UNIVERSITY OF ECONOMY & FINANCE

FINAL REPORT:

VINAMILK JOIN-STOCK COMPANY

Subject: Sales Management

Lecturer: Nguyễn Tiến Huy

Class: Shift 2 –Sale Management

Name : Trần Hà Khánh Linh

3 – 2024
 CHAPTER 1: INTRODUCTION

1. History about company

- 1967: Vinamilk was established on August 20, 1976 with 3 Factories: Thong
Nhat, Truong Tho, Dielac.
- 1988-1989: Launched infant formula and
nutritional powder for the first time in Vietnam.
- 1990-1991: Introduced UHT Pasteurized Milk
and Yogurt for the first time to Vietnam market.
Initiated the “White Revolution”, pioneered the
construction of dairy material areas.
- 2002: Established the “Vinamilk - Nurturing
young Vietnamese talents” scholarship fund.
- 2003: Successfully equitized and officially changed its name to Vietnam Dairy
Products Joint Stock Company
- 2007: Accompanied the National School Milk Program.
- 2008: Launching the program of 1 million glasses of milk, the predecessor of
the “Stand Tall Vietnam Milk Fund”.
- 2010: Established health and nutrition consulting centers across the country.
Promulgated Code of Conduct, established and communicated Core Values.
Developed set of Corporate Governance Regulations, established and
maintained the operating structure and management principles under advanced
practices.
- 2012: Obtained the Energy Management System Certificate according to ISO
50001 standard.Officially applied and reported the Sustainable Development
Program according to GRI standards.
- 2015: Obtained the Occupational Health and Safety Management Certificate
according to OHSAS 18001 / ISO 45001 standard.
- 2016: Started to install and use solar energy system for farm system and was
honored as Top 10 Sustainable Enterprises in Vietnam in Manufacturing
segment. Officially launched Vinamilk’s Six Cultural Principles.
- 2018: Pioneered to launch the first 100% A2 Fresh Milk product in Vietnam.
- 2020: Leaded Top 100 Best Places to Work in Vietnam (Anphabe) for the third
time in a row and accomplished the goal of planting 1 million trees for
Vietnam.
- 2021: Became the companion partner with Anphabe company for the “Vietnam
Best Places to Work” survey.
- 2022: Honored to be awarded Order of Independence 1st Class by the Party
and State of the Socialist Republic of Vietnam. Besides that, the first
representative of Vietnam to attend the Global Dairy Industry Initiative on Net-
 Zero. Top 10 Sustainable Enterprises in Vietnam in Manufacturing segment for
the 7th time in a row.
2. Information about company
a. Mission

To deliver the valuable nutrition to community with our respect, love and
responsibility.

b. Vission

To become a world grade brand in food and beverage industry, where people put
all their trust in nutrient and health products.

c. Chief Executive Officer

d. Core value

To become a world grade brand in food and beverage industry, where people put
all their trust in nutrient and health products

- Integrity: Integrity and transparency in actions and transactions.

- Respect: To have self-respect, to respect colleagues. To respect the Company
and partners. To cooperate with respect.
- Fairness: To be fair with employees, customers, suppliers and other parties.
- Ethics: To respect the established ethical standards and act accordingly
- Compliance: To comply with legal regulations, the Company’s Code of
Conduct, and the Company’s procedures and policies.
3. Products

Vinamilk is the leading enterprise in the milk processing industry in Vietnam,

holding more than 54.5% of the liquid milk market share, 40.6% of the powdered
milk market share, 33.9% of the drinking yogurt market share, 84.5% of the yogurt
market share, and 79.7% of the condensed milk market share nationwide.
 a. Liquid milk

The first series of products always

receive the favor of every Vietnamese
family in their daily beverage consumption,
and that is Vinamilk's liquid milk. With the
name "A Gift of Health from Nature," the
company's liquid milk products are all
guaranteed to be of absolute quality and beneficial to consumers' health, sourced from
healthy and pure dairy cows that meet the "3 no" standards as recommended by the
European Food Safety Authority (EFSA).

For Vinamilk, what is paramount in milk production is how to care for and protect
the health of the community. Therefore, the company has focused on establishing nine
dairy farming systems that meet Global Gap standards, the first in Southeast Asia,
with 100% of the dairy cows imported from Australia, the United States, and New
Zealand, all in good health and providing abundant and pure fresh milk daily. In
addition, with healthy raw materials and excellent production formulas, Vinamilk's
fresh milk products not only contain abundant nutritional values but are also loved for
their rich, creamy taste and wonderful aroma.

Vinamilk's most representative fresh milk products currently include:

- Vinamilk 100% Fresh Milk: This product comes in two variants, with and
without sugar, packaged in three sizes: 1 liter, 180ml, and 110ml.
- Vinamilk ADM Gold Fortified Milk: This product supports growth in height
and enhances memory, making it ideal for children. It is available in 110ml and
180ml packaging with sugar.
- Vinamilk Boxed Milk: Convenient and reasonably priced nutritional products
available in three different flavors: strawberry, chocolate, and vanilla in two
variants, with and without sugar. Packaged in 200ml and 220ml sizes.
- Super SuSu Cacao Cereal Beverage: A product enriched with Choline and
Vitamin B to make children more energetic and effective learners. Packaged in
180ml drink bottles.
- Flex UHT Milk: A product that supplements calcium for healthy bones. The
sugar-free variant is packaged in 1-liter containers.
- Vinamilk Twin Cows Premium Fresh Milk: This product is packaged using
technology from New Zealand and comes in two variants, with and without
sugar, in a 1-liter capacity
 b. Yogurt

Not only is yogurt a tasty snack, but it is

also an excellent secret for maintaining beauty
and is considered a "functional food" that is
beneficial for health, boosting immunity and
digestive health. Therefore, Vinamilk yogurt
products are produced from high-quality
ingredients and excellent recipes and are
regularly found in Vietnamese households.
With modern natural fermentation technology
and beneficial nutrient supplements, Vinamilk yogurt has long become a familiar part
of the daily lives of Vietnamese consumers, especially children and young women.

