II. BUSINESS PLAN
1. Executive summary
The report indicates various aspects of the business VMC currently and in the future and other factors that affect the business directly.
VMC is a pharmaceutical partnership company founded with the vision to create a healthy life for animals which major in numerous medical fields such as medicines, nutritional and supplementary. With a strong history as a trusted brand on this market in Vietnam, VMC came up with an efficient, high-quality and affordable solution for every Vietnamese farmer. For production, the business owns a factory and trucks for manufacturing and delivering products. After a process of research and experimentations on the formula, new products will be brought to the market and introduced to the customers through promotion activities.
VMC follows obligation laws for this industry as well as provides employees insurance and for the fixed assets. Also, the business follows a CSR practice for society, especially for children and poor people. VMC Animals Health Logo and website is protected with copyright. The business registered with the certificate of good production, paper eligible for production of probiotics, chemicals for veterinary use and paper eligible for production of feed additives, water treatment microbiology.
The role of agriculture in Vietnam is significantly important which medical majoring in this field is the key solution to improve agriculture in Vietnam. Also, in the Asia Pacific, this industry is predicted to develop quickly and is the quickest developing veterinary market.
The Key Customer has resulted from the Value Proposition Canvas, Lean Validation Board which are both genders about middle-aged people who work in this industry or own a farm.
Additionally, to compete with other strong competitors in the market, SWOT analysis shows the ability of the company and its weakness or risk. VMC is currently weak at marketing plans so that more formats of advertising are applied to the company. Especially in the digital age, the business can use up social media such as Facebook to use paid advertising or enhance the machinery’s qualities as well as improving the official site. The Business Strategy is to be in the top 20 highest-revenue companies in Vietnam in the veterinary medicine industry.
Starting with personal savings, bank loans, family loans and partnerships, VMC has now raised the revenue to billion VND which in the next 2021, the company aims to raise 4% of the total revenue.
2. The busines
2.1. Vision, Purpose and Values
- Join the value chain and become a large-scale veterinary, aquatic and feed additives manufacturing company in the Vietnamese market.
- Become production and distribution of products and services for the fields of animal husbandry, veterinary medicine and aquaculture.
- To create a world where animals can live without fearing diseases.
Purpose: The business is founded with the purpose to provide Vietnamese farmers with a solution to their animals in diseases and more.
Values: Having a strong history in this market providing a wide range of safe products for different types of animal, VMC is a trusted, a leading manufacturer business in this industry.
By using VPC to know the values added to the customers, VMC knows that their customers have problems in finding a long-term brand with a variety of medicines for different animals so that the company has upgraded and expanded their products. Also, for the future plan, VMC wants to widen their market and customers, VPC provides the current pains and gains of the customers which can help the business know that they should focus on the value created for the customers.
2.2. Product / Services
- Products: VMC is a pharmaceutical company majoring in various fields such as animal feed production’s materials, veterinary medicines, nutritional additives for poultry and fisheries.
- Services: Produce and contribute medical products such as medicines and nutritional additives to the customers. Provide free testing animal’s disease for loyal customers.
2.3. Registration details
The business’s registration detail contains:
- The certificate of good production: GMP – WHO.
- Paper eligible for production of probiotics, chemicals for veterinary use.
- Paper eligible for production of feed additives, water treatment microbiology.
The tax registration number is 0101468806.
2.4. Location and outlets
The company’s own fixed assets are a factory for producing medicines and trucks for delivering products to the customers.
VMC Vietnam Office located in Hanoi
Benefits: Located in the residential area where can easily have access to other people and promote their brand identity in the public.
VMC Vietnam Factory located in Ha Nam, rural area in Vietnam
Benefit: Ensuring the privacy
- Low expenses
- Having access to a wide range of workforce, particularly local residents
2.5. Structure and ownership
Partnership company with an owner/CEO and 2 partners.
Ownership: Nguyen Huu Vinh – CE0 (40% equity)
Important Responsibilities of the CEO:
- Managing company Key activities (including Production – Business – Finance)
- Perform outer undertakings with state offices, International associations, universities, specialists and experts
- Build and maintain a corporate culture.
- Together with the directors of production, sales, finance and accounting, develop a company development strategy for each year, with a 3-year, 5-year vision.
- Implements strategies and directions established and approved by the Board of Directors
Through a process of research and experimentation, products will be sold to the public through local fairs. Customers will get in touch with VMC’s new products through the annual fair in the local area as well as other forms of marketing such as Facebook.
2.7. An organisational chart and key personnel
- The Business Organisational structure has a flat structure and 5 levels in the Chain of Command.
- Has a wide span of control.
- VMC organisational chart is Centralisation with 3 Head offices, 3 medium branches and some smaller branches.
- This structure is suitable for the business because the director’s role has a wide span of control to manage the tasks logically by each specialised group.
2.8. Risk management
- There are too few products on the new medicines field which are products for water creatures, particularly shrimp and fish. To overcome this, VMC are focusing on developing a wider assorted variety of products to keep their clients intrigued and can grow to a more extensive sort of clients.
