Vinamilk is Vietnam's largest dairy company and 15th largest company overall. It has a wide range of over 200 milk-based products targeting different customer groups. Vinamilk has been successful due to its large advertising investments, diverse product lines, and focus on high product quality. It maintains the top market share in several product categories such as condensed milk and powdered milk. The company also has a large national distribution network and exports products to over 20 countries worldwide.

1. Group 2 – TATM K5C
English for business 2
Members: Vu Thi Van Anh
Dinh Hong Ngat
Tran Thi Hong Ngoc
Nguyen Thi Thu Hoai
I.
Definition of brand management
Bran management is a communication function that includes analysis and planning
on how that brand is positioned in the market, which target public the brand is
targeted at, and maintaining a desired reputation of the brand. Developing a good
relationship with target publics is essential for brand management.
Tangible elements of brand management include the product itself; look, price, the
packaging, etc. The intangible elements are the experience that the consumer takes
away from the brand, and also the relationship that they have with that brand.
A brand manager would oversee all of these things.
II.
Brand management of Vinamilk company
1. Introduce Vinamilk company
Vinamilk is the biggest dairy company in Vietnam. Based on the UNDP
2007 Top 200 largest firms in Vietnam report, it is also the 15th largest
company in Vietnam. Vinamilk brand is famous about are condensed
milk, powdered milk, fresh milk, soya milk, yogurts, ice-cream, cheese,
fruit juice, coffee and other products derived from milk. It has products
aiming at special groups of customers like kids, adults and elderly and
also products for families and enterprises like cafeterias.
2. Competition of advantages
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2. Group 2 – TATM K5C
English for business 2
- Vinamilk is the biggest dairy company in Vietnam. Based on the UNDP 2007 Top
200 largest firms in Vietnam report, it is also the 15th largest company in Vietnam.
- Vinamilk is undoubtedly a familiar and trusted brand in the mind of Vietnamese
consumers during the last 34 years.
- An extensive distribution network located nationwide and continued being expanded
over time to bring its core products to consumers in a fast and effective way.
- A range of modern factories located along Vietnam that helps to reduce transportation
expenses and a system of the state-of-the-art machinery and equipment.
- The loyal and cooperative relationships with both local and overseas suppliers allow
the company to have a stable material source at the reasonable prices.
- Vinamilk owns a management team deeply experienced in dairy business and
production
3. Product strategy
- Vinamilk products are diverse and rich in variety with more than 200 dairy products:
sweetened condensed milk, fresh milk, milk powder, Ice-cream, cheese, yoghurt. And
many other products as: Beer, Coffee, Fruit…
- Revenue structure of vinamilk:
+Sweetened condensed milk accounts for 34 percent of revenue.
Sweetened condensed milk is product line the highest proportion in the structure of
the domestic sales of the company. In 2007, this product line growth rate of 38% and
79% market share.
+Fresh milk accounts for 26 percent of revenue.
In 2007, fresh milk growth of 18%, accounting for about 26% of the company's
revenue and higher proportion of sales in the second compared to all the company's
product line. VNM Milk accounted for 35% market share. These product lines are
highly diverse with many brands.
+Milk power accounts for 24 percent of revenue.
Milk powder accounted for 24% of 2007 revenue Vinamilk. Vinamilk (along with
Abbott and Dutch Lady) is one of three market-leading companies in Vietnam milk
sales, which accounted for 14% market share VNM.
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3. Group 2 – TATM K5C
English for business 2
+Yoghurts accounts for 10 percent of revenue
+Other accounts for 6 percent of revenue.
== > proportion of revenue from fresh milk and milk powder products increase.
Proportion of revenue from milk and yogurt will be lower, due to the growth potential
of milk and milk powder in larger markets than other products
- Sample code, product packaging:
The trend today is consumer focused sample code, product packaging grasps the
trend, and many companies did not hesitate to pour investment costs for packaging.
Even after this campaign, they can take disadvantage of the sale price, but in return,
increase
Sales and consumer remember to brands more.
- Vinamilk committed to providing the best products for consumers. Vinamilk has
invested in technological innovation to manufacture healthful products .The quality is
being improved to meet the needs of consumer. The material is selected carefully.
You are really comfortable to use Vinamilk Products.
- Comprehensive cooperation to improve product quality
+Comprehensive cooperation National Institute of Nutrition
+Comprehensive cooperation with DSM Group, loza Group (Sweden), chr.hanen
Group (Denmark)
4. Price strategy
- Effecting the price strategy
+Business objective
+Prices occupation
+Business production cost
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4. Group 2 – TATM K5C
English for business 2
+Demand, consumer psychology
+Prestige and quality.
