Vinamilk Project free essay sample

Vinamilk, a dairy company which is facing with problems, and building a marketing plan to help the company overcome its problems. The project requires students to apply knowledge taught in â€Å"Consumer Behavior† course in company with critical thinking to figure out the solution. The information used to  demonstrate  the project is mostly found on the internet, and some  is collected  from students’ friends and relatives who have used  Vinamilk  product. Company  background-  Vinamilk  is the leading producer of dairy products in Vietnam based on sales volume and revenue. Their products range from core dairy products such as liquid and powdered milk, to value-added dairy products such as condensed milk, drinking and spoon yoghurt, ice cream, and cheese. They offer one of the largest dairy portfolios in Vietnam, across a wide  selection  of products, flavours, and packaging sizes. According to Euro  monitor,  Vinamilk  has been the number [1] dairy player in Vietnam for the three years ending 31 December 2007. We will write a custom essay sample on Vinamilk Project or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Since commencing operation in 1976 they have built the largest distribution network in Vietnam and have leveraged their network to introduce new products to the market, such as juices, soya milk, bottled drinking water and coffee. Vinamilk  market  the majority of  their products under their â€Å"Vinamilk† brand, which  has been designated  as both a Famous Brand and one of the Top 100 Strongest Brands by the Vietnamese Ministry of Industry and Trade in 2006. They have also been voted the top brand in the â€Å"Top Ten High-quality Vietnamese Goods† for each year between 1995 to 2007. They also receive many awards, such as: * The certificate of â€Å"High-quality Vietnamese Goods in 2009† granted by Saigon Marketing Magazines, voted by readers through the survey made by this magazine. * â€Å"Gold medal for food safety and ensured hygiene in 2009† granted by Vietnam Food Administrator. * The certificate and cup for â€Å"The most favorite brand in 2008-2009† granted by Saigon  Giai Phong  Newspaper * Merit certificate and award of â€Å"Green Business† granted by the People’s Committee of Ho Chi  Minh  City to three entities of  Vinamilk,  i. . Saigon Dairy Factory, Thong  Nhat  Dairy Factory and  Truong  Tho Dairy Factory in 2009. * Golden cup of â€Å"Securities Prestige Brand† and award of â€Å"Vietnam Top Rank Corporation in Vietnam Stock Market in 2009† granted by Securities Business Association, Credit Information Center, and Vietnam Securities Magazines. * Award of â€Å"Top brands of Vi etnam in 2009† granted by Vietnamese Associations of Science and Technology, Southern Institute of Science and Technology and Vietnamese brand magazines. Vinamilk  Ã‚  currently  focus on business activities in the fast growing Vietnamese dairy market, which according to  Euromonitor  has grown at a CAGR of [7. 85]% from 1997 to 2007, and produce  the majority of  their products at their [nine]  operational  production facilities with a combined capacity of [570,406] tones per annum. Vinamilk  have the leading distribution network in Vietnam, giving them broad access to consumers. Vinamilk mission is commits to bring the communities the best-quality nutrition source that conveys our respectability, love and responsibilities for the people, life and society. Problems – in the last three years,  Vinamilk  Company has been going down because of its poor product quality and customer service. First, customers were complaining about its poor quality product which were infested, mildew, sour, smell weird. Second,  customers also got  unpleased  by bad working attitude of employees. Third problem were the customer services. Many times the customer tries to contact the customer service Department but they did not respond. Finally, the customer is not completely satisfied by the problem solving of the company. Many cases of poor quality products but they just put out the reason that the product  was damaged  during transit. In brief,  Vinamilk  is really delivering a bad product and service which could absolutely ruin the business if they do not tackle the problems soon. Here are some typical complaints from customers: â€Å"I bought a carton of 48 boxes  Vinamilk  180ml  remain  in their shelf of 5 months. When drinking more than a dozen boxes, milk had smell strange and sour. Children drink was colic†- 22 June 2011 by Dang Van  Phung, Da  Nang  City, VN. I bought 4 boxes  Vinamilk  180ml  remain  in their shelf. When i gave my son the last boxes, I found they get stiffness, swollen. After that  an Vinamilk  employee came to me with an unclear explanation and recall this boxes, and gave me a carton of 48 boxes  Vinamilk which they call a gift. I