(Tiểu luận) final report vina fresh quản trị sản phẩm cải tiến sữa vinamilk

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UNIVERSITY OF

ECONOMICS AND FINANCE

FINAL REPORT VINA FRESH

Subject: Product Management Lecturer: Luu Thanh Thuy

Class: A01E ASTRAZENECA GROUP

Student’s Name Student’s ID

Phan Phuc Hai 195041706 Tran Thi Kim Ngan 195041990

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TABLE OF CONTENT

I. OPPORTUNITY STAMENT TEMPLATE………1

II. PRODUCT POSITIONING STATEMENT TEMPLATE………..4

III. MARKET ANALYSIS………....5

IV. PRODUCT DESCRIPTION………...8

1) Product description………...………...8

2) Product requirements document………...10

3) Diagrams and other escriptors……….……...10

V. BASE CASE FINANCIALS-BUSINESS AS USUAL (OR BASE CASE)……….13

VI. MARKETING PLAN………...………...14

1) Excutive summary……….…………..14

2) Strategic context………..15

3) The marketing environment for the product

……….

4) The marketing mix– strategies and tactics……….……….24

5) Product launches being planned or being carried out……….32

6) Cross-functional dependencies or deliverables………...33

7) Intergrated budgets for all programs………...35

8) Measurements and matrics………..36

9) Risks………37

10) Appendices………..37

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I.OPPORTUNITY STATEMENT TEMPLATE

Name of this opportunity Vina Fresh Idea type or category Drinking Yogurt

Source of the idea Based on real experience of Vinamilk products Life cycle phase Idea to launch

Date of the original evaluation April 1 , 2021 st

Product manager’s name Hai Name of engineer Vy, Tan Name of marketer Ngan, Thanh Name of financial Tien Name of other evaluator Thu

Summarize the situation and describe the problem:

In recent years, the consumer's demand for dairy products in Vietnam is having positive changes; the trend of using nutritional supplements, improving immunity or the trend of consuming convenient, branded products, ensuring food safety and hygiene is increasing. Most families decide to choose yogurt because it provides the necessary nutrients for the body.

According to a survey of Vinamilk, their customers want a yogurt with a new and attractive taste but still meet their nutritional needs. Realizing that cantaloupe and banana are two fruits that can meet the above criteria, our team developed the idea to combine fresh fruit with yogurt naturally fermented from nut milk containing many antioxidants and good nutrients for the brain. This combination will contribute to creating a special and novel yogurt formula, providing consumers with a nutritious drink with many uses and functions. Besides, this will be a vegan product, low in calories, bringing more comprehensive nutritional value than regular yogurt drinks, but still ensuring the typical flavor of summer.

For whom is this opportunity intended?

Firstly, it is suitable for children and teenagers from 6 to 18 years old. They are in the age of rapid physical development, so it is very necessary to use yogurt to support their health.

Secondly, we have to mention young adults from 19-25 years old. They are young people with a lot of ambition in their career, so they will often work more and don't have much time to think about nutritious meals. So, yogurt will be the best choice to help them solve this problem

Lastly, the new products suit perfectly for young adults and adults from 26 to 50 years old. This is the target to promote because they are married and often tend to buy yogurt with high quality for themselves and their children.

How would this opportunity solve the customer’s problem?

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Vina Fresh is a yogurt product fermented from nutritious nut milk combined with fresh fruits of Vinamilk. With two new flavors, cantaloupe and banana, not only fresh, delicious, cheap but also easy to drink, suitable for the majority of consumers.

In addition to the criteria of nutrition, veganism, and low calories, Vina Fresh can also help consumers cool off on hot summer days.

Besides, Vina Fresh is also a very convenient drinkable yogurt product because it does not take much time to solidify and preserve like eating yogurt and does not take much time to use.

How is this opportunity aligned with the division or company’s strategy?

Vinamilk is a strong brand with a large scale, a distribution network covering the Vietnamese dairy market along with a large and loyal customer base. However, Vinamilk still has shortcomings, they have a variety of products but cannot keep up with the current trend of using products with new flavors. Especially in the field of drinking yogurt, they have not yet created a highlight or difference with the launched product lines.

