ASSIGNMENT 02

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 49: Sales Management (5131)

Submission date 23/12/2023 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Lê Diệu Linh Student ID GBH211214

Class GBH1113 Assessor name Đỗ Mạnh Thái

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

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 TABLE OF CONTENTS

1. Introduction .................................................................................................................................................................................................. 4
2. Vinamilk Company ...................................................................................................................................................................................... 4
3. The purpose and benefits of portfolio management..................................................................................................................................... 11
3.1. Purposes and benefits of portfolio management ......................................................................................................................................... 11
3.1.1. Purposes ................................................................................................................................................................................................. 11
3.1.2. Benefits .................................................................................................................................................................................................. 11
3.2. Application into Vinamilk Company .......................................................................................................................................................... 12
4. The portfolio of sales opportunities ............................................................................................................................................................. 14
4.1. Theory ......................................................................................................................................................................................................... 14
4.2. Application to existing and new Vinamilk product .................................................................................................................................... 16
5. Application of appropriate analytical tools .................................................................................................................................................. 18
5.1. Margin calculation ...................................................................................................................................................................................... 18
5.2. Payment mechanism and terms ................................................................................................................................................................... 19
5.3. Sales forecasting existing/ new products .................................................................................................................................................... 20
5.4. Sales budgeting ........................................................................................................................................................................................... 22
6. Conclusion ................................................................................................................................................................................................... 23
7. References list .............................................................................................................................................................................................. 24

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 1. Introduction

Any business that engages on personal selling must have effective sales management. As can be seen, sales management entails organizing,
coordinating, and managing personal selling operations such as recruiting, choosing, equipping, assigning, routing, invoicing, and motivating
individual sales force. This report discusses the purposes and benefits of portfolio management, as well as an analysis of the portfolio's selling
portfolio. In addition, the report will give relevant analytical tools to boost profitability and competitive advantage for the company's investment
portfolio. Besides, the requirements of the report will be carefully and thoroughly applied to the Vinamilk company.

2. Vinamilk Company

Figure 1: Logo of Vinamilk Company (Vinamilk, n.d.)

Vietnam Dairy Products Joint Stock company, better known by the Vinamilk name, is Vietnam’s largest dairy company. Vinamilk established as
a state – owned enterprise in 1976 and was converted to a joint stock company in 2003. After more than 30 years in operation, Vinamilk has
developed 8 factories, 1 enterprise and is building 3 additional factories with varied products. Vinamilk’s mission is to commit to delivering top

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 – quality nutrition to the community with respect, love, and great regard for human life and society (Vinamilk, n.d.). This means
that Vinamilk aspires to provide high – quality, safe products that fulfill a variety of consumer demands while adhering to business ethics and the
law. In addition, Vinamilk also aspires to be a world – class brand in the food and beverage industry, where customers have complete faith in
nutritious and healthful products. Besides, Vinamilk aims for excellence in quality, innovation, and customer happiness while extending its
worldwide market presence. Vinamilk's vision is to become Vietnam's premier symbol of confidence in nutritional and health products that benefit
human life (Vinamilk, n.d.). This means that Vinamilk aspires to gain global recognition and a reputation for producing high – quality products
that provide considerable nutritional and health advantages to consumers. Furthermore, Vinamilk wants to build deep relationships with its
consumers based on respect, love, and responsibility.

According to international standards, Vinamilk’s products are always of the best quality and match the tastes of each customer group. Vinamilk
operates with respect, love, and a sense of enormous responsibility for human life and society in order to provide the community with a source of
food and first – rate quality. Based on its basic principles, Vinamilk has maintained its position as the top brand in the Vietnamese market and
aspires to become one of the world's 30 largest dairy companies. Vinamilk holds 50% of the milk market share, whereas condensed milk holds
80%, fresh milk holds 53%, yogurt of all sorts holds 80%, and powdered milk holds 40%. Vinamilk's 100% fresh milk products have scored top
in both output and sales in the fresh milk brand market since 2015. Because of its competitive edge in product quality, pricing, and brand reputation,
Vinamilk has secured several milk export contracts. Vinamilk products are available in 31 countries worldwide, including high – demand markets
such as the United States, England, Germany, and Canada... In addition, Vinamilk has a "huge" distribution infrastructure that spans all channels,
with over 250.000 places of sale in both traditional and new channels, as well as over 200 exclusive distributors. Vinamilk has made major
investments in the "Vietnamese Dairy Dream" system, constructing 120 new stores and expanding the total number of outlets to about 600 by the
end of 2021. On the occasion of its 45th anniversary in 2021, Vinamilk will not only become Vietnam's premier nutritious firm, but will also
reinforce its position as a National Brand on the global dairy industry map. Besides, Vinamilk is one of the top 40 dairy companies with the largest
revenue in the world (Vinamilk, n.d.).

