Midterm Vinamilk
Midterm Vinamilk
Midterm Vinamilk
Faculty of Economics
MIDTERM REPORT
Customer Relationship Management
Topic: Analyze and design CRM of Vinamilk
Lecturer: N.T.N.Dung
Class: A10E
% contribution of Evaluation of
No. Full name Student ID Tasks the task to the task results
overall task
1 Trần Phương Duy 195013723 100%
2 Trần Phan Trúc Quỳnh 195013721 100%
3 Nguyễn Ngọc Quỳnh Như 205045006 100%
4 Nguyễn Như Hoàng Long 195023722 100%
5 Cao Anh Tú 195013600 100%
6
7
Total: 100%
Contents
About Vinamilk............................................................................................................................................3
I. Customers of Vinamilk....................................................................................................................5
1. Customers and customer classification...........................................................................................5
2. Customer identification In order to identify customers of our company, the software system, in
addition to collecting basic information about the customer, needs to collect the following data:........5
3. Interaction with clients........................................................................................................................5
4. Serving the needs of customers...........................................................................................................5
5. Criteria for selecting technology for Vinamilk's CRM...........................................................................5
a. Customer classification................................................................................................................5
b. Information on customer requirements......................................................................................5
II. Vinamilk's customer network management..................................................................................5
1. Relationship with suppliers..............................................................................................................5
III. Customer retention and development in CRM..............................................................................6
1. Customer retention Strategy..............................................................................................................6
1. Customer Relationship Development Strategy................................................................................6
3. Software application to support Vinamilk.......................................................................................6
IV. Evaluate customer retention and development strategies............................................................7
1. Achievements..................................................................................................................................7
2. Information is integrated through SAP CRM software.....................................................................7
3. Limited.............................................................................................................................................7
V. Design new CRM for Vinamilk........................................................................................................8
1.Subscription Model...............................................................................................................................8
2.Subscription Model Works...................................................................................................................8
3.Structure...............................................................................................................................................9
4.Participation.........................................................................................................................................9
5.Payment function...............................................................................................................................10
6.Contact the sponsorships...................................................................................................................10
7.Cost and revenues..............................................................................................................................10
About Vinamilk.
Vinamilk, formally the Vietnam Dairy Products Joint Stock Company (Vietnamese: Công
ty Cổ phần Sữa Việt Nam) is the largest dairy company in Vietnam. Based on the 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.
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).
The main business activities of this company include processing, manufacturing and
trading fresh milk, canned milk, powdered milk, nutritional powder, yogurt, condensed
milk, soy milk, beverage and other products. other dairy products. Vinamilk's products
are also exported to a number of countries such as Cambodia, the Philippines, Australia
and some Middle Eastern countries.
Vinamilk Dairy Products Co., Ltd. provides more than 250 different types of products in
the following main industries:
+ Fresh milk brands: ADM GOLD, FLEX, Super SuSu
+ Yogurt brands: SuSu, Probi. ProBeauty
+ Infant and adult milk powder: Dielac, Alpha, Pedia. Grow Plus, Optimum Gold,
Ridielac nutritional powder, diabetes specific Diecerna, SurePrevent, CanxiPro, Mama
Gold.
+ Condensed milk: South Star, Mr. Shou.
+ Cream and cheese: Subo yogurt cream, Delight cream, Twin Cows cream, Little
cream, Little cream Oze, Night cheese.
+ Soybean milk beverage: Vfresh juice, ice bottled water, GoldSoy soybean milk.
+ Vinamilk powder: Ridielac Gold, Optimal Gold, etc.
I. Customers of Vinamilk
+ Customers are organizations: are distributors, wholesalers, retailers, agents of the company, using
the company's products to do the product redistribution function
The principle of two-way information flow must be ensured in the one-to-one marketing philosophy.