Therefore, Vina Fresh was created with many suitable points in the strategic structure of Vinamilk. In Vinamilk's product promotion strategy, they have performed very well campaigns, helping the product's image to be covered throughout the market, so Vinamilk only needs to promote advertising activities for Vina Fresh as a typical drink with its uniqueness and novelty in the summer. Or in the strategy of positioning in the premium drinking yogurt segment with a variety of nutritional ingredients and special formulas, overcoming most of the limitations of regular drinking yogurt. These strategies both catch up with new trends and help Vinamilk create a variety of yogurt drink products.

What characteristics of this market make it an attractive opportunity?

• Consumers want dairy products rich in nutrition, low in calories and good for health.

• Consumers want to use dairy products with many new flavors.

• Consumers tend to use products that are combined with fresh fruit in summer.

• Consumers prefer products with convenience.

• Consumers use nutrient-rich dairy products for recipes for cakes, candies, ice cream, etc.

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Who are the primary competitors?

Name of competitor and the products with which you intend to, or

How do you capitalize on what you know and have researched to beat the competition using this investment?

TH true milk

- Modern and advanced facilities and equipment. - Human resources are abundant and experienced. - Product diversity. - Quality dairy cows imported from the US.

- Price is higher than

- The price matches the quality. - New formula that can be used to generate more flavors. - New and eye-catching youthful packaging.

- The product lines are expanded, giving customers more choices.

- Modern and advanced facilities and equipment.

- The breeding dairy cow is still sparse. - Packaging does not really stand out. - Product is not diverse.

- Just target children.

High level financials

• Unit volumes: 50 million units.

• Pricing: 11 thousand VND per unit.

• Revenue: 550 billion VND.

• Cost: nearly 242.4 billion VND.

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Vinamilk has been doing very well in production processes, as evidenced by all Vinamilk's factories using the most modern technology in production and packaging. But now, the demand for plant-based milk is increasing because consumers are aware of the limitations in using products containing saturated fat from animal milk or lactose. Therefore, Vinamilk needs new solutions and new products extracted from plants to meet the increasing demands of consumers.

II. PRODUCT POSITIONING STATEMENT TEMPLATE

The validated needs of this customer type include:

• Good price.

• Many flavors.

• Many promotions.

• Fresh, cool fruit.

• Good for our health.

• No allergens, lactose.

• Plant origin.

The product meets the needs of this customer with the following features or attributes:

• New, fresh taste.

• Rich in nutrients, minerals, beneficial bacteria and contains antioxidants.

• Of plant origin.

• Low calories.

• Outstanding, eye-catching packaging

• Vegan.

This customer (target) will benefit from using this product because it helps them:

• Can be used to make cakes, candies, ice creams.

• Cool down the heat.

• Health care like:

• Reduce the risk of heart disease and osteoporosis.

• Weight and appetite control, keep you full for a long time.

• Regulating blood pressure, metabolism.

• Promotes bone and immune system health.

• Improved digestive health.

• Reduce symptoms of digestive disorders such as flatulence, diarrhea, constipation.

The product is unique because of the following:

• Fermented from nut milk.

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• Special caramel sauce.

• The combination of nut milk and Vietnamese fruit jam.

• Fresh fruit is used.

• High quality, good for health.

• Outstanding, eye-catching packaging.

• Plant origin, does not contain harmful substances such as saturated fat, lactose, etc.

• Contains many nutrients, vitamins, beneficial bacteria, antioxidants, etc.

III. MARKET ANALYSIS

1. Market size

According to Euromonitor International's statistics, the revenue from yogurt in Vietnam is increasing. For example, in 2010 it reached 3,300 billion VND, in 2012 it was 5,737 billion VND, in 2013 it reached more than 12,000 billion VND. This growth shows the trend of consumers increasingly focusing on yogurt products. This is also a good opportunity for businesses supplying and producing yogurt in Vietnam.

