with the interests of Shareholders.
o Constantly improving the life, income and working
environment of employees.
o Ensuring the interests of other stakeholders towards
Sustainable and Responsible Development..

4.4. Quality Policy

Always satisfy and be responsible to customers by diversifying products and services,

ensuring quality, food safety and hygiene at competitive prices, respecting business
ethics and complying with laws.

5. Product & Service

5.1. Product

Vinamilk commits to bring customer the nutrition solution with international

standards, meeting the needs of consumers with delicious and nutritious products and
leading favorite brands in market such as: Vinamilk liquid milk, Vinamilk yogurt,
Longevity sweetened condensed milk, Southern Star Sweetened Condensed Creamer,
Dielac powdered milk, Vfresh Fruit Juice, etc.
 5.2. Service

 Producing products according to nutritional needs

One of the important factors in Vinamilk's product strategy is product diversity.

Vinamilk has created a wide product portfolio, meeting the dietary and nutritional
needs of all customer segments. In this way, the company creates more opportunities
for customers to choose products that suit their needs and strengthens customer
relationships.

Vinamilk has developed product strategy very successfully, not only meet the needs
of customers also helping the company earn a lot of profits.

 Update promotion Information

Vinamilk regularly has attractive promotions and incentives for customers, to show
gratitude to loyal customers and to bring Vinamilk's products to every Vietnamese.
Customers will receive information about promotions via gmail and sms

 Nutrition consulting

The aim of meeting the legitimate needs of consumers is to seek the advice of experts
in nutrition, in order to get the most suitable diet, bring health and happiness to the
family, contribute to improving the quality of life. high quality of life. Customers will
have all their questions answered by nutritionists when asking questions on Vinamilk's
website.

6. Feedback
6.1. Advantage

 Strong brand stamp

From 1995 to 2020, Vinamilk was recognized by consumers as one of 10 high-quality

Vietnamese brands. Compared with other milk suppliers, Vinamilk has spent more
than 40 years of construction and development, this milk brand has long had a strong
position in the hearts of Vietnamese customers.

Although Covid-19 caused many difficulties for businesses, for dairy companies this
is a factor that helps improve profit margins. Vinamilk recorded a growth of 3% in
revenue and 8% in profit after the first 9 months of 2020. Currently, Vinamilk has
determined a long-term strategy and orientation on a new business model. The brand
maintains the No. 1 position in the Vietnamese market and aims to become one of the
30 largest dairy companies in the world.

 Products "covering Vietnam"

Vinamilk milk brand has almost spread across all provinces and cities in Vietnam. In
addition, with optimal quality, Vinamilk's products are also exported to foreign
markets. With a wide network, Vinamilk dairy products are always well received by
consumers. As a result, strategies for launching new products and promoting images
are also more effective. Currently, not only present in supermarkets, convenience
stores, markets, etc. Vinamilk's products are also traded online on e-commerce sites.

 Product quality

Vinamilk meets the needs of consumers by continuously launching diverse product

lines. Vinamilk's products have a characteristic delicious taste, meeting nutritional
solutions. In addition, although the product has 5-star quality, Vinamilk's price is
relatively low, suitable for the income of all users.

 Natural milk source, international standard farm

In addition to the concentrated dairy farming model, Vinamilk also expanded the
organic dairy farm model. This is the first Organic dairy farm in Vietnam to be
recognized by Control Union as meeting European Organic standards.

With the strict 3rd principle: "no chemicals, no genetically modified ingredients, no
growth hormones", Vinamilk dairy farm produces a source of natural, delicious fresh
milk. pure.

6.2. Disadvantage

 Materials imported from abroad

Vinamilk's biggest weakness is that most of the raw materials are imported from
abroad. The brand has not been able to be self-sufficient in domestic raw materials.
While consumer demand is increasing, domestic materials only meet 30% of
production needs, the remaining 70% are mainly imported from Europe.

This has had a significant impact on the revenue and profit of the brand. Especially
when the world is affected by the economic crisis, the price of input materials
increases, causing the inflation rate in Vietnam to increase and profits to decrease.

 The demand for powdered milk is not high

Currently, consumers tend to use imported powdered milk higher than domestically
produced powdered milk. In addition, the market appears more and more foreign milk
brands imported from Europe, so Vinamilk's powdered milk market share, which holds
a monopoly position, tends to decline.

6.3. Contribute:

Vinamilk needs to do more research on consumer insight to be able to meet the

requirements that competitors cannot. Besides, marketing activities and family
experiences should also be promoted to better reach consumers.
II. SALES ORGANIZATION

Figure 2: Organization Chart

 1. Organization chart of Vinamilk

General Meeting of Shareholders:

The General Meeting of Shareholders of Vinamilk's organizational structure includes

all shareholders who have voting rights from ordinary shareholders to voting
preference shareholders. The General Assembly is the highest decision-making body
of a joint-stock company.

