VISSAN: Vitality of

Three Yellow
CASE STUDY
Group 7 – EBBA 11.
Member:
Nguyễn Thu Nga
Cao Trung Hiếu
Nguyễn Tâm Tuệ
Nguyễn Tuyết Nhi
Hoàng Ngọc Linh
Đinh Huy Hoàng
Vũ Tuyên Hoàng
CASE: Macro - Environment
General
Evidences Assessment
Factor

Econom From 1975 to 1990, VISSAN operated

ic in the sector of animal slaughtering
meat slaughtering, supplying fresh meat
under the orders of state authorities and
exporting meat to socialist countries.By
the 1990s, due to the political crisis of
the Soviet Union and Eastern European
countries, the export market was no
longer available.
In the early years of the 21st century,
VISSAN developed a wider distribution
channel
The VISSAN’s food chain gradually
The Company then turned to a new launched and added the vegetable
direction, focusing on the domestic and fruit in the product portfolio.
market and developing processed The market has expanded, the output
products and expand the market to the - revenue - profit recorded the
Central and Northern regions. highest growth rate since the
company’s inauguration. On March
In 2017, VISSAN achieved a total
24th 2016, VISSAN has successfully
revenue of VND 3,899 billion, a growth
sold 11.3 million of shares for
rate of 6%, in which pork accounted the
strategic investors. Up to now
largest contribution. Regarding
(2020), VISSAN is still a state-
processed foods, after a period of
owned company with 67.76% of
decline, the purchasing power has
capital held by Satra and 24.94% by
recovered with the company's effective
Anco - a company owned by Masan
solutions following the market trends
MeatLife.
and consumer tastes.
The period of 2015-2020 marked big
changes of VISSAN’s operating model,
from a 100% state owned company to a
Total revenue has reached VND
joint stock company. With the new
26,314 billion and get 110% of
model, the Company has overcome
planned targets, grown up 20% over
many challenges and achieved high
the same period, reached average
results.
growth rate of 5.57% per year; profit
before tax has reached VND 867
billion, get 103% of plan targets,
grown up 35% over the same period,
reached average growth rate of

Legal In 2017, VISSAN was confered the
certification of ISO 9001: 2015 by BSI
- a well-known organization in the
world for quality management system
With the strict application of the
international quality management
standards of ISO, GMP and HACCP,
the Company has fully controlled the
stages of foods supply chains, ensured
food safety and provided markets with
high quality products.
Social For years, the Company has associated
business activities with solving social
issues, protecting the environment and
meeting customer concerns. At the
same time, the Company has
contributed to the mission of prices
stabilization
Demogr Vietnam's retail industry has grown by
aphic about 10% over the years, but
consumers are largely still in the habit
of buying through traditional retail
channels such as markets or stores
In the segment of fresh meat and
processed foods, VISSAN's products
are distributed both through traditional
channels such as owned stands tin the
market and wholesale stores, and
through modern retail channels such as
supermarkets, mini supermarkets and
food stores in HCMC.
9.96% per year.
These ISO 9001: 2015 standards are
applied on 03 product lines:
pasteurized sausage, canned food
and frozen processed food
Such as providing 100% pork
according to VietGap standards and
Australian beef according to ESCAP
standards.
Moreover, the Company's employees
have volunteered to contribute VND
2,750 billion to the "Satra for home
islands and sea" program and VND
500 million for the charity social
funds.
According to a Nielsen’s research,
traditional channels account for 83%
of FMCG sales, including foods, but
Vietnam's modern store network has
grown strongly in number in the last
few years.
VISSAN is promoting sales through
modern retail systems which have
been heavily invested in recent
times, typically systems of food
stores and convenience stores of
Satrafoods, Co.op Food, Vinmart,
Vinmart +, Green Department ...
 Vissan's fresh meats are mainly
distributed through modern retail
channels, accounting for 70-75% of
sales. The rest is distributed through
traditional markets, agencies, schools,
etc. Processed foods are distributed
through traditional channels and
accounted for 60%.
Technol In recent years, VISSAN has focused
ogy on investing in a "clean from farm to
table" campaign, in order to ensure its
core values of supplying fresh and
processed foods with high quality and
food safety to the market.
The Company has also equipped
modern machines and new technology
for laboratories with ISO/IEC 17025
certificate.
…
VISSAN gains advantage through a
wide distribution channels with a
network of 130,000 points of sale on
traditional channels, more than 1,000
on supermarkets, convenience stores
and nearly 50 showrooms
nationwide
The production infrastructure
includes large-scale of modern
equipments and closed technologies,
with a storage area of 10,000 pigs
and 4,000 cows, three pig slaughter
lines with a capacity of 2,400
heads/shift, two cow slaughter lines
with a capacity of 300 heads/shift, a
frozen storage system with a
capacity of 2,000 tons, a sterilized
sausage production line imported
from Japan with a capacity of 10,000
tons/year and a canned products
processing lines with a capacity of
5,000 tons/year. The Company also
has a frozen foods processing plant
with a capacity of 3,000 tons/year in
Ho Chi Minh City, a foods
processing plant with capacity of
3,000 tons/year in Bac Ninh, a
breeding farm in Go Quao and 12
owned stores in Ho Chi Minh City.
CASE: Industry - Environment
Industry
Evidences Assessment
Factor

