Background
Vietnam is undergoing significant development and integration into the global economy, marked by a shift from a subsidized centralized economy to a state-managed market economy This transition, which involves the participation of various economic sectors, has enabled enterprises to enhance production, expand trade, and collaborate with foreign businesses While this presents valuable opportunities, it also poses challenges for all enterprises in Vietnam.
To thrive in today's competitive landscape, enterprises must adapt their organizational structures and implement dynamic management measures that align with market demands and customer needs Effective marketing is crucial for maximizing profits, making it a primary focus for businesses By ensuring that their products are closely linked to market trends, companies can enhance their marketing activities, ultimately driving growth and success in the global economy.
The marketing-mix strategy is a powerful tool for companies aiming for success, yet its effective implementation can be challenging Organizations need to possess a deep understanding of both the marketing-mix strategy and their growth objectives Tien Dai Phat Company Limited has recognized the significance of this strategy and has integrated it into its business operations.
Rationale of the study
Tien Dai Phat Company Limited has demonstrated effective operations since its inception, overcoming numerous challenges in its early days to establish a solid foundation for continuous growth The company has recently adopted a marketing-mix strategy, although it has encountered various difficulties and limitations during its initial implementation.
During my three-month internship at Tien Dai Phat Company Limited, I gained invaluable lessons and experiences within a practical business environment, leading me to define the scope of this internship report.
“Application marketing-mix strategy for expanding the machinery market in Vietnam in Tien Dai Phat Company Limited”
Research objectives
This article presents a theoretical analysis alongside the actual conditions of Tien Dai Phat Company, focusing on the evaluation of the advantages and disadvantages of the marketing-mix strategy Based on this assessment, I will provide actionable suggestions for marketing-mix solutions aimed at enhancing the machinery market for Tien Dai Phat Company, ultimately contributing to the improvement of the company's market development strategies.
This study is structured into four key sections: an overview of Tien Dai Phat Company Limited, the introduction of a general framework, an analysis of the current application of the marketing-mix strategy in the machinery market to identify limitations, and finally, the presentation of solutions to enhance the marketing-mix strategy for market development within the company.
Research questions
The internship report is to address a main question: How does Tien Dai Phat Company Limited apply marketing-mix strategy for expanding the machinery market?
What is the current status of the company’s business activity?
Does the company apply appropriately the product strategy?
Does the company apply appropriately the price strategy?
Does the company apply appropriately the place strategy?
Does the company apply appropriately the promotion strategy?
What are the existences and limitations of the company?
What are the best suggestions for the company?
Scope of research
Due to time constraints and the capacity of students, a comprehensive analysis of Tien Dai Phat Company Limited's overall business activities was not feasible Instead, the focus will be on one of their successful products in the machinery sector, specifically examining the company's marketing-mix strategy This analysis will assess the current status of the marketing-mix in expanding the machinery market, identify its limitations, and propose solutions to enhance the marketing-mix strategy for the company.
Methodology
To enhance the accessibility and availability of information, I have focused on the strategies of Tien Dai Phat Company Limited Utilizing a desk research method, I accurately evaluate the company's business performance and marketing-mix strategy, allowing for the development of measures to improve competitiveness and expand market reach The majority of the information is derived from secondary sources, including company websites, journals, and annual reports, while also integrating foundational knowledge with relevant materials from newspapers and the internet related to this study.
The Structure of the report
The definition of marketing-mix
Marketing-mix is the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market (Philip Kotler, 1996)
The marketing-mix strategy, often referred to as the 4P, encompasses product, price, place, and promotion These elements are intricately linked and vary in significance based on the product development stage, market conditions, and competitive strategies Companies must strategically select and combine these four factors to optimize their marketing efforts effectively.
Marketing-mix strategy in expanding the consuming market
The marketing-mix strategy is crucial for market expansion and company growth, as it allows businesses to effectively meet customer needs Each component of the marketing mix, known as the 4 Ps, serves a specific purpose in delivering benefits to customers Implementing these four fundamental strategies enables companies to enhance their offerings and strengthen their market presence.
A successful product strategy involves defining key elements such as product categories, quality, design, features, brand name, packaging, sizes, services, warranties, and return policies It is crucial for businesses to create products or services that align with the needs and desires of their target consumer group When developing a product strategy, companies must carefully evaluate product types, quality, brand identity, and after-sales support to ensure market relevance and customer satisfaction.
Businesses can select from various product types based on their objectives For companies aiming to dominate or expand their markets, offering a diverse range of products is essential This requires the inclusion of complementary product categories, which encourages companies to continually add new items to their existing product lines.
The quality of products is a crucial component of an effective product strategy, encompassing factors such as durability, technical design, adaptability, and safety To establish design requirements and quality management standards, companies must analyze the quality of competing products By prioritizing high-quality offerings, businesses can enhance customer attraction and strengthen their market competitiveness.