- Price policy
+Price stability:
VNM price remained stable from 2008 until now. Nowaday, VNM's price in the
market is only 1/3 of the price of foreign. Diealac alpha step 2: 214.000_ Meiji gold 2:
452.000; physiolac 1: 465.000.
Policy more expensive to have better quality
A series of brands vinamilk is upgraded such as: Dielac alpha up to dialac optimum
(123: 188k/326)- have colostrums, friso up to friso gold( 3: 240k/435k…900g),
dumex up to dumex gold(1 220/ 435k ….800g)
+Policy unchanged prices, but higher quality: line positioning pasteurized milk and
yoghurt.
+Procurement policy of vinamilk.
Policy: procurement of raw materials at low prices in areas with pasture, but of good
quality because due to transport difficulties
Besides, the company supporting prices for some models of sustainable development.
The cases HTX CNBS ever growth : milk procurement with prices more than 100đ/kg
- Fact that
+Despite the profit race of foreign dairy companies, Vinamilk has maintained one
price since 2008.
+Many people thought that the price of foreign milk is more expensive than domestic
milk so it is better. But really, it is same materials and almost Vietnam milk materials
are imported. So nowadays, more and more women choose domestic milk for their
children and Vinamilk is a best choice.
- Efficiency of price strategy:
+Margin of Vinamilk increased significantly from 24.3% in 2006 to 31.7% in 2008.
+Although input price volatility increased sharply in 2007 and higher in 2008, but
remained VNM’s maintain profit margins
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5. Group 2 – TATM K5C
English for business 2
=>Management capabilities regulatory costs the price is very good.
5. Distributrion
- Vinamilk products are exported to 23 countries, including the
US, Australia, Canada, Russia, Japan, Thailand, the Republic of Korea, Turkey, Sri
Lanka, Philippines, and the Middle East.
- In Viet nam, Vinamilk head office is stay at Ho Chi Minh city. Moreover, Vinamilk
have 3 subsidiaries in major cities such as: Ha noi city, Da Nang city, Can tho city.
- In Vietnam, the company has more than 200 distribution centre and over 140,000
outlets.
- Beside, our products are sold in all systems of supermarket nationwide. You can
choose many different ways for shopping such as: agent, market, supermarket, store,
department store, high street store…
 It’s convent. You can chose the most suitable way of shopping
6. Advertising
- This is a logo for Vinamilk. You can easy to recognize logo of vinamilk which have 2
main colors. It is white colors and blues colors.
 This colors make you fell fresh and comfortable
- Vinamilk use many ways to attract customer such as: television, billboards, radio, they
invest a lot of money for advertising.
 It is one of the most important to have good brand management of vinamilk.
- Many people like watching advertising of vinamilk. Especially the children, because
vinamilk use animal imagine. The cow is brand representative. This is lovely animal.
III. Conclution
That's all we have to say about brand management of Vinamilk. Now, I will
Summazize it. Vinamilk is brand successful. Because they have 3 important things to
make every people like this brand. The key is invested for advertising. The second
thing is product diversity. And the last thing is high quality. Thanks for listening!
5

6. Group 2 – TATM K5C
English for business 2
=>Management capabilities regulatory costs the price is very good.
5. Distributrion
- Vinamilk products are exported to 23 countries, including the
US, Australia, Canada, Russia, Japan, Thailand, the Republic of Korea, Turkey, Sri
Lanka, Philippines, and the Middle East.
- In Viet nam, Vinamilk head office is stay at Ho Chi Minh city. Moreover, Vinamilk
have 3 subsidiaries in major cities such as: Ha noi city, Da Nang city, Can tho city.
- In Vietnam, the company has more than 200 distribution centre and over 140,000
outlets.
- Beside, our products are sold in all systems of supermarket nationwide. You can
choose many different ways for shopping such as: agent, market, supermarket, store,
department store, high street store…
 It’s convent. You can chose the most suitable way of shopping
6. Advertising
- This is a logo for Vinamilk. You can easy to recognize logo of vinamilk which have 2
main colors. It is white colors and blues colors.
 This colors make you fell fresh and comfortable
- Vinamilk use many ways to attract customer such as: television, billboards, radio, they
invest a lot of money for advertising.
 It is one of the most important to have good brand management of vinamilk.
- Many people like watching advertising of vinamilk. Especially the children, because
vinamilk use animal imagine. The cow is brand representative. This is lovely animal.
III. Conclution
That's all we have to say about brand management of Vinamilk. Now, I will
Summazize it. Vinamilk is brand successful. Because they have 3 important things to
make every people like this brand. The key is invested for advertising. The second
thing is product diversity. And the last thing is high quality. Thanks for listening!
5