In 2020, the Vietnamese yogurt market is still growing steadily with a scale of VND 9.34 trillion and with the continued adoption of strategies by key players, the market size is expected to grow significantly and is expected to reach a higher structural weight by the end of 2025, with an annual CAGR of 12%.

2.Market growth

In recent years, when the economy has developed and people's income has increased, the demand for yogurt of Vietnamese people has also increased significantly.

Besides, Vietnam's dairy industry in 2019 had a relatively good growth rate. According to the General Statistics Office, yogurt production in 2019 reached about 390 thousand tons, up 17.65% compared to 2018. In terms of sales, yogurt increased by 17.8%.

In 2020, yogurt achieved the highest growth with a CAGR of 12% compared to other dairy products. According to many experts, the Vietnamese yogurt market is expected to continue to maintain a growth rate of 12% per year in the period from 2021 to 2025.

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Picture III.1 Graph - GDP growth of Vietnam in the period 2011-2020

3.Market share

It is estimated that by the end of 2020, Vinamilk will still hold the highest market share in the dairy industry with 43.3%. If including Moc Chau Milk, these two companies account for more than 45% of the market.

According to Euromonitor's statistics, drinking yogurt products (currently contributing more than 38% to the production structure and revenue of the yogurt market). Yogurt industry will reach a consumption of about 560 thousand tons by 2024. With a CAGR of 11.9%/year in the period of 2020 to 2024 (up 10.5% compared to the previous period), the yogurt market still remains potential for development. Therefore, other businesses can completely participate in this market and market exploitation depends only on the size and strategy of each company.

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Picture III.2 Graph Vietnam Dairy MarketShare in 2020 –

4.Market need

• High quality yogurt, good for health, safe for everyone, especially children.

• Yogurt is of plant origin.

• Low-fat or saturated fat-free yogurt.

• Yogurt has many new and attractive flavors.

• Reasonable price, meet the needs.

• Wide distribution network, convenient for buying yogurt.

• Various gifts for children.

5.Market trend

Assessing the industry's outlook in 2021, we realize that the consumption trend can still follow the "K" pattern. Accordingly, businesses producing essential items will tend to develop in a positive direction and vice versa when those items are less necessary.

According to SSI's research, the Vietnamese yogurt market has seen some fluctuations:

• Consumers are switching to 100% plant-based dairy products such as grains, nuts or vegetables. The reason for this trend is that limitations exist in the composition of milk such as lactose, antibiotics, growth drugs, etc., causing harmful symptoms to health.

• Vegan diet is also one of the factors that make consumers use nut milk.

• Nut milk has the 3rd highest nutritional content in the comparison table with other types of milk.

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• Consumers want a low-fat or saturated fat-free yogurt.

• Consumer groups with middle and higher incomes tend to use high-end dairy products. The results from the survey "Milk consumption behavior" conducted by BEAN Survey (November 2020) with 399 respondents proved the essential role of dairy products in the daily life of Vietnamese people. Of these, 64% use milk daily and 55% occasionally use other dairy products every week. According to SSI, the demand for dairy products during the Covid-19 epidemic period increased, with the most being yogurt. In addition to reasons related to habit and convenience, 87.5% of BEAN Survey respondents choose to use dairy products because of “Good for health”, 42% because of “Nutritional” and 32% for “Safety.

IV. PRODUCT DESCRIPTION

1.Product Description

a) Product Ideas

Vinamilk targets 2 main markets: children (6-15 years old) and adult group (16-34 years old, mainly women). With that target customer group, Vinamilk has started to survey and analyze, they realize that customers have a need for a drink with a new, attractive but not unfamiliar taste but still meet the level of demand required nutrition and palatability. Therefore, two types of fruits that meet the requirements of both familiarity and novelty have been selected: cantaloup and banana. With that idea in mind, Vinamilk decided to combine fresh summer fruits with the mild cool taste of yogurt fermented with natural lactic from fresh seed milk. Fermented nut milk is both rich in vitamin E, fatty acids, omega-3s, fiber, unsaturated fats and gutein and zeaxanthin are outstanding antioxidants. While contributing to a low-calorie nutritional drink, it does not reduce the deliciousness, smoothness and freshness typical of a drink representing summer.

b) Product description

Vina Fresh is a nutritious drinking yogurt suitable for all ages. Fresh seed milk, after being naturally lactic-fermented, combined with mashed fruit jams produced according to a special formula in Vietnam has created a completely different product and brought customers the latest irrigation experience. with natural pure fruit sauce. Vina Fresh not only has a special taste of yogurt made entirely from pure, smooth fresh milk to satisfy the most demanding diners, but also provides many nutrients, vitamins and natural minerals from Pure fresh milk, natural fruit, good for health.