The General Meeting of Shareholders will have the right to decide on the business plan
and the task of ensuring production based on the development orientation of the
company. In addition, the general meeting of shareholders can also decide to amend or
supplement the charter capital of the company.

Some other powers of the Shareholders' Council are to elect or remove or dismiss
members of the Board of Directors and Supervisory Board or decide to dissolve or
reorganize the company.

Administrative Council:

The Board of Directors is the highest management body in Vinamilk's organizational

structure. This position has full authority on behalf of the enterprise to decide on all
issues related to the company's objectives and interests, except for matters under the
authority of the general meeting of shareholders. Vinamilk's Board of Directors is
elected by the general meeting of shareholders, including a chairman of the board of
directors and 10 general meetings of shareholders.

Since 2015, the highest position of Vinamilk has been held by Ms. Le Thi Bang Tam,
however, in April 2022, Mr. Nguyen Hanh Phuc officially became the new Chairman
of the Board of Directors for the 2022 term. to 2026 in place of Ms. Le Thi Bang Tam.

Director, General Director of the company:

The director or general director of the company in the organizational structure of

Vinamilk is the person who runs the business of the company. This position will be
held by the board of directors responsible for appointing a member of the board or
recruiting new personnel.
 Currently, Vinamilk's General Director is Ms. Mai Thi Kieu Lien. She is considered
the person who helped put the Vinamilk brand on the world map with many
contributions to the company and society.

Her wise strategies and decisions have helped Vinamilk continuously invest, improve,
and bring many quality products to domestic consumers. At the same time, the
company's export and international business also achieved many impressive
achievements.

Control Board:

The Supervisory Board in the organizational structure consists of 4 members elected

by the general meeting of shareholders. The term of the Supervisory Board elected is 5
years. The members will be re-elected and the number of terms is unlimited.

The Supervisory Board has the function and task to check the legitimacy, rationality,
honesty, and level of caution in the process of managing and operating business
activities. Inspection and supervision activities include accounting, statistics and
financial reporting to ensure the legitimate interests of shareholders. In particular, this
unit will operate independently from the board of directors and the board of directors.

2. Feedback

Advantage Disadvantage

-Working departments will receive orders - It is easy to lead to conflicts between

directly from a direct superior leader. functional units when setting goals or

- Makes it easier to examine the upper strategies.

level closely. - Responsibility for achieving the overall

- To maximize he advantages of goals of the organization is often assigned

specialized industry according to the to the top management.

function of each unit. - Lack of coordination between functional

- Retain the strength and prestige of the departments.

major functions. - Highly specialized => managers will

- Simplify the training. have a narrow vision because they are

 - Pay more attention to only in their expertise, not good or not
professional standards and interested in other specialties.
employee behavior - Limited development of the general
- High operational effectiveness for routine management team
daily duties.

Proposal in Vinamilk's sales organizational structure

+ Enhance communication between different levels through various communication

tools and online meetings. This helps frontline staff provide feedback on specific
issues more quickly and helps top-level managers understand local situations more
quickly.
+ Increase training and leadership development for higher-level managers, enabling
them to make quick and effective decisions in problem-solving at the local level.
+ Increase interaction between staff and customers to provide timely feedback and
keep up to date with the latest market trends. This helps Vinamilk respond quickly to
the market and increase sales and revenue.
III. SELLING PROCESS
1. Prospecting

Vinamilk's sales staff and market development staff will search for buyers (through
agents, retailers, supermarkets) in areas with potential for product development, areas
where the company's products have not yet entered the market.

At the same time, throughout this process, the market development staff is also
responsible for finding target customers and buyers in the area who are in need of
accessing the company's products.

Vinamilk's Market Segmentation Method

 Demographics: Vinamilk selects age segments: elderly, adults and children. In

addition, the business also classifies milk for individuals and families.
 Behavioral: The method is based on the health status of customers such as
obese people, malnourished people, normal people, etc.
 Geographic: Market segmentation is divided based on population density and
consumption of products. It can be divided into two main segments, rural and
urban.

2. Preparation

Vinamilk divides target customers into two groups:

Group of individual customers: Consumers who have the need to buy and are
willing to pay to buy milk, especially fathers and mothers with children under
15 years old to help the child's development be better. Therefore, the demand
for milk at this stage is much higher than in other periods. This group of
customers has a relatively diverse product demand and accounts for a high
proportion.
Organizational customer group: Distributors, wholesalers, retailers, shops,
supermarkets... wishing and willing to distribute the Company's products. This
is a group that has requirements for discounts, sales bonuses, orders on
schedule... related to product distribution.

