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Facebook @Dethivaonganhang www facebook com/dethivaonganhang www ThiNganHang com S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 1 GRADUATION THESIS Major International Business Administration MARKETING[.]

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GRADUATION THESIS

Major: International Business Administration

MARKETING ACTIVITIES IN AN CHAU

PHARMACEUTICAL JOINT STOCK COMPANY

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ACKNOWLEDGEMENT

This graduation thesis is the result of thirteen weeks of research and writing during the last semester of my final academic year at Hanoi Foreign Trade University

It has been an interesting and learning experience In fulfilling this thesis, I would like

to give my special thanks to many people for their significant help, contribution and recommendation during my writing process

First and foremost, I am heartily thankful to my supervisor, MBA Nguyen Duc Nhan, whose encouragement, guidance and support from the initial to the final level enabled me to develop an understanding of the subject

Secondly, special and grate thanks must go to all the managers, staffs and customers of An Chau Pharmaceutical Joint Stock Company, Ha Noi Capital for their cooperation that helped me in this study

Futhermore, I offer my regards and blessing to my family and friends who support respect during the completion of the thesis

Lastly, gratefulness is to the readers whose feedback will help much in improving the thesis

Hanoi, April 2015 Tran Thi Thanh Tam

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ABSTRACT

The graduation thesis represents the results of research on marketing activities

of An Chau Pharmaceutical Joint Stock Company The purposes of this study are to identify the marketing activities of An Chau Pharmaceutical Joint Stock Company and measure factors affecting to the marketing activities Then, base on that, some recommendations are put forward to help An Chau PJSC improve the quality of medicines and enhance the effective of marketing activities

Currently, An Chau PJSC has launched drugs in all 63 provinces and cities in Vietnam However, due to some reasons both objectively and subjectively, it is impossible to conduct the research on marketing activities in all provinces and cities in Vietnam Therefore, an area should be selected to be the representative for the whole country In this thesis, Some province like Ha Noi, Nghe An, Ha Tinh, Da Nang, Hai Phong is chosen to study because it is the most convenient area for the researcher In addition, this branchs has a huge number of customers of An Chau PJSC Therefore, it may be given more accurate information and able to take the right actions Questionnaires were sent out to 210 customers of An Chau PJSC in some province above but only 150 collected responses were usable

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TABLE OF CONTENTS

TABLE OF CONTENTS 1

LIST OF ACRONYMS vi

LIST OF TABLES AND FIGURES vii

1 INTRODUCTION 1

1.1 Background and cause of this paper: 1

1.2 Objective 2

1.3 Research questions 3

1.4 Research scope 4

1.5 Structure of the thesis 4

2 LITERATURE REVIEW 5

2.1 Overview about Marketing 5

2.1.1 History of Marketing 5

2.1.2 Definition of Marketing 7

2.1.3 The Role of Marketing 9

2.1.4 Marketing in pharmaceutical 10

2.2 Basic content of Marketing Mix 11

2.2.1 Product 11

2.2.2 Price 18

2.2.3 Place 22

2.2.4 Promotion 24

3 RESEARCH METHOD 29

3.1 Pharmacy marketing research 29

3.2 Research process for thesis 29

3.2.1 Recogniance survey 29

3.2.2 Questionnaire design 29

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3.2.3 Data collection 31

3.2.4 Conducting the results 31

4 DISCUSSION AND FINDING 32

4.1 Company background 32

4.1.1 General information 32

4.1.2 Establishment and development process 32

4.1.3 Vision, mission, values 33

4.1.4 Organization chart 35

4.1.5 Human resources 36

4.1.6 Production 37

4.1.7 Monthly financial result 38

4.2 Analyzing marketing activities of An Chau PJSC 39

4.2.1 Factors affecting the marketing activities in An Chau PJSC 39

4.2.2 An Chau PJSC market 47

4.2.3 Distribution strategy 47

4.2.4 Price 50

4.2.5 Product 53

4.2.6 Promotion and business assistance policy 59

4.3 Pros and cons of An Chau Pharmaceutical Joint Stock Company‘ marketing environment 63

4.3.1 Strengths 63

4.3.2 Weaknesses 63

5 SOME SUGGESTIONS FOR THE MARKETING ACTIVITIES OF AN CHAU PJSC 66

5.1 Objectives and development orientations of the company 66

5.2 Oriented strategies from the SWOT matrix Marketing 67

5.3 Customer feedback about the marketing activities at An Chau PJSC 69

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5.4 Some supporting solutions for Marketing activities 70

