1. The Beef Jerky and Lettuce & Broccoli chips products are new and unique in Vietnam and will be easy to differentiate. Describe how your products are to develop sustainable competitive advantage in Vietnam. 8
2. Distribution network
3. Pricing strategy
4. Marketing communication
5. The extended marketing mix
6. Marketing mix of Beef Jerky and Lettuce & Broccoli chips
7. Business to business and business to consumers
8. International market and domestic market
How can we launch an effective business?
There are many company has been successful with their business. They used to start with small businesses. Taking risk decisions, right analyzing are the key. They become international companies. In this report, we will analyze the marketing campaigns of Vinamit Company. Thereby, we might clearly understand market and find our own successful approach.
The TM Vina Mit Ltd. Co. (Vinamit) was established since 1991. The firm has had 90 percent market share in the domestics market, and has exported its products to more than 17 countries. The Beef Jerky and Lettuce & Broccoli chips products are new and unique in Vietnam and will be easy to differentiate. Describe how your products are to develop sustainable competitive advantage in Vietnam.
The Beef Jerky and Lettuce & Broccoli chips are two new products of Vinamit. They have notable features to create competitive advantage in market. We will discuss these advantages through “Porter‘s Five Forces”.1 Each company always tries to find advantages which make it are totally different with competitors. By using Five Forces Analysis, we can understand more clearly about the industry context where the company operates and aware of features leading to competitive advantage of Vinamit.
Bargaining power of suppliers:
Vietnam is an agriculture country. There are 70% Vietnamese working as framers. They can supply a huge amount of agriculture products. As the result, Vinamit can buy raw material with low price. Besides, the company also develops agricultural areas. Therefore, company can supply 50% raw materials by itself. So, Vinamit has big advantage when use cost leadership strategy.
Threat of substitute products:
“Monopoly” is a main reason of Vinamit development. Vinamit is the first and unique company specializes in production and trading of dried fruits. Especially, Beef Jerky and Lettuce & Broccoli chips are two new products, which have high quality.
Threat of new entrants:
Vinamit has sales system covering all 64 provinces and cities nationwide; the company has exported its products to 17 countries in the world. Besides, the brand Vinamit has become famous; people know it as a brand of Vietnam’s farmers.
With the advantages in monopoly and sales system, Vinamit can use “differentiation focus” strategy to create competitive advantage for Beef Jerky and Lettuce & Broccoli chips. Bargaining power of buyers:
Vinamit has customer in both domestic and oversee. They know and use products of Vinamit by various reasons such as competitive price, famous brand, and qualitative product. Moreover, many people, nowadays, accept high price to have qualitative products, rich nutrient, and good for health.
It is oblivious that when the firms have high competition, their profits are reduced. At this time, Vinamit does not face with too much competition.
The marketing mix of company refers four factors: product, price, promotion, and place. We make product in factory, then establish price for it, and use promotion strategies to make customer know our product. We also need places where display and sale product. Distribution mainly affects on place. It is a path where customer can buy and receive the product from producer.
There are four basic distribution strategies: indirect distribution, special sales, direct...
References: 3) Bearden, Ingram, Laforge, 2001, Marketing Principle & Perspectives, 3rd ed., United States: McGraw-Hill Higher Education. P. 276
4) Philamfood [online], [cited 27th December,2010], (http://www.philamfood.com/Fruit-Snacks/?page=2)
7) Xay dung thuong hieu tu goc, (03/08/2008), VOH, [online], cited 28th December,2010], (http://www.voh.com.vn/News/NewsDetail.aspx?id=1590)
8) 2004,Marketing Supporting Foundation Degrees, 1st ed., Great Britain: BPP Professional Education, p.21
15) Dilipchandra, Major Difference between Domestic and International Business, (no date), hubpages,[online], [citied 30th December, 2010], (http://hubpages.com/hub/Major-Difference-between-Domestic-and-International-Business).
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