Principles of marketing (vinamilk) PDF

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THE MINISTRY OF EDUCATION AND TRAINING UEH UNIVERSITY SCHOOL OF INTERNATIONAL BUSINESS - MARKETING DEPARTMENT OF FUNDAMENTAL MARKETING

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GROUP REPORT

FUNDAMENTAL MARKETING ANALYZING AND MANAGING THE SALES FORCE FOR VINAMILK’S GREEN FARM FRESH MILK Members: Vo Van Huu Nghia Nguyen Huu Hoai Nam Phan Hoang Long Do Nguyen Khang Course code: 22D1MAR50312002 Lecturer: Associate Professor Ph.D Tran Mai Dong

- MARCH, 2022 -

I. Introduction

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1. Urgency of the topic

3

2. Research objective

3

2.1 General objective

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2.2 Specific objective

3

3. Object and scope of research

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4. Method

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II. Layout

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1. Introduction about Vinamilk and Vinamilk’s Green Farm fresh milk

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1.1 Vinamilk

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1.2 Vinamilk’s Green Farm fresh milk

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2. Sales Force

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2.1 Definition

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2.2 Classify

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2.2.1. The company's sales force

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2.2.2. Sales force by agent

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2.2.3. Mixed salesforce

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2.3. Mission and goal

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3. Vinamilk Green Farm fresh milk’s Sales Force management plan

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3.1. Marketing strategy and structure for Vinamilk Green Farm fresh milk

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3.1.1 Marketing Strategy

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3.1.2 Marketing structure

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3.2. Analyzing and managing the Sales Force for Vinamilk’s Green Farm fresh milk

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3.2.1 Sales force structure

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3.2.2. Recruiting, selecting and training policies for the sales force

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3.2.3. Compensating, supervising and evaluating policies for the sales force

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3.2.4. Motivation policy for the sales force

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III. Suggestions & Conclusion

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1. Suggestions

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2. Conclusion References

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I. Introduction 1. Urgency of the topic In a market economy, along with international economic integration., more and more businesses participate in the product supply market with products and services that are the same or similar, making competitive pressure increasingly fierce. To attract customers, improve market share to help businesses survive and develop, each business must find ways to improve quality of products and services, creating value-added services to improve competitiveness. To do all the above jobs well, every business must have good leaders and an excellent sales force. Sales force management plays an important role in ensuring the success of any business. A business can provide products and services that satisfy customers about the product element, but do not satisfy customers in terms of distribution and regulation of products and the ability and qualifications of the seller, and do not care about customers, thereby reducing supplier satisfaction, when given the opportunity. Customers will find other suppliers to satisfy them more. Therefore, good governance helps businesses have a distribution system perfect from marketing to marketing, sales. From there, expanding the customer market, increasing revenue. Starting from the importance sales force management, our team has chosen the topic: “Analyzing and managing the sales force at the Company Vietnam Dairy Products Joint Stock Company (Vinamilk) for Vinamilk Green Farm fresh milk products” for research, which outlines a number of responsibilities of managers, sales staff and business methods of the company. 2. Research objective 2.1 General objective On the basis of analyzing the current situation of sales force management at Vietnam Dairy Products Joint Stock Company (Vinamilk) for Vinamilk Green Farm fresh milk products, we aim to propose solutions to improve the efficiency of Vinamilk sales force. 2.2 Specific objective - Systematizing the theoretical and practical basis of Vinamilk, salesforce and sales force management of Vinamilk for Vinamilk’s Green Farm fresh milk - Analyzing and managing the sales force for Vinamilk’s Green Farm fresh milk - Proposing some solutions to improve the sales force management of Vinamilk for Vinamilk’s Green Farm fresh milk. 3

3.

Object and scope of research

The object of the research is issues related to the management of the sales force of Vinamilk Company for Vinamilk’s Green Farm fresh milk from January to March 2022. 4.

Method

The topic is researched by the following basic methods: observation method, descriptive method, actual data collection from Vinamilk's website and other relevant reputable websites.