The typical products in the Vinamilk yogurt line currently include:

- Vinamilk Family White Yogurt: A product enriched with Vitamin D and D3

for bone health. It comes in 7 different brands packaged in plastic containers
ranging from 60 to 100g.
- Vinamilk Beauty Yogurt for Women: A product aimed at improving skin
health for women, available in 3 flavors: aloe vera, pomegranate, and
blueberry. It is packaged in 100g plastic containers.
- Vinamilk Eating Yogurt for Kids: A product fortified with Vitamin A for
improved eyesight in children, with 3 flavors such as plain yogurt, apple
banana, and strawberry banana. It is packaged in 100g plastic containers.
- Vinamilk Probi Eating Yogurt: A product that enhances the immune system,
available in 3 flavors: strawberry, fruit, and plain yogurt. It is packaged in 100g
plastic containers.
- Vinamilk UHT Drinking Yogurt and Vinamilk Su Su: These products come in
various flavors such as orange, strawberry, and aloe vera, and are available in
two packaging formats - plastic bottles and paper boxes, with a capacity of
100ml.
- Vinamilk Probi Live Yogurt Drink: A product that directly supplements the
digestive system with 13,000,000,000 probiotic bacteria. It is packaged in
plastic bottles ranging from 65 to 130ml in a pack of 4 bottles.
c. Sweetened condensed milk

Iced milk coffee is indeed a wonderful and familiar beverage in the lives of every
Vietnamese person. To prepare a delicious and authentic glass of iced milk coffee
with a rich and captivating flavor, the contribution of high-quality sweetened
condensed milk is essential. In Vietnam, the sweetened condensed milk brand named
"Ông Thọ" with its shiny golden consistency has long been a beloved product in every
Vietnamese household and coffee shop for
over 40 years. Additionally, another
sweetened condensed milk product produced
by Vinamilk, known as "Creamer đặc Ngôi
Sao Phương Nam," is equally appealing to
the taste buds due to its delightful and
creamy taste. Throughout its longstanding
connection with Vietnamese consumers,
Vinamilk's sweetened condensed milk, with its unique and delicious flavor derived
from excellent processing techniques and advanced technology, has provided a high-
quality milk ingredient in the preparation of countless delicious dishes in every
household to this day.

The most prominent products in Vinamilk's sweetened condensed milk line

currently are:

- Ông Thọ Sweetened Condensed Milk: This product includes three brands with
yellow label, green label, and red label. It is packaged in tin cans of 380g,
paper boxes of 1,284g, and the smallest one in a 40g plastic container.
- Ngôi Sao Phương Nam Creamer: This product comprises four brands with red
label, blue label, green label, and yellow label. It is packaged in tin cans of
380g and paper boxes of 1,284g.
d. Other products

In addition to the mentioned products, Vinamilk also offers a range of other products
such as cheese, powdered milk, ice cream, nutritional products for adults, baby food,...
CHAPTER 2: SALES ORGANIZATION
 The diagram above describes the operating structure of Vinamilk Joint Stock
Company.Below the Shareholders' Council is the CEO and various directors
responsible for different areas. Below the CEO is the Executive Director – Sales.
Regarding sales organization, Vinamilk decided to organize the sales force by
geographical area for easy management. That means under the sales director there will
be regional sales managers, sales leaders and sales staff.

The corporation splits the market into three geographical regions, which are North,
Central, and South. The Executive Director – Sales is responsible for all sales
activities nationwide. Regional sales managers are responsible for sales and profits for
the area he manages. Sale leaders are in charge of operations and reported sales
performance results with managers. Besides that, sales staffs are responsible for
growing the customer base, collecting data, and providing excellent customer service
to achieve predetermined sales levels. There is a diagram show the sales organization
of Vinamilk.

The Executive Director – Sales

North Region Central Region South Region

Sale Manager Sale Manager Sale Manager

Sale Leader Sale Leader Sale Leader

Sale Staff Sale Staff Sale Staff

 CHAPTER 3: SELLING PROCESS

Vinamilk's sales process includes 5 steps.

1. Prospecting

Vinamilk's sales staff and market development staff will conduct research on
market needs and search for buyers (agents, retailers, supermarkets) in areas with
potential for product development. , areas where the company's products have not yet
penetrated the market.Vinamilk divided market segmentation into 3 groups:

- Demographics: Vinamilk chooses age segments: elderly, adults, and children.

In addition, the business also classifies milk for individuals and families.
- Customer behavior: The method is based on the health status of customers such
as obese people, malnourished people, normal people, etc.
- Geography: Market segmentation is divided based on population density and
product consumption. It can be divided into two main segments, rural and
urban
2. Preparation

After determining the area and buyer, they will classify the buyer: what type of
person they are (agent, retailer or supermarket), what is the financial capacity of these
objects, the store's business situation such as the frequency of customer purchases
during the day, the average value of each order, the best selling products,...To manage
different groups of buyers, Vinamilk focuses on investing in the CRM - Customer
Relationship Management system to centrally manage customer data and classify
different customer groups.

3. Approach

After classifying buyers, each object will have a different discount level. For
example, entering quantity x will get price A, but entering 2x will get better price B.
In addition, there is further negotiation on information related to the frequency of
importing goods, quantity of imported goods, support policies if goods cannot be sold,
and areas where goods are placed to increase opportunities to contact customers,
goods, banners, signs,...

For retail customers, Vinamilk approaches them with marketing such as:

- Promotion: Multimedia marketing is applied by Vinamilk, focusing on the

outstanding feature of the product, which is "100% pure fresh milk". This
communication strategy helps create a high competitive advantage and
promotes consumer confidence in the brand's products.
 - Advertising: The key factor that helps Vinamilk create a buzz in implementing
its marketing strategy is the diversification of communication channels,
including TVC, radio, video, etc.
- TVC: It is easy to see short advertisements for Vinamilk on major TV channels
such as VTV1 and VTV3. Vibrant advertisements combined with ear-catching
sounds make many viewers, especially children, interested, leading to easy
buying behavior. TVC "Vinamilk 40 years - Rising Vietnam"
- Video: Applying a video marketing strategy, the brand has succeeded in
impressing consumers with short promotional videos containing interesting
images and sounds.
4. Presentation

Vinamilk distributes products in 2 ways:

a. Direct method

A method of distributing goods directly from producers to consumers without

going through intermediaries. Companies can implement direct distribution in the
following ways:

- Sales at home, sales via email, phone, fax...