In addition to the two main target customer groups, Vinamilk's other product lines are
also suitable for all ages.
Distribution System:

Vinamilk has 243 distributors, 212,000 retail outlets, present in 1,609 large and
small supermarkets and more than 575 convenience stores nationwide.
Not only that, Vinamilk also cooperates with foreign enterprises to distribute
Vinamilk's products to international markets such as: Middle East, Cambodia,
Maldives, Philippines,. Now, Vinamilk products appearing in over 40 countries.
Besides that, in order to best serve customers, Vinamilk also sells online
through 13 E-Commerce Partners, Vinamilk E-shop giacmosuaviet.com and the
Online shopping app "Giac Mo Sua Viet".

3. Approach

Organizing conferences and seminars on:

 The seminar provided information on products, nutritional values, effects

combined with specialist advice to care for young children.. . .to help mothers
who have used Vinamilk's milk products before to understand. Learn more
about the product, know which types of milk provide appropriate nutrition for
young children, how to help children develop.. .all will be answered in the
seminar, so that customers can rest assured to consider buying and using
products for children.
 Survey to view customers' opinions and needs about product improvement to
be able to offer appropriate plans to attract customers to consume. For
distributors, it is necessary not only to provide information about products but
also to focus on the value they receive when distributing Vinamilk's dairy
products, reinforcing the trust and loyalty of distributors.

Promotion: In order to encourage potential customers to continue buying and using

newly launched dairy products, Vinamilk has launched attractive promotions and
gifts...

PR: Vinamilk has promoted products to consumers through many media: television,
magazines, posters.. .on websites, social networks. Help bring timely and general
information about the product to customers, partly orienting customers to better
understand the product. Vinamilk is the leading dairy processing factory in Vietnam,
prestige and brand image are two important factors for the company's success.
Pandemic subsidy: Understanding the burden and concern of consumers during the
epidemic season, especially in nutrition issues to keep themselves and their families
healthy, Vinamilk has implemented gift-giving programs with subsidized prices across
the country for many months during the pandemic

4. Presentation

After the needs assessment, the sales representative will present Vinamilk's products
and demonstrate how they can meet the customer's needs and preferences. This can
involve providing product samples, explaining the features and benefits of the
products, and answering any questions or concerns the customer may have.

- Organization customer group:

Step 1: Introduce Vinamilk’s product: Provode information and sample product for
distributors,…

Step 2: Give policy

Annual risk management policy: In order to minimize the risk level in the business
process, the company also determines the responsibility for the risks that may occur in
the distribution process of the members clearly. The terms of risk guarantee are clearly
specified in the contract, some risks arising from the Parent Company will be
considered to be resolved and provide reasonable support levels for distributors.

The provisions in the contract clearly state the responsibility of each party with the
goods: When the goods are delivered to the distributor's warehouse, the distributor is
responsible for preserving them according to the specified standards. For products that
are about to expire or have ¼ date left, the distributor will notify the company to recall
and use for purposes such as promotion or destruction.

Give one of the conditions to become an agent of the distributor as well as the
company: To keep the commitment not to sell any other dairy products. To do this,
businesses will also offer incentives to agents so that they become close friends and
loyal to their products. In case of breach of contract, the Company firmly adheres to
the policy of removal.

- Individual customers

Step 1: Provide product samples for customer

Step 2: Provide Catalogs containing information about products and promotion
policies and explaining the features and benefits of the products, answering any
questions or concerns the customer may have.

 Uses of each product line

 Products with high quality, suitable for the condition of Vietnamese people
 Ingredients are imported 100% pure
 Have a food safety certificate

5. Handling object

Answer all customer questions: customers will be answered all questions, if there are
any problems when using the product, customers will quickly receive an early
response from the leadership. Improve the best product quality because customers are
the ultimate goal of the company. Vinamilk affirms that: "If consumers are satisfied,
the company will feel secure".

6. Closing

- Organizations group customers

Offer support incentives to distributors such as support for shipping, sales, higher
commission discounts, and objective risk support. In addition, Vinamilk will help
distributors support small geographical areas of product display cabinets or offer
special discounts for them.

80% guarantee when goods in stock are always full to avoid order stagnation

- Individual customers

Loyalty program: When buying at the "Giac mo sua Viet" store system, based on
accumulated shopping points, the annual loyalty program will bring customers special
gifts on the occasion of birthdays, holidays, Tet holiday with impressive discounts.

