FOREIGN TRADE UNIVERSITY

MANAGEMENT REPORT
THE FOCUS STRATEGY OF VINAMIT

Trần Thanh Hương 2213790025

Phạm Thị Hải Minh 2212790036
Triệu Vũ Hùng 2214790022
Bùi Hà Vy 2212790064
Hà Lê Phương 2214790041
Bùi Đức Anh 2212790004
Đinh Đức Anh 2213790005
Ngô Minh Sang 2212790045

Hanoi, September 2024

 TABLE OF CONTENT

PREFACE.......................................................................................................................................3
CONTENT......................................................................................................................................4
1. Introduction to Vinamit........................................................................................................4
2. Theory of the “focus strategy”.............................................................................................4
3. Vinamit’s business-level strategy analysis..........................................................................4
3.1. Characteristics...............................................................................................................4
3.1.1. Product differentiation through quality and technology.........................................5
3.1.2. Niche market targeting............................................................................................8
3.1.3. Premium product positioning..................................................................................9
3.1.4. Sustainability commitment...................................................................................10
3.2. Advantages of focus strategy for Vinamit....................................................................11
3.2.1. Better understanding of customer needs...............................................................12
3.2.2. Enhanced product differentiation..........................................................................12
3.2.3. Improved brand loyalty and customer retention...................................................12
3.2.4. Reduced competition............................................................................................12
3.2.5. Higher profit margins............................................................................................13
3.2.6. Flexibility and quick adaptation to market changes.............................................13
3.2.7. Stronger market positioning and brand image......................................................13
3.2.8. Export market potential........................................................................................13
3.3. Factors impacting success or failure...........................................................................14
3.3.1. Consumer preferences...........................................................................................14
3.3.2. Competition..........................................................................................................14
3.3.3. Supply chain and production costs.......................................................................15
3.3.4. Regulatory and trade barriers................................................................................15
4. Challenge and intervention................................................................................................15
4.1. Challenge.....................................................................................................................15
4.1.1. Limited market reach............................................................................................15
4.1.2. Supply chain and consistency...............................................................................16
4.1.3. Reliance on Local Farmers...................................................................................16
4.2. Intervention..................................................................................................................16
4.2.1. Limited market reach............................................................................................16
4.2.2. Supply chain and consistency...............................................................................17

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 4.2.3. Rising competition................................................................................................17
CONCLUSION.............................................................................................................................18
REFERENCES.............................................................................................................................19

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 PREFACE

This project report aims to provide an in-depth analysis of Vinamit’s business-level

strategy, focusing specifically on its use of a focus strategy. Vinamit, a Vietnamese
company specializing in organic dried fruits and agricultural products, has distinguished
itself in the market by targeting a niche segment of health-conscious consumers. Through
this report, we will explore how the company's differentiation focus strategy has allowed
it to maintain a competitive position within the organic food industry, while also
addressing the challenges that come with this approach.

The analysis will not only examine the effectiveness of Vinamit’s current focus strategy
but also identify key challenges the company faces, such as limited market reach, supply
chain issues, rising competition, and the need for increased consumer education. Based on
these challenges, we will propose practical interventions aimed at improving the
company's market position and ensuring sustainable growth. This report draws on
concepts learned in our "Management" course, applying theoretical frameworks to real-
world business practices to provide a comprehensive evaluation of Vinamit's strategic
direction.

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 CONTENT

1. Introduction to Vinamit
Vinamit JSC is a leading Vietnamese company specializing in the production and export of dried
agricultural products. Founded in 1988 by Nguyen Lam Vien, Vinamit began as a small
enterprise driven by a passion for developing Vietnam’s agricultural potential and promoting the
value of Vietnamese-grown fruits and vegetables in the global market.
Vinamit’s primary areas of business include the production of dried fruit and vegetables, freeze-
dried products, and organic agricultural goods. The company sources its raw materials from local
farms across Vietnam, ensuring that its products are made from fresh, high-quality produce. Over
30 years, Vinamit has diversified its offerings to include a wide range of dried tropical fruits such
as jackfruit, mango, banana, and durian, which have become flagship products.
Vinamit is also known for its commitment to organic farming and sustainability. It operates
certified organic farms and has achieved various international standards, including China
Organic, USDA Organic and EU Organic certifications. In addition, the company has an export
market of more than 20 countries, with key markets in Asia, Europe, and North America.