- Sales through vending machines
- Sales through stores introducing company products
- Sales through the manufacturer's website

Direct distribution gives the company many advantages such as:

- The company can be proactive in deciding the volume of goods

- Helps companies closely inspect and monitor activities
- The company can have direct contact with customers so it can respond
promptly to customer needs and developments in the market.
- No profit division

However, this method also has limitations such as invest large capital and large
human resources in distribution activities, the volume of goods sold depends on the
capacity of the sales force, enterprises must bear all risks and have resources
dispersed.

b. Indirect method

This is a method of selling through intermediaries. With this method, the company
can limit the disadvantages of direct distribution. The company does not have to invest
capital for distribution activities. Through intermediaries, the company takes
advantage of their experience and understanding to help products easily enter new
markets, take advantage of existing relationships with intermediaries, limit and divide
risks. risks in business. When distributing through intermediaries, the company can
also reduce too deep relationships with retail customers.

The indirect distribution method also has certain limitations such as: reducing the
initiative and control ability of the business, controlling the company's distribution
activities will be more difficult, so companies Often use two distribution methods,
direct and indirect, in parallel to take advantage of the advantages, limitations and
disadvantages of each method.

5. Handing object

It's time to complete the deal once you've persuaded your prospective client that
the good or service will satisfy their demands. Vinamilk will create orders through
electronic forms or available forms and transfer them to the seller to keep. Vinamilk's
logistics side will coordinate the logistics process, check goods in the warehouse and
deliver them to buyers. At the same time, perform the collection, handover and
payment tasks as agreed in the previous contract.

6. Review and evaluation

a. Evaluation

Vinamilk's business process is very effective, bringing many benefits but there are
still disadvantages. About advantages, Vinamilk is a strong brand, large market share,
wide distribution network throughout provinces and cities nationwide, diverse
products, competitive prices, advanced production lines, competent management
board Good management, diverse and growing product portfolio, sustainable
relationships with partners, experienced marketing and product research teams.

Besides that, there are disadvantages like marketing is still weak. In the field of
fresh milk, TH True Milk is increasingly proving itself to be a "formidable"
competitor of Vinamilk. In addition, Vinamilk has not widely promoted in foreign
markets, export markets are still limited and unstable, and the company's marketing
activities are mainly in the Southern region.

b. Contribute to improvements

Vinamilk's sales process needs to be built into 7 steps, including closing and
follow up steps. In addition, Vinamilk should focus on the domestic market rather
than the foreign market because TH Truemilk is competing directly with Vinamilk. If
not careful, TH Truemilk’s market share will be greater than Vinamilk's.

Besides that, Vinamilk should should build programs to attract and retain
customers longer like Customer loyalty program: Based on acquired points from
purchases made at the Vinamilk store, the annual loyalty program offers clients
special gifts on their birthdays, holidays, and Tet or voucher to discount products. In
addition, customer can use loyalty points to buy any products of Vinamilk. In
addition, Vinamilk should have promotional strategy to promote repeat purchases to
protect the environment such as when customers use Vinamilk products, clean the
boxes and bring it to a Vinamilk store to exchange for 1 cactus or 1 voucher.
Collecting boxes helps businesses recycle, reduce costs and protect the environment
 CHAPTER 4: SALES TARGET

1. Sales target of Vinamilk in 2023

Vietnam’s largest dairy manufacturer Vinamilk is targeting VND63.38 trillion

($2.7 billion) in consolidated revenue for 2023, a year-on-year increase of 5.5%. At a
virtual annual general meeting of shareholders on April 26, CEO of Vinamilk Mrs.
Mai Kieu Lien said the company’s after-tax profit was estimated to reach VND8.62
trillion ($367 million) this year, flat compared to the previous year.

2. Vinamilk’s business performance

a. Revenue

In the second quarter of 2023, the total consolidated revenue reached 15,213
billion VND, representing a 1.7% increase compared to the same period in the
previous year. Although it has not yet achieved the annual growth target of 5.5%, this
result demonstrates a significant improvement in sales performance compared to the
0.1% year-on-year growth in the first quarter of 2023 and reinforces the full-year sales
target. In terms of geographical breakdown, domestic revenue amounted to 12,789
billion VND, while revenue from international markets reached 2,406 billion VND,
reflecting an increase of 2.5% and a decrease of 2.2% year-on-year, respectively. In
the first half of 2023, the total consolidated revenue amounted to 29,162 billion VND,
marking an almost 1% year-on-year increase.

About domestic market, the parent company achieved a net domestic sales revenue
of 11,414 billion VND in the second quarter of 2023, indicating a 3.8% year-on-year
growth. Vinamilk's stores and online channels, especially, have shown significant
growth of 16% year-on-year, thanks to changes in consumer shopping behavior and
Vinamilk's strategic investments in online sales platforms. While enhancing the
distribution, Vinamilk also initiated several marketing activation campaigns to raise
the marketing efficiency, promote consumer engagement and stimulate consumption
at the points of sale.