Mother & Baby Club :

 A place to receive knowledge and secrets dedicated to the mother's stage.

 Receive email to update knowledge and tips every month
 Mother and baby together participate in competitions, interesting experiences.
 Chance to receive attractive gifts
 7. Follow up

Vinamilk has focused on investing, researching and developing a complete customer

management system (based on operational and analytical CRM tools). The feature of
this system is to automate information management, maintain relationships and
increase understanding with customers, partners, stakeholders and internal
stakeholders in the most accurate and fast way.

Throughout the development period, Vinamilk's customer management system has

always been improved and upgraded every day. As a result, Vinamilk has attracted a
large number of domestic and foreign customers, maintaining a solid friendship
relationship with related partners.

Especially by applying customer management solutions, Vinamilk always keeps up

with market trends and customer-related factors, such as: products, costs, shopping
behavior, preferences, discounts. discount, etc. Minimize useless costs used to attract
customers compared to the old model. This is something that not every company can
meet.

8. Feedback

Advantage Disadvantage

- Vinamilk owns a sales team of sufficient - There are not many attractive strategies
length, breadth and depth to help manage for older customers yet. This may make

route setup, sales tracking, customer care nutrition product line for adult of

and market development. Vinamilk difficult to compete with

- There are many strategies to build customer competitors.

loyalty. - Competition: Facing competition from

- Vinamilk is one of the best companies in PR many other large competitors such as

& communication to attract customers. TH true MILK

- Professional sales and distribution team - Market changes

- Diverse product range

- Strong brand

Proposal
- Improve product quality: TH true MILk can research and develop new products, and
improve the quality of existing products to meet changing markets and customer
preferences
- Developing online sales channels: TH true MILK can focus on developing online sales
channels to reach more customers.
IV. SALES TARGET
1. General Targets

- According to the annual report published, in the period from 2022 to 2026,
Vinamilk plans to expand its market share by 0.5% to 56% and revenue to 5% to
reach VND64,070 billion, higher than the increase of 2.2 % of 2021 although the
business picture is still facing many difficulties, notably that the purchasing power
of consumers is being greatly affected by the inflation situation related to supply
chain crises and global energy cannot cool down soon in the first half of 2022.

Further, Vinamilk expects to reach VND 86,200 billion in total revenue and VND
16,000 billion in pre-tax profit by 2026. Compound growth for the period 2021 - 2026
is 7.2% for revenue and 4.4 billion respectively. % for profit. This target builds on the
expectation that the consumer goods industry will recover quickly from 2022, when
revenue and profit growth in the period 2022-2026 can accelerate to 7.7% and 7.5%
respectively year.

2. Segmentations

GEOGRAPHIC

Region Domestic/International
Density Urban/rural
DEMOGRAPHIC

Age 2 – 45

Gender Males/Females
Income Average, above average, and high earners.

Occupation Students, employees, professionals.

BEHAVIORAL

Benefits sought Supplement nutrients to increase height

Energy drink when hungry, tired, stressed...
Make a quick meal
Buy for their children to use
Personality Easygoing/determined/ambitious
User status Regular users
PSYCHOGRAPHIC

Social class Middle class, and upper class.

Lifestyle Likes to drink fresh milk
Developed in height and intelligence
Want to get calcium from milk

2.1. Advantage

+ Help Vinamilk and stakeholders evaluate the company's performance over the
years and identify factors that need improvement.

+ Can be used to set realistic sales goals for the coming years

+ Provides useful insights into the beverage industry and how it is affected by global
events

+ Helps investors and financial analysts make informed decisions about stocks and a
company's future potential.

2.2. Disadvantage
+ Sales targets are often confidential information and disclosing them could give
competitors an advantage.
+ Sales targets are based on forecasts and estimates and may not always be accurate.
+ External factors such as economic conditions and global events can impact
revenue, making it difficult to accurately predict future revenue.
+ Overemphasis on achieving sales goals can lead to short-term thinking and neglect
of long-term goals such as sustainability and customer satisfaction

2.3. Proposal

+ Brand building: Currently, the Vinamilk brand has a large number of consumers but
there are still many untapped potential markets. To enhance brand recognition and
attract new customers, Vinamilk can carry out media campaigns, advertising and
events to introduce products and build customer trust.

+ Expanding distribution channels: Vinamilk can develop and expand distribution

channels to ensure its products easily reach customers. This could include
strengthening partnerships with retail stores, supermarkets, restaurants, cafes and even
building its own stores.

+ Strengthen customer relationships: With sales goals, it is necessary to build and

maintain a solid relationship with customers. Vinamilk can provide quality products
every day, always listen to feedback from customers and provide good customer
service.