2. Theory of the “focus strategy”

The focus strategy is a business method companies use to identify and target specific market
segments or niches. This strategy is often used by businesses that cannot compete with larger
organizations across the entire market or prefer to specialize in serving a particular subset of the
market.

The focus strategy can be broken down into two distinct methods. The first one is the cost focus
strategy. This is a type of focus strategy where a business aims to become the lowest-cost
provider in a specific, well-defined market segment or niche. The idea is to capitalize on cost
efficiencies to deliver a product or service at a lower price than competitors within that segment.
The second one is the differentiation focus strategy. This is a business approach in which a
company aims to achieve a competitive advantage by offering unique or superior products or
services within a specific market segment or niche. Rather than competing on price, like in a cost
focus strategy, the company seeks to stand out from its competitors through the distinctiveness of
its offerings.

3. Vinamit’s business-level strategy analysis

3.1. Characteristics
Vinamit, a leading Vietnamese company in dried fruits and organic agricultural products,
employs a focus differentiation strategy aimed at targeting a specific market segment with high-
quality, organic dried fruits and agricultural products. The company's focus strategy focuses on
niche market targeting and product differentiation, offering organic, natural, and dried fruit
products with high quality, targeting health-conscious customers who prefer organic and natural
products as well as willing to pay a premium for products that align with their health and
environmental values. To be specific, we can divide the focus strategy that Vinamit uses into 4
categories for better insights:

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3.1.1. Product differentiation through quality and technology
Vinamit differentiates its products and sets itself apart from mass-market food producers
through high quality and organic certification, including organic certificates of USDA and EU
Organic. The products of the company are committed to being processed without making use of
any chemicals, sugar, preservatives, sugar, and acid, maintaining the nutrition of the product.

Vinamit’s products earn organic certificates of USDA and EU Organic

Furthermore, Vinamit offers a diverse range of products that cater to various consumer
preferences, focusing on organic and natural dried fruits, vegetables, juices, and powders,
including dried and free-dried products, vegetable snacks, fruit powders, fresh, organic fruit
juices and special flavors and exotic fruits.

Coconut milk jackfruit crunch

Chocolate banana

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 Jackfruit with durian

Spicy soursop

Red juice - Red beet, apple, Organic mixed vegetable Freeze - Dried yogurt
passion fruit juice chocolate

Moreover, Vinamit also differentiates its products by using innovative processing methods and
advanced freeze-drying technology (a modern drying method that removes moisture from
products by freezing them and then using a vacuum to turn the water from solid to vapor without
passing through the liquid phase). This technology is widely applied in many industries,
especially food and pharmaceuticals, due to its ability to preserve the nutrients, colors, and shapes
of products after drying, offering consumers a product that is superior to traditionally processed
dried fruits.

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 The difference between dehydrated fruit and freeze-dried fruit

The freeze-drying process at Vinamit helps the product retain its natural color, crispy texture, and
distinctive flavor without the need for preservatives. The company’s signature freeze-dried
products like jackfruit, mango and durian are seen as healthier alternatives to traditionally
processed dried fruits and have gained popularity for their freshness, taste, and health benefits,
contributing to its differentiation from competitors. This differentiation has allowed Vinamit to
stand out in both domestic and international markets.