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 Vinamilk's product portfolio contains around 250 products divided into about 20 categories, including powdered milk, nutritious
powder, pasteurized milk, yogurt, nut milk, soft beverages, ice cream, cheese, and foods containing active probiotics. Vinamilk yogurt includes
available in sugar, reduced sugar, no sugar, fresh milk, star, beauty, probi, hero, yomilk, susu, and a variety of additional flavors and uses. Vinamilk
soy milk is derived from natural soybeans and is high in calcium and vitamin D3. Vinamilk fresh milk is sourced from high – quality dairy farms
and processed with cutting – edge technology to assure its safety and nutritional value. Vinamilk fruit juice has no preservatives or artificial colors
and is prepared from fresh fruits. Vinamilk coffee has a rich and smooth flavor since it is produced with excellent coffee beans and rich milk
(Vinamilk, n.d.). In short, Vinamilk produces and distributes a wide range of products that address nearly all nutritional demands of consumers.

Vinamilk's consolidated net sales in 2021 is 59.960 billion VND, or 2.56 billion USD, down 1.58% from the previous year, while profit after tax
is 8.578 billion VND, or 365.8 million USD, down 19.3% from the previous year (Vinamilk, 2022). Vinamilk attributed the decline to the COVID
– 19 pandemic, which reduced customer demand and disrupted the supply chain. In addition, Vinamilk also faces challenges from rising raw
material prices, shifting currency rates, and increased competition in domestic and international markets. Vinamilk's revenue in 2022 is
approximately to be over 60 trillion VND, or roughly 2.56 billion USD (Statista, 2023). As can be seen, domestic revenue accounts for around
85% of overall revenue for Vinamilk, while foreign revenue accounts for approximately 15%. In particular, Vinamilk has received significant
international certifications and prizes for brand quality from the Clean Label Project (USA) in both fresh milk and powdered milk for newborns.

Introduction to a new product

Since the COVID – 19 epidemic, Vietnamese consumers have become increasingly concerned about their health and immunity. As a result, they
devote a premium on a well – balanced diet, choosing healthy and beneficial meals. Among them, beef is one of the fundamental foods rich in
high – quality protein, notably iron and zinc, and is thus regarded an essential component of a balanced diet, promoting health for the entire family.
According to Ministry of Agriculture and Rural Development statistics for 2021, demand for beef in Vietnam is still rising at a 5 – 6% annual rate
and is expected to expand further in the following years. Domestic beef production, however, continues to fall short of demand in terms of both

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 quality and quantity. Currently, beef production from domestic farms and animal families amounts for only around 10 – 20% of
market supply. In addition, customers are worried about the pricing, provenance, and preservation procedure of meat when it enters the market.

Figure 2: Vinabeef logo (Vinabeef, 2023)

Recognizing the potential of the beef cattle market as well as customer demand for this product, Vinamilk and Japan's Sojitz Group have executed
the Vinabeef cooled beef project, which is a beef farming and production complex using Japanese technology. For a total investment of 3.000
billion VND, the project intends to provide millions of Vietnamese homes with safe and high – quality cooled beef products. Vinabeef's goal is to
offer a reliable supply of high-quality beef throughout Vietnam and Southeast Asia, as well as to export to major European and American markets.
Vinabeef will serve to improve the quality of life in Vietnam by safeguarding the health of its customers and exporting to potential markets in the
future.

Marketing mix strategy

PRODUCT

Product slogan: "Vietnamese beef dream" - Vinamilk intends to create Vinabeef more than only a beef product brand, but also a safe and respected
food brand in general, with global quality products serving the Vietnamese market and exports.
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 Product purpose: Vinamilk created the Vinabeef beef product with the purpose of providing the Vietnamese market with a safe
and trustworthy high – quality beef product. Furthermore, Vinabeef plans to replace a major amount of imported beef in Vietnam.

Product description: Vinabeef is a brand of fresh beef products produced by Vinamilk, Vietnam's largest dairy firm, using Japanese technology.
Vinabeef is produced in the Vinabeef Tam Dao factory in Vinh Phuc province through a joint venture between Vinamilk and the Japanese company
Sojitz. Vinabeef is made from high – quality international breeds fed Japanese formula diets. In addition, Vinabeef is processed in a controlled
environment employing cutting – edge technical expertise. Vinabeef provides its consumers high-quality products and is devoted to utilizing only
fresh meat, never frozen.

Product orgin: Vinabeef beef products are manufactured in Vietnam using Japanese technology and premium beef breeds. In terms of cow breeds
used for farming, Vinabeef does not limit itself to well-known kinds in Vietnam, but will also include breeds from other countries, such as Japan.
To produce high – quality products, Vinamilk has imported cow breeds from the United States and Europe. In addition, Vinamilk has also
experimented with raising the famous Japanese wagyu beef breed.