+ Product innovation: The market is constantly changing and consumers are always
looking for new and innovative products. Vinamilk can innovate products by
launching new product lines, meeting current market needs and preferences.

+ Building commitment to origin and quality: With increasing awareness of health and
quality, Vinamilk can strengthen its commitment to milk origin and production
processes, ensuring customers that their products are quality and safe.

+ Create offers and promotions: Provide special promotions, discounts or bundled

product packages to attract customers and motivate purchases.
 V. SALES BUDGET
1. Sales Budget of Vinamilk in 2022

2022 2021
VND VND

Promotion, product display expenses, support 8.717.780.486.455 9.229.057.850.953

and commission expenses for distributors

Advertising and market research expenses 1.197.802.874.822 1.233.350.351.965

Staff costs 742.460.039.515 660.223.065.419

Transportation expenses 883.656.485.446 876.997.613.963

Outside service expenses 679.562.325.002 669.312.658.542

Tools and supplies expenses 132.514.400.886 124.038.885.042

Materials expenses 83.709.353.015 61.298.483.171

Warranty expenses 58.006.146.453 43.387.562.554

Depreciation expenses 52.720.135.277 53.003.930.795

Total 12.548.212.246.871 12.950.670.402.404

Table 1: Selling expenses of Vinamilk in 2022

2. Feedback
2.1. Comment

The economic recession after the pandemic made Vinamilk's revenue not grow as
expected. Therefore, the sales budget in 2022 is also reduced by some amount
compared to 2021. The main part of the cut is in advertising and promotion , these
costs are always the most Vinamilk has to pay for the purpose of reaching customers.
However, during the post-pandemic recovery period, customers are no longer easily
motivated by these activitys, so Vinamilk is also flexible in reducing it to invest in
other items. Surprisingly, sales Staff costs are the expenses that have the most increase
in 2022 compared in 2021 (Increase 12,48%). This proves that Vinamilk is very
caring with their people, not only supporting the employees who are in difficulty, but
also helping Vinamilk not to lose good employees. Due to the epidemic's effects,
which made it difficult to recover costs as normal and made it difficult to distribute
products, costs incurred also increased, which unexpectedly increased the remaining
expenses in the sales budget.

2.2. Advantage

- Allocate and plan resources appropriately

- Helps manage cash flow effectively
- Set future goals
- Evaluate sales performance

2.3. Disadvantage
- Market conditions are unstable
- Lack of flexibility
- Overestimating profits
- Underestimating costs

2.4. Proposal

- Vinamilk needs to reexamine outside services because the price of this service is
rising significantly but the effectiveness that comes along with it is not very high, it
does not raise sales or profits

- Vinamilk wants to support and keep its employees, but staff costs are rising too
much. As a result of the post-pandemic economic effect, sales expenses are rising
without generating revenue or profit for Vinamilk

- Thorough market research to ensure budget accuracy and effectiveness

- Invest in digital marketing

- Training and developing the sales team

VI. SALES STAFF RECRUITMENT
1. Personal recruiting

 -Vinamilk ‘s website :
https://www.vinamilk.com.vn/vi/mobile/tuyen-dung/co- hoi-nghe-nghiep

Vinamilk has ‘‘Career’’ link on their website along with the possible vacant positions.
The prospective candidates are encouraged to apply online. Vinamillk’s website
provides information about the company, its products, and human resource practices.
The vacancy page details the qualifications required for sales jobs, and the
salesperson’s duties, responsibilities, and advancement opportunities. Short write-ups
on those who are and have been successful company salespeople are included.
Effective websites make liberal use of pictures, charts, diagrams, and other
presentations—a few even give the telephone number of a ‘‘hot line’’ where the
prospect can get more information

 Recruitment through intermediaries

Realizing that candidates often search for the job they want more than a specific
company, Vinamilk uses recruitment intermediaries such as VietnamWorks,
Carebuilder, TopCV, ... to reach more candidates. In addition, these intermediaries
also help Vinamilk in terms of propaganda and pushing the top of the search.

2. Recruitment process
1) Develop recruitment criteria
2) Write a job description
3) Find candidate sources
4) Screen candidates
5) Interview
6) Job offer
 3. Description about sale personnel

Sales personnel buy in Vinamilk store Sales staff of Milk Market

Display and arrange goods on shelves; Selling Vinamilk dairy products

Consulting and introducing products to Maintain existing business relationships

customers; and establish relationships with new and

Manage and keep the shelves clean in potential customers.

accordance with regulations and brand Introduce and provide information about
standards; dairy products and services to customers.

Inventory inventory, make daily inventory Find new customers and take care of old
report customers.