Freeze-drying technology applied in Vinamit products

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 According to Mr. Nguyen Lam Vien, Chairman of the Board of Directors of VINAMIT Joint
Stock Company, businesses need to focus on the core value of contributing to the community
first.
3.1.2. Niche market targeting
Vinamit has focused on the growing demand for organic and health-conscious products. Instead
of competing with mass-market food companies, they target consumers who prioritize organic,
natural, and sustainably produced goods. This includes not only domestic consumers but also a
global audience, particularly in developed markets such as the U.S., EU, and Japan, where the
organic food market is growing rapidly. For instance, the organic food market in the U.S.
reached $56 billion in 2020, and Vinamit has capitalized on this trend by exporting its organic
dried fruit products. Vinamit has earned various organic certifications for exports to these high-
demand markets. These certifications enable Vinamit to attract health-conscious consumers
willing to pay a premium for certified organic products.

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 Worldwide sales of organic food from 1999 to 2018

Interest in organic food among Vietnamese in 2018

Willingness to spend on organic food compared to conventionally-grown food among

consumers in Vietnam in 2023

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3.1.3. Premium product positioning
Vinamit positions its products in the premium segment, especially in export markets like the
U.S., EU, and Japan. This allows them to set higher prices compared to brands that lack organic
certifications or use less advanced technology. However, within the organic product segment,
Vinamit's prices are competitive with international brands and some domestic companies also
producing organic foods.

Durian Vinamit dried premium

Moreover, Vinamit positions itself as a leader in the organic and natural dried fruits
sector, both in domestic and international markets and reinforces its positioning as a
trusted provider of premium organic products through many organic certifications. This
positioning leverages the growing demand for organic food products, particularly in
developed markets like the U.S., EU, and Japan.

3.1.4. Sustainability commitment

Vinamit creates value through sustainability and product quality, catering to consumers who are
willing to pay premium prices for organic and healthy food options. Vinamit’s commitment to
sustainability is a crucial part of their focus strategy. They use organic farming practices and
environmentally friendly production methods, which resonate well with their target consumers.
This focus on sustainability not only differentiates their products but also aligns with global
trends toward eco-conscious consumption. By maintaining strict organic farming standards and
offering products with long shelf lives (due to advanced processing techniques), the company
enhances its value proposition.

Vinamit is dedicated to organic farming, which eliminates the use of synthetic chemicals such as
pesticides, herbicides, and fertilizers. This not only improves soil health but also promotes
biodiversity on farms. The company operates large-scale organic farms in Vietnam, and all of
their products meet international organic certifications, including USDA Organic and EU
Organic standards. Moreover, Vinamit has worked with local farmers to expand organic farming
areas, ensuring that their products meet international sustainability standards. This commitment
has helped them attract environmentally conscious consumers, both in Vietnam and abroad.

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Mr. Nguyen Lam Vien, General Director of Vinamit Joint Stock Company (plaid shirt) visited the
garden with technicians in the organic agricultural production area.

Vinamit also employs advanced processing technologies like freeze-drying and vacuum-drying,
which preserve the nutritional value and quality of their fruits without relying on preservatives.
These methods also reduce energy consumption and food waste during production, further
minimizing the environmental footprint. For instance, in its zero waste initiative, Vinamit aims to
reduce waste at every stage of production, including using all parts of the fruits and vegetables
harvested, repurposing organic waste into fertilizers or animal feed, and ensuring that any non-
usable by-products are disposed of in an environmentally responsible manner.

To sum up, the company's focus strategy targets consumers interested in healthy living and
organic products, aligning with the global trend towards healthier, non-GMO, and additive-free
snacks. Moreover, Vinamit's commitment to sustainable farming, organic certification, and
innovation in product processing enables it to differentiate itself from competitors offering mass-
produced snacks.

3.2. Advantages of focus strategy for Vinamit

A focus strategy allows companies to concentrate their resources on a narrow market segment,
leading to deeper customer relationships, differentiated products, and increased profitability. Here
are the key advantages of using a focus strategy for Vinamit:

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3.2.1. Better understanding of customer needs

One of the most significant advantages of a focus strategy is the ability to gain a deep
understanding of the specific needs and preferences of a targeted customer group. For Vinamit,
this could mean understanding the preferences of health-conscious consumers who prioritize
natural, organic, and preservative-free products. By focusing on this segment, Vinamit can tailor
its product offerings, marketing strategies, and even its packaging to meet the specific needs of its
target customers. As such, the company has introduced product lines that include a range of items
like organic dried jackfruit, mango, and banana, tailored for health-conscious consumers. This
direct response to consumer demand and preferences is a key factor in its continued success.