While international market, the net sales revenue from exports amounted to 1,270
billion VND in the second quarter of 2023, which decreased compared to the same
period last year due to unstable demand in traditional markets. In new markets such as
the Philippines, the Vinamilk-Del Monte joint venture has expanded its distribution
reach and brand recognition through product introductions at points of sale and
schools, along with offering attractive promotional programs.

b. Gross profit and cost structure

The consolidated gross profit margin (GPM) in 2Q2023 reached 40.5%, marking a
significant improvement of 170 basis points (bps) over the previous quarter and only
slightly lower than the GPM in 2Q2022 by 20 bps. This is the largest quarterly
expansion since early 2021 when the impact of basic commodity price inflation began
affecting the company's GPM. The recovery is mainly attributed to adjustments in
imported material prices and final selling prices made last year. The company
anticipates that GPM will continue to recover in the following quarters and return to
pre-Covid levels within the next 12-18 months, provided that sales revenue follows
the plan. As of June 30, 2023, the capital structure remained resilient with the debtto-
total-assets ratio of 13% and debt-to-equity ratio of 18%. The consolidated net cash
balance was VND 14,300 bn or 28% of the total assets.

c. Coporate developments

Rebranding Event – Unveil New Brand Identity: after nearly five decades,
Vinamilk, the leading food company, decided to revamp the brand identity to align
with the new phase of development. The new rebranding embodies Vinamilk’s
personality of being “bold, determined, and authentic” representing the youthful
energy and aspirations of the Vietnamese. The upgraded brand identity will be
available across Vinamilk’s entire product portfolio and touchpoints from Jul-2023.

Announcement of the Net Zero 2050 Roadmap: Vinamilk announced the roadmap
to achieve net zero emissions by 2050. The plan is to reduce greenhouse gas emissions
by 15% in 2027, achieving 55% reduction and neutralization of emissions by 2035,
and ultimately achieving the goal of net zero emissions by 2050. Vinamilk’s dairy
factory and farm in Nghe An province have become the first entities to achieve carbon
neutrality according to the PAS2060:2014 standard.

Villico – New Share Issuance Based on the resolutions approved by Vilico’s

AGM, the expected proceeds from the issuance is VND 603 bn. VLC will use this
capital to increase its contributions in the JV with Sojitz Corporation from Japan –
JVL that is running the beef farming project including slaughtering, processing, and
preserving chilled packaged beef. The registration for share purchase is from July 24,
2023, to August 28, 2023

3. Method determining sale target of Vinamilk

To set achievable and effective sales targets as presented earlier, Vinamilk relies
on the STP framework to evaluate and establish annual sales target.

a. Segmentation
 Currently, Vinamilk is the leading enterprise in the Vietnamese milk market with a
40% market share. Vinamilk divides its market segments into two groups:

- Organizations: This group includes wholesalers, retailers, distributors,

supermarkets, and stores. This segment has requirements for discounts,
performance-based bonuses, and on-time order quantities.
- Individuals: This group consists of consumers with a demand for Vinamilk
products. This segment is diverse, with high-quality products, nutritional value,
and a variety of options.

In addition to these two main segments, Vinamilk also develops a range of yogurt
and powdered milk products to meet the needs of people of all ages. Methods of
Market Segmentation by Vinamilk:

- Demographics: Vinamilk chooses to segment by age: the elderly, adults, and

children. Additionally, the company classifies products for individuals and
families.
- Customer Behavior: The method is based on customers' health status, such as
obesity, malnutrition, normal health, etc.
- Geography: Market segments are divided based on population density and
product consumption levels. This can be categorized into two main segments:
rural and urban areas.
b. Targeting

Marketing strategy of Vinamilk has successfully captured the market segment of

children aged 5-14. The brand aims to promote physical development for children.
This is the driving force behind Vinamilk's 100% organic focus on this target
audience, as children currently make up 23.2% of the total population (According to
Statistic 2020).

c. Positioning
 Vinamilk is at the top in both brand recognition (40%) and high-value stock
market share. In terms of competitors like Love in Farm and Meadow Fresh, these two
brands are relatively new to the market, so competition is not high. As for TH True
Milk, this brand has been growing rapidly, attempting to gain market share from
Vinamilk and develop at a sustainable pace.

In terms of pricing, Vinamilk offers a reasonably priced range, suitable for the
majority of Vietnamese income levels. As a result, the brand's products are present on
most shelves in stores, supermarkets, and markets nationwide.

4. Review and evaluation

a. Evaluation

Vinamilk is a long-established and well-capitalized company, making it relatively

easier to set higher sales targets. After achieving a dominant position within the
domestic market, Vinamilk has aimed for even higher sales targets, specifically by
exporting Vietnamese dairy products abroad. This move serves to strengthen the
reputation of the Vietnamese dairy industry on a global scale. While the global
economy faces challenges such as inflation, leading to tighter consumer spending,
many companies, including Vinamilk, may struggle to meet their sales targets.
However, with the determination of its leadership and the trust of investors, Vinamilk
can overcome this situation.

Nevertheless, there is a potential risk if Vinamilk focuses too much on selling

products overseas, as it could lead to a loss of market share domestically. TH True
Milk, a company that emerged later, with a less diversified product range compared to
Vinamilk, has quickly gained consumer trust and is the second-largest player in the
dairy market after Vinamilk. If Vinamilk does not consistently set specific sales
targets, it may risk losing market share, and TH True Milk could benefit from this
situation.

b. Contribute to improvements

Vinamilk should Vietnam Milk Joint Stock Company (Vinamilk) is one of the
leading companies in the dairy industry in Vietnam. To maintain and expand their
market share, as well as ensure sustainable growth in the future, here are some sales
target proposed for Vinamilk:

- Boost Exports: Vinamilk has begun expanding into international markets, and
setting the goal to increase the quantity of dairy products for export can help
solidify their brand on the global stage.
 - Develop New Product Lines: Introduce new dairy and food products,
promoting diversification within Vinamilk's dairy product range to meet the
diverse needs of consumers.
- Add Value to Products: Enhance the nutritional value and quality of dairy
products to create premium and more competitive products.
- Marketing and Advertising: Enhance marketing campaigns and advertising to
establish brand recognition and engagement with customers. Set objectives to
improve market share through targeted advertising and promotions.
- Market Segmentation: Focus on market segments with growth potential, such
as children, the elderly, and individuals with a specific interest in nutrition.
- Distribution Network: Optimize the distribution system to ensure Vinamilk
products reach a broader audience nationwide.
- Social Projects: Develop social projects and corporate social responsibility
(CSR) programs to create a positive impact on the community and generate
empathy with the Vinamilk brand.
- Production Process Automation: Invest in technology and automation to
increase productivity and reduce production costs.
- Adaptability: Ensure Vinamilk can adapt to changes in the business
environment and the dairy industry, including shifts in consumer preferences
and the impacts of climate change.
- International Quality Certifications: Take pride in obtaining international food
safety and product quality certifications from reputable organizations to
strengthen the reputation and trustworthiness of Vinamilk's products.