II. Layout 1. Introduction about Vinamilk and Vinamilk’s Green Farm fresh milk 1.1 Vinamilk Vietnam Dairy Joint Stock Company (Vinamilk), HOSE stock code: VNM, is a manufacturing and trading company of milk and dairy products as well as related machinery in Vietnam. Vinamilk is the largest dairy company in Vietnam. Based on the United Nations Development Programme (UNDP) 2007 Top 200 largest firms in Vietnam report, it was also the 15th largest company in Vietnam and formerly the most valuable public company listed in Vietnam. In 2010, it was the first company in Vietnam to be included in the Forbes Asia's 200 Best Under a billion list that highlights 200 topperforming small- and mid-sized companies with annual revenue under $1 billion. The company was established in 1976 as the state-owned Southern Coffee-Dairy Company, to nationalize and take over the operations of three previously private dairy factories in South Vietnam: Thống Nhất (belonging to a Chinese company), Trường Thọ (formerly owned by Friesland Foods, best known for its production of condensed milk that was widely distributed across the South) and Dielac (Nestlé). It was renamed United Enterprises of Milk Coffee Cookies and Candies in 1978. It became the Vietnam Dairy Company, formally established in 1993. In 2003, following its IPO to the Ho Chi Minh Stock Exchange, the company legally changed its name to Vietnam Dairy Products Joint Stock Company (Vinamilk). The principal activities of the Vinamilk are to produce and distribute condensed milk, powdered milk, fresh milk, soya milk, yogurts, ice-cream, cheese, fruit juice, coffee and other products derived from milk. Vinamilk products such as powdered milk and condensed milk are also exported to the Middle East, Cambodia, the Philippines and Australia. 1.2 Vinamilk’s Green Farm fresh milk Green Farm fresh milk – an environmentally-friendly product of Vinamilk. New high-grade Vinamilk’s Green Farm fresh milk, a product made of fresh milk sourced at the Vietnamese leading milk producer Vinamilk’s Green Farm with a 4

light and pure taste, has been introduced to consumers in Viet Nam. Green life Using delicious, nutritional and environmentally-friendly products is trendy in the Vietnamese market. It is not only the choice of young people but also of many other groups of customers such as mothers and fathers, or even babies. The new product of Vinamilk is not only the choice of young people but also many other groups of customers such as mothers and fathers or even babies. Many consumers are now more interested in choosing the “green” factor relevant to processing lines with environmental friendliness and natural protection. It is also the reason that the new Vinamilk Green Farm product made of fresh milk from the Vinamilk Green Farm ecological farm system attracted attention immediately upon launch. The story of “Green Farm” With a scale of thousands of hectares and tens of thousands of cows, Vinamilk’s eco-farm system stands out due to four factors, including natural underground water source and ecological detention basins, natural food sources rich in nutrients, no use of pesticides and chemical fertilizers, and imported purebred breeds. The ecosystem of Vinamilk Green Farm has three farms in the central provinces of Thanh Hoa and Quang Ngai and the southern province of Tay Ninh, with tens of thousands of cows. At the farm, the natural groundwater is considered “the source of nourishing life” as it is the water supply source for plants, grasslands and corn, contributing to creating eco-detention basins and keeping the air cool and fresh. The Vinamilk eco-farm system also owns fields spanning thousands of hectares, with varieties of Mombasa and Ruzi grass, oats and fresh corn – a natural food source rich in nutrients, which is green and clean for dairy cows. The dairy herd at Vinamilk eco-farm is the purebred breed imported from the US, Australia, and New Zealand. The farm applies 4.0 technology to monitor the health of dairy cows with electronic chips, and supply diets served by automatic feeding robots. The cows also enjoy music, massages and cool baths every day, creating a relaxing and cool living space to ensure quality and nutritious fresh milk. With pure fresh milk from eco-farm systems, produced by modern closed technology and canned with premium design in capacity of 110ml, 180ml suitable for daily use, the green farm fresh milk with sugar-sweetened flavors and less sugar, has met the diverse dairy demands of consumers.