It is the creation of a communication channel between the customer and the company. Especially,
for target customers, it is very necessary to regularly transmit information such as about new
products and announcements. There are many forms of interaction: face-to-face, telephone, mail,
fax, Internet, coupons. Rate each weight of the above forms of interaction by giving a score and
having a separate coefficient for each form. As such, each form of interaction has different pros and
cons, and for the target customers, a combination of forms with a high average score can be used.
Forms with lower scores can be used to collect data from customers who are not among the target
customers
=> Vinamilk often uses forms such as direct contact, phone, mail, fax to contact institutional
customers. As for individual customers, the company mainly relies on the Internet (ie the company's
website) to interact with customers
=> Vinamilk frequently contacts institutional customers via direct contact, phone, mail, and fax. In
terms of individual customers, the company primarily interacts with them via the Internet (via the
company's website)
a. Customer classification
Customer segmentation and analysis are critical. Ssoft CRM allows you to categorize customers based on
a variety of criteria, including ownership type, business type, business items, business size, region, and
so on. b. Information about customer transactions
Customers contact businesses on a daily basis, as do salespeople and marketers... Typically, these
transactional details are only known to salespeople. Ssoft CRM allows you to update and save all
customer transaction information, such as the transaction date, transaction summary, transaction staff,
transaction partners, and transaction classification (meeting customers, customers). Customers (visits,
phone calls...), status (not done, completed, in progress...), transaction notes...
b. Information on customer requirements
CRM enables the updating and storing of information about customer product and service needs: what
products and services do customers require; what vendors' products and services are currently used and
how. Furthermore, Ssoft CRM allows you to track your customers' projects and purchase plans: what
products and services are expected to be purchased; what the expected cost is; when will you buy...
3. Partnership Relationship
Vinamilk's partners include all individuals and groups that affect the survival of the business such as:
Customers, suppliers, investors, agents, wholesalers, retailers, competitors. , government
organizations,...
b. Strategy of company
- “Người tiêu dùng hài lòng thì Vinamilk mới an tâm"
Vinamilk always prioritizes product quality. The executive boards have always determined that the raw
materials used to make the finished product are the most important. Vinamilk has since built a factory
with high-quality management. The company only purchases raw materials that meet quality testing
standards, as well as nutritional ingredients, and then sells them on the market. In order to accomplish
this, the company will send product samples for testing. The manufacturing process is also important in
the strategy. The company has used a "quality management system in accordance with international
standard ISO 9001:2000" since 1999. Finally, in order to bring low-cost products to Vietnamese
consumers, the company has cut costs as much as possible. The company has a large distribution
network across the country, which allows Vinamilk to easily bring products to a large number of
consumers
b. Strategy of company
Maintain relationships with existing customers through product, price, distribution, and promotion
through appealing and appealing programs. The policies listed below will help Vinamilk's customer
development strategy:
- Product strategy
The company has been developing the most extensive distribution network in Vietnam, allowing it to
introduce and expand a diverse product portfolio that includes juice, soy milk, coffee, beer, and so on
- Model, packaging
Consumers today are very concerned with the appearance of the product. Vinamilk is constantly
changing its image in the eyes of customers in order to avoid falling behind. For example, when the Tet
holiday season arrives, Vinamilk does not hesitate to invest in new packaging, design, and printing to
convey the message of spring to consumers
In short, Vinamilk's product strategies have been extremely successful. The strategies proposed are
based on the market's actual needs. Vinamilk values customer trust, so they not only focus on product
quality, but they are constantly on the lookout for new technologies and strict production control
processes
- Pricing policy
With the current economic downturn, almost every commodity has seen a significant price increase.