These objectives can help Vinamilk maintain its leading position in the dairy
market and meet the diverse and growing needs of its customers. In addition there are
also set KPIs for each store to drive a strong sales force. At the same time, to increase
employee motivation, businesses should create an excellent employee evaluation
board and have an employee commendation board of the month in the store. From
there, employees are motivated to work and bring more customers to the company.
 CHAPTER 5: SALES BUDGET

1. Vinamilk's budget spending

According to Vinamilk's 2022 annual report, the company's sales budget is

expected to grow steadily in the period 2022-2026. Specifically, Vinamilk's sales
budget is as follows:

- 2022: Vinamilk used 28,500 billion VND

- 2023: Vinamilk will use 30,000 billion VND
- 2024: Vinamilk will use 32,000 billion VND
- 2025: Vinamilk will use 34,000 billion VND
- 2026: Vinamilk will use 36,000 billion VND

Vinamilk's sales budget is paid to the following activities: marketing and

communications (30%); administration (20%); R&D (25%) and other activities 25%.
With a strongly invested sales budget, Vinamilk aims to achieve net revenue of
160,000 billion VND and profit after tax of 16,000 billion VND by 2026. There is a
list to detailed analysis of Vinamilk's sales budget for the period 2022-2026:

- In 2022, Vinamilk aims to achieve net revenue of 99,200 billion VND and
profit after tax of 10,500 billion VND. To achieve this goal, the company has
invested VND 28,500 billion in sales activities, an increase of 20% compared
to 2021. Of which, the budget for marketing and communications is 12,000
billion VND, accounting for 42.3% of the total sales budget. Vinamilk focuses
on television advertising activities, online advertising and promotional
activities. The administrative budget is 5,000 billion VND, accounting for
17.6% of the total sales budget. Vinamilk uses this budget to pay for activities
such as operating the distribution system, employee training and market
research. The budget for other activities is 11,500 billion VND, accounting for
40.1% of the total sales budget. Vinamilk uses this budget to pay for activities
such as product research and development, investment in online sales channels
and social activities.
- From 2023-2026: Vinamilk aims to achieve net revenue of 110,000 billion
VND, 125,000 billion VND, 140,000 billion VND and 160,000 billion VND.
To achieve this goal, the company will continue to invest heavily in sales and
marketing activities. Specifically, Vinamilk's sales budget is expected to grow
as follows:
 Year Sales budget (billion Growth(%)
VND)

2023 30.000 5.3%

2024 32.000 6.7%

2025 34.000 6.3%

2026 36.000 5.9%

During this period, Vinamilk will focus on the following activities:

- Expand distribution system, especially in rural and remote areas.

- Promote online sales activities.

- Research and develop new products to meet market needs.

With these efforts, Vinamilk expects to continue to maintain its leading position in
the dairy market in Vietnam and expand its market share to international markets.

2. Review and evaluation

a. Evaluation

Vinamilk is a long-established large company with substantial capital, so the

company's budget is allocated carefully and prioritized in order to ensure the
effectiveness of its business operations. In terms of investment in innovation and
research, Vinamilk has allocated a significant portion of its resources to research and
product development, helping the company maintain and improve product quality and
create new products to meet market demands. Secondly, Vinamilk has built and
expanded modern production facilities and reliable supply chains to ensure stability in
production and product delivery.

Moreover, Vinamilk has invested a considerable amount of financial resources into

marketing and advertising campaigns to build a strong brand and increase consumer
awareness of their products. Lastly, there are employee incentive policies and social
development programs. Overall, Vinamilk's expenditure policies reflect the company's
commitment to maintaining and developing sustainable business operations while also
supporting the community and protecting the environment.

b. Contribute to improvements
 Vinamilk is a company with a very large budget. However, given the current
economic situation, the company should prioritize budget spending on improving
product quality rather than research and investment in foreign markets. Currently,
there are foreign companies introducing their milk products in Vietnam, and
customers tend to be curious and might shift towards imported products. Meanwhile,
domestically, Vinamilk faces a significant competitor in the form of Th TrueMilk.
Therefore, the company should invest in product development to build customer trust.

Additionally, although the company has gained control over its milk input
materials, the packaging for its products relies on external suppliers. To reduce costs,
the company should invest in research to develop recyclable packaging materials.
These strategic adjustments can help Vinamilk maintain its market position and
continue to thrive in a changing economic landscape.
 CHAPTER 6: SALE STAFF RECRUITMENT

1. Reason why employee choose Vinamilk to work

After many years of formation and development, Vinamilk's recruitment process

has reached a certain level of perfection. This has made it easier for the company to
access and recruit high-quality candidates in line with its development direction.
Above all, Vinamilk recognizes that the quality of its human resources plays a crucial
role in the success of the organization. There are four reasons why employees want to
work at Vinamilk: competitive compensation and benefits, excellent employee
welfare, Vinamilk's unique working culture that fosters creativity, numerous training
programs for employees, and abundant job opportunities.

2. Job description, job requirements, how to apply

a. Job description

Sale staff in Vinamilk will do the following work:

- Display and arrange goods on shelves.

- Consulting and introducing products to customers.
- Manage and maintain cleanliness of shelves in accordance with regulations and
brand standards.
- Inventory inventory, prepare inventory reports every day.
- Order and receive goods.
- Cashier.
- Working hours: 7 hour shifts; 7am-2pm; 2pm-9pm or 14-hour shift 7am-9pm;
Working day, rest day
b. Job requirements

Request of sales staff at Vinamilk:

- Priority is given to those with experience in FMCG sales, sales staff of dairy
brands: Nutifood, TH True Milk,...;
- Male Female; Agile, hard-working, good communication.
- Graduated from high school or higher.
- Basic operations on computers and POS machines for sales and payments.
c. How to apply:

Send a personal CV to email address: jobs@himcom.vn with the subject line [Full
name] - [Position applied for]. Apply online by link https://bit.ly/tuyendung.vinamilk
or apply in their office at 1st Floor, Area C, Building No. 27B Nguyen Dinh Chieu,
DaKao Ward, District 1, Ho Chi Minh City.