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2. Sales Force 2.1 Definition Sales force is understood as the set of structures in the organization of the commercial contract force of a company. The sales force is not only a vehicle for selling products, but also an important factor in the implementation of the company's commercial policies. Therefore, the existence and development of the sales force is associated with the organization and implementation of commercial activities of the enterprise. Sales force is understood as the totality of material and immaterial factors, which is a collection of facilities equipped to best serve the consumption activities of the enterprise's products. Sales force is also understood as the entire organizational structure of an enterprise's commercial activities, from senior managers to sales staff. According to BusinessDictionary, a sales force is the number of salespeople that are used and managed by a company. The sales force is an important bridge between the company and the market, helping to bring revenue to the business. 2.2

Classify

2.2.1. The company's sales force Sales force including all employees directly responsible for sales operations. This force is of two types: inside sales force and outside sales force. Inside sales force Inside the sales force are salespeople who conduct business from their offices via telephone, online and social media interactions, or visits from prospective buyers. Most of this force is usually concentrated in the office and rarely has direct contact with customers. The majority of customer contact by phone has the main task of promoting sales or providing sales support services, tracking orders, checking stock, inventory ... This can be used as a primary force within the company or as a support force to support an external sales force. Outside sales force Outside sales forces are salespeople who travel to call customers in the field. This force is often organized geographically. Outside sales forces are responsible for direct contact with customers, usually in the customer's business area. This force is used quite commonly in the production of consumer goods, services and industrial goods. This force is usually quite large, but they are often well-trained, have product knowledge and often have a progressive spirit, desire to have a good income and have opportunities for promotion; Therefore, it is necessary to establish the most 6

effective management policies and methods, this is a very necessary job of administrators. 2.2.2. Sales force by agent There are many types of agents, but in general, they are all relatively independent traders whose work is to represent the manufacturer and often enjoy agency commissions. The company's agents may have different names and sizes, but they all have common characteristics such as: commissions, costs and sales are directly related to each other; As a result, companies may use agents to reduce sales force costs. Agents are often divided into a clear geographical area, have a local sales force quite often, so they will ensure the number of customers in the region quite quickly. If the company itself penetrates into these geographical areas, it is much more difficult and laborious, especially for new products. Thus, the use of agents will often help the company save costs, penetrate the market more easily and manage distribution networks more effectively. 2.2.3. Mixed salesforce Many companies use this type of quantitative sales to quickly field the market. The company uses both its own sales force and dealer network to enter a variety of markets. Restrictions on how a building materials and interior decoration company can use the company's gear energy to reach and deliver goods to the main contractors at the city table and for these people in the area. The remaining addresses such as regions and provinces, the company uses on-site agents. This model is effective when the company trains its employees well and provides a good policy for the dealer network. 2.3. Mission and goal + Mission: Vinamilk is constantly diversifying product lines, expanding distribution territories to maintain a sustainable leading position in the domestic market and maximize the benefits of the Company's shareholders. + Objective: To become one of the leading health food and beverage groups in Vietnam, the company started implementing a project to expand and develop the beverage industry in favor of health and the project to scale back production in the South. These are two key projects in the long-term development strategy of the company.

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3. Vinamilk Green Farm fresh milk’s Sales Force management plan 3.1. Marketing strategy and structure for Vinamilk Green Farm fresh milk 3.1.1 Marketing Strategy 1. Products In addition to choosing delicious nutritional products, consumers are increasingly interested in environmentally friendly factors. It is not only a trend of young people but also the choice of many customer groups Choosing the "green" factor, many consumers are now more interested in how their products are made, in that process there are elements that are environmentally friendly and protect nature. be respected. That is also the reason why the new Vinamilk Green Farm Fresh Milk with its milk source from the Vinamilk Green Farm eco-farm system has generated interest right after its launch. “Fresh milk from Green Farms helps the product have a delicious, light, and pure milk taste. This will be a gift of health from nature that Vinamilk cherishes to give to consumers”, a representative of Green Farm fresh milk brand shared on the occasion of the product launch. 2. Selling price Vinamilk has many products, but we will emphasize the pricing strategy of Green Farm fresh milk. Despite the competition for profits from foreign dairy companies, Vinamilk has maintained a good reputation since 2008. Many people think that the quality of foreign milk is better than domestic milk, but most of the dairy ingredients in Vietnam are imported from foreign. Therefore, today many families choose domestic milk for their children and Vinamilk is one of the best brands, in terms of both quality and price. In addition, Vinamilk also improved some products to improve quality and cost. 3. Channel Distribution Vinamilk built a wide network, ensuring the fastest delivery of products directly to users. Vinamilk's dairy products have become popular and easy to find throughout Vietnam due to the use of 3 main distribution channels, the first channel is the supermarket system, from supermarkets such as Coopmart, Big C to small 8