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Picture IV.1 Vina Fresh Banana and Cantaloup drinking yogurts

c) Product Line

Cantaloup flavor: Vinamilk has cooperated with membrane owners in Vietnam to import Yubari cantaloup varieties grown with Japanese technology. It is then censored by the workers and pushed into the production line into mashed melon jam according to a special formula that has been censored by Vinamilk at each stage.

Banana flavor: Each banana is collected from the pure Vietnamese banana brand FOHLA, after going through the same censoring and preliminary processing stages but applying a separate recipe different from cantaloup, mashed banana jam. will be moved to the next stage, which is to blend with the fermented fresh milk nut so that they blend together into a standard mixture.

Picture IV.2 Vina Fresh Banana and Cantaloup drinking yogurts

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d) Product Features

Vina Fresh is a nutritional drink that can be used alone as a side meal, combined with oats, cereals and dried fruit for breakfast or combined with daily meals as a nutritional drink.

Vina Fresh can be used to make cakes, drinks, smoothies, ice cream, Mousse cakes, ... suitable for all subject s including vegetarians and vegans.

2.Product Requirements Document

• Capacity: 180ml, 255ml

• Production and Expiry Date: See packaging.

• Directions for Use: Use up after opening.

• Nutrition Facts: (on 100ml)

Packaging Ideas: Take the image of two fruits, cantaloupe, banana and create attractiveness as the main factor to form ideas for packaging.

• Light green under the ridges combined with the pink coral orange flesh is characteristic of cantaloupe. With the main cold tone, we have mixed it with a white background to bring a feeling of cheery and freshness of summer. Associate the customer's mind with the color of the yogurt over the pink of the cantaloupe sauce. Purple is the point that makes this design attractive, it is added with the purpose of highlighting the image of the cantaloupe and attracting curiosity, evoking a new point in both color and image for guests.

• Bright yellow and young green are used to sketch the image of each banana combined with each alternate leaf vein. Because the banana image is very close and familiar to most customers, that's why we combined it with a black background to push the highlight to the highest level with the purpose of attracting the target customer segment with its novelty and uniqueness. Vina Fresh also has the ambition that with this new

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and unique design, any customer will want to pick up this product, even if they just glanced at the yogurt stall.

Packaging Material: Vinamilk always upholds environmental protection, all products are packed with environmentally friendly, easy to decompose, packaging that emits less harmful gases to the environment.

• The paper box has a 6- -1 packaging structure. The first layer is the innermost layer, in in direct contact with food, and is made of polyethylene with the effect of sealing food and keeping heat. The next layer is also made of polyethylene and has an adhesive effect. The third layer is a thin aluminum layer, which has the effect of resisting factors affecting and spoiling milk such as: air, light, bacteria. The fourth layer is a layer made from nylon, the fifth layer is a layer of paperboard to create rigidity and shape the paper box. The last layer is a layer made from nylon that is responsible for preventing moisture from entering and is also the layer used to print illustrations for the product.

• Plastic bottles are made from bioplastic PLA (polylactic acid) which is an eco-friendly biological material but still meets the needs of durable and beautiful packaging.