- VMC mainly concentrate on traditional and limited format of marketing (only via Facebook and Annual Fair locally). To promote the products better, the business has to confront the way that numerous new promotion formats take the dominant part in the piece of the overall industry. With the goal that VMC ought to improve their marketing in building the brand identity.
2.9. Intellectual property protection
- VMC Animals Health logo is protected with copyright.
- The company’s website and its content are protected with copyright in order to prevent internet hacking from controlling wrong information.
2.10. Legal considerations and insurance requirements
VMC provides Health insurance and Social insurance for employees and insurance for the factory.
- Veterinary Law
- Livestock Law
2.11. Sustainability impacts and STEEPLE
The business follows a CSR practice for children, specifically, together with members of Keieijuku Vietnam Organisation, the company donate a library to pediatric patients at the National Institute of Hematology and Blood Transfusion. By paying social responsibilities, the company gains more trust from the customers.
The role of agriculture
The influence of Covid-19 procrastinates the market and increases the price of foreign products.
Updated producing progress
Disease testing laboratory
The faculty of agriculture Vietnam National University of agriculture
The government investment in agriculture.
Chemical contamination from abuses
Enforcing policy conditions
Product return policy
The safe effectiveness
- As agriculture is the dominant industry in Vietnam’s economy, the business gets more attractions and investments from the government.
- By installing the latest technology for the machinery in the manufacturing factory, producing products is faster and more efficient.
- Because of the widespread use of Covid-19 which prevent VMC from organising the local fair, the business uses different platforms of marketing such as Paid Facebook advertising and Paid Advertising billboard.
- To protect the environment, the production factory ensures that the wastes and gases are purified through a purification process.
3. The Market
3.1. Market research and industry analysis
- Vietnam has most of the economy in agriculture.
- Veterinary medicine market is expected to display a CAGR of 8.1% from 2017 to 2023.
- America is predicted to take the majority in the global veterinary medicine market.
- The Asia Pacific is the quickest developing veterinary medical market,China and India are going to lead this market because of the rapidly developing medical services part and enormous neglected needs over time.
- For manufacturing, more machinery for producing chemicals is developed, the producing process of VMC is more efficient and reduces the cost of human resources.
- Also, protecting the environment is a phenomenal problem now, in the factory, VMC focuses on reducing the amount of waste being discharged to the environment.
3.2. Key customers
Apart from the VPC, VMC knows more details about the customers’ needs and values. As most people care about the products is the quality and price so that VMC creates values that can meet the demand of customers which attract more customers to the company.
Government companies: Lots of market share, strong history, a wider range of products.
- Central joint-stock company 5
- Central joint-stock company 1
- Marphavet: Effective, quality products
Sales and marketing plans
- Using more formats of marketing by updating the official website and promoting brand identity through media and billboards.
- Having access to a wider range of customers
- Strengthen the customer relationship which leads to brand recommendations.
Sales Target: Reach 55 billion VND in revenue in aquaculture products in 2021.
5. The Strategy
5.1. Short and long term goals
- Achieve 55 billion VND in revenue in aquaculture products in 2021.
- More than 10 products on the aquaculture field will be developed and brought to the market by 2022.
- Successfully expanded the working zone to popular agriculture regions such as Sai Gon, Binh Dinh and Quang Ninh in 2023.
- Be in the top 20 highest-revenue companies in Vietnam in the veterinary medicine industry.
- Utilizing the natural ingredients for manufacturing products to give consumers the best experiences on the medicines.
- Become the number one choice for the customers in the veterinary medical market.
5.2. Action plans (Gantt Chart)
6. The Finance
As more people in Vietnam join the agricultural sector, the veterinary industry is growing quickly, which means VMC will have more chances to develop and sell more of their products overtime.
It is clear that the revenue of the business drops a bit due to the Covid-19. To overcome this, VMC now provides consultant online video on social media with the customers which can keep the same quality as face-to-face meetings and also can ensure the safety of people in this pandemic. As a result, unlike the decreasing trend in the sales in the first half year of the pandemic, VMC’s revenue now has been stable and has an upward trend until the end of the year.
Financial objectives and targets
- Revenue in all products: Achieve 100 billion VND in 2021
- Revenue in aquaculture products: Achieve 55 billion VND in 2021
- Raise 4% of the total revenue in 2021 compared to 2020
Funding or capital requirements: Personal Saving, Bank loan, Family loan, Partnerships
Annual budget and cash flow forecasts
Profit and Loss & Balance Sheet predictions
Market Research Future, 2020, Veterinary Medicine Market Research Report, By Animals (Domesticated, Companion Animals), By Products (Injury Medicine, Disorder Medicine and Diagnosis Medicine and others), By Route of Administration (Oral, Topical, Parental), By End User (Veterinary Clinics, Veterinary Hospitals, Research Institutions and others) – Global Forecast till 2023, 4th October, <https://www.marketresearchfuture.com/reports/veterinary-medicine-market-844>