Strengths
Strong and prestigious brand name: TH True milk is the top milk producer in Vietnam. It the first milk company applies the most modern technology into produced milk nearly 100% imported foreign country such as New Zealand, Germany, Israel. It also unique company producing product bring label: “sua sach” and was accredited by consumers. The brand TH True milk step by step into foreign market especially Asian countries: Japan, Korean, china, etc. nowadays, TH True milk have made up 40% market share of northern and target reaches 50% fresh milk in Vietnam. Financial potential and large scale:
From 2009 to 2011, the company invested total 1.2 billion USD and in the first period, 350 million USD was used. Advanced assembly line, capability of large production and stable quality: TH True milk’s products are ensured quality by using quality control system ISO 9001 and 22000. Moreover, the product has been studied clinically in the National Institute of Nutrition, confirmed good weight loss effect, safety and suitable for Asian. In addition, packaging are made from paper which cover by silver to preserve friendly environment and type of tin has three classes cover to well preserve. TH True milk signed with Tek tra company to supplied package paper in long time. Source material production quality: TH True milk owns a farm with 37,000 ha, and in the first period, company invested for 8,100 ha. The dairy was imported from New Zealand, they was taken care very especially with the most modern technology from develop countries from fell to take milk from of dairy. The resources foods were self-produced in close environment, reach international standard about safety and clear. Diversified products
TH True milk provides healthy products which satisfy the international standards of quality, with many kind of product and different taste:TH True milk fresh milk include: pure fresh milk, having sugar, no sugar, a little sugar, milk support collagen, phytosterol, and calcium, strawberry taste, chocolate taste. In recently, TH True milk also introduced new product line such as: yogurt, drinking yogurt. TH True Milk product was sold most of retail store in Northern, supermarket: Big C, Metro, Fivimart,etc. Weaknesses
Because just being established in no long-time, building the relationship with foreign market is not strong point. The company concentrates much on supply domestic consumers with its products; therefore, it does not have any experience on international market. The capital is not enough if the market is trouble.
Maybe the taste of Vietnamese and Korean is different.
Opportunities
Korean GDP/ person is high and consumers are aware of the benefits of healthy food, so they don’t react much with price changing. Korean population is ageing so that there will be a greater focus on the healthy benefits of food (according to the Korean National Statistic, the avg. life expectancy in 2050 will be 86, with 34.4% of the population over 65). The Korean lifestyle is becoming busier and more stressful than ever, resulting in more health concerns. The rate of obese kids in korea and the demand of beautifying of girls and women are increasing significantly. Korean people prefer using environmentally friendly products. Moreover, the distribution channel in Korean market is short and focusses on hypermarkets and supermarkets.
Korean consumers like shopping at supermarkets and hypermarkets such as Lotte mart, E-mart, Tesco home plus,…rather than retail stores. Together with the development of technology, shopping online also plays an important role in exporting to Korea. Asean-Korea Free Trade Agreement creates some advantages for Vietnam and the most important one is that exports originated from Vietnam get preferential tariff.Furthermore, Korean prominent retailers have penetrated Vietnamese market ( Lotte mart with the chain of supermarkets in Ho Chi Minh City and Hanoi). This is a good chance for Vinamilk to be known as top quality brandname by Korean distributors and consumers.
Threats
Intense competition with other companies in the same market such as the famous brand name originated from South Korea and America. Harsh rules of Korean Government in verifying product’s quality create barriers for Vinamilk slimming milk: Imported functional products are often 2-3 times more expensive than domestic products for consumers, due to import tax and KFDA recognition costs. The certification process for functional foods is time-consuming, especially if the functional food has not considered as “generic” by the Korea Food & Drug Administration. Consumers are hard-to-pleased and their rights are protected effectively; thus, if information about the product is not provided fully, they will not accept that product. In addition, Korean consumers are more trusting of domestic/natural products than imported products, and are very conscious of where their food is produced.