5.4.1 Improving and developing the market research activities 70

5.4.2 Improving product activities 71

5.4.2 Improving pricing activities 72

5.4.3 Improving distribution activities 74

5.4.4 Improving promotion activities 75

5.5 Limitations of the study and suggestions for future work 77

5.6 Contributions of the study 78

REFERENCE a

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LIST OF ACRONYMS

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LIST OF TABLES AND FIGURES

FIGURE

TABLE

Table 4.1: Revenue, profit and retained earnings from 2012 – 2014 44

Table 4.8 The development of products which have Ginkgo Biloba 64

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1 INTRODUCTION

1.1 Background and cause of this paper:

Economic crisis has led to the decline of areas of the economy while Medicine Industry is still considered to grow with the average speed growth of 18.8 % per year in

a 5-year period from 2009 to 2013 (ViettinbankSc Report, 2014) The primary factor that impacts on this trend is that medicine can not be replaced by any other products and the awareness of Vietnamese about medical and health care has also improved Vietnamese pharmaceutical market has the highest growth level in South-east Asia, about 16% every year (ViettinbankSc Report, 2014) The total consumption value of tobacco was $3.3 billions in 2013 and it is predicted to increase by $10 billions in 2020 (FPTS Report,2014)

All the sectors of the economy are accepted and can participate in Vietnamese medicine market for advancing medicine supply By the end of 2013, there has been

4560 enterprises participating in supplying and contributing medicine, there are 1336 domestic medicine enterprises among them and 425 foreign ones that are licensed for business activities in Vietnam (FPTS Report,2014) The participation of private companies with their simple organizational structures,flexible business strategies and high adaptation to market fluctuation has contributed to change Vietnamese medicine market Medicine market is getting overheating with average speed of growth 17% (FPTS Report,2014) However, most of medicine private businesses have small scales, limited economic potential, small nomenclature and severe competition between companies as well When it comes to this situation, if the medicine enterprises want to develop stably, they have to not only attach special importance to both technology and human resources‘ investment but also specially attend to handle marketing strategies creatively in order that they can get market opportunities and their own competitive advantages Marketing strategy do not always decide an enterprise‘s success or failure; nevertheless, it is indispensable

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An Chau Pharmaceutical joint-stock company, a private company which majors

at producing and dealing in domestic medicine It is trading in an overheating market filled with opportunities but threats as well If it want to exist and develop, it is essential that this company should have a certain marketing strategy and proper solutions to compete with its rivals (currently, the company just provides general solution and has not had an official marketing department) Therefore, I suggest that implementing a project to analyze the marketing activities at An Chau Pharmaceutical Joint Stock company is a necessary step to meet the customers‘ demand and evaluate the effective of marketing activities

With this actual condition and my internship period at An Chau PJSC, I hope that

my topic which is about ― Marketing activities of An Chau Pharmaceutical joint – stock company ‖ will assist the company in having a general look at its current Marketing activities and solutions given will support the company to improve their medicine business operation, which is expected to contribute to advance their revenue and profits as well

1.2 Objective

An Chau PJSC is a local company, with 5 years of construction and development medicines The company has been strides and achieved relatively good results But the economic situation of open competitive today, the company faced many difficulties The current marketing strategy of the company purely generic, while Marketing has a very important role

The research topics of significance in terms of practicality Topical help companies with the overall look of marketing activities in recent years and propose some solutions to improve business performance of the company Pharmaceuticals Besides, the subject can be used as materials for the project, other research on the role and performance of Marketing, the performance of pharmaceutical companies in the next phase Besides, the application of knowledge Marketing_Mix, through analysis of the actual economy, from customers as well as the current situation of the company to