Picture IV.3 Packaging of Vina Fresh Banana drinking yogurt

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Picture IV.4 Packaging of Vina Fresh Cantaloup drinking yogurt

b) The core product

Provide customers with a more nutritious drink, a multi-functional ingredient suitable for most recipes for drinks and cakes for all audiences.

c) The actual product

There is a special caramel recipe, special taste and deliciousness due to the recipe combined with fresh fruit advice from leading experts. New and eye-catching packaging design.

d) The augmented product

The most comprehensive and healthy nutritional drink today, low calorie suitable for all customers, is a vegan product because it is fermented from nut milk, provides a variety of minerals and beneficial bacteria for health - supports to strengthen the immune system, is the only brand that offers a new and unique flavor first in the Vietnamese market.

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V. BASE CASE FINANCIAL-BUSINESS AS USUAL (OR BASE CASE)

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VI. MARKETING PLAN

1.Excutive summary

a) Introduction

Vinamilk is the biggest dairy company in Viet Nam. We are the leading producer of dairy products in VietNam based on sales volume and revenue. This plan is presented for Vinamilk to fulfill its mission and vision in the Vietnamese market. In reality, we've created a new product for the healthcare industry, and our marketing plan will show that we have a unique opportunity to expand into the Vietnamese market.

b) Description of Vinamilk and Marketing Team

Picture VI.1 Top 10 prestigious food companies in 2021

Vinamilk Company has been around since 1976. Our main products originated from fresh milk, which are designed to increase energy efficiency and reduce malnourishment. Currently, Vinamilk holds up to 75% of the dairy market share in our country, with 183 suppliers and more than 94,000 points of sale spread across the country. Not only that, Vinamilk's products are also exported to countries such as the US, France, Poland, Middle East countries, Southeast Asia... In the third quarter of 2020, Vinamilk's consolidated net revenue reached VND 15,563 billion, up 8.9% over the same period in 2019, in which, domestic business recorded a net revenue of VND 13,264 billion, up 8.9% compared to the same period in 2019 and accounted for 85% of consolidated net revenue.

The parent company's domestic net revenue reached VND 11,902 billion, up 1.5% over the same period in 2019. The second COVID-19 outbreak at the end of July 2020 had an impact on sales, but the situation was not positive. Image has improved in September 2020.

Most of the key product categories recorded growth over the same period in 2019 thanks to appropriate marketing strategies and the launch of new products to meet the nutritional needs of consumers.

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Our Marketing team information:

Name Role Tasks Tran Thi Kim Ngan Marketing

Environment Research

Executive summary, strategic context, and the marketing environment for the product. Au Duong Thanh Marketing Plan Marketing Mix and launching product Truong Ngoc Thu Risks Management Possible risks, measurements, and tactics

c) Description of products or services will be marketed

We've created a new beverage for the healthcare industry, which is outside our current market. This new product provides healthcare companies with greater efficiencies and cost savings not currently offered by existing products. There are similar products designed for other industries, we have loads of competitive advantages to compete with other competitors.

d) Description of customer base and related marketing activities

Our target market is large and can be divided into 2 main categories: B2B segments and B2C segments. For B2B market, we target potential intermediaries among Viet Nam: Supermarkets, convenience stores, schools, factories, … For B2C market, we can define it by age: From 6 to 18 years old; from 19 to 25 years old and from 26 to 50 years old.

e) Marketing program summary

Key marketing investments and expected returns.

Budget Expected returns Product investments (R&D) 800.000.000

Revenue: 550.000.000.000 Promotional programs 60.381.000.000

Unit of measure: VND

f) Summary of financial planning and projections

Our marketing budget for the year is 60.381.000.000, which will be spread over the following marketing activities: Advertising, KOLs, sponsorship, press, events, digital platform and discounts.

2.Strategic Context

The product is expected to launch in April 2022. Marketing plan will be run 1 month before product launch.

We propose to launch 50 million drinkable yogurt products covering Vinamilk's distribution channels. Total investment for product development and marketing plan is expected to be around 56 billion VND, payback within 6 months from the time officially launching.

Net profit for this product is estimated at 60 billion dong, accounting for 10,98% of revenue. Details of the strategic context and associated costs are presented in the table: “Base case financial business as usual (or base case).”

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3.The marketing environment for the product a) Industry and competitive activities

• PESTLE Analyze

Political

− China imposing tariffs on US dairy product boosting Vietnamese dairy industry. − Free Trade agreement has allowed export of dairy products to EAEU. − Vietnam is a peaceful country without war and terrorism.

