SWOT analysis of Vinamilk
Strength a. Market share leader due to good branding In recent years, Binomial is the market share leader of the dairy market in Vietnam. 39% of dairy product belongs to Binomial. From the beginning of operation, the name “Binomial” was used and step by step, they owned a certain place in consumers’ mind. Some reason for this success may be advertising, marketing, continuous innovation in product to serve the customer demand as well as compete with other counterparts. The age of the brand also play an important role in the present results.
With a long time of formatting and developing, they can understand exactly what a certain segment need and reach a goal more effective. B. Nation-wide distribution network Extensive distribution and sales network is an essential element to success in their operation, allows them to account for the large number of customers and ensure the introduction of new products and strategy effectively marketing across the country. Just count to December 31 , 2009, their products appeared through 240 distributors with more than 140,000 outlets in all 64 provinces of the country. C. Diversity of product line and package
They offer dairy products serving many diverse consumer segments. Products divided into line aimed at a specific target audience as children, adults and elderly. Besides, through the provision of diverse products to customer with different packaging sizes, we bring to customers in Vietnam market dairy products can be easy to carry along. 1. 2. Weaknesses Beside some very strong product line like fresh and powder milk, there are still some weak ones such as W-fresh Soya milk; it cannot compete with Fame- the older one. There is something to do with the taste and the other with the price.
If there is no appropriate solution for these issues, V-fresh Soya milk will soon be dead like its cousin Binomial Coffee. 1. 3. Opportunities a. Positive trend of customers towards milk usage The development of economy leads people take more care to the health of their elderly, their children and themselves. Products from milk not only provide nutrient but also addition factor such as vitamin C good for skin of young girls, calcium good for bone of teenage and so on. Besides, dairy can be used in many different ways with different kind of things. B. Increasing average income per capital By monotony of us with reasonable price.
In several families, they buy blocks for usage in long time for all the member of family, milk for elderly and for pregnant as normal. Day by day, dairy is not exclusive goods anymore. 1. 4. Threats Severe competitive market after the commitment of Vietnam and WTFO Involving in WTFO is an opportunity and a threat for all the company in Vietnam. Along with the chance to expand their market into the world, they also have to face with the competitor from all other country. Loving foreign product of Vietnamese customer is undeniable. Moreover, imported things are famous for extreme effect despite of really high price and not so many distributors.