Management OrganizationManagement Organization

Presented by:Ng Yuk YuChan Hoi HoMa Man ChungCheong King Chong

Vitasoy International Holdings Limited

Vitasoy’s Industry BackgroundVitasoy’s Industry BackgroundSoya milk is a healthy soybean drinks

from china.Vitasoy is the first and Biggest packed

soymilk manufacturer in Hong Kong.

Vitasoy’s HistoryVitasoy’s HistoryBased in Hong KongFormer : Lo Kwee Seong(1910 – 1995)Current chairman: Lo Yau-laiMarch 9, 1940

The first branch Vitasoy operate, early soymilk sale at 6 cents, the first day sold only nine

Vitasoy’s HistoryVitasoy’s History

Now: sales in 40 markets worldwide

Now: sales in 40 markets worldwide

WW2

Business NatureBusiness NatureTheir business include manufacture and

sale of food and beverages.Soymilk:Soybean product:Tea, Juice:Cal added soymilk:Chinese tea:

Business NatureBusiness NatureVita has two subsidiary provide Lunch

boxes and Snacks service.Vitaland Hong Kong Gourmet

Vitasoy cultureVitasoy cultureA story of soya bean and Hong Kong

◦Die of malnutrition in Hong Kong◦Fresh milk was unaffordable for poor people

Mr. Lo start a factory to produce nutritious, high-protein soymilk.◦A substitute of fresh milk◦an affordable price(6 cents)

Vitasoy cultureVitasoy cultureConcern of CSR

◦Support local charitable organizationse.g. Oxfam, Red Cross

◦Sponsor programmes related to health

Vitasoy cultureVitasoy culture

Vita have become …◦a household name ◦A healthy product.

Human touch◦Close relationship with employee

and customer◦Stay by me

Vitasoy structure & designVitasoy structure & design

Chairman: Lo Yau-lai

CEO: Mr. Laurence P.

EISENTRAGER

Vitasoy structure & designVitasoy structure & designMechanistic

◦Food and drink productFunctional departmentalization

◦Product Development, Engineering, Transportation

Vitasoy’s Mission and GoalsVitasoy’s Mission and GoalsMarket:

◦ soymilk market is saturated in Hong KongCustomer:

◦Teenagers still lead of marketEmployee:

◦most valuable assetsGoals: Keep customer loyalty and enhance

employees’ satisfaction

Vita’s SVita’s StrengthstrengthsWOT WOT (cont’s)(cont’s)

• household brand• Brand dominance

–build up image of soy expert Good reputation ( 名譽 )

• First mover– ‘Tetra Pak’ paper packing

Vita’s SVita’s StrengthstrengthsWOTWOTNature of the product

◦high nutritionGood internal management

◦high transparency◦public confidence◦Corporate image

Own transport team

Vita’s SWVita’s SWeaknesseaknessOTOTStrong employee forces

◦Powerful associationWeak machine productive forces

◦(list 生產力數據 )Focus on soymilk

◦Occur high-risk when any problem in soy

Vita’s SWOVita’s SWOpportunitiespportunitiesTT• CEPA

–Enter to Mainland–Tariff policy

• High public demand–High nutrition –healthy

• Melamine 三聚氰胺

–milk vs. soymilk• Brand of beverages easily to enter

Vita’s SWOTVita’s SWOThreatshreats• Raw material price fluctuations

– Difficult to control• Competitor

– milk• Trappist Dairy1956• Dairy Form1916• The Kowloon Dairy LTD1950• Nestle

– Soymilk• Yeo’s

– Health Drink• Healthworks• Yeo’s

• Financial Tsunami 金融風暴 + Inflation 通脹

– decrease consumption

時期： 2008 年事件：首次工潮，員工反對無理解僱司機，爭取加薪

BCG MatrixBCG Matrix

External EnvironmentExternal EnvironmentEconomic Environment - Financial crisis - Inflation Social Events- Melamine - SARSWeather- Temperature - Bad weatherSupply Chain- increasing in material prices