3.2.2. Enhanced product differentiation

By concentrating on a specific niche, Vinamit can differentiate its products more effectively
compared to competitors who target broader markets. For example, Vinamit’s products are
certified by USDA Organic and EU Organic, setting them apart in a market where many
competitors do not emphasize organic production. This commitment to organic farming and
quality standards differentiates Vinamit from broader market competitors like Vina T&T or
VinEco, who do not exclusively focus on organic dried fruits.

In addition, Vinamit differentiates itself through unique product offerings such as organic dried
fruits, which are processed using advanced technologies like freeze-drying and vacuum-frying.
This uniqueness not only sets Vinamit apart from generic dried fruit producers but also allows the
company to command higher prices due to the perceived superior quality of its products.
Enhanced differentiation can also include unique flavors, innovative packaging, or sustainable
technological production methods, all of which align with the values of the target market
segment.

3.2.3. Improved brand loyalty and customer retention

According to reports from VietstockFinance.vn, customers have a high repurchase rate for
Vinamit products, especially in markets where organic certifications are highly valued. Focusing
on a specific market segment enables Vinamit to build stronger relationships with its customers,
which leads to increased brand loyalty and higher retention rates. When customers feel that a
brand understands and caters specifically to their needs, they are more likely to remain loyal to
that brand. This could involve engaging with customers through personalized marketing
campaigns, loyalty programs, or community events that resonate with their target audience's
lifestyle and values. High customer retention reduces marketing costs and contributes to long-
term business stability.

3.2.4. Reduced competition

In many cases, a focus strategy helps a company operate in a less competitive space. By
specializing in niche markets that larger competitors might overlook, Vinamit can have a unique
market position with less direct competition, avoiding rivalry with larger, more generalized snack
brands that do not specialize in dried fruits or organic products.

By specializing in organic, high-quality dried fruits, Vinamit has positioned itself in a niche
market with less direct competition. This focus on organic certification (USDA Organic, EU
Organic) and the health-conscious segment distinguishes Vinamit from broader market players
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that offer non-organic, conventional dried fruits. As a result, Vinamit’s organic product lines face
less competition because few competitors in Vietnam and other key markets match their level of
organic certification and commitment to health-oriented products. This reduced competition
allows Vinamit to build a stronger market presence and enjoy higher profit margins without
having to constantly battle for market share.

3.2.5. Higher profit margins

A focus strategy often leads to higher profit margins because specialized products typically
command premium prices. Vinamit’s commitment to producing high-quality, organic dried fruits
can justify higher prices, appealing to customers willing to pay more for healthier and more
sustainable options. This premium pricing strategy boosts profitability and allows Vinamit to
reinvest in product innovation, quality improvements, and market expansion.

3.2.6. Flexibility and quick adaptation to market changes

Operating within a focused niche allows Vinamit to be more agile and responsive to changes in
consumer preferences, market trends, or competitive threats. Because the company is
concentrated on a specific segment, it can quickly adjust its product offerings, marketing
messages, or distribution channels to align with changing market dynamics. For instance, when
there is a growing trend toward low-sugar or gluten-free snacks, Vinamit can swiftly adapt its
production to meet these emerging trends, maintaining its competitive edge by continuously
introducing new products to meet evolving consumer demands.

3.2.7. Stronger market positioning and brand image

A well-executed focus strategy enhances Vinamit’s market positioning by establishing it as a

leader within its niche. This clear positioning strengthens the brand image and helps Vinamit
become synonymous with specific attributes like quality, health, and sustainability. This focused
branding not only attracts target customers but also builds credibility and trust, which are crucial
for long-term success in the competitive food industry.