Order and receive goods; Answer questions and advise customers

Cashier; about Vinamilk dairy products.

Research and develop sales and distribution

systems from time to time.

Build close relationships with dairy shops

Make revenue reports, work reports for

department heads.
 4. Requirement about PNJ’s sale personnel
Sales personnel buy in Vinamilk store
Priority is given to those with sales experience
(shops, large/mini supermarkets, dairy stores,
...)
Male, Female; Agility, hard work, good
communication;
Graduated from high school or higher;
Basic operations on computers, POS machines
to sales and payment;
5. Feedback
Advantage
- As can be seen, Vinamilk offers candidates
for sales staff work descriptions and specific
requirements. Candidates can use this to
determine whether they are qualified for the
job requirements and the work what they have
to do when applying for this position.
Sales staff of Milk Market
Male Female from 22-30 years old
Preference will be given to candidates with
sales experience in the assigned Milk
market area.
Product knowledge
Communication skill
Problem solving and problem solving skills
Teamwork skill
Disadvantage
- Vinamilk’s recruitment process mostly
uses specific metrics. However, some
other artistic aspects such as brand
loyalty, sensitivity are also a key to the
success of the organization.
- Post jobs in many places, almost on all job - The benefits when doing this job are quite
agency and social media. limited, such as bonus opportunities or
promotion possibilities are not mentioned.
- Sales jobs in Vinamilk's store are not
posted on the website, making it difficult
for applicants to access the job and easily
fooled by job brokers.

Proposal

- Develop detailed recruitment criteria

- Apply recruitment technology and software

- Establish partnerships with universities

- Strengthen employer brand

- Reduce recruitment costs by online interviews

- Set up a recruitment team
VII. SALES STAFF TRAINING
1. Overview of Vinamilk’s training

Vinamilk always gives employees opportunities to improve their knowledge in all

relevant fields of operation to maximize their potential. In the context of the Covid
epidemic, the Company has flexibly implemented many different training forms
including external training, internal training, online training courses, etc., through a
variety of methods and equipped facilities as well as conditions to ensure employee
health as well as maintain training and improve professional knowledge for the
workforce.

Figure 3: Training and Development Indicators

2. Training process

Vinamilk's sales staff training process includes the following steps:

- Step 1: Training to improve knowledge about products and businesses

In order to spread information and business knowledge to customers, a good

salesperson with Vinamilk must be informed about goods and companies. As a
result, sales staff must be equipped with this crucial information from the moment
they begin working in the sales system.

- Step 2:
 After the sales staff has been equipped with knowledge and skills about the company's
product lines, Vinamilk designs a training program and trains sales staff in-depth
knowledge and skills so that employees can fully apply a combination of skills and
knowledge learned and associated with practice.

The knowledge and skills that salespeople need to be trained include:

 The skill of greeting creates sympathy.

 The skill of asking helps to be curious.
 Product introduction skills
 ……..

3. Evaluation of training effectiveness

After sending officers and employees to school, the company requires a harvest report,
but these reports are only a formality. For some classes under the order, the company
also asks the training organizer to collect students' input.

Currently, the company only has first-level information based on students' feedback on
how they feel about the course in general, about the content or how teachers teach in
class. The formal assessment stops there, without higher levels of assessment such as
assessing the level of learners' receptivity, assessing changes in learners' behavior and
evaluating the performance of learners after training to consider the level of
achievement of training and development goals. Therefore, it can be said that the
assessment of the learner's learning level is only formal. When the assessment of
training is not organized methodically and formally, the learning of lessons learned
will also be limited. In that way, it is difficult to draw full and comprehensive lessons
for the next time. In addition, it is necessary to consider training as an investment, and
it is necessary to evaluate how effective the investment is, in order to have a more
profitable investment plan.

4. Feedback

Advantage Disadv
antage
- With the aim of meeting customer requirements - However, it can be seen that

in order to provide the best training courses for male

employees are always
more than for female employees,
this is
 possible customer service. Vinamilk always the thing that should not exist in a
trains its sales staff from the moment they begin company that uses people as a

working; the courses are appropriate for both premise for development like

new and long-term employees so that they can Vinamilk, which needs fair
between male and female
continually improve their capabilities and turn
employees to have an equal
into the best faces for the business.
working environment.
- The training programs for staff is more than
managers demonstrate Vinamilk's ongoing - Costly
efforts to nurture people for the future. They - Time-consuming
understand that excellent managers alone won't - Limited application of newly
help a company succeed; good employees are acquired skills
also necessary, which also motivates
employees to work more
effectively.

