VINAMILK

Business analysis presentation – Assignment 1

SGS-G02-Accounting
S3978106 – Vo Hoang Thuy Khanh
S3979460 – Nguyen Thai Dan Ly
S3979656 – Le Thuy Bao Ngan
S3983188 – Huynh Tuong Nghi
S3979727 – Nguyen Le Nhat Vy
 Table of contents
01 02 03
Introduction: BACKGROUND of the company GOALS CHALLENGES
Overview and explanation of the project UNSDGs Related internal/
external factors

04 05 06 
STAKEHOLDERS analysis ROOT CAUSES CONCLUSION
Stakeholders related Root causes of Recommendations 
Journey roadmap the defined problems
 01
Introduction
 Background of the company

● Founded in 1976
● More than 200 products
(Milk, powder milk,
yougurt, etc)

Figure 1 _ Vinamilk Logo

According to Vinamilk (2021): ACHIEVEMENTS
The only representative of the
South Easr Asia to rank among
Best Corporate governance Most potential brands of the most valuable global dairy
companies voted by Forbes world dairy industry brands in 2021

TOP 5 1 IN 3 TOP 10

TOP 5 TOP 36

Strongest global food brands Global highest-evenue dairy

in 2021 companies (USD 2.5 billion)
Overview
Vinamilk's goals:
• Sustainable development
• Fulfill customers' demand
=> Green Farm project introduce organic and
eco-friendly products
 Vinamilk's
sustainable
development
orientation
Source: Vinamilk towards sustainability
3 pillars of
Green Farm
 3 pillars of Green Farm

Sustainable practices
Selective sourcing
with innovative
technologies

Regenerative
farming practices
 Green Farm's targets
-  Nutritious improvement
-  Solve mathematical economic problems
- E-S-G priority
02
Goals
 United Nation
Sustainable
Development Goals
Goal 12: Responsible consumption and production
 GOAL 12: Responsible
Consumption and production
• Assure products quality 
• Minimize the impact on the environment

WHY is it important? 
• Responsible development
• Improvement of life and income
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 03
Challenges
 Challenges

Finance
Competitors
 Overview of challenges

• Require a great deal of investment and experience
• Profit margins reduced because of the Covid-19 pandemic
• Competitors from domestic market due to the company's ineffective
strategies
• Customers prefer foreign brands by virtue of origin, quality, packaging
design, etc
 Possible Influencing Factors

Internal factors   External factors

Strategies Political

+ Marketing Economic
Social
+ Market analysis
Technological
Investment Legal
Environmental
Problems related to
internal factors
INTERNAL FACTORS & PROBLEMS (SWOT analysis)

STRENGTHS
• Product quality remained unchanged
• Long-standing history 
• Diverse in products 

OPPORTUNITIES
• Receive support from long-time customers 
• Better access to adults/old generation 
• Expand choices for customers 
WEAKNESSES

• Weak digital marketing strategy 

• Overlook customers’ insights 
• Lacking flexible reaction when it comes to
capital 

THREATS
• Cannot reach enough target customers 
• Lose a considerable amount of customers
(Impulsive spenders)
• Shortage of capital for potential innovation 
 Digital Marketing
• Limited platforms (Youtube, Television)
• Loose focus on social media, e-commerce
• Brand recognition is at a lower rate
compared to competitors. 
Cap: 30 November 2022 12h00 (source: Shopee website)
 Market Analysis
Lacking updated brand development:
• Seasonal packaging
• Ethical consideration
• Intangible value

“Good Morning World” campaign with

“Cup Song” movement.

Ineffective investment 
• Over expansion for "Giac mo
sua Viet" stores
• Shortage of capital for potential
innovation 
External factors
POLITICAL CHALLENGE