Each of the company's

business lines has
New different competitors: Do research about rivals and keep developing in size
entrants Fresh food; canned and quality of products that served customers' needs.
goods; the sausage
products ...

Substitutes Frozen-fresh meats, With the diversity of products, convinience and the
: beef, fish. Canned quality is guaranteed, quiet famous brand name of
products, processed VISSAN, the pressure from these substitute products is
vegetable products, not great because the products that VISSAN is
sausage… producing and trading are outstanding in providing
essential nutrients for the human body.

Suppliers: To avoid unsafe raw Being one of the household name company in Vietnam
materials from , VISSAN has some benefits because of the favorable
unreliable suppliers, group of people and development of household
VISSAN has been income. The self-supply framework makes a difference
creating its own VISSAN has a great control of a secure and ensured
private raw material source of food and labor to deliver quality items. On
supply chain and the opposite, the company ought to take full duty for all
cooperate with other of its mistakes in coordination and supply chain
farmers- their products administration. Hence, it is additionally an enormous
must meet VietGAP, challenge for the company to improve the quality of the
and the ISO, HACCP items..
standards as well. The
IPO has attracted a
total of 142 domestic
and foreign investors.
Foreign investors
bought 3.3 million
shares in VISSAN, or
4 percent of the
company.

Buyers They create one thing VISSAN has been the leader in this market for many
called brand years, consumes a large share of the market, so it has a
recoginzation with huge and diverse client base. Therefore, the sales of
qualified product and company will benefit very much, which helps increase
 reasonable pricing, profits. It can also build great commerce connections.
discount and On the other hand, having more customers means using
promotion policies. more resources to keep the company moving, build
Agents, supermarkets, new strategy to keep existing customers and attract
consumers, new potential customers.
organizations wishing
to use the product.

Rivalry Animex, DUCVIET The company will have to try to improve their products
Food, Mavin Food, throughout time. This also means that VISSAN will
Dabaco Food, SaiGon speed up its efficiency. In addition, the most elevated
Food, CP Food, rank that the company is holding, because it was
MASAN meatlife. specified within the over passage, makes it less
The company faces demanding for VISSAN to create their items and alter
many domestic and their showcasing methodology without concerning as
foreign competitors. well much approximately the dependability of the
Each product has clients..
different competitors

CASE: Competitors

KSF A B C

Brand name Mavin Food Joint Dobaco CP Vietnam Company

 Venture Company

Service Quality Manufacturing The company has CP has meat processing

products made from supplied more than plants in the North and
meat such as ham, 20 types of meat- South. CP’s plants are
sausage, bacon ... processed products ranked most modern in
to the market North, with industrial
including: sausages, processes for poultry
canned meat, shrimp, slaughtering and meat
liver pate, etc. processing. These two
processing lines are
operated independently
with automated machin
and traceability process

Innovation The Company has Dabaco has a system CP cooperates with

built and developed a of chicken and pig chicken farms and farm
closed business breeding farms, with by providing breeds, fee
process "From Farm a large scale and veterinary medicine,
to Dining Table", modern equipment, technology, then buying
following the ensuring veterinary products at stable
standards of hygiene standards prices. Over the years,
developed countries. and food safety in CP's strategy is to devel
accordance with the the livestock industry in
laws and HACCP closed chain of seeding,
standards. feeding and processing.

Distribution 5-star hotels such as Supply clean Has more than 10,000
channel Inter Continental chicken and pork for retail outlets and stores
Hotel Westlake the market. across the country unde
Hanoi, Muong the CP Fresh Mart and C
Thanh Hotel Group, Kiosk brand names.
Crowne Plaza West
Hanoi Hotel,
Sheraton Hanoi
Hotel, Jaspas
restaurant chain,
Papa Joe Hanoi
restaurant chain, etc.
 Other product lines
of Mavin have also
appeared in the
stands of
supermarkets, stores
and distribution
agencies.