3. Vinamilk’s recruitment process

 To find high-quality personnel who align with the company's development needs
and culture,Vinamilk's recruitment process is focused on two main stages: recruitment
and selection.

a. Personnel recruitment

Step 1: Recruitment planning

After receiving recruitment requests from departments with hiring needs, the
Human Resources department will initiate the development of a recruitment plan.The
recruitment plan begins with creating job descriptions and job specifications for all
positions that need to be filled.Subsequently, the company will assess the workload
for each position to establish a proper training and development plan.

Step 2: Identifying Sources and Recruitment Methods

Internal Sources: At Vinamilk, existing resources are highly valued, and the first
source of recruitment is the acquaintances of employees currently working at the
company. Recruitment methods primarily involve referrals from employees and staff
at Vinamilk.

External Sources: University students nationwide, who represent future human

resources, are of particular interest to Vinamilk. For this group, Vinamilk conducts
direct recruitment drives at major universities every year. In addition, Vinamilk's
Management Trainee program and annual internship program create opportunities for
students to familiarize themselves with the work environment and development
prospects at Vinamilk.

Furthermore, the company also extends its recruitment sources to include

freelancers in the labor market. However, the choice of recruitment source may vary
depending on specific circumstances and positions, with the HR department focusing
on the most suitable source at each point in time.

Step 3: Preparation of recruitment procedures

HR specialists need to determine the following information:

- Recruitment processes and regulations

- Completion of necessary documents and forms

- Staffing requirements

- Recruitment boards: number, composition, authority, and responsibilities

Step 4: Recruitment announcement

 Vinamilk's personnel recruitment announcements are posted on internal channels,
the company's official website, and various job listing platforms. Additionally, these
announcements are sent to targeted universities or job fairs. The recruitment
announcements provide detailed information about the positions, including:

- Job title

- Recruitment period

- Job description

- Requirements for knowledge, skills, and experience

- Information about compensation and benefits

b. Personnel selection at Vinamilk

This step involves selecting suitable candidates from the pool of applicants to fill
vacant positions within the organization. The recruitment process at Vinamilk follows
these steps:

Step 1: Screening of candidate resumes

After the recruitment process is complete, the HR department compiles and

categorizes the received resumes based on the positions and job roles.Candidate
resumes are screened for suitability with the job requirements and the abilities
displayed in the resumes.

Step 2: Leadership aptitude assessment

Candidates are required to complete a leadership aptitude essay (in Vietnamese or

English). The essay focuses on a specific leadership experience that demonstrates the
candidate's leadership capabilities. Through this essay, skills such as writing, creative
presentation, and especially leadership are evaluated.

Step 3: Logical reasoning test

An IQ test covering logic, language, and mathematics is used to assess the overall
logical thinking ability and sharpness of candidates. This is performed through two
tests:

- Language test: Reading passages and answering questions

- IQ test: A standard IQ test

Step 4: Interview planning

 After selecting the most promising applicant resumes, the recruitment specialists
plan the interview process, which includes:

- Content

- Timing

- Formation of the interview board

- Notification to candidates and confirmation of interview details

Step 5: Interview and Direct Evaluation

In this step, candidates undergo interviews and assessments, including job-specific

skills, soft skills relevant to the job, assessment of IQ and Emotional Intelligence (EQ)
scores. Through the interview and direct evaluation process, candidates' qualities,
attributes, and potential are assessed clearly. Suitable candidates are then selected to
participate in the probationary period.

Step 6: Probation and probationary assessment

Depending on the position, candidate qualifications, and experience, the company

uses appropriate evaluation methods during the probationary period.

Step 7: Formal recruitment

Candidates who successfully complete the probationary period and meet the
requirements will formally sign employment contracts with the company.

4. Review and evaluation

a. Evaluation

About advantages in recruitment sale staff in Vinamilk, Vinamilk prioritizes

internal recruitment sources. Specifically children and relatives of employees with the
appropriate qualifications are given preferential consideration for leadership positions
if they possess the necessary skills and long-serving employees are promoted and
placed in key positions. This approach brings several clear benefits, including such as
reduced recruitment advertising costs, optimization of time and training costs, saving
time on adaptation to work and minimizing disruptions due to personnel changes,
nurturing and developing loyalty and commitment from employees, partially
mitigating the risks associated with the use of entirely new personnel.

On the others hand,Vinamilk's recruitment process is comprehensive and logical.

However, in practice, there are certain issues that need to be addressed, such as
streamlining the onboarding and training process to optimize costs can pose
challenges in terms of employee integration. Inadequate access to necessary
information can result in errors in subsequent job execution. The company may not
fully harness the potential of its workforce, as recruitment mainly occurs from lower
ranks, with limited horizontal or cross-functional transfers.

b. Contribute to improvements

It is evident that Vinamilk's recruitment process is systematic and sensible,

yielding certain achievements. However, like any other business, there are
opportunities for improvement in Vinamilk's recruitment process.

First, to develop the sales personnel recruitment process at Vinamilk, Vinamilk

should establish a talented sales internship program to encourage student support and
simultaneously identify and nurture talent for Vinamilk from an early stage. Second,
Vinamilk can utilize technology to automate the resume screening process and create
an efficient recruitment management system. This helps save time and resources in
finding suitable candidates. Lastly, there should be a focus on soft skills, as sales staff
need strong communication, persuasion, and independent work skills. To evaluate the
full potential of candidates, Vinamilk can organize sales competitions to identify
excellent candidates for sales positions.
 CHAPTER 7: SALES STAFF TRAINING

Training dairy sales staff is an important part of ensuring they have enough
knowledge and skills to be effective in marketing and selling Vinamilk's dairy
products. They use 2 training methods are the lecture and on-the-job training.

