Business – AT1 Financial Report – Nguyễn Minh Yến Linh (SACE 4)

Building the Financials for Vinamilk


In the Consultancy Report, Vinamilk’s opportunities and risks in the current Business Model have been indicated. This Financial Report will propose a new Revenue Model and Pricing Strategies to support these opportunities and help to avoid risks.


2.1. Market Size (proposed transformation)

Total revenue: 56.400 billion VND (2019) (Reference 2)

Profit: 10.554 billion VND (2019) (Reference 2). 

Highest market share in Vietnam with 61.3% in early 2020. 

Dairy market growth: approximately 7.5% each year for the past 5 years. 

Market trend: 

  • Economic: Government started the start-up support policy. This leads to the increase of new competitors.
  • Social: Customers care more about their health. Products with organic origin, without any chemistry added are requested more than ever.

The dairy market is run based on customer focus products. Companies evaluate the market trend and develop their products to meet the customers’ needs.

Vinamilk has the advantage of 100% organic products, this helps to steady their Customer Relationship section of the Business Model Canvas (BMC). They should continue producing organic products and emphasise them on advertisements on social media.

2.2. Demographics

Vinamilk’s customers are mostly Vietnamese average class with all ages and genders (Appendix 5). They care about their health and require affordable but quality dairy products every day (Appendix 1). They can pay for a higher cost if Vinamilk decides to increase the price (Appendix 2).

2.3. Competitor Analysis

The biggest competitor of Vinamilk in Vietnam is TH True Milk with 30% market share and their products are highly recommended by experts (Reference 3).They provide dairy products, and create customers gain better than Vinamilk as their fresh milk is bought more because they are more delicious even when the price is higher. Although TH True Milk’s current Google search ranking (Reference 4) and profit (Reference 1) is only half of Vinamilk, they are becoming the biggest threat of Vinamilk in this market. 

TH True Milk’s positioning map


As Vinamilk sells products and gets money at once, their revenue type is transactional revenue and currently, the revenue model is physical goods. 

Vinamilk has many nutritionists to study dairy products as their Key Activity (BMC), they can add the service revenue as their new revenue model (provide nutritious consulting). There are more people having concerns about their diet (Appendix 3), especially about suitable dairy products for themselves. Providing this service will help solve the customer’s pain of unhealthy diets and also a risk in the Consultancy Report of weak Customer Relationship (BMC).

The only invalidated assumption on the Lean Validation Board (LVB) was about the price of the service. After iterating to test and pivot, the solution hypothesis of providing cheaper service than consultancy offices was promoted. As Vinamilk is new to the field, this will help to attract customers and solve the problem hypothesis. This proposed revenue model is validated and ready for Vinamilk to promote. It will help Vinamilk to improve their Revenue Streams section (BMC), develop the Customer Relationship (BMC).


Vinamilk is using the cost-plus pricing strategy which helps them to avoid profit losses so they should continue doing this.

Vinamilk is the most popular dairy company in Vietnam. Using value-based pricing is a good way to emphasise their high-quality products. This pricing strategy is positive for Vinamilk’s Value Proposition (BMC) and also solves the risk of low milk powder market share mentioned in the Consultancy Report as customers believe expensive products are more quality (Appendix 6). Although the value-based pricing is beneficial, it still goes with jeopardies as the price may be too high and customers will stop buying from Vinamilk. The LVB validated this strategy, proving their customers’ high inelasticity of demand (Appendix 2) so there is no concern of processing this.

In addition, when service revenue is Vinamilk’s new revenue model, they can use the charge per hour pricing for this. Customers are willing to have this service (Appendix 4) so this pricing strategy will have no risks in processing.

One of Vinamilk’s opportunities for growth is exporting more as they have great foreign Key Partners (BMC) (Reference 5). As they enter a new market, penetration pricing is a suitable solution hypothesis to attract new customers by the lower cost, which was validated on the LVB through iterating research and pivot. Although this can make Vinamilk lose some profit, it is the best way to have new customers trying their products (Appendix 7).


By analysing the market and considering Vinamilk’s opportunities and risks in the current Business Model, there is a proposed revenue model and 3 new pricing strategies. These will help to expand the business and achieve their goals.


Appendix 1: 

Appendix 2:

Appendix 3:

Appendix 4:

Appendix 5: Vinamilk customers

Customers Gender Age Living status
Nguyen Minh Hung Male 45 Average class
Cao Kim Hanh Female 54 Average class
Nguyen Tra My Female 13 Average class
Nguyen Manh Long Male 21 Average class
Cao Kim Thoa Female 37 Average class
Do Thu Thuy Female 62 Average class
Nguyen Quang Loc Male 58 Poor
Nguyen Huy Khang Male 80 Average class
Phan Thanh Tu Female 38 Average class
Tran Dieu Anh Female 42 Rich
Vu Manh Trung Male 16 Average class
Cao Duy Nang Male 20 Average class
Ha Thanh Trang Female 31 Average class
Nguyen Thanh Huyen Female 27 Average class
Hoang Viet Linh Male 46 Average class
Nguyen Duc Manh Male 51 Average class
Nguyen Hoang Male 15 Average class
Lai Vu Thu Giang Female 23 Average class
Nguyen Hoang Hoang Dieu Ngan Female 40 Average class

Appendix 6:

Customers  Do customers pay much to products if they believe they are high-quality?
Le Yen Nhi Absolutely
Doan Trong Khanh 100%
Ha Duy Khanh I will go with cheaper products
Hoang Le Anh Thu I think so
Kieu Gia Linh Of course
Ta Hong Anh Yeah it is great
Vu Minh Hieu Of course, I want high-quality products even though they are expensive
Nguyen Minh Trang Absolutely
Phan Minh Tuan I think it is worth it
Dao Xuan Tung Yeah I do not mind
Ong Phuong Linh Cheaper products are better
Hoang Mi Linh I do not mind if they are of higher quality
Pham Duc Trung Absolutely
Phan Thu Ha Yeah I think so

Appendix 7:


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