CASE: Internal Organization

Core Evidences (resources, capabilities) Assessment

Competencies

1. Product: VISSAN is enterprise operating in By and large, VISSAN is one of

the meat and meat process industry. the most developed and various in
Since 2005, VISSANN has add fruit process of producing. After
and vegetables. => pork, beef and vegetables was added in process,
 vegetables
-Resource:
+ Quality management system:
pasteurized sausage, canned food and
frozen processed food.
+ Storage: 10,000 pigs (3 lines
slaughter lines with a capacity of
2,400 heads/shift) and 4,000 cows (2
lines slaughter – 300 heads/shift)
+ a sterilized sausage production line
imported from Japan with a capacity
of 10,000 tons/year
+ Plants: 3,000 tons/year in Ho Chi
Minh City, 3,000 tons/year in Bac
Ninh, a breeding farm in Go Quao
and 12 owned stores in Ho Chi Minh
City.
Capabilities:
+ The production capacity of meat
products reaches 30,000 tons per
year, including frozen meat,
processed products from meat and
canned meat.
+ Production management process is
operating on the basis GMP
standards and HACCP standards with
2 lines of sterilized sausage and
canned products.
+ Famous products: herbs feeded
pork, sausages Daily, pork rolls
Huong Viet, pork rolls Huong Que,
sausages SUPER5, instant spring
rolls, and beef rolls Danang.
2. Marketing + Vietnam's retail industry has grown
by about 10% over the years
+ Sales through modern retail
systems which have been heavily
invested in recent times, typically
systems of food stores and
convenience stores of Satrafoods,
Co.op Food, Vinmart, Vinmart +,
Green Department ...
+ Network of 130,000 points of sale
on traditional channels, more than
1,000 on supermarkets, convenience
stores and nearly 50 showrooms
nationwide.
3 Finance: + The period of 2015-2020 marked
the capabilitie of this kind of
product is still unconsiderable.
But the products made from meat
are under a lots of concern, the
company focus on strict
appilication of the international
quality management standards of
meat process method. In term of
capacity, the company are using
numerous of plant and 30,000 ton
per year is impressived. But
VISSAN should keep opening the
capailites, because the average eat
consumption in Vietnam is 34.2
kg per year. That means, the
market share of VISSAN was
low. To compete with the great
number of farmer and traditional
market trader, they should open
the capabilities.
We could say that VISSAN have
a wide range of distribution,
exspecially in morden market and
supermarket. Although, most of
consumers are largely still in the
habit of buying through
traditional retail channels such as
markets or stores, VISSAN
occupying the great percentages
of usage of fresh meat.
VISSAN make its name with
always keeping the standard of
fresh meat, the mission and the
promises of VISSAN make this
brand a prestige in the General
market
According to the financial report
 big changes of VISSAN’s operating
model, from a 100% state owned
company to a joint stock company.
+ Recently, total revenue has reached
VND 26,314 billion and get 110% of
planned targets grown up 20% over
the same period, reached average
growth rate of 5.57% per year; profit
before tax has reached VND 867
billion, get 103% of plan targets,
grown up 35% over the same period,
reached average growth rate of
9.96% per year.
+ Vissan currently has a chartered
capital of more than VND 809
billion, of which Saigon Commercial
Corporation (Satra) holds 67.76%,
and the major shareholder - the
International Agricultural Nutrition
Joint Stock Company (Anco) - holds
24.94%.
4 Leadership are not mensioned enough in this case to give assessment about them.
+ Human
resource
CASE:
S.W.O.T
of this company, the sales and
profit generally go up each years
recently as the result of the trend
of consuming meat in the world
which are rising. But with the
effect of disease in many
provinces, the price of pig was
pushed up significantly in 2020,
so it keep the sales stay in $6
Billion rather than $10 Billion
like prediction.So, the important
of whole industry is keep the
price pig stable as much as
possible. In generally, Mr Nguyen
Ngoc An- general director
annouced that the business plan of
NISAAN shows the raise in the
next period. We couldn’t say that
this is the great prediction or a
call to raise up capital. But up to
now, VISSAN’s business
performance is keeping well.
Analysis
Strengths
- A strong brand nationwide
- A modern closed food
processing chain
- Wide distribution channels
- High quality and healthy
products
- Wide range of products
- Strong financial resources
- Established in 1970, as a pioneer
brand in the Vietnamese food
processing market, VISSAN
has always upholds the spirit of
innovation by constantly
supplying market with high
quality and healthy products.
That’s how VISSAN persistently
marks its brand in the hearts of
Vietnamese consumers.
- In recent years, VISSAN has
focused on investing in a "clean
from farm to table" campaign, in
order to ensure its core values of
supplying fresh and processed
foods with high quality and food
safety to the market. All
products are manufactured in a
closed-link process by modern
machinery, equipment and
advanced technology. The
company works to perfect the
clean, safe and sustainable food
3F “from farm to fork” supply
chain to ensure the best quality
at all three important stages of
food creation: Feed, Farm and
Food. This model has helped
Weaknesses
- Slow model change: With the
available position and the
participation of the big players
in the food sector (including
fresh and available variants)
was expected to help Vissan
continue to grow and maintain
its leading position in segments
of fresh foods and processed
from pork, beef ... However,
nearly 5 years since
equitization, the business
model of the company has
remained almost unchanged as
continuing to focus on
segments of slaughter and
traditional processing. At the
same time, many competitors
appeared and strengthened
with many new segments
attracting users.
- The efficiency of VISSAN's
fresh food business (pork) is
not high: Because VISSAN
raises pigs according to
VietGAP standards and applies
a strict monitoring procedure to
ensure food safety and
hygiene. And yet, due to
participating in the market
stabilization program, the price
of pork sold to consumers is
5% lower than the average
price, while bear the cost of
sales administration (17%),
(9%), returns (3.5%),
traceability (0.5%), loss of
sales (2%), VAT (5%) ...
- The ability to self-control raw
materials: In the context of
constantly fluctuating pig prices,
 Vissan tightly control from
inputs to outputs sold to the
market, serve the community's
interests and protect consumer
health. VISSAN has also
invested VND 3,150 billion in a
closed food processing chain
from slaughtering to processing
with auxiliary factories
(packaging, spice processing) "deep fall, drastic increase" as in
the past 3 years and expected to
continue unpredictable
- Another thing to mention is that
fluctuations, the lack of
VISSAN owns a large and autonomy in input materials will
professional distribution network be the problem in the business
throughout the country. With a before abnormal fluctuations of
network of 130,000 points of the market.
sale on traditional channels,
more than 1,000 on - Capital: Capital is blocked due to
supermarkets, convenience the company's slow payment
stores, nearly 50 showrooms policy. Although the system
nationwide and a wide range of VISSAN's distribution is quite
distributors and agents. This complete but only concentrates
helps the company wider in big and special cities
customer reach and faster especially in Ho Chi Minh City
(accounting for 80% of revenue),
growth.
Hanoi, Da Nang, Can Tho. For
provinces and cities in the
country, it is still very limited.
Last but not least, VISSAN range of
meat products are very wide and
diverse to effectively meet all consumer
needs.
Opportunities :
- An industry with great potential, especially in cities and towns. Vissan's products
currently have a strong foothold in the market, with revenue and market share
dominating (50% market share of fresh meat and poultry in Ho Chi Minh City).
Account for 40% market share of processed food in the country. Exports reach
20%. Vissan is considered to be a leading food industry in the country