Government Policy - CEPACulture- More and more people focus on health - Many Hong Kong people have feeling on

Vitasoy

Overall in Vitasoy Overall in Vitasoy (Non-carbonated drinks)(Non-carbonated drinks)Market Share (High):

◦Familiar brand ◦Leading in non-carbonated drinks market

Market Growth (Low):◦ Intense competition ◦Saturation

Soy milkSoy milk

Market Share (High):Leader in the soy milk market

Market Growth (Low):Is not a new product Difficult to achieve breakthrough

Tea drinks Tea drinks Market Share (High): Leading in marketingE.g. AC Neilsen

In 2005, Hong Kong people drinked 200 million package lemon tea. Vitasoy sold more than 100 million package lemon tea.

Market Growth (Middle):Can match different type of combinationEasily to develop a new productEasily to develop a new market

Distilled water Distilled water Market Share (Middle):Two leaders in distilled water and mineralized

water : Watsons & BonaquaBrand effect

Market Growth (Low):SaturationRising in cost of operationMarket prospect is not too

optimistic

Healthy drinksHealthy drinks

Market Share (Low):Many competitors

Market Growth (High):Hong Kong people are more and more

focused on health Increasing in marketing demand on high

nutrition and healthy drinks.

TofuTofuMarket Share (Low):Enter the market in 2007 Need more time to develop and take the

market share.

Market Growth (Low):Common food.Market demand will not change much.

Vitasoy in ChinaVitasoy in ChinaMarket Share (High):Leading steadily in the Soy milk marketE.g. Guangzhou, Shenzhen, Shanghai over 50%

market share.Sales champion in Guangdong

Market Growth (High):After Melamine incident, more Chinese people

to be emphasis on health and quality of security.

Soy milk is a new concept in China.Great development potential in China.

Vitasoy in ChinaVitasoy in China

StrategiesStrategiesMarkingPromotionInvestmentProducts diversificationProducts customization

MarketingMarketingGrowth StrategySell the product with slot machine,

supermarket, small food shop

PromotionPromotionGrowth StrategyCost of advertisement had increased around 16%Bronze Award of Cannes Lions 2009 in Media

CategoryFor example Package, Advertisement

70th Anniversary with the Launch of 70th Anniversary with the Launch of 70 Specially Designed VITASOY Packs70 Specially Designed VITASOY Packs

1984 advertisementhttp://www.youtube.com/watch?v=RqaW4EpWuVk&feature=PlayList&p=6CD6370206269B15&playnext_from=PL&playnext=1&index=3

SeminarSeminar“Soy: Food of the Future” had been holdInstill the Health Benefits of Soy

InvestmentInvestmentRenewal strategyInstalling new high speed packaging

machine

Products diversificationProducts diversificationGrowth StrategyProduct line is more than thirtyThe market had been segmentation

Products customizationProducts customizationDevelop new products base on healthy,

tasty, need

Evaluation of MarketingEvaluation of MarketingSuccessful element of improving their

saleSelling the product almost anywhereEnhancing and getting a competitive

advantageLeader of the market of soymilk in South

China area

Evaluation of InvestmentEvaluation of InvestmentEstimating the quantity will reach more

than 1,300,000,000 per yearEstimating the time of production will be

spared more than 10%The recourse will be utilized wellEliminating the Weakness of SWOT

Vita throughout the worldVita throughout the world

Comment & Evaluate of ProductComment & Evaluate of Product

wide range◦Different product line

Package

Comment & Evaluate of ProductComment & Evaluate of ProductDevelop new product

Finance ReportFinance Report

(HK $ million)

( Year )

( Year )

(HK $ thousand)

referencereferencehttp://www.vitasoy.com/http://www.vitasoy.com.hk/chi/

main.htmlhttp://www.designerhk.com/forum/

post/2411

Background imageBackground image