Focusing on niche consumers helps build stronger emotional connections, enhances customer
satisfaction. Satisfied customers are more likely to remain loyal to the brand, make repeat
purchases, and recommend Vinamit products to others, driving organic growth and brand
recognition.

3.2.8. Export market potential

Vinamit's focus on organic dried fruits aligns with the growing global demand for healthier food
options, making it a strong player in international markets like the U.S., Europe, and Japan. These
markets, known for their health-conscious consumers, appreciate Vinamit’s exotic, high-quality
products, often paying premium prices for organic offerings. This strategic focus allows Vinamit
to diversify its revenue streams, reducing dependence on the domestic market while tapping into
higher purchasing power abroad.

Exporting not only stabilizes Vinamit’s financial performance but also boosts its global brand
recognition. The company has proven to successfully export to over 30 countries, including the
USA, China, Japan, and South Korea. In some markets, such as China, Vinamit holds a
significant market share in the dried fruit segment and is the first Vietnamese business to be
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bestowed with the honorary award of Outstanding ASEAN Entrepreneur Entering China.
Vinamit’s products are now available in numerous provinces and cities throughout China and in
2014, the Chinese market accounted for 60% of the company’s export revenue. This enhanced
brand image, combined with strategic market penetration, drives Vinamit’s international growth
and positions it as a leading player in the organic snack industry. as a leading player in the
organic snack industry.

3.3. Factors impacting success or failure

3.3.1. Consumer preferences

Vinamit’s success is largely driven by the growing global demand for organic and natural foods.
Health-conscious consumers are increasingly seeking products that are free from artificial
additives, preservatives, and synthetic ingredients. Vinamit’s commitment to organic, high-
quality dried fruits aligns perfectly with these trends, allowing the company to capture a
dedicated customer base.

However, consumer preferences are not static and can change over time. A shift back toward
more processed or synthetic products, driven by factors such as price sensitivity, convenience, or
changes in perceived health benefits, could impact demand for Vinamit’s core offerings.
Additionally, trends toward plant-based, low-sugar, or functional foods could divert attention
away from traditional dried fruits, affecting Vinamit’s market position. To mitigate these risks,
Vinamit must stay attuned to evolving consumer trends and adapt its product lines to continue
meeting the needs and preferences of its target market.

3.3.2. Competition

Despite its niche focus, Vinamit faces significant competition from both local and international
brands. The dried fruit market is highly competitive, with companies offering a range of products,

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including lower-cost alternatives and non-organic options. Competitors with access to cheaper
production methods, less stringent quality standards, or more efficient supply chains can undercut
Vinamit’s market share by offering similar products at lower prices.

Vinamit’s ability to differentiate itself through organic certification, superior quality, and unique
flavors is crucial to maintaining its competitive advantage. However, the company must
continually invest in branding, marketing, and innovation to distinguish itself from competitors.
Failure to effectively differentiate could lead to price wars and reduced profitability. To stay
ahead, Vinamit needs to emphasize its unique selling points, such as sustainability and premium
quality, while exploring new market segments and product innovations that competitors may
overlook.

3.3.3. Supply chain and production costs

Operational efficiency, particularly in supply chain management and production, plays a critical
role in the success of Vinamit’s focus strategy. Organic farming and production require
significant investment, including compliance with stringent standards for organic certification,
which can be costly. Any disruptions in the supply chain, such as shortages of organic raw
materials, increases in labor costs, or transportation delays, can negatively impact production and
profitability.

Rising production costs, whether from higher prices for organic inputs or increased certification
expenses, pose a continual challenge. These factors can erode profit margins, making it difficult
for Vinamit to maintain competitive pricing without compromising quality. To mitigate these
risks, Vinamit must work to optimize its supply chain, invest in sustainable farming practices,
and build strong relationships with reliable suppliers.

3.3.4. Regulatory and trade barriers

As a company that exports to multiple international markets, Vinamit must navigate a complex
landscape of regulatory and trade barriers. These include compliance with food safety standards,
tariffs, quotas, and other trade restrictions that vary from country to country. Each market has its
own set of regulations regarding organic labeling, health claims, and import requirements, which
can be costly and time-consuming for Vinamit to comply with.

