Price is a factor "P" only in mixed strategies that companies can recover their value from the value created for customers.
Vinamilk is the largest dairy company in Vietnam, now accounts for about 35 % overall market share. Vinamilk has maintained revenue growth rate in the country at a high level with an average growth rate of 21.2% / year in the 2004-2008 period.
The profit margin of Vinamilk has increased significantly from $ 24.3 % in 2006 to 31.7% in 2008. Despite the input price volatility increased sharply in 2007, and at high levels in 2008, however Vinamilk maintaining profit margins increase. This suggests that the ability to manage costs, regulation of Vinamilk's price is very good. To increase profitability, Vinamilk has advocated focusing on product groups with higher margins such as liquid milk, milk powder and yogurt.
In 2009, Vinamilk likely still be able to maintain margins at high levels due to lower raw material prices. Milk powder prices now down about 50% from their peak in 2008 and return on average prices of the period 1996 - 2006. The
results for the first 9 months of 2008 showed earnings growth exceeded Career 48% yoy while business rose 22%. After the price increase of 10% - 20% of dairy products from the beginning of the milk raw material prices fell sharply from 30% lead to a spike in profits.
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