- Improved skills and knowledge

- Improved customer experience
- Strengthen the connection between employees and
the business
- Increase revenue
- Build reputation for businesses

Proposal

- 1-2 days: Meet staff and discuss their expertise.

- 3-5 days: Activity development focuses on simulation games rather than theory.

- 6-7 days: Taking feedback from attendees after orientation and recap about the
training session.
VIII. MOTIVATION
1. Total salary:

From 7,000,000 to 9,000,000 VND (Basic salary + sales bonus)

2. Bonus

Bonuses during the year: 3-4 months salary/year

Performance bonus: 2-3 months salary/year (according to the business situation of the
Company);

13th month salary;

Other bonuses in the year: Tet gifts, March 8 gifts, Mid-Autumn Festival, International
Children's Day, Employee commendation for having children who are good
students,...;

With Telesales staff, periodically there will be revenue bonuses from customers who
use the product, introduce new customers, reward productivity when exceeding work
quotas, bonus overtime, etc. All are part of Vinamilk's employee hospitality policy,
raising the minimum average income of the divisions to always over 10 million dong.

3. Other welfare regimes

Probationary work with 100% official salary;

Full labor contract after 2 months of probation;

Social insurance, Medical insurance, Accident insurance,..

4. Team building

In addition to developing and fostering employees’ knowledge and skills at work,

Vinamilk also focuses on their physical and mental health, ensuring a balance between
their work and life. The company regularly organizes team building activities to
strengthen teamwork spirit, and create an atmosphere of harmony, friendliness and
cooperation among members in the same division and department; among different
departments, and units.

 Sports activities
Sports festival to celebrate the 45th anniversary of Vinamilk’s establishment, after-
hours sports activities such as swimming, gym, yoga, jumba, etc

 Corporate culture activities

Contest for Finding New Ideas 2021 “Your Idea - Our Success”, Series of activities to
celebrate the 45th anniversary of Vinamilk’s establishment: Logo design,”my
Vinamilk” Photo contest, New Year decoration contest 2021, online photo contest to
celebrate the International Women’s Day (on March 08), International Children’s Day
(on June 01), Vietnamese Women’s Day (on October 20), etc.

5. Talent Cultivation

Training and Development Indicators The Human factor is the key to Vinamilk’s
development strategy for impressive business performance over the years. In addition
to the employee-oriented personnel policy and top-notch remuneration regime, the
development and cultivation of talents is a “key card” for Vinamilk to ensure quality
human resources and develop a team of successors in a new development phase
towards the goal of Top 30 largest dairy companies in the world

6. Feedback

Vinamilk is always in the top of companies with the best working environment in
Vietnam, so the company does very good motivating activities for employees of
course. Vinamilk's sales personnel always have a very high salary compared to other
businesses in the same industry in Vietnam, which is always a place where many
employees want to work.

7. Proposal
- Providing electric cars so employees can freely move around the work campus, with
a game room, garden, and friendly furniture.

- The CEO has meetings and chats with low-level employees to exchange ideas.

- Buy insurance for employees' families, or long-term employees at TH will have the
company help them bring their relatives to live, rent a house and provide living
expenses.

- Employees are “allowed” to “break the rules” to keep customers happy, empowering
them to do whatever is necessary to achieve this.
- The company encourages employees to spend 20% of their time pursuing creative
ideas they are passionate about.
IX. EVALUATION

In order to increase the effectiveness of the monthly employee evaluation system, the
Human Resources Division regularly coordinated with other departments to review
and update the job evaluation criteria to match the actual work requirements and
accurately reflect the results/performance of employees. Specifically, the Human
Resources Division and the Domestic Sales Department reviewed the set of
performance evaluation criteria of the Department and applied them in early 2021.
Simultaneously, the Human Resources Division enhanced its control over the
evaluation results of departments and the ratings to ensure the appropriate and accurate
assessment. With respect to the annual assessment system for Managers, the Company
continued to conduct assessments in both aspects including Assessment of Objectives
(What) and Assessment of Competency (How), thereby serving as a basis for
Managers to prepare development plans for the next year.

1. Vinamilk's sales staff evaluation criteria

- Enthusiastic, independent, agile in work

- Honesty and fairness at work
- Understanding and observance of laws, policies and regulations
- Take initiative in arranging, supplementing and training human resources for
the company
- ….

2. Behavior-based assessment method

There are many different methods of performance evaluation, and there is no one
approach that is best for all organizations. Even within the enterprise, different
methods can be used for different departments, units or for different employees such
as sales, production, marketing and sales staff. administrative department.. Vinamilk
has selected the evaluation method using a behavior-based scale because of the
advantages of objective assessment, and it is easier to evaluate.