ECONOMIC FREEDOM
HIGHER COMPETITIONS
CORRUPTION
DUE TO GLOBALISATION
GOVERNANCE ECONOMY
ECONOMIC CHALLENGE

GDP INCOME Shortage of potential 

investors and margin
COVID 19-PANDEMIC

INFLATION Escalation of the

transportation and
FOREIGN INVESTMENT feed fees
SOCIAL CHALLENGE

Lack of consumers’
Social Norm perspective on the
green farm products
Population

Unemployment rate
TECHNOLOGICAL CHALLENGES

INTERNET USE FAKE WEBSITE,

INFORMATION
DIGITAL TRANSFORMATION
LEGAL CHALLENGE

REGULATION
More foreign competitors
Code of conducts

International
collaboration
 ENVIRONMENTAL
CHALLENGES

UNFAVORABLE NATURAL Increase cooling costs to

CONDITIONS  ensure stable barn
temperature and
humidity

Source: 
Assessment Case Study: Industry Partner - Vinamilk's Green Farm Production: Integrated
 PROBLEMS
Ineffective marketing and sale strategies
Doesn't have an optimal method of raising margin
Competitors from domestic market and global market
People have low income
Lack awareness of Green Farm products
Misleading information from fake websites
 04
Stakeholder analysis
 Stakeholder Analysis

Shareholders  Suppliers

Customers
 Shareholders
The company's effect on Problem
shareholders:
Low profit margin + ineffective strategies Investors withdraw capital and are
=> the reduction of the revenue afraid not to invest
=> A decrease in the shareholders'
income
 Suppliers
China Problem
• Largest dairy importing country Demand for milk imports decreases
• Milk consumption increases => Domestic
milk supply increase

Newzealand Problem
• Main source of imported dairy
Input material prices soar
ingredients
• Covid-19 => Lack of workers => Raw
materials for export decrease.

Decrease in revenue, increase in input price => Sharp decrease in profit margin
 Customer Persona
UNDAUNTED STRIVER BEHAVIORS AND BELIEF
34% of consumer of Vietnamese market • Like involving in social activities
• Age: 40-44 years old • Try to have a positive impact on
• Gender: Mostly female the environment
• Occupation: full-time job • Prefer the latest products
• Live in large cities • Use mobile phone frequently
• Annual Income: ~$ 40,000

CHARACTERISTICS GOALS, NEEDS, OBSTACLES

• Sociable • Enhance their status and image, stay up-

• Independent to-date with the latest trends
• Seek personalized shopping experience
• Make choices based on branding and
trends
 Empathy Map – Undaunted Striver
THINK AND FEEL 
Want to buy branding products
and prioritize experiences
HEAR SEE
Concern about environment

KOL’s review: "I use

this product" Friends are using that product
Advertisement: "Everyone Eco-friendly plan
used this produc

Donate to nonprofits and charities

I like to be distinct from others
SAY AND DO
PAIN GAIN
Being influenced too much on the social media
Nutritious values from Green Farm products
Lack of time
Support eco-friendly farming
 The Customer Journey Map
1 2 3 4 5
Awarenes Consideratio Purchase Retentio Advocacy
s n n

• Workshop/ bootcamp • Website,fanpage • Website, fanpage. • Website, fanpage. • School, kindergarten

• Website/fanpage • Mobile app (shopee, • Mobile app (shopee, • Mobile app (shopee, • Office
• Workshop
PLACE •
•
Television
Banner ads
lazada, tiki)
• Store, supermarket
lazada, tiki)
• Store, supermarket, 
tiki,lazada)
• Store, supermarket,  • Online (social
• Store, supermarket media)

• Reviewers/KOLs • Salers/ customer • Salers • Family • Family

• Friends service • Store assistant • Marketing team • Marketing team
PEOPLE •
•
Salers
Family/ relatives
• Relatives
• Marketing department
• KOLs • KOLs
• Reviewers • Reviewers
• Marketing department • Influencers

• Social media • Email inbox • E-commerce • Promotion • Word of mouth

(facebook, tiktok,  • Advertisement • Sales • Feedback forum • Social media
 instagram) • Blog
TOOLS • Online advertising
• Websites
• Websites
• Word of mouth​
 PROBLEMS
Consumers' criteria:
+ Personalized and consumer-centric shopping experience
+ Staying up-to-date with the latest trends
+ Omnichannel shopping platforms
+ Promotions and discounts
+ The price is reasonable in comparison to the quality
+ Eco-friendly and waste-reduction packaging
+ High-quality ingredients and materials
+ Convenient and time-saving purchase process
 05
Root causes
 Root Causes

Cause 1
Cause 2
The working system doesn’t
Loose internal management 
have an update in a long time 
 06
Conclusion
 Conclusion
4 MAIN PROBLEMS: Root causes