Product classification: When Vinabeef originally launched, there were essentially seven beef kinds available. These are beef ribs, lean shoulder,
beef brisket, beef belly, beef shank, beef tenderloin, and beef rump. In addition, Vinabeef will be separated into two types of meat: large pieces of
meat and minced meat.

Packaging products: Vinabeef will be packaged in a sturdy box with a clear film on top. This makes handling and stacking easier, and it
allows buyers to see the quality and color of the meat. Besides, each package will have a label with crucial information such as the meat's name,
price, expiry date, product traceability number, nutritional value, and so on. Vinabeef will be separated into three different weights. These are
100gr boxes, 250gr boxes, and 400gr boxes for all seven varieties of Vinabeef beef.

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 Figure 3: Vinabeef’s livestock farming – processing process

Product technology: The newest technological equipment used at the processing plant and farm, which is imported from Europe and Japan, is
the highlight of Vinabeef beef products. Vinabeef is built and operated on a four-in-one closed process: livestock – production – processing
– distribution. During the breeding stage, beef cattle will be raised on ecological farms that meet Global G.A.P standards and given Japanese –
style diets. In addition, each cow will carry a QR Code showing the farm it was raised on and the day it was slaughtered; everyone will be at ease
due to the product's thorough traceability. The production stage is carried out in line with humane principles, using a rapid cooling mechanism that
assists in bacterial inhibition. Vinabeef will employ MAP technology in packaging and preservation to keep cold beef fresh when it is delivered
to the market. Vinabeef will be distributed under strict biochemical control, with temperature homogeneity and traceability guaranteed.

PRICE

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 Vinabeef researched the pricing of key beef brands in the Vietnamese market, including Vissan, Gkitchen, and Pacow, to find an
appropriate price. Furthermore, with a total investment scale of 3 trillion, along with breeding and processing using contemporary technology, the
pricing indicated above is appropriate for market entrance.

Vinabeef beef rib meat costs 89.000 VND per 100 grams, 189.000 VND per 250 grams, and 289.000 VND per 400 grams. The price of lean beef
shoulder is 79.000 VND per 100gr, 179.000 VND per 250gr, and 279.000 VND per 400gr. Beef brisket costs 59.000 VND per 100gr, 159.000
VND per 250gr, and 259.000 VND per 400gr. The price of beef belly is 49.000 VND per 100gr, 149.000 VND per 250gr, and 249.000 VND per
400gr. Beef shank costs 109.000 VND/250gr and 209.000 VND/400gr. Tenderloin of beef will set you back 129.000 VND for 100gr, 229.000
VND for 250gr, and 329.000 VND for 400gr. Finally, a 100gr of beef rump will cost 77.000 VND, a 250gr will cost 177.000 VND, and a 400gr
will cost 277.000 VND.

PLACE

Vinabeef products are distributed through four channels, two of which are B2B selling channels and two of which are B2C selling channels. The
two distribution channels of the Business to consumer (B2C) selling mode are the Internet (direct) and the Official retail chain store. The Internet
(direct) distribution route focuses on the main two multi – industry e – commerce platforms, Shopee and Lazada, which dominate the online
market share in Vietnam. The Official retail chain store is centered on Hanoi and Ho Chi Minh City for the second distribution channel of the
B2C selling mode. On the other hand, the two distribution channels of the Business to business (B2B) selling mode are Supermarket (retailer)
and Food service distribution. The first distribution channel of the B2B selling mode, the 10 largest supermarket systems in Vietnam, are viable
candidates to become Vinabeef retailers. The Food service distribution channel's target market includes three major airlines in Vietnam: Vietnam
Airlines, VietJet Air, and Bamboo Airways; as well as significant hotels and restaurants around the country.

PROMOTION

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 Customers will be able to try the product for free in Winmart and Winmart+ supermarkets across the country during the first month
of its release. In addition, provide promotional programs to stimulate customers' purchasing tendencies, such as giving customers gifts along with
promotional strategies when customers buy products directly at the trial store promotions "Buy 2 get 1 free", "Buy 250g of beef with any code,
get 100g of beef free" (Program will be applied for about 3 months). Besides, while purchasing a product, scan the QR code on the website to
receive a gift and e – commerce incentives.

3. The purpose and benefits of portfolio management

Portfolio management is the process of selecting and managing a set of investments that satisfy the long – term financial goals and risk tolerance
of an investor. Portfolio management necessitates the capacity to assess strengths and weaknesses, opportunities and risks throughout the whole
investment range. Portfolio management may be divided into several types and strategies, including active, passive, discretionary, non-
discretionary, asset allocation, diversification, rebalancing, and tax relief (Hayes, 2023).