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find out the causes of the present marketing activities of companies are not really effective, which proposed a number of measures the company may consider applying

to improve business performance in the future

The purpose of this thesis is to investigate the current marketing practices of pharmaceutical companies through a literature search, case studies and interviews The literature search focussed on the regulations and guidelines that control the promotion

of pharmaceutical products in Vietnam markets

The case studies focussed on how the companies promoted and influenced patients to buy their products through television commercials and websites in order to keep their market share and maybe entice new customers to buy it

1.3 Research questions

The key question of this study is: ―How do marketing activities of An Chau Pharmaceutical Joint Stock Company influencing the customer satisfaction throught 4P, especially product, price and promotion?‖ To answer this question, it is necessary

to answer the following these sub-questions:

 How did An Chau pharmaceutical PRODUCTS perform? (Overall quality, First use experience, Usage experience, )

 How is the An Chau‘s promotion program? (discounts, PR )

 Overall, how satisfied were you with price of medicines of An Chau Pharmaceutical JSC?

Interviews were done with a series of 10 questions with An Chau 's customer to find out their opinions on current marketing practices of the companies, the influence

of gifts from pharmaceutical representatives on prescribing or selling particular drugs and opinions on Direct-to-Consumer (DTC), internet advertising, and how this effects and controls their decisions on prescribing or selling particular brands of drugs Interviews were also preformed with some pharmaceutical representatives (doctor) to find out their opinions on their own positions within the pharmaceutical industry, their backgrounds, and their individual approaches in selling their particular products

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1.4 Research scope

This study focuses on measuring the level of satisfaction about marketing activities of An Chau PJSC of customers in Nghe An Province (50 clients), Ha Noi Capital (50 clients), Ha Tinh province (20 clients),Hai Phong (10 clients), Hai Duong (10 clients), Da Nang (10 clients) where there have major big customer of An Chau PJSC since the beginning of March 2015

210 customers of An Chau PJSC who is owner of drugstore, pharmacy, clinic in these place that is mentioned above have been invited to do survey with the hypothesis that they will fit with the whole population of An Chau PJSC customers in Vietnam

1.5 Structure of the thesis

At the beginning of the thesis there is a short description and defination of Marketing, Marketing activities in Pharmacy company The author carries on to theories that are implicated in the different parts of the actual marketing plan The results of the research will be applied in the marketing plan that will be the next and central part of the thesis The marketing plan will consist of five parts:

 An introduction about background, purpose and research method

 Literature review about Marketing, Marketing activites and factors in the Pharmacy company

 Research method

 Dicussion and Finding

 Orientation toward marketing activities and suggestions for An Chau Pharmaceutical Joint Stock Company

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2 LITERATURE REVIEW

2.1 Overview about Marketing

2.1.1 History of Marketing

Marketing terminology used for the first time in 1902 in the lecture hall at the University of Michigan, US, until 1910, all the general university in the US began teaching this course During almost half a century, marketing was taught only within the English-speaking countries Until after World War II, in the 50s and 60s of the twentieth century, it spread to new Western Europe and Japan Internationalization process of marketing has grown very fast

Led by marketing scholars from several major universities in the world, the development of marketing was motivated by the need to analyze relationships and behaviors that existed between sellers and buyers In particular, the research of marketing led sellers to recognize that adopting certain strategies and tactics could notably benefit the seller/buyer relationship Before the 1950s, Marketing often meant identifying strategies and tactics for simply selling more products and services with little link for what customers really wanted Often this meant companies embraced a

―sell-as-much-as-we-can‖ philosophy with little interest in building relationships for the long term

But starting in the 1950s, companies began to recognize that old ways of selling were not really effective As competition grew stiffer across most industries, organizations looked to the buyer side of the transaction for ways to improve What they found was an emerging philosophy suggesting that the key factor in successful marketing is understanding the needs of customers Today enterprises want business achieve higher economic efficiency needs to have an understanding and application of modern marketing

Besides that, the concept of marketing that we now see has more to do with developments during the industrial revolution of the 18th and 19th centuries This was

a period of rapid social change driven by technological and scientific innovation One