However, Vinamilk believes that the price increase is not a good business strategy. Vinamilk will hold out
until it can't anymore before adjusting the price. Vinamilk's price remains stable, and they are willing to
reduce interest or compensate by trading many different product lines in order to share the burden of
spending with consumers
- Agency policy
Vinamilk provides incentives to agents in order for them to become close friends and loyal to their
products. The co mpany's agent system is divided into two categories, the group of dairy producThe
company's agent system is divided into two categories, the group of dairy products including condensed
milk, powdered milk... and the group of ice cream, yogurt and fresh milk products.ts including
condensed milk, powdered milk... and the group of ice cream, yogurt and fresh milk products. The
company advocates broad expansion and does not strictly limit the conditions of agents with the
product group of ice cream, yogurt, fresh milk, etc. Because these are products sold directly to
consumers, competition is low, and they are not strategic products for the company, so as the port
expands its distribution system, the products become more popular. Usually for agents, depending on
the location and sales location, the company stipulates sales and rewards for agents quarterly and
monthly.
Distribution system administration: The company currently has two distribution channels:
+ Traditional distribution channels (220 independent distributors and over 140,000 retail points)
account for more than 80% of the company's output. VNM has 14 product showrooms in major
cities such as Hanoi, Da Nang, Ho Chi Minh City, and Can Tho to support its distribution network
+ Modern channels of distribution (such as supermarket system, Metro ...). Vinamilk's advantage
stems from a network of invested dairy factories spread across the country. With 1,400 first-
level agents and a nationwide distribution network of 5,000 agents and 140,000 retail points
selling Vinamilk's products, as well as other direct distribution channels such as schools and
hospitals, supermarkets, and so on.
+ Vinamilk has been using the most common modern information technology applications to
effectively manage distribution channels in the market, which is the integrated information
management program Oracle E Business Suite 11i; Enterprise Resource Planning (ERP) system
and application of Customer Relationship Management (SAP) solutions:
+ Oracle E Business Suite 1li system: Officially put into operation from - January 2007. This
system connects to 13 locations including headquarters, factories and warehouses
nationwide. IT infrastructure has been synchronized, standardized and consolidated.
+ Customer Relationship Management (SAP) solution implementation: The SAP CRM
system enables Vinamilk's nationwide distribution network to connect to the center in
both online and offline modes. Vinamilk will benefit from centralized information in
order to take timely actions and plan accurately. The purpose of collecting and
managing dealer sales information is to be able to respond quickly, resulting in higher
levels of customer satisfaction. Vinamilk's distribution information was primarily
collected manually between the company and its agents prior to the implementation of
the SAP CRM system. Currently, at the main center, an information system for reporting
and decision-making for the leadership (Business Intelligence-BI) is in place to manage
sales distribution channels and promotional programs. Distributors can use the SAP
program to connect directly to the system via the Internet. By optimizing processes and
providing sales staff with all customer information, customers can exchange information
with the company in any way they want, at any time, through any communication
channel, in any language.... Very effective approach to Vinamilk's own customers,
assisting the company in fully collecting information and customer needs from which it
can make policies to build and develop a Vinamilk distribution network most
appropriate.
+ Enterprise Resource Planning (ERP) system: is a tool that helps employees with their
work by connecting Vinamilk's distribution network across the country to the center in
both situations. Situations can be online or offline. Vinamilk will benefit from centralized
information in order to take timely actions and plan accurately. The purpose of
collecting and managing dealer sales information is to be able to respond quickly,
resulting in higher levels of customer satisfaction. Using information shared throughout
the system, this process has helped employees improve their capacity, professionalism,
and ability to best capture market information. Vinamilk also manages its policies
throughout. Promotions in the distribution system, price books. Meanwhile, the primary
goal of the company is the end user, who benefits from ever-improving service quality
IV. Evaluate customer retention and development strategies
1. Achievements
Vinamilk has grown to become the largest dairy company in Vietnam, accounting for about 35% of the
overall market share. Vinamilk's domestic sales continue to grow rapidly, with an average annual growth
rate of 21.2% from 2020 to 2022. Vinamilk's profit margin in 2022 will increase by 18% compared to
2021. This number is partly due to their CRM system running very accurately and helping Vinamilk know
what its customers need and provide them exactly. From 2002 up to now, Vinamilk has invested in the
IT system a total of 4 million USD. Thanks to extensive and deep investment, the company has obtained
great solutions, including organizing the company's apparatus, improving knowledge for employees, and
organizing a reasonable apparatus to respond in a timely manner. user needs. The management thus
becomes centralized, transparent, legacy and timely.