3.1. Purposes and benefits of portfolio management

Portfolio management aims to develop and maintain a specified long-term investment strategy in order to meet a person's key financial goals
(Jobber and Lancaster, 2016). This requires selecting an investment portfolio that is compatible with the investor's commitments, goals, and risk
tolerance. In addition, portfolio management requires monitoring the portfolio's actual performance on a regular basis to verify that it is on track
and making any required changes.

3.1.2. Benefits

Portfolio management help companies ensure that money and people are used as effectively as possible to produce the most value for the company.
The best portfolio management systems allow you to see all of the work that is being done in the company at any given moment. Companies

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 usually struggle to acquire that information without committing to a portfolio management methodology (Six, 2021). Portfolio
management offers several benefits. First, portfolio management helps in the creation of strategy alignment. Portfolio management is a vital
solution for companies for a number of reasons, the most common of which is the strategic alignment it delivers. Portfolio management approaches
enable for the prioritization of investments and initiatives, ensuring that strategy is at the top of the corporate To Do list. Because of the openness
of the portfolio's connection with strategic objectives, may determine what to work on when in an informed manner (Six, 2021). Second, portfolio
management assists in the development of suitable operational budgets. Portfolio management provides a complete perspective of the company's
planned strategic and tactical activities. As a consequence, because companies are aware of the changes that will occur, it is much easier to build
realistic operating budgets. Creating a budget using portfolio management data enables for better risk management. All projects carry some element
of risk since companies are offering something new or changing how the company runs. In addition, project risk management budgets can be
incorporated, decreasing the overall cost of starting new work and boosting knowledge of future project expenditures. Besides, project risk
management budgets can be incorporated, decreasing the overall cost of starting new work and boosting knowledge of future project expenditures.
Finally, portfolio management aids in the movement of resources to where they are required. When a project pauses, it is usually due to an
external occurrence since things don't always go as planned. A supplier may have difficulty sourcing a certain component due to worldwide
shortage, or current events may cause a temporary halt to a project. When a company's strategy changes as a consequence of a change in leadership,
a project may be delayed or abandoned outright. If this happens, portfolio management tools can help company figure out how to repurpose your
resources. With all of the data available, the company may determine whether to allocate workers to existing priority projects or to establish whole
new efforts. As a result, portfolio management for companies becomes more agile (Six, 2021).

3.2. Application into Vinamilk Company

Vinamilk is a prominent dairy company in Vietnam, accounting for around 40% of the market (Vinamilk, n.d.). The company manufactures and
distributes a wide range of dairy products, including powdered milk, liquid milk, yogurt, condensed milk, and fruit juice. Vinamilk apply portfolio
management to manage the company's risks and business opportunities. According to the 2022 annual report, Vinamilk's risk management
system is maintained, extensively evaluated, updated, and enhanced to manage risks in the risk portfolio (Vinamilk, 2022). Specifically, Vinamilk
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 has updated and issued a company – wide risk list for 2022, which will be monitored, evaluated, and reported on a regular basis
during the year. This assists Vinamilk in ensuring the efficacy and efficiency of its risk management system. In addition, Vinamilk also implements
a robust internal control system in place to guarantee compliance with laws and regulations, as well as good governance standards. Vinamilk's
internal control system typically consists of five components: the control environment, risk assessment, control actions, communication
information, and supervision. Vinamilk analyzes and updates its internal control policies and procedures on a regular basis to ensure they are in
line with industry best practices and standards. Besides, Vinamilk develops and implements risk mitigation strategies and contingency plans to
reduce or eliminate negative consequences on corporate objectives (Vinamilk, 2023). Vinamilk's risk mitigation strategies and contingency plans
are tailored to the company's unique risks, which include market changes, supply chain interruptions, product quality difficulties, cyberattacks,
and natural catastrophes. For example Vinamilk may limit its financial risk exposure by diversifying its portfolio and keeping enough liquidity.
Or Vinamilk may shift some of its operational risks to its suppliers or partners through contracts and agreements. For prevention plans, Vinamilk
can employ a variety of tools and techniques to identify risks including SWOT analysis, PESTLE analysis, brainstorming sessions, surveys, and
interviews. As a result, Vinamilk's risk mitigation strategies and contingency plans are designed to mitigate or eliminate the negative effects of
these risks on the company's objectives, such as revenue, profitability, customer happiness, and reputation. Vinamilk continually improves
communication and awareness among all employees regarding the importance of risk management as well as their roles and responsibilities.
Vinamilk can guarantee that all employees understand risk management policies and processes, as well as their roles and responsibilities in putting
them into action. Vinamilk can also encourage employee input and recommendations to enhance its risk management system.

Vinamilk also apply portfolio management to seek new business ventures that have the potential to enhance the company's product line
and market share. For example, Fonterra Cooperative Group Company Limited (Fonterra) collaborated in 2016 to establish Fonterra Vietnam
Dairy Company Limited (FVDC), which produces high – quality dairy products for both domestic and international consumption and export
(Nguyen, 2016). The purpose of FVDC is to deliver the quality of New Zealand milk to the Vietnamese people while also supporting the local
dairy sector. Because FVDC and Vinamilk share the same vision of providing everyone with high – quality milk nourishment, FVDC may assist
Vinamilk in researching and providing a variety of products to cater to various customer categories and preferences. Fonterra's experience in dairy

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 technology, quality standards, supply chain management, marketing assistance, and innovation capabilities is leveraged by FVDC.
FVDC also benefits from Vinamilk's brand reputation, distribution network, customer loyalty, and local understanding. At the same time, Vinamilk
employs portfolio management to strengthen its innovation skills and develop new consumer value propositions. For example, Vinamilk
has introduced a variety of innovative products that combine several types of dairy products, including Vinamilk Plus (milk + yogurt), Vinamilk
Gold (milk + cheese), and Vinamilk Ice (ice cream + milk). Customers who wish to appreciate the many flavors and textures of dairy products
will find these goods convenient and diverse.

As can be seen, Vinamilk's portfolio management approach assists the company in achieving its aim of being one of the world's 30 largest dairy
companies by 2025. Furthermore, Vinamilk's portfolio management approach supports the firm's aim of being a world-class dairy company that
adds value to all stakeholders. By successfully managing risks and proactively embracing new possibilities, Vinamilk seeks to achieve sustainable
growth and a competitive edge in the changing dairy business.

4. The portfolio of sales opportunities

The Ansoff Matrix is a tool that assists companies in growing via the use of four growth strategies: market penetration, market development,
product creation, and diversification. Every strategy includes a degree of risk and an example of how to implement it. The Ansoff Matrix is
frequently used in conjunction with other business and industry research tools, such as the PESTEL framework, SWOT analysis, and Porter's Five
Forces, to provide a more detailed study of the drivers of business development (Peterdy, 2023).

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 Figure 4: The Four Ansoff Matrix Strategies (Peterdy, 2023).

Market penetration is the strategy of boosting sales of current items or services to established markets. This can be accomplished by increased
marketing efforts, price reductions, improved customer service, or acquisition of competitors. In addition, market penetration measures how much
a product or service is used by clients in relation to the overall expected market for that product or service. It is represented as a percentage of the
overall market available to the company (Peterdy, 2023). For example, a coffee company may employ market penetration by providing discounts
to loyal consumers, starting a loyalty program, or extending distribution channels.

Market development is the strategy of marketing current products or services to new markets. This can be accomplished by expanding into new
geographic areas, targeting new client categories, or forming new alliances. In addition, this strategy may assist the company boost revenue and
improve brand recognition (Peterdy, 2023). For example, a coffee company may employ market development to create additional locations in
other regions, provide tailored blends for varied preferences, or collaborate with local roasters.

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 Product development is the strategy of introducing new products or services into current markets. This can be accomplished by
developing new features, enhancing quality, offering value – added services, or establishing new categories. In addition, product development may
assist organizations in solving consumer issues, meeting market demands, and generating revenue (Peterdy, 2023). For example, a coffee company
may employ product development to debut new flavors, provide organic or fair-trade choices, or create ready – to – drink items.

Diversification is the strategy of introducing new products or services into new markets. This can be accomplished through the acquisition of
other companies, the development of new technologies, the formation of spin – offs, or the formation of strategic partnerships (Peterdy, 2023).
For example, a coffee company may diversify by purchasing another coffee chain, launching a mobile ordering and delivery app, establishing a
subsidiary for specialty coffee shops, or collaborating with a hotel chain.

4.2. Application to existing and new Vinamilk product

Vinamilk's existing products

Regarding the Chinese market penetration strategy, Vinamilk has made a number of significant steps. Vinamilk's yogurt products were offered
at the Alibaba – owned Hop Ma supermarket in Hunan, China, by combining traditional sales methods with online sales on e – commerce
platforms. As a result, after a lengthy period on display, Vinamilk's yogurt products joined the top three best – selling goods in this supermarket
(VnExpress, 2023). Vinamilk is also one of the top three best – selling products at China's Thien Hong supermarket. Vinamilk has used e –
commerce platforms such as Alibaba to display products and has collaborated with various e – commerce sites in Hubei, China, including Daily
Fresh and Lucky. This is to keep up with the expanding usage of computers and mobile devices, as well as the growing popularity of the Internet.
In addition to traditional sales channels, a Vinamilk representative stated that the company would continue to leverage the online platform as a
springboard to grow to many additional provinces and big cities such as Shanghai, Beijing (VnExpress, 2023). As can be seen, the population of
this billion – person country is growing, resulting in a rise in people's demands. This will make Vinamilk's market penetration in China simpler.
On the other hand, Vinamilk will face stiff competition because there are several competitors offering comparable products.

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 Vinamilk delivered standard "Made in Vietnam" soy milk products to Korea in early June 2020, comprising walnut, almond,
and red bean soy milk. Using worldwide standards, Vinamilk was given the most significant permission to launch products to the country of
kimchi. Similar to the Chinese market, Vinamilk undertook considerable market research and attempted to fulfill consumer demands while entering
the Korean market. Specifically, Vinamilk has created its own packaging in Korean so that locals may readily comprehend it. Despite adaptation
to local culture, Vinamilk's distinctive insignia remains on the product packaging of this Vietnamese dairy company. In the Korean market,
Vinamilk has invested in developing the nut milk product. Specifically, Vinamilk employs European – standard technology, 100% organic, non –
GMO ingredients, and exceptionally healthy nuts such as walnuts and almonds acquired entirely from the United States. Vinamilk's nuts are studied
and produced to provide "standard flavor" while also meeting the quality and nutritional needs of customers (Baochinhphu, 2020).

In addition, Vinamilk also applied the product development strategy. In this way Vinamilk has expanded its portfolio of new products into
existing markets. Specifically, in existing markets such as Vietnam, Vinamilk has expanded its product ranges beyond milk and dairy goods to
include plant milk, soy milk, juice, tea, and water. Vinamilk expanded its product line to include fruits and vegetables in 2011, and fruit juice for
children in 2012 (MALU, 2023). Vinamilk has developed natural fruit juice products that keep the unique Vietnamese flavor, such as apple juice
blended with fresh aloe vera and soaked apricot juice. Furthermore, understanding that most children refuse to eat many fruits and vegetables in
their daily diet, Vinamilk has successfully researched and brought to market three types of fruit juice products: orange, strawberry, and vegetable
juice fruits (including 13 types of vegetables), supplemented with Vitamins A, C, D3, fiber... essential for children's overall development. To avoid
the path of traditional products, Vinamilk has launched a line of fresh milk products to support the immune system, supplemented with Vitamin
D, A, C, and a number of nutrients to help support the immune system, increase the ability to fight diseases; soy milk supplemented with Calcium
and Vitamin D; Probi probiotic yogurt with two new flavors: strawberry and melon...

Vinamilk's new product

With the purpose of broadening markets and products, Vinamilk does not stop at the dairy market but also expands into many other fields. Vinamilk
will apply a diversification strategy with new products Vinabeef beef for the new market of Japan. Specifically, Vinabeef products will be

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 sold into the Japanese market through Vinamilk's joint venture with Japan's Sojitz Group, a livestock trader. As can be seen,
Vinamilk constantly prioritizes product quality for Japan, a market that appreciates differences and attention to product quality. Vinamilk
participates in major trade exhibitions in Japan, by participating in a number of key overseas fairs. This will allow Vinamilk to learn more about
the Japanese market and present its goods to a broader number of customers. To adapt to the Japanese market, Vinabeef packaging will be printed
in Japanese kanji and illustrations will be made to resemble the product, as is typical of Japanese commodities. Vinamilk wishes to introduce the
Vinabeef beef brand to potential export markets, particularly Japan in particular and Asia in general, in order to demonstrate that Vietnamese
products are of high quality and trustworthy. Mr. Hamada, Vinamilk's business partner, previously stated: “Vinamilk is an excellent export
enterprise. Their dedication to goods, services, brands as well as their sense of responsibility are the most important factors in our long – term
cooperative relationship with businesses”.

5. Application of appropriate analytical tools

The gross profit margin is the proportion of gross profit to revenue. It demonstrates how much of each dollar of sales remains after subtracting
the cost of goods sold, which are the actual expenses of manufacturing or obtaining the company's goods or services. A large gross profit margin
shows that a corporation is efficient in the production or acquisition of its products and has a competitive edge over its competitors. Gross profit
margin is computed by deducting cost of goods sold from revenue and dividing the result by revenue (Maverick, 2021).

The net profit margin is defined as the ratio of net income to revenue. It shows how much of each dollar of sales remains after deducting all
expenditures, such as cost of goods sold, operational expenses, interest, taxes, and any other charges that diminish the company's profitability. A
high net profit margin suggests that a corporation can control its costs and make more revenue from sales than competitors. Net profit margin is
computed by deducting all expenditures from revenue and dividing the result by revenue (Maverick, 2021).

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 Table 1: Vinamilk's gross profit margin and net profit margin in 5 years (Vinamilk, 2022).

As can be seen, the gross profit margin and net profit margin are two essential indicators for assessing Vinamilk's efficiency and financial success.
Specifically, Vinamilk's gross profit margin may be used to calculate the profit it makes after paying for raw materials and manufacturing
expenses. Vinamilk has a competitive edge in providing high – quality goods at cheap prices because to its high gross profit margin. As seen in
Figure 5, Vinamilk's gross profit margin consistently exceeds 40% and has been stable for the past five years (2017 – 2021), the highest among
public dairy companies. This also shows that Vinamilk's efficient manufacturing procedures and cost control measures. Thanks to a gross profit
margin always above 40%, Vinamilk is able to invest in R&D, expand its product line, strengthen its distribution network, and grow its market
share. It also helps Vinamilk in generating cash flow for dividend payments and debt repayment. In addition, Vinamilk's strong gross profit margin
boosts the company's reputation and brand value among customers and stakeholders. Vinamilk's net profit margin may be used to calculate how
much profit the company keeps after deducting all expenditures. As shown in Figure 5, Vinamilk's net profit margin is constantly stable between
17% and 20% from 2017 to 2021. This percentage is believed to be greater than the 15.6% industry average. A high net profit margin indicates
that Vinamilk is profitable and may reinvest earnings for future expansion or pay dividends to shareholders. Furthermore, a high net profit margin
will assist Vinamilk in evaluating its financial health, development potential, and operational efficiency. Vinamilk is also more effective in
producing profits from sales and controlling expenses since it has a larger net profit margin than the industry average. As a result, the net profit
margin is used by investors and analysts to assess Vinamilk's profitability and operational efficiency.

5.2. Payment mechanism and terms

Payment mechanisms and terms are the methods and conditions that buyers and sellers agree to trade money, commodities, or services under.
They typically include the payment method, payment schedule, and payment amount. Payment terms may differ based on the nature of the business,

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 industry, client, and supplier. Payment mechanisms and terms are critical for invoicing since they prevent misunderstandings,
disputes, and late payments. In addition, payment mechanisms and terms should be clear, straightforward, and agreed upon by both parties prior
to the transaction (Kenton, 2022).

Vinamilk is Vietnam's largest dairy company producing a variety of goods including milk, yogurt, cheese, ice cream, and drinks. The payment
mechanism and terms of Vinamilk differ based on the kind of customer and the type of product. Firstly, for farmers who supply fresh milk to
Vinamilk are paid based on the quality and amount of milk delivered (Nguyen, 2015). Vinamilk offers a payment scheme that rewards farmers for
increasing milking production and practicing good hygiene. In addition, Vinamilk also offers farmers training, technical assistance, and veterinary
services. Second, for distributors and retailers who purchase Vinamilk goods, the company offers a variety of payment options, including cash,
bank transfer, and credit card. Besides, Vinamilk has varying payment periods based on product type and purchase amount. For example, the
payment period for long – life items is often 30 days, but the payment time for new products is typically 7 days (Nguyen, 2015). At the same time,
Vinamilk provides discount and reward programs for loyal and high-performing distributors and retailers. Finally, for consumers when purchasing
Vinamilk products, the company accepts a variety of payment methods such as cash, bank transfer, credit card, e – wallet or QR code. Vinamilk
likewise provides varied payment conditions based on the product type and channel of purchase. For example, for online purchases, the payment
deadline is normally before delivery, but for offline transactions, the payment deadline is usually at the moment of sale. Vinamilk also conducts
customer loyalty programs and promotions for current and new consumers to attract and retain customers (Nguyen, 2015). As can be seen that
Vinamilk offers excellent payment mechanisms and terms to accommodate all clients.

5.3. Sales forecasting existing/ new products

Sales forecasting is the process of estimating future sales for a company or product based on historical data and market research. It assists
companies in planning their operations, setting realistic goals, and adapting their plans to changing market conditions (Anaplan, 2018).

Vinamilk's existing products

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 Table 2: Vinamilk's liquid milk output in the past 15 years (2007 – 2021).
70.000

60.000

50.000

40.000

30.000

20.000

10.000

0.000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Actual sales 3-year moving average 5-year moving average

Figure 5: Chart depicting Vinamilk's liquid milk output in the past 15 years (2007 – 2021).

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 Vinamilk presently has approximately 250 products of various varieties, and the liquid milk market alone has nearly 50 types of
products, fulfilling practically all nutritional demands of increasingly diversified consumers. As can be seen in table 2 and figure 5 that actual
sales, 3 – year moving average, 5 – year moving average of Vinamilk liquid milk products all climbed fast during the 15 years (2017 – 2021). In
addition, Vinamilk has topped the liquid milk market for three years in a row (from February 2018 to January 2021). This demonstrates that
Vinamilk's liquid milk products are more popular with customers than other items such as powdered milk and yogurt. Besides, this shows that the
trend of using Vinamilk's liquid milk products throughout the country is growing. Vinamilk has made ongoing attempts to build consumer trust
by enhancing managerial capability, engaging in product development research, developing raw material areas, and boosting production capacity.