Behavior-based scoring method:

The method is a combination of the scale method and the method of recording
significant events. According to this method, the different levels of job completion are
 expressed on a scale and are described based on the performance of the job. To score,
the evaluator must determine which of the described behaviors the subject's behavior
falls into. The factors selected to evaluate behavior include 2 types:

2.1. Job-related characteristics:

 Evaluate by workload.

Get the job done with high efficiency. Help other 50

departments have enough human resources to complete
their tasks well.

Gets the job done with high quality, but with a few minor 40
flaws.

Get the job done at an acceptable quality level. 30

The jobs are still overlapping, the efficiency is not high. 20

Frequently failing to complete tasks and affecting other 10

departments.

 Judging by the quality of work done.

Quality of work is beyond standard. 50

Quality is up to standard. 40

Quality is not satisfactory but still acceptable. 30

Low quality work. 20

Not up to quality. 10

2.1. Characteristics related to individual behavior:

 Judging by the level of enthusiasm, the spirit of cooperation.

The members in the room work enthusiastically and often 50
help each other.

Complete the assigned tasks. 40

The members work individually, there is little cooperation 30

between individuals in the department.

Do well at assigned work, sometimes need supervision and 20

reminders.

Working against is ineffective, lacks a sense of 10

responsibility.

 Evaluation based on the initiatives contributed.

There are many creative and highly applied contributions. 50

Having a creative spirit but not yet promoting it 40

effectively.

There are initiatives but not often. 30

Very little when giving ideas, only know how to work in a 20

rigid sequence.

Do not participate. 10

 Evaluation is based on the behaviors shown at work, in the way of dealing with
colleagues.

Enthusiastic in work, working with a high sense of 50

responsibility, all for the benefit of the company.

Quick handling of problems encountered. 40

 Completing the assigned tasks well but having little 30
relationship with colleagues.

Sometimes there are bad manifestations that affect the 20

collective interests.

Lack of sense of responsibility, lack of harmony. 10

 Assess the capacity to perform work by each department.

Total rating score = Total (Weight * Total A, B, C/number of tasks) = 40% * Total
A/Number of tasks + 40% * Total B/number of tasks + 20%* Total C/number of tasks.

3. Classification

 Excellent completion (45 – 50 points): Excellent completion of the assigned work.

Exceededly met most of the responsibilities, goals, and requirements with the
person performing the work, demonstrated outstanding work capacity.
 Well done (35 – 45 points): Complete the task well. Satisfy the responsibilities,
goals, and requirements of the person performing the job, sometimes exceeding
requirements. Make good use of your work capacity.
 Complete (25 -35 points): Complete the assigned task. Meet most of the
responsibilities, goals and requirements of the person performing the job.
 Not completed, need to try (15 – 25 points): Not fully completed the assigned task.
Only partially fulfills the responsibilities, goals and requirements of the person
performing the work that needs improvement.
 Not completed (10-15 points): Not meeting the job requirements, need to consider
the suitability for the job.

4. Feedback

Advantage Disadvantage

- The criteria used by Vinamilk to assess - Over-detailed assessment of individuals'

employees are transparent and clear, and they work can put sales staff under pressure,

are evaluated from the inside out. It is clear decreased productivity at work.

that in order to fulfill the requirements, the

 sales staff at Vinamilk must not only possess
good skills but also demonstrate good
character and attitude.
- There are numerous departments that conduct
evaluations, so it is feasible to avoid
subjective evaluation results.
- Vinamilk’s evaluation can boost encouraging
teamwork, for there can improve create a
better working environment, sales staff less
pressure on sales KPIs.
- Evaluation criteria required sales staff to
compete for individual sales while also
make good teamwork, which can make it
challenging for many new hires to receive
recognition in the beginning of their
careers.

Proposal

- The evaluation criteria have been given, but still need regular adjustments to be more and
more suitable for the development of the company and suitable for employees.
- There are appropriate strategies to make the most accurate assessments for each employee,
each field and each department such as encourage customers to rate sales staff satisfaction on
a scale
Bibliography

Annual Report 2022. (2023, March). Retrieved from Vinamilk:

https://www.vinamilk.com.vn/static/uploads/bc_thuong_nien/1679901019-
75738988a43bb6608be766637171ef9475e4b35193d0be0e37d6627358ae06ec.p
df

CQ46/32.01, N. 3. (2021). Công tác đánh giá năng lực nhân viên tại công ty Vinamilk.
Ha Noi: Học viện Tài chính.

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T.H. (2022, March 23). Vinamilk đặt kế hoạch đến 2026 lợi nhuận trước thuế có thể
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