1. The lecture

When sales staff join Vinamilk, they will be briefed on the company's processes
and policies to ensure that sales staff have a clear understanding of Vinamilk's
procedures and policies regarding ordering, returns/exchanges, and customer care.
Afterward, they will acquire product knowledge. Sales staff need to have a deep
understanding of Vinamilk's dairy products, including their ingredients, quality,
nutritional value, and usage. This enables them to answer customer inquiries and
persuade them to purchase the products. Lastly, there's product categorization:
Training sales personnel on how to categorize and select dairy products to meet
specific customer needs.

2. On-the-job training

After having theoretical training sessions, the sales personnel will be grouped for
practical sales exercises under the guidance and supervision of a sales leader. The
sales leader will be responsible for managing and evaluating the work quality of the
sales personnel while also providing guidance on skills, such as using technology to
optimize customer list management, ordering, and delivery processes, monitoring
sales tasks, tracking progress, and ensuring sales targets are met. Furthermore, they
can also provide training on sales planning to ensure that sales staff can effectively
plan customer meetings, travel, and work schedules.

3. Review and evaluation

a. Evaluation

The training and skill development for workers are carried out quite effectively.
The leadership team is experienced and ambitious, as evidenced by the company's
sustainable business profits. The staff who have been trained abroad effectively apply
the knowledge they have gained. Many young individuals have become essential sales
staff in the company's stores and are highly committed to building the company's
success.

However, the training and skill development for technical workers are not yet fully
implemented. The reason for this is the large number of workers and the frequent
introduction of new technical processes in production, which necessitates a highly
skilled and adaptable workforce.
 b. Contribute to improvements

Vinamilk should organize more training programs, such as setting up a simulation

room for employees to practice sales. This can help identify the shortcomings of
employees before they interact with customers. Additionally, to reduce training costs
for new employees, Vinamilk can collaborate with universities to organize courses
and activities aimed at honing sales skills. This way, after graduation, students can
join Vinamilk immediately without the need for extensive training. Besides that,
company can organize discussions, seminars, and exchange experiences among
officers and employees to learn and absorb new knowledge and experiences.
 CHAPTER 8: MOTIAVATION

At Vinamilk, the welfare policy is built on the principles of fairness, transparency,

and competitiveness. The company provides employees with attractive benefits and
compensation policies. These policies vary depending on the employee's position.

1. Sales staffs, Sales leaders

Vinamilk values its workforce and considers them a valuable asset to the company.
As a result, the company has developed and implemented comprehensive welfare
policies that offer employees the best rights and benefits, such as:

- Ensuring all legal benefits: health insurance, social insurance, unemployment

insurance, paid leave, etc.;
- Regular health check-ups;
- Providing necessary equipment;
- Supporting computer equipment for office employees;
- Phone allowance for sales employees; Supporting employees who are studying
and working at the same time.

In addition, Vinamilk pays great attention to the spiritual life of its employees. The
company has built various entertainment facilities, such as swimming pools, yoga
rooms, sports fields, recreational areas, etc., to provide employees with relaxing
moments after a stressful working day. Monthly birthday parties for employees are
also organized to create a cheerful and cohesive atmosphere.

With its comprehensive welfare policies, Vinamilk has created a happy working
environment where employees are respected and can develop themselves. This
contributes to attracting and retaining talent, helping the company achieve sustainable
growth.Furthermore, the company provides a system of automation processes,
creating a green and comfortable working space. Vinamilk also provides financial
support to employees facing difficulties, such as illness, accidents, natural disasters,
and offers discounts on Vinamilk products to employees.

About compensation policy, according to a survey by a human resources

consulting company, the average income of Vinamilk employees is higher than that of
other companies in the same industry. The initial income and annual salary increase
for employees are always based on productivity and not fixed. The more valuable
contributions an employee makes, the more attractive their income becomes.In
addition to the basic salary, Vinamilk employees receive various bonuses, such as job
performance bonuses, year-end bonuses, and sales bonuses, among others.

The annual bonus at Vinamilk can be considered a desirable figure for many
people. Bonus, holiday bonus, and gifts are also distributed clearly from cash to
tangible items.Especially for sales positions, employees have many opportunities to
pay themselves through various incentives based on sales performance, field
allowances, and phone allowances. Sales employees regularly receive productivity
bonuses when they exceed job targets, often earning revenue when customers use
products introduced to other customers, and more.

2. Sales managers, the Excutive Director-Sales

Unlike other companies, Vinamilk is a joint-stock company. For long-time sales

managers, in addition to receiving the same benefits as sales employees, but at a
higher level, they can also purchase company shares. At that point, they are no longer
employees of Vinamilk but become one of the owners of Vinamilk. Furthermore,
Vinamilk also provides insurance for the family members of sales managers and sales
directors. Additionally, if their children wish to work for Vinamilk, the company will
sponsor their tuition fees.

3. Review and evaluation

a. Evaluation

Vinamilk is one of the companies that has created a comfortable working

environment, helping employees work more productively. From the analyses above, it
can be seen that Vinamilk provides a wide range of attractive benefits and welfare
policies for employees. This includes statutory entitlements, healthcare provisions,
work equipment, and numerous recreational facilities. Furthermore, Vinamilk has
established a happy working environment that promotes employee satisfaction.

The salary and promotion system at Vinamilk is based on productivity and

employee contributions. This encourages greater effort and contributions from the
employees. Particularly, the opportunity for long-time sales managers to purchase
company shares is a significant motivator, as it combines a sense of ownership with
the company's future and job performance.

b. Contribute to improvements

Although Vinamilk's employee motivation policies are very good, there is room
for improvement in creating a corporate ecosystem. Vinamilk should establish a
system of schools to support employees' children in studying in a modern environment
with sponsored tuition fees. Additionally, these schools could serve the purpose of
talent detection, education, and training for Vinamilk, thus helping the company
reduce costs in hiring and training external talent. Furthermore, the company could
establish an employee evaluation system, where employees with high ratings would
receive vouchers to purchase products from brands partnered with Vinamilk.
 For sales employees, their appearance is crucial because having an attractive
appearance can capture the attention of customers. Vinamilk should support
employees with beauty care expenses and purchasing products for sales purposes,
such as assisting in buying vehicles, clothing, and customer entertainment expenses.
 CHAPTER 9: EVALUATION

1. Evaluation about company

According to the Investment Bridge, the list of the "Top 50 Most Efficient
Companies in Vietnam" for the year demonstrates excellence in all criteria related to
business performance and corporate management capabilities in the last 3 years. In
commenting on this list, the evaluation council noted: "The Top 50 will particularly
honor many companies with larger scales, higher market capitalization, and strong
growth rates, worthy of pride for the nation."