Changes in trade policies, such as new tariffs or stricter import regulations, can increase the cost
of exporting and affect Vinamit’s competitiveness in international markets. For instance,
geopolitical tensions or changes in trade agreements could disrupt market access or increase
operational costs. Vinamit needs to be proactive in managing regulatory compliance, exploring
new markets, and diversifying its export portfolio to reduce reliance on any single country.
Staying informed of international trade developments and adjusting strategies accordingly will be
crucial for mitigating the impact of regulatory and trade barriers.

Vinamit's focus strategy has positioned it as a leader in Vietnam’s organic food sector,
particularly in dried fruits. By capitalizing on global health trends and the demand for
sustainable, high-quality products, Vinamit has built a strong brand in both local and international
markets. However, the company must navigate challenges such as competitive pressure, rising
production costs, and shifting consumer preferences to maintain its competitive edge.

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4. Challenge and intervention
4.1. Challenge
4.1.1. Limited market reach

Vinamit's limited market reach stems from its focus on a niche group of health-conscious and
organic product buyers. While this strategy builds strong loyalty within that segment, it restricts
the company's ability to expand into broader consumer markets, especially in regions where
awareness of organic products remains low. In countries like Vietnam, where many consumers
prioritize affordability over quality, organic products are often seen as luxuries. A 2019 Nielsen
survey revealed that while urban consumers were becoming more aware of organic goods, rural
areas lagged behind in understanding their benefits, limiting overall demand.

This challenge was further highlighted during the COVID-19 pandemic in 2020, when consumers
shifted their purchasing habits toward more affordable options due to economic uncertainty. The
Vietnam Organic Agriculture Association reported that much of the country’s organic produce
was being exported, as local demand remained relatively low. For Vinamit, this means that
continuing to focus solely on high-end organic products could limit growth.

4.1.2. Supply chain and consistency

Vinamit’s reliance on organic and natural ingredients presents significant supply chain
challenges, particularly in maintaining consistency. Organic farming is highly dependent on
natural conditions, which makes it vulnerable to seasonal fluctuations, weather disruptions, and
lower yields compared to conventional farming. These factors can result in inconsistent product
quality and occasional shortages, especially during off-seasons. For example, in 2020, many
Vietnamese farmers faced difficulties due to extreme weather conditions, which affected crop
yields and led to supply shortages for companies dependent on organic raw materials, including
Vinamit.

Additionally, Vinamit’s dependence on local suppliers can pose risks, as smaller organic farmers
often struggle to meet the large-scale demands required for production. This issue is particularly
evident during periods of high demand or when supply chain disruptions occur due to unforeseen
events like natural disasters. If Vinamit cannot secure a reliable and consistent supply of organic
ingredients, it risks facing higher operational costs and potential damage to its reputation for
quality, which could undermine its differentiation focus strategy.

4.1.3. Rising competition

Vinamit faces rising competition as the demand for organic products continues to grow, attracting
both local and international players. New entrants, often with larger production capacities or
better distribution networks, can offer similar organic products at lower prices, putting pressure
on Vinamit’s market position. In 2021, Vietnam saw a surge in smaller organic brands entering
the market, as well as international companies exporting organic products into the country. These
competitors may benefit from economies of scale, enabling them to lower costs while
maintaining quality, which poses a challenge for Vinamit to retain its pricing power and customer
loyalty.

This increased competition not only threatens Vinamit’s market share but also forces the
company to continuously innovate to stand out in a crowded marketplace. While Vinamit has

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built a strong brand around its premium organic offerings, consumers may begin to shift to other
brands if they perceive similar quality at a lower price.