supermarkets such as Vinmart, Family mart, B's Mart. The second distribution channel is key accounts such as schools, hotels, restaurants and the final distribution channel is through agents with more than 220,000 stores in 63 provinces and cities in Vietnam (ISAAC 2019). These channels and distributors nationwide have brought Vinamilk's products to all parts of Vietnam with the same quality. Due to the development of e-commerce, Vinamilk also develops an online store with the website https://giacmosuaviet.com.vn/ and sells its products through online networks such as Shopee, Lazada,... In addition, Vinamilk is always looking for opportunities to expand export markets. Many kinds of nutritional products of Vinamilk have been consumed in more than 54 countries and territories. 4. Promotion Vinamilk's multimedia marketing strategy focuses on the message "100% pure fresh milk", which both conveys the competitive advantage of the product and increases its credibility to consumers. *Advertising - Vinamilk Digital Marketing Campaign Digital channels that Vinamilk uses for advertising campaigns include: TVC: A short trailer with a combination of images, motion, and sound. This form of advertising can appear anywhere, such as on HTV7, VTV1, VTV3 with a duration of fewer than 35 seconds. Video: Advertising is short but must make a strong impression on consumers through images, sounds, and attraction. At the same time, it must reflect the product's image as dairy, playful and lovely. With a priority Video Marketing strategy, Vinamilk has become the first consumer packaged goods brand in Southeast Asia to reach one million subscribers on YouTube. Radio: Audio Clip 50 seconds but must prove the use of fresh milk. For example: + Growing height, healthy body, high resistance, beautiful skin,... Online Marketing: Selling online becomes an effective form. Vinamilk opens an online sales channel for consumers to order and have home delivery. In addition, 9

Vinamilk also advertises on websites in Vietnam such as www.vnexpress.com in the form of banners and clips, especially using website optimization (SEO) tools. In advertising strategies, Vinamilk promotes unlimited creativity. As a company specializing in the production of dairy products, the image of a cow often appears in Vinamilk's ads, especially funny images that attract children such as cows dancing, singing,... Vinamilk succeeded in building brand awareness with aggressive marketing and advertising campaigns mainly focused on Vietnamese families (HBR Business School 2019). In the campaign named "Vinamilk 40 years - Rising to Vietnam" in 2016, Vinamilk aims at the happy life of Vietnamese children and nurtures young talents with pure fresh milk. Vinamilk has successfully conveyed the message that Vietnamese children will grow up happy and healthy thanks to high-quality products (Vinamilk 2016). In the advertisement titled "Vinamilk Organic Fresh Milk - Pure goodness from a European standard farm on the Da Lat plateau" in 2020, Vinamilk introduced the image of a high-quality product that meets European standards, promising to bring nutrition to the Vietnamese family (Vinamilk 2020). In addition to bringing benefits to people's health, Vinamilk also enhances brand recognition by focusing entirely on environmental issues. school and social responsibility. *PR Vinamilk is known for many public activities such as the "6 million glasses of milk for poor children" strategy. With the noble ideal of improving the race, this program has a great influence and receives the support of the media and people across the country. Besides, Vinamilk also contributes to many other community activities. In the campaign "1 million trees for Vietnam" launched in 2012, Vinamilk has so far planted nearly 1 million trees in Vietnam, which not only raises people's awareness about the environment but also helps fight pollution and global warming (Law 2020). In the campaign "Vinamilk - Million steps, repel Covid-19" in 2020, Vinamilk donated 60,000 medical masks, 6,000 boxes of hand sanitizer and more than 86,000 boxes of milk to more than 6000 underprivileged children across Vietnam ...