One evaluation of Vinamilk in Kantar Worldpanel's "Brand Footprint" report on

the Vietnam market in June 2020 is as follows: "This domestic manufacturer has
reached over 80% of Vietnamese households by focusing on advertising and
communication activities, especially emphasizing the nutritional value of their
products and continuously renewing their image by introducing many new products to
meet the evolving needs of consumers."

Vinamilk has shown dynamism and innovation in all segments, including liquid
milk, powdered milk for children, drinking yogurt, and condensed milk... The
company has consistently held the leading position in the Vietnamese market, both in
terms of production volume and sales volume for many consecutive years. This result
not only demonstrates the company's "resilience" in an increasingly competitive
environment but also reflects the trust of consumers, which is crucial for the company
to maintain and grow amid changes and sustain growth.

2. Evaluation about sales process

Vinamilk's business process is very effective, bringing many benefits but there are
still disadvantages. About advantages, Vinamilk is a strong brand, large market share,
wide distribution network throughout provinces and cities nationwide, diverse
products, competitive prices, advanced production lines, competent management
board Good management, diverse and growing product portfolio, sustainable
relationships with partners, experienced marketing and product research teams.

Besides that, there are disadvantages like marketing is still weak. In the field of
fresh milk, TH True Milk is increasingly proving itself to be a "formidable"
competitor of Vinamilk. In addition, Vinamilk has not widely promoted in foreign
markets, export markets are still limited and unstable, and the company's marketing
activities are mainly in the Southern region.

3. Evaluation about sales target

 Vinamilk is a long-established and well-capitalized company, making it relatively
easier to set higher sales targets. After achieving a dominant position within the
domestic market, Vinamilk has aimed for even higher sales targets, specifically by
exporting Vietnamese dairy products abroad. This move serves to strengthen the
reputation of the Vietnamese dairy industry on a global scale. While the global
economy faces challenges such as inflation, leading to tighter consumer spending,
many companies, including Vinamilk, may struggle to meet their sales targets.
However, with the determination of its leadership and the trust of investors, Vinamilk
can overcome this situation.

Nevertheless, there is a potential risk if Vinamilk focuses too much on selling

products overseas, as it could lead to a loss of market share domestically. TH True
Milk, a company that emerged later, with a less diversified product range compared to
Vinamilk, has quickly gained consumer trust and is the second-largest player in the
dairy market after Vinamilk. If Vinamilk does not consistently set specific sales
targets, it may risk losing market share, and TH True Milk could benefit from this
situation.

4. Evaluation about sales budget

Vinamilk is a long-established large company with substantial capital, so the

company's budget is allocated carefully and prioritized in order to ensure the
effectiveness of its business operations. In terms of investment in innovation and
research, Vinamilk has allocated a significant portion of its resources to research and
product development, helping the company maintain and improve product quality and
create new products to meet market demands. Secondly, Vinamilk has built and
expanded modern production facilities and reliable supply chains to ensure stability in
production and product delivery.

Moreover, Vinamilk has invested a considerable amount of financial resources into

marketing and advertising campaigns to build a strong brand and increase consumer
awareness of their products. Lastly, there are employee incentive policies and social
development programs. Overall, Vinamilk's expenditure policies reflect the company's
commitment to maintaining and developing sustainable business operations while also
supporting the community and protecting the environment.

5. Evaluation about sales staff recruitment

About advantages in recruitment sale staff in Vinamilk, Vinamilk prioritizes

internal recruitment sources. Specifically children and relatives of employees with the
appropriate qualifications are given preferential consideration for leadership positions
if they possess the necessary skills and long-serving employees are promoted and
placed in key positions. This approach brings several clear benefits, including such as
reduced recruitment advertising costs, optimization of time and training costs, saving
time on adaptation to work and minimizing disruptions due to personnel changes,
nurturing and developing loyalty and commitment from employees, partially
mitigating the risks associated with the use of entirely new personnel.

On the others hand,Vinamilk's recruitment process is comprehensive and logical.

However, in practice, there are certain issues that need to be addressed, such as
streamlining the onboarding and training process to optimize costs can pose
challenges in terms of employee integration. Inadequate access to necessary
information can result in errors in subsequent job execution. The company may not
fully harness the potential of its workforce, as recruitment mainly occurs from lower
ranks, with limited horizontal or cross-functional transfers.

6. Evaluation about sales staff training

The training and skill development for workers are carried out quite effectively.
The leadership team is experienced and ambitious, as evidenced by the company's
sustainable business profits. The staff who have been trained abroad effectively apply
the knowledge they have gained. Many young individuals have become essential sales
staff in the company's stores and are highly committed to building the company's
success.

However, the training and skill development for technical workers are not yet fully
implemented. The reason for this is the large number of workers and the frequent
introduction of new technical processes in production, which necessitates a highly
skilled and adaptable workforce.

7. Evaluation about motiavation of Vinamilk

Vinamilk is one of the companies that has created a comfortable working

environment, helping employees work more productively. From the analyses above, it
can be seen that Vinamilk provides a wide range of attractive benefits and welfare
policies for employees. This includes statutory entitlements, healthcare provisions,
work equipment, and numerous recreational facilities. Furthermore, Vinamilk has
established a happy working environment that promotes employee satisfaction.

The salary and promotion system at Vinamilk is based on productivity and

employee contributions. This encourages greater effort and contributions from the
employees. Particularly, the opportunity for long-time sales managers to purchase
company shares is a significant motivator, as it combines a sense of ownership with
the company's future and job performance.