- The exhibition on the food industry always attract the participation of domestic and
foreign enterprises.

- Vietnam is the dynamic market with population nearly 89 million, mostly in the
working age. In BMI, vietnam' s food and beverage industry has a double growth
Threats

- From the beginning of 2019, the livestock industry has been

negatively affected by the African swine fever (ASF). This leads to a
shortage of meat supply and directly affects businesses producing and
trading processed food from meat. Facing that situation, VISSAN
decided to take initiatives in backup scenarios in case of disease.
Specifically, VISSAN has actively imported frozen pork for reserves
in order to ensure input materials, stabilize market prices and meet the
demand for quality of non infected pork. At the same time, in order to
provide safe food for consumers, VISSAN also continues to apply and
monitor closely the Company's processes from breeding, slaughtering,
processing to distribution.
- The effects of Covid 19: During covid 19 outbreaks, it is
recommended that inhabitants should not go outside and avoid being
exposed to each other. Thus, good distribution and revenue may
plump. Facing that situation, Vissan takes advantage of the system of
stores to introduce its products to create warehouses for goods,
applying the form of selling by phone. People only need to call the
hotline when they need to buy food, the goods will be delivered within
two hours.
- Competitors: Many companies are currently operating in the industry
of meat processing in Vietnam: Duc Viet, Dabaco, CP Vietnam
company…
- But VISSAN is also a big name on our tray of processed meat. Every
day, VISSAN supplies 50 tons of processed meat to the market
through supermarkets, traditional markets, restaurants, hotels and
1,000 agents nationwide. VISSAN has also invested VND 3,150
billion in a closed food processing chain from slaughtering to
CASE STUDY