• Brand’s recognition. • Working systems don’t have

• Lack of capital for latest technology update in long-term.
and new innovation. • Poor internal management.
• Weak marketing.
• Haven’t updated new trends.
 Recommendations

• Keep contributing to the society (charity, green campaign,

etc...) to boost brand’s image.
• Proposed Corporate Sustainable Responsibility (CSR).
• Ameliorate employee’s skills (training courses, update human
resources, etc...)
• Diversify age level of workers 
• Update trends, ultilize social media. 
 REFERENCES

Euromonitor International (2022), Consumer Types in Vietnam, accessed 22 November 2022, Passport
database. https://www-portal-euromonitor-com.ezproxy.lib.rmit.edu.au/portal/analysis/tab 
Euromonitor International 2022 PEST Analysis: Vietnam, Passport database, accessed 28 November
2022. https://www-portal-euromonitor-com.ezproxy.lib.rmit.edu.au/portal/analysis/tab 
INVEST VIETNAM (2016) Dairy Industry, investvietnam.gov.vn, accessed 14 November 2022.
https://investvietnam.gov.vn/en/nghanh.nghd/27/dairy-industry.html
PricewaterhouseCoopers 2022, Vietnam Outlook 2022: Economic prospects in the wake of COVID-19,
PwC, viewed 28 November 2022,
https://www.pwc.com/vn/en/publications/vietnam-publications/220221-pwc-vietnam-outlook-en.html
 REFERENCES
Research and Markets (2022) Vietnam Dairy Industry Report 2022: Value of Dairy Products Imported
into Vietnam in 2021 was $11.8 Billion, an Increase of 12.4% y-o-y - Forecasts to 2031,
Globenewswire website, accessed 10 November 2022.
https://www.globenewswire.com/en/news-release/2022/11/10/2552761/28124/en/Global-Opioids-Mar
ket-Report-2022-Increased-Use-for-Management-of-Post-Operative-Pain-Fueling-Growth.html

Trung D (2022) Vinamilk to import 1,550 dairy cows from the US to Green Farm,
vietnamagriculture.nongnghiep.vn, accessed 13 November 2022.
https://vietnamagriculture.nongnghiep.vn/vinamilk-to-import-1550-dairy-cows-from-the-us-to-green-far
m-d328007.html

Vinamilk (2021a) CONQUER CHALLENGES ACCELERATE TO NEW HEIGHTS ANNUAL REPORT

2021, Vinamilk website, accessed 11 November 2022.
https://www.vinamilk.com.vn/static/uploads/bc_thuong_nien/1650451537-6f22ffdd6ecd4ea5cc133b00
46bc3085a10648db1369033c5dfe1daed93f04a7.pdf
Vinamilk (n.d.) ‘Vinamilk towards sustainability’, Vinamilk website, VINAMILK'S DEVELOPMENT AND
ITS SOCIAL RESPONSIBILITIES, accessed 9 November 2022.
https://www.vinamilk.com.vn/en/vinamilk-towards-sustainable-development/  
 
 REFERENCES
Vinamilk (n.d.) ‘Corporate Governance’, Vinamilk website, accessed 10 November 2022.
https://www.vinamilk.com.vn/en/corporate-governance/  
 
Vinamilk (2021b) SUSTAINABLE DEVELOPMENT REPORT 2021, Vinamilk website, acessed 11
November 2022.
https://www.vinamilk.com.vn/static/uploads/article/1656491134-41ae55e12ed75bb850882ef4ed011f4d
aca3a27544f0298e20a6ec764b5208a8.pdf

VnExpress (2022) ‘Vinamilk profits to decline for 2nd year in a row - VnExpress International’,
VnExpress International – Latest news, business, travel and analysis from Vietnam, accessed 15
November 2022.
https://e.vnexpress.net/news/business/companies/vinamilk-profits-to-decline-for-2nd-year-in-a-row-44
41377.html
Vinamilk (2013) Vinamilk Logo, Vinamilk Website, accessed 28 November 2022.
https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.vinamilk.com.vn%2Fen&psig=AOvVaw
3Ho5Yuh7atOHuTwf02JlWu&ust=1669698795805000&source=images&cd=vfe&ved=0CBAQjRxqFw
oTCOjQ9-6O0PsCFQAAAAAdAAAAABAE
Thank You !!!
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