− Vietnam is agricultural. So, to produce, there are policies that government encourage milk company developing. Therefore, vinamilk can be easily produced and sold, ... According to the Law, milk and almost all kinds of produce from agriculture or health for society have just paid 8% tax.

− Politics is stable for the business of the company. However, Vietnam is a mixed economy so the government still plays a big role in the market.

− The Vietnamese government decreases the foreign trade barrier to attract more investment from foreign investors.

− Government promulgated preferential policies (Approved 2000 billion for projects to develop dairy industry to 2020).

Economic Factor

− Vietnam’s economic growth has become boon for dairy industry.

− Growth in FDI is leading to expansion in operations, make Vietnam becomes a high potential dairy market.

− According to survey data from the VN report, food - beverage currently accounts for the highest proportion in the monthly spending structure of consumers. The Vietnam Assessment Report Company said that Vietnam is one of the markets with potential food and beverage consumption. Consumption index of food production and beverage production in the first 9 months of 2018 increased by 8.1% and 10.2% respectively over the same period last year (GSO) => Positive outlook, revenue attracts foreign investment. − Deposit Interest Rate in Vietnam is expected to reach 4.37 percent by the end of 2021,

according to Trading Economics global => Tax cut down and interest rate down. − Vietnam is estimated to post a gross domestic product (GDP) growth of between 3 percent

and 3.5 percent in 2021.

− CPI for the first seven months of 2021 has increased by 1.64 per cent compared to the same period last year while inflation has increased by 0.89 per cent => the cost of production will increase.

− The maximum average Gasoline prices per liter was 23,145 vnd at the time of translation. It is expected to reduce and save transportation costs when the epidemic ends. − Worldwide economical and political instability.

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− Vietnam's GDP trend increased every day, it is a great opportunity for business. It means that the income and life will go up and the demand to spend money is high.

Social factor

− Increasing young population in urban areas has impacted dairy product market. Over 68% of the world’s population is living in urban areas and this trend is increasing every day and is expected to surpass 75% by 2050. Urbanization is a societal positive which enables people to come out of poverty and to live in urban areas with a different lifestyle. As the urban population index is surging, they want to experience more organic dairy products. The new urban population is also inclined towards soy milk, nut milk, etc.

− Awareness of health and increased income and consumption has increased demand.

Population demographic:

The growth Vietnam has seen in the recent past is expected to continue, however, at an increasingly slower rate. By 2035, the population will be growing half as quickly as it is today. It is projected that the Vietnam population will break 100 million by 2022. => It is a huge potential for the development of the dairy market?

Social mobility:

Vietnamese consumers increasingly believe in the benefits of yogurt as a source of nutrition, strengthening the immune system, digestive support, and beauty. According to data from Kantar Worldpanel, in Q1/2020, when the covid pandemic broke out, consumer interest in health-related products increased sharply. Products that enhance immunity and nutrition for children and the elderly achieved impressive growth, of which drinking yogurt grew by +36% in urban areas and +17% in rural areas.

It is estimated that the yogurt industry will reach a consumption of about 560 thousand tons in 2024F, corresponding to a compound growth rate of +11.9%/year in the period of 2020-2024F (higher than +10.5 % of the previous year).

Level of education:

Vietnamese parents who are concerned about their child’s health are willing to spend for buying milk and other relevant stuff.

Technological factor

− Incorporating TPM and using ERP data will streamline operational process. − Heavy investment in modern technology for dairy farming.

− New technology increasing efficiency in dairy product lines.

− Quality management technology product quality management according to ISO. Environment factor

− Harvesting and re-circulation.

− Combating climate change through the use of renewable energy. − Natural environment: Hot and humid monsoon climate.

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− Environmental issues: Pollutions from dairy farms create problems National standards have been applied:

▪ TCVN 5945: 2005 - National standard methods for the examination of industry wastewater.

▪ TCVN 5939: 2005 - National Technical Regulation on Industrial Emission of inorganic substances and dust.