4.2. Intervention
4.2.1. Limited market reach

To address the issue of limited market reach, Vinamit could focus on expanding its product range
to include more affordable, entry-level organic products. By offering products at lower price
points, Vinamit could appeal to a wider audience, especially in regions where consumers may be
more price-sensitive or unfamiliar with organic products. For instance, Vinamit could introduce
mixed or semi-organic products, blending organic and conventional ingredients to reduce costs
while still maintaining some of the health benefits. This strategy would allow new customers to
gradually become familiar with the brand and its organic offerings, potentially converting them to
higher-end products in the future as their awareness grows. At the same time, this would not
dilute the brand’s core focus on organic quality, but rather make it accessible to a broader
demographic.

Additionally, Vinamit could intensify its marketing efforts, particularly in rural areas or regions
where awareness of organic products is low. This could include partnerships with local retailers,
running educational campaigns about the benefits of organic foods, and utilizing social media to
target younger audiences who are more health-conscious. By investing in marketing and
consumer education, Vinamit could help shift perceptions, making organic products more
desirable and accessible to a wider market.

4.2.2. Supply chain and consistency

To tackle the supply chain and consistency issues, Vinamit should consider diversifying its
supplier base and investing in vertical integration.

By expanding its supplier network, Vinamit could reduce the risks associated with depending on
a limited number of local farmers. Partnering with organic farmers across different regions would
help safeguard against localized weather disruptions or crop failures. Vinamit could also explore
sourcing some ingredients internationally to ensure year-round supply during off-seasons. This
approach would help the company maintain a consistent flow of raw materials while reducing the
likelihood of shortages or quality inconsistencies that can occur when supply is strained.

In addition, Vinamit could consider vertical integration by investing directly in its own organic
farms or collaborating closely with key suppliers to control more of the production process. This
would provide greater control over product quality and production timelines, ensuring that
Vinamit can meet demand even during challenging periods. Offering long-term contracts and
technical support to their existing farmers could further stabilize their supply chain and improve
crop yields, enhancing the company’s ability to consistently produce high-quality organic
products.

4.2.3. Rising competition

To address the rising competition in the organic market, Vinamit can strengthen its brand identity
by emphasizing its commitment to sustainability and local sourcing. Consumers are increasingly
valuing companies that have a clear environmental and social mission. By highlighting its eco-

17
friendly farming practices, local Vietnamese origins, and contributions to rural development,
Vinamit can differentiate itself from both local and international competitors. This focus on
sustainability would not only appeal to existing health-conscious customers but also attract
socially conscious consumers who prioritize supporting brands with strong ethical values.

Additionally, Vinamit can invest in product innovation to stay ahead of competitors. Introducing
new, trendy organic products, such as plant-based snacks or specialized dietary options like
gluten-free or keto-friendly items, would allow the company to capture emerging market
segments. By continuously updating and evolving its product offerings, Vinamit can ensure it
remains relevant in a fast-changing market, while also creating a clear distinction between its
products and those of competitors who might not be as flexible or innovative.

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 CONCLUSION

This report has analyzed Vinamit's focus strategy, which centers on targeting a niche
market of health-conscious consumers through the production of high-quality organic
products. By adopting a differentiation focus approach, Vinamit has successfully built a
strong brand within this specialized market, offering premium products that cater to a
growing demand for organic and sustainable foods. However, while this strategy has
allowed Vinamit to carve out a unique position in the market, it also comes with several
challenges that must be addressed to ensure long-term success.

We identified four key challenges: limited market reach, supply chain inconsistencies,
increasing competition, and a lack of consumer education and awareness. For each
challenge, we proposed interventions that Vinamit could implement to enhance its market
presence and strengthen its operational stability. These include expanding its product
range to attract a broader audience, diversifying its supplier base, reinforcing its brand
identity through sustainability efforts, and launching consumer education campaigns to
raise awareness about the benefits of organic products. These solutions are designed to
address the company's immediate obstacles while positioning it for future growth.

In conclusion, Vinamit’s focus strategy has been a successful approach thus far, but
adapting to these challenges will be essential for continued growth in the highly
competitive organic food market. By implementing these interventions, the company can
maintain its differentiation, expand its reach, and ensure a sustainable future in the
industry.

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