saw that the attitude of  Vinamilk  employee when solve this problem as not to respect the customer. No apologies and explanations to customers, this represents a lack of accountability to their products when placed on the market. † 14 December 2011 by Dang Le  Thang, Bien  Hoa  City, VN. I bought a carton of 50 bags  Vinamilk  220ml   at supermarket Coopmart,   remain  in their shelf. During use, he found more than  two-thirds  of milk get stiffness, swollen, milk flows out and the phenomenon of bacterial infections. † 1 April 2012 by Nguyen Cong  Phuc, My Tho City, VN. â€Å"Vinamilk ignore responsibility for the health of consumers when they buy and eat moldy milk of Vinamilk† 10 July 2012 by Nguyen Van Dung, Ha  Noi, VN. Short-Term Strategy – are temporary pr omotion, incentives to encourage customers to come back. These will just  implement  in a short period of time. First,  Vinamilk  can attract customers by â€Å"Discount price†. This is the simplest and easiest method. For Example: discount product price from 5% 10%. Another method is giving â€Å"gift or lottery ticket†. This is also a very effective trigger. For instance, when buying a product, customers  have a chance  to win some prizes. They  can win a trip or a household products or a year using products of  Vinamilk. Moreover, when buying product of  Vinamilk, customer will receive a gift such as a t-shirt, clock, and toys for their child Long-term strategies – These strategies will not only help  Vinamilk  overcome its current problems, but they are also strategic weapons which make the company superior to its competitors. Therefore, they  should be  implemented immediately and maintained in the long run. â€Å"Products† solutions   Vinamilk  should build Products Protection System to make customers feel safety and satisfactory when they use  Vinamilk  products. Milk  should be preserved in sterile environment. The process of packing and transport must  ensure  the food safety. Most importantly, products out of date  must not be  delivering to customers. They should also have â€Å"Products Quality Management† department which will be responsible for supervising production and double-checking before transmitting products to customer. Besides the product was on the market,  Vinamilk  should launching new products, higher quality  in order to  meet the increasing demands of consumers and compete with other competition. â€Å"Bad Employee† solution – Re-training is necessary. This improves employee working attitude. Also, this helps them enhance both specialist knowledge and skills, and hence foster performance. There are 2 kinds of training courses. First is â€Å"professional course† which provides employees with knowledge amp; techniques to well fulfill their professional jobs. Participants are office workers. Second is â€Å"skill course† which teaches employees soft-skills, extra techniques to support their professional jobs. Participants  can be everyone, especially the marketer and seller who directly meet customers. Each course may occur once or twice a month, and each class may last 4 to 5 hours. Reward and punishment are greatest strategies stimulating employees to  perform their jobs well. Managers need to  set target for employees whose job  is related  to target. To those who are not target  achieve, there  should be  a â€Å"customer survey† to test their working attitude, how caring they are. The rewards could be: bonus, gifts, movie, shopping or holiday tickets, or even promotion. And punishments are: salary deduction, cutting off their current benefit policy for a while or even getting them fired. Importantly, different levels of employees  will be attached  with appropriate levels of reward and punishment. Customer Services† solution – It is urgent to have a â€Å"Customer Services Supervisor† department taking responsibility for the effective allocation of resource and co-ordination to  ensure  our customers receive a friendly and efficient service  at all times. This department makes sure all employees  perform  as expected so that it could enhance customer satisfaction. â€Å"Problem Solving† solutio n – â€Å"Customer Problem Solving† is the second needed department now which collects customers’ feedback or helps them with any problems. They have to present hotline numbers and feedback letter box. It is a must to say â€Å"thanks† to contribution and instantly solve customer’s problems with clearly explanation if they feedback or meet difficulty. The above solutions and strategies can absolutely help Vinamilk overcome its problems. However, in order to succeed, Vinamilk have to persistently and consistently stick to the plans, well exploring and allocating resources. There must be a great harmony between all department, the commitment and accuracy in performance from top manager to bottom employees.