− Vinamilk has been choosing the right places for farms. − Storms hurricanes and other natural disasters. − An ecological consequence of production processes. − Disposal of materials.

− Environmentally friendly through the concept of use, reuse and recycle.

− Saving water through rainwater.

Legal factor

− Compliant on all regulatory standards.

Vinamilk must ensure the production, which is safe and healthy for customers by using modern systems. The company should follow the rule of food safety not only in Vietnam but also other organizations globally. The government applied the ceiling market price for baby milk under 6 years old. Vietnam has many different tax rates thus it affects the price decision of the company.

• 5 Forces

Customers

− Domestically, Vinamilk is the leading enterprise in Vietnam in producing milk and dairy products. Currently, Vinamilk accounts for about 40% of the national market. Currently, the company has over 240 distributors on Vinamilk's product distribution system and over 300,000 points of sale nationwide.

− Vinamilk focuses on business performance mainly in the Vietnamese market, which accounted for about 80% of revenue in the past 3 financial years. Therefore, the bargaining power of the client is relatively low. In addition, Vinamilk also exports products outside Vietnam to countries such as Australia, Cambodia, Iraq, Kuwait, The Maldives, The Philippines, Suriname, UAE and the US.

− The brand of yogurt products is very diverse from texture to taste and is interchangeable, the price factor is no longer so important to consumers when choosing yogurt products. Companies compete with each other by quality, product variety, brand strength, etc., then price. For yogurt products, when the price of raw materials is high, the dairy company can raise the price of the product that customers still have to accept. Therefore, the bargaining power of buyers is low.

− As for the distribution intermediaries, the company will give discounts and commissions. The distribution points can gain considerable power over the brands, as they can influence

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the decision of which yogurt product to buy for retail/final customers through consulting, product introduction. However, intermediaries have the ability to have a big impact on businesses because they can easily navigate customers. If the policy of commissions and discounts is not satisfactory, they can direct customers to other products to increase their income.

− On the other hand, the end customer will care more about the product brand, difference, outstanding effect than price. Vinamilk now considers to build an image for the product quality, brand, public relations, ... followed by price.

− Since this is an essential commodity, widely used by children, mothers and the elderly, when input materials increase, businesses can increase prices without affecting sales. Threat of substitute products

− Some recommended substitutes: Greek yogurt, nut-based yogurts such as almond yogurt, coconut milk yogurt, soy yogurt, ... Besides, live yeasts can also be mentioned: Proby, yakult, ...

Potential Rivals

− Although the market share of other enterprises is somewhat modest compared to Vinamilk, they do not give up this playing field. Recently, according to research results of Kantar Worldpanel Vietnam Company, only live yeast yogurt produced in Vietnam has grown by 15% in the past year.

− A market expert analyzed: "Although Vinamilk's market share is overwhelming, they cannot completely cover the market because the it is getting bigger and bigger. That's why other businesses are still willing to enter this market. The market share is small, but the oppotunity for development is huge, so market exploitation depends on the size and strategy of each company. As for being oppressed by changing opponents, it's not a concern."

− According to statistics from Euromonitor International, the revenue from yogurt in Vietnam is increasing. For example, in 2016 it reached 3,300 billion VND, in 2017 it was 5,737 billion VND, until 2018 it reached more than 12,000 billion VND. This growth shows the trend of consumers increasingly focusing on yogurt products. This is also a good opportunity for businesses supplying and producing yogurt in Vietnam. − Not to mention, currently compared to other countries in the world, the ratio of using

yogurt compared to milk in Vietnam is still very low. For example, in France this ratio is 80:20, in Singapore it is 70:30 or in Thailand it is 50:50. Meanwhile, the ratio in Vietnam is only about 20:80. This is also a motivating factor for businesses to push for this market. Barriers to entry into the industry

− Distribution channels: Up to now, Vinamilk has expanded its distribution channel system to 63 provinces and cities across the country. From small grocery stores, agents to supermarkets, large shopping centers, in order to attract them, brands need to build attractive and thoughtful strategies to convince these channels to bring their products. yours into the system.

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