A special feature of Vinamilk is that the company is applying 3 international ERP solutions of Oracle, SAP
and Microsoft at the same time. Therefore, how to be able to master and integrate all three solutions is
not simple. The above systems have been selected by Vinamilk according to each specific requirement,
thereby providing solutions to help solve business problems in the best way. The requirement for the
current IT system is to keep abreast of and solve business problems. To operate the system, Vinamilk
had to make efforts to research and learn from implementation partners and send employees to training
centers of Oracle and SAP.
Vinamilk also unified business processes with distributors according to systematic management
requirements such as price management, promotions, distribution plans as well as business processes
for sales staff using PDAs. ... application support center (call center) supports systems deployed at
distributors, ensuring problems are resolved in accordance with commitments with distributors.
3. Limited
Vinamilk has grown by double digits and increased market share over the last two years, solidifying its
position in the dairy industry. The unit has improved its reputation and consumer trust in quality across
the country. All thanks to the unwavering efforts of the entire apparatus, particularly the benefits of the
company's customer management system. Of course, there are many challenges and obstacles to
overcome when implementing CRM into management:
- The role of the leader, or CEO, is critical, requiring the ability and qualifications to transform a
process and way of working from many years of tradition to modernity.
- The time required to deploy the CRM solution at Vinamilk is also lengthy; more importantly, the
cost of changing a system in such a large corporation is prohibitively expensive.
- CRM is a business revolution, and employees must change their mindset in order to successfully
implement it.
- Vinamilk's success or failure in implementing CRM is dependent on the entire apparatus, so it
requires a high level of unity, consensus, and unwavering efforts from all departments.
- Choosing the right CRM supplier is also a significant challenge for the business. Because there
are currently many suppliers, each with unique strengths. Furthermore, businesses must
understand how to solve the problem of combining software in the most appropriate way.
V. Design new CRM for Vinamilk
1.Subscription Model
- Those are the Term Subscriptions. It has the same optimization as other programs, often
focusing on gifts and benefits for members. Besides, this program will let customers buy your
products under subscription packages.
- In a subscription model, customers are charged on a recurring basis for a product or service.
They choose how long and how often they want to receive each offer, and most subscriptions
provide the option to renew or cancel at any time.
- Vinamilk's customers agree to pay for 1 carton of milk over a period of time, and the business
accommodates that offer as long as the customer completes their recurring payments. When
the contract expires, the customer has the option to renew or cancel their subscription.
2.Subscription Model Works
In a subscription model, customers are charged on a recurring basis for a product or service. They
choose how long and how often they want to receive each offer, and most subscriptions provide the
option to renew or cancel at any time.
Vinamilk's customers agree to pay for 1 carton of milk over a period of time, and the business
accommodates that offer as long as the customer completes their recurring payments. When the
contract expires, the customer has the option to renew or cancel their subscription.
Subscription models are convenient for customers
Customers can discover new products.
Subscriptions can attract more customers.
Subscriptions decrease customer acquisition costs.
Businesses build stronger relationships with their customers.
MORE DETAIL
Instead of selling milk cartons as a stand-alone product as a one-time purchase, Vinamilk offers a
subscription service for weekly or monthly Milk delivery. In this model, instead of asking customers to
buy one at a time, Vinamilk provides monthly payments for an annual subscription for their monthly
consumption.
If Vinamilk offers a monthly milk delivery service, instead of a one-time box purchase, Vinamilk offers its
service as a 12-month service that includes 12 purchases. This makes Vinamilk's revenue model more
robust as it guarantees sales over a 12-month period instead of a single purchase. This makes sales
forecasting and business planning easier as Vinamilk can predict its sales further with greater accuracy.