After-sales services play a crucial role in product strategy, significantly enhancing customer satisfaction and loyalty When executed effectively, these services can differentiate products in the market, making them more appealing to consumers This is especially vital for technical products, where robust after-sales support is essential for ensuring customer success and long-term engagement.
In today's competitive landscape, pricing remains a crucial factor for attracting customers, necessitating a well-defined strategy for new product development to establish a strong market presence Companies can adopt various pricing objectives, including survival, profit maximization, market share growth, rapid capital recovery, and quality leadership Additionally, setting lower prices can deter competition, while aligning prices with competitors helps maintain market stability Prestigious companies may also keep prices steady to minimize government intervention, although subjective preferences can influence pricing decisions as well.
When determining the price for a product, especially new products, the companies can apply the following price strategies:
Market-skimming pricing : setting prices is higher than the market price.
It is particularly appropriate to new products.
Penetration pricing is a strategy where a product is introduced at a low initial price to quickly capture a significant market share This approach requires the company to have a highly elastic demand for its products, allowing for substantial reductions in unit price on a large scale Additionally, it is essential for the company to anticipate the emergence of competitive products in the market.
The company frequently provides discounts to its customers, which can include quantity discounts, commercial discounts, and payment discounts A quantity discount offers a price reduction per unit for orders that meet the seller's minimum quantity requirements, applicable to either a single order or multiple orders within a specified timeframe The commercial discount is granted when customers purchase in large quantities, while the payment discount rewards buyers with a reduced price for making advance payments.
The core aspect of a place strategy in marketing new products involves the design and management of the sales network Companies must ensure that their products or services reach the end user effectively, distributing them at the right place and time There are two primary methods of distribution channels to consider.
Direct distribution channels allow manufacturers to sell products directly to consumers, providing significant advantages such as retaining full profit margins and maintaining complete control over the sales process This approach also ensures that products are not placed alongside competitors' offerings Common methods of direct distribution include mail order, direct-mail selling, cold calling, telephone selling, and door-to-door sales.
Indirect distribution channels involve selling and distributing products to customers through intermediaries like wholesalers, distributors, agents, dealers, or retailers Utilizing these intermediaries enhances distribution efficiency and can lower overall costs Additionally, consumers benefit from a wider selection of products and brands at the point of sale, while producers may lack the necessary resources or expertise to sell directly to customers.
When launching a new product, the primary goals of the promotional strategy are to inform potential customers and enhance direct selling efforts for both distributors and consumers Companies can effectively showcase their new products at trade fairs, attracting customer interest without the need for individual outreach Ultimately, a successful product or service must communicate its benefits clearly to the target market Key tools used in promotional strategies include various marketing channels and tactics to maximize reach and engagement.
Advertising strategies play a crucial role in companies by enhancing direct selling efforts and reaching customers that sales teams may not easily access These strategies are essential for introducing new products, boosting sales revenue, competing against alternative offerings, and fostering relationships with other businesses.
Public relations activities are essential for cultivating a positive image and fostering strong relationships between a company and its stakeholders, including the public, customers, agencies, and local government Effective public relations not only aim to secure favorable media coverage but also involve adeptly managing and mitigating negative attention when it arises.
Sales promotions are temporary incentives designed to boost the purchase or sale of products or services These promotional activities aim to provide additional value or incentives to customers, wholesalers, and retailers, ultimately driving immediate sales By generating interest and encouraging trial or purchase, sales promotions play a crucial role in enhancing product visibility and consumer engagement.
The basic factors affecting the application of marketing-mix in business activity
The impact of business environment
The business environment comprises the external factors that influence a company's operations For a company to thrive and grow, it must adapt to these factors, which can present both opportunities and challenges Among these, the significance of the business environment factors cannot be overstated, as they play a crucial role in determining a company's success.
The economic environment encompasses various factors that influence consumer purchasing power and spending habits, making it crucial for marketers Understanding this environment helps marketers gauge how much money consumers are willing to allocate for products and services, ultimately impacting sales and marketing strategies.
The technological environment encompasses the forces that generate new technologies, leading to the emergence of innovative products and market opportunities (Philip Kotler, 1996) These technological advancements present marketers with both valuable opportunities and potential threats, making the technological landscape a significant influence on current market dynamics.
The legal and political environment significantly impacts business operations and consumer behavior Stable laws and regulations enable companies to thrive, leading to increased production and a greater ability to satisfy rising customer demand.
Suppliers play a crucial role in the business landscape, as marketing managers must align with market demands to guarantee timely product delivery This approach is essential for fostering strong customer relationships and ensuring satisfaction.
Intermediaries are essential firms that assist companies in promoting, selling, and distributing their products to end consumers This category encompasses resellers, physical distribution firms, marketing services agencies, and financial intermediaries, all of which play a crucial role in the supply chain.
Customers are individuals and households who purchase goods and services for personal use Various types of consumer markets exist, including consumer markets, business markets, government markets, international markets, and reseller markets.
To maintain a competitive edge, companies must identify their primary competitors within their market segment By assessing their own size and position, businesses can develop strategic advantages that differentiate their offerings from those of similