Vissan Marketing Situation Analysis

I. SITUATION ANALYSIS

1. Company description:

According to Wikipedia, VISSAN (Vietnam Meat Industries Limited Company), known as a subsidiary company of Saigon Trading Organization (SATRA). The corporation actually started business from May 18 1974 even it was being built 4 years before (November 20 1970).More about the formation and development process of the company, follow the annual report in 2017 (http://www.vissan.com.vn/images/2018/vissan_-_bao_cao_thuong_nien_2017.pdf):

●1970-1980:  + Established “The modern abattoir Do Thanh”

                         + Changed the name to “FOOD PRODUCT COMPANY 1”

●1980-1990:  + Attended the export frozen pork market

                         +The firm’s name turned into “VISSAN Joint Stock Company”

                         + Invested a huge food processing system

●1990-2000:  + Became a member unit of SATRA

+ Brought out more new items, up to 200 creations

+ Rearranged the channel of distribution system throughout supermarkets and convenience stores

●11/10/2006:     Changed the format into Limited Company

●From 2006

               until + Organized The Annual General Meeting(25-05-2016)  

              2018 + Constantly evolving and changing

• The company’s key policy in production is focusing on processing and trading meat which included sausage production. With the mission statement: “From farm to meal”, VISSAN guarantee accomplish with the guideline of food safety, hygiene and quality policy (cite from the official website https://www.vissan.com.vn/en/about-us/overview/ )

[pic 1]

2. Product description

• Function – Feature:

It has 17 different flavors, including traditional flavors like beef and pork and new taste such as shrimp or corn without preservative substance. Moreover, it smells delicious and real, it can also be used right away with instant noodles, bread and pizzas, ect.. It is very convenient and safe. Why is that? It is all packed to protect the quality of the product for a long time so this sausage can save up consumers’ time a lot.

• Design

 VISSAN products are divided into two types. At first, the instant sausage is packed and each package contains five units of sausage. Customers only need to peel and eat them instantly. A new instant sausage has been presented, the sausages are put in a plastic jar with a small seasoning sauce packet. Consumers peel the sausages and the sauce then mix them together by put them in the jar and start shaking it.

And the second type of sausage is packed in a vacuum bag. It has to be baked or put in an oven to be used. Both types are fast food and easy to process.

[pic 2]               [pic 3]

• Market share

The brand holds 65% of sausage marker share, contributes over 50% of VISSAN total profit and has the rate of growth from 15% to 20% per year.

< https://doanhnhansaigon.vn/chuyen-lam-an/dau-truong-xuc-xich-1084625.html >

According to Euromonitor (2017) the market share of VISSAN in 2017 has decreased by over 0.9 percents.

• Brand awareness

VISSAN is vastly popular with consumers. According to VISSAN's 2017 annual report, they have 128 distributors, 87 agencies and more than 130000 stores. <https://www.vissan.com.vn/images/2018/vissan_-_bao_cao_thuong_nien_2017.pdf>

VISSAN rewarded  “High-quality Vietnamese product” from 1997 to 2017.

      <https://www.vissan.com.vn/gioi-thieu-vissan/danh-hieu-va-giai-thuong/ >

II. MARKETING ENVIRONMENT

1. Micro Environment

a. Competitors:

  It is indicated in the CafeF newspaper (2016) that there are many companies that also provide fresh meat and processed food such as DucViet Food, Mavin Food, DBC Food, Viet Huong food, Sai Gon food, CP food. But still, after 20 years, VISSAN still can remain their number one position in the market, consist of 65 percent of sausage market sale nationally.

<http://cafef.vn/doanh-nghiep/thi-truong-xuc-xich-cuoc-so-gang-cua-cac-ong-lon-2016040508480641.chn>

=>Impacts:

The fact that VISSAN has a range of competitors to deal with will certainly boost the competitive spirit, the company will have to become more aggressive and try to improve their products throughout time. This also means that VISSAN will speed up its productivity. Moreover, the highest rank that the company is holding, as it was mentioned in the above paragraph, makes it easier for VISSAN to develop their products and change their marketing strategy without concerning too much about the loyalty of the customers. On the contrary, if the company is too confident about their position, is not cautious and does not care about improving the system then it is likely that consumers and business partners may choose the other competitors’ products since now the sausage market is highly competitive. Moreover, this will affect the company’s decision making. For example, it takes more time and effort to make any big steps when working on the marketing campaign. Sometimes, VISSAN will have to reduce the price to compete with other rival companies, which is absolutely unfavourable.

b. Customers:

  Currently, as it is referred in the company’s website, VISSAN has 17 different flavors, besides of traditional flavors like beef and pork, new taste such as shrimp or corn have been made in order to bring new experiences to some different age group of customer. Furthermore, VISSAN’s customers include reseller markets like supermarkets, showrooms, distributors and agencies in the above- mentioned section (VISSAN, hệ thống phân phối trong nước). VISSAN have also sold their products for international markets. They even have a represent office in Cambodia, distributors in Laos, and they produce their meat products for their markets such as North America, Australia, Korea, Taiwan, Singapore, Germany, Russia, Laos and Cambodia. (VISSAN, hệ thống phân phối ngoài nước)

<https://www.vissan.com.vn/he-thong-pp/trong-nuoc/>

=> Impacts:

The customer network of VISSAN is expanding year by year. As mentioned before

‘VISSAN still can remain their number one position in the market, consist of 65 percent of sausage   market sale nationally’ (Micro Environment, Competitors)

 This is beneficial to the company’s general sales, which helps increase profits. Other than that, it potentially builds good business relationships. Nevertheless, the negative impact of having a huge number of customers is to spend a large amount of money and resources to build strategy to keep existing customers and attract new potential customers.

c. Suppliers:

According to VISSAN official website, to avoid unsafe raw materials from unreliable suppliers, VISSAN has been creating its own private raw material supply chain and cooperate with other farmers- their products must meet VietGAP, and the ISO, HACCP standards as well ( VISSAN, phát triển hệ thống sản xuất) Its factory is based in CBTP VISSAN Industrial cluster in Ben Luc, Long An. (VISSAN, tầm cao mới của VISSAN)

<https://www.vissan.com.vn/bai-viet-bao-chi/tam-cao-moi-cua-vissan.html>

<https://www.vissan.com.vn/gioi-thieu-vissan/phat-trien-he-thong-san-xuat/>

=> Impacts:

The self- supply system helps VISSAN have a good control of a safe and guaranteed source of food and labor to produce quality products. On the contrary, the company should take full responsibility for all of its mistakes in the logistics and supply chain management. Therefore, it is also a big challenge for the company to improve the quality of the products.

d. Intermediaries

-  Resellers: According to its own website, at the moment, VISSAN has had a numerous product showrooms.

• 51 VISSAN product showrooms in Ho Chi Minh City,
• 1 VISSAN product showroom in Binh Duong province,
• 2 VISSAN product showrooms in Hanoi City,
• 5 VISSAN product showrooms in Danang City.

Moreover, nearly every supermarket chains have VISSAN’s products (VinMart, BigC, LotteMart, Aeon,…). Besides that, there are 116 distributions, 87 agencies and more than 130,000 point-of-sale in every cities and province in Vietnam ( VISSAN, hệ thống phân phối trong nước)

<https://www.vissan.com.vn/he-thong-pp/trong-nuoc/>

=> Impacts:

With a wide range of intermediaries, VISSAN can bring more profits as well as build more business relationships. On the other hand, this means that it is possible to bring the VISSAN products to every corner in the country. This easy approach will make the brand become more well-known. But at the same time, it may lead to some issues such as uncontrolled of the number of the resellers or having lower benefit cap.