For example: If the customer is a household with small children and needs nutritional supplements, the
selling price at retail agents for 1 carton of 100% 110ml vinamilk fresh milk is VND 260,000, meaning
that family will consume amount of fresh milk total value 3,120,000 VND. Then, customers will be able
to register for a 1-year preferential package, 50% off compared to buying at the dealer on a monthly
basis: 130,000 VND/month and 1,560,000/year (Soft reward). In addition, there will be a delivery service
to customers and the source of goods is taken directly from Vinamilk's agents in each area. And will
apply to the remaining products, or customers can receive more incentives if they choose other
products from Vinamilk with a discount of 10-15% directly at Vinamilk's retail agents. And customers can
cancel register anytime they want if they don’t feel it is necessary
3.Structure
The easiest subscription business model to understand is that of a magazine company. Instead
of selling milk cartons as a stand-alone product as a one-time purchase, Vinamilk offers a
subscription service for weekly or monthly Milk delivery. In this model, instead of asking
customers to buy one at a time, Vinamilk provides monthly payments for an annual
subscription for their monthly consumption.
4.Participation
Subscription models are convenient for customers
People are busy. And, if they can get a product (that they like) delivered when
they need it, with little to no effort on their part — sign them up. Subscriptions
save people from having to research new products and shop for them in stores,
creating a more seamless customer experience.
Customers can discover new products.
Not only do people save money from not having to travel to the store, but they
also get to try new items that they may not have purchased on their own.
Subscriptions can attract more customers.
Sometimes, the price tag on a product or service can be cost-prohibitive for a
consumer. Charging weekly, monthly, or yearly allows you to set the price at a
more affordable point, and lets consumers budget it into their monthly bills.
Subscriptions decrease customer acquisition costs.
Convenient automated solution that gives customers a shopping experience that
is both cost-effective and time-saving. Thereby enhancing the experience value of
the program, promoting the popularity and effective application of the loyalty
program
5.Payment function
In Online
Payment function is applied in the most convenient way for customers. Customers can pay directly onl
through the company's online sales platforms such as website and app. Or go to Vinamilk's retail agents
to receive direct advice on choosing and paying for the right product package.
In Offline
These are payment methods built on Vinamilk's existing platform, which are both convenient for
customers and simple in application and implementation of the company's activities.
For the purpose of enhancing the applicability, quickly and conveniently reaching customers. To
enhance their experience.
Distribution
Regarding the source of goods, marketing and selling subscription packages can be deployed with
retailers from large to small, private stores ....
Marketing
In addition, it also strengthens marketing advertising to create community through large channels to
promote the effectiveness of the program.
Another benefit of working with the same customers is that you develop stronger relationships with
them over time. When your service team is always there providing excellent customer support,
customers learn to trust your employees and they become accustomed to working with your brand.
*By selling products as long-term service packages, Vinamilk can increase the lifetime value of its
customers. At the same time, they encourage customers to use the service plan for many months by
saying "save more" to customers.
Rather than engaging potential customers who don't know or trust your brand, subscription business
models allow you to do business with people who already do. This cuts down on marketing costs and
allows you to focus more on customer referrals. This word-of-mouth marketing is typically more
effective and less expensive than promotional advertising.
For example: If the customer is a household with small children and needs nutritional supplements, the
selling price at retail agents for 1 carton of 100% 110ml vinamilk fresh milk is VND 260,000, meaning
that family will consume amount of fresh milk total value 3,120,000 VND. Then, customers will be able
to register for a 1-year preferential package, 50% off compared to buying at the dealer on a monthly
basis: 130,000 VND/month and 1,560,000/year. In addition, there will be a delivery service to customers
and the source of goods is taken directly from Vinamilk's agents in each area. And will apply to the
remaining products, or customers can receive more incentives if they choose other products from
Vinamilk with a discount of 10-15% directly at Vinamilk's retail agents.