With the rising consumption tendency in the Vietnamese market, Vinamilk has planned to forecast liquid milk product revenue in 2024.
Specifically, Vinamilk liquid milk is predicted to consumer 9.27 tons on the market in 2024. This equates to a total revenue of 65.4 billion VND.
Vinamilk set this revenue objective because the company intends to develop and extend liquid milk products to the international market by 2024.
In particular, Vinamilk is attempting to overcome several obstacles such as high tariffs, little customer awareness, and rivalry from local brands in
order to introduce liquid milk products into the Indian market. Simultaneously, by 2024, Vinamilk will have surmounted obstacles such as a lack
of infrastructure, a distribution network, and customer preference for local goods in the Philippines in order to export various products. This will
improve the revenue of Vinamilk. Furthermore, Vinamilk aims to increase revenue and brand value by launching new goods and services.
Specifically, Vinamilk will embark into a joint venture with Del Monte Philippines, a prominent fruit and beverage company, to produce Del
Monte – Vinamilk Fresh Milk. The company will improve its premium milk product, Vinamilk Green Farm Fresh Milk, which is now the world's
first fresh milk line to earn Clean Label Project accreditation from the United States. These will assist Vinamilk in increasing sales and revenue
by 7% compared to 2021.

5.4. Sales budgeting

Sales budgeting is the process of predicting projected sales revenue and expenses over a specific time period. It assists businesses in resource
planning, goal setting, and profit forecasting. In addition, the sales budget serves as the foundation for other budgets, such as the production budget,

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 inventory budget, marketing budget, and income statement. It helps the business in aligning its operations with its sales goals and
monitoring its success. To create a sales budget, the business needs to multiply the sales quantity by the sales price for each product or service,
and then sum the total revenue from sales for all products or services (Dheeraj, 2019).

Table 3: Sales budgeting of Vinamilk's liquid milk in 2024.

Vinamilk's liquid milk products are predicted to sell 9.27 tons in 2024, translating a revenue of 65.4 billion VND. Specifically, revenue in the first
quarter will be 14.8 billion VND, followed by 15.8 billion VND in the second quarter, 16.9 billion VND in the third quarter, and 17.7 billion VND
in the fourth quarter. Vinamilk's liquid milk revenue will fluctuate each quarter in 2024 due to changing seasons in supply and demand for liquid
milk products, customer preferences, and market circumstances. According to studies, the season when consumers drink the most milk in Vietnam
is winter, since the cold and dry weather causes people to seek warm and healthy meals like milk. Liquid milk can help in the maintenance of body
temperature, the strengthening of the immune system, and the prevention of dehydration. That is why Vinamilk anticipates more liquid milk
consumption and revenue in the fourth quarter than in other quarters. Furthermore, Vinamilk's marketing and distribution methods shift in response
to customer behavior, competition, and innovation, resulting in quarterly revenue variations.

In addition, Vinamilk will continue to promote R&D activities and enhance quality, with an emphasis not just on nutritional content but also on
customer added value. Vinamilk will also endeavor to preserve its market leadership in liquid milk products, continue developing liquid milk
products to the global market, enhance the distribution system, and invest in factory and farm systems while implementing domestic and overseas
investment projects.

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 6. Conclusion

In conclusion, this report offers an overview of how Vinamilk applies product portfolio management strategies. In addition, Vinamilk has clearly
defined the causes, prospects, and advantages that may be realized in today's competitive market using the Ansoff matrix model. This makes
Vinamilk's suggested products more accessible and appealing to a wide range of customers. Besides, the report dives into gross profit margin, net
profit margin, payment mechanism and conditions, sales forecasting, and budgeting tactics to improve the overall performance of the company.

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Baochinhphu (2020). Vinamilk tiến sâu vào thị trường Hàn Quốc với sữa đậu nành hạt. [Online] Available at: https://baochinhphu.vn/vinamilk-
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Dheeraj, V. (2019). Sales Budget. [Online] Available at: https://www.wallstreetmojo.com/sales-budget/ (Accessed 18 December 2023).

Hayes, A. (2023). Portfolio Management Definition. [Online] Available at: https://www.investopedia.com/terms/p/portfoliomanagement.asp

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Maverick, B. (2021). The Difference Between Gross Profit Margin and Net Profit Margin. [Online] Available at:
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Nguyen, K. (2016). Vinamilk: A case study on partnering up to expand on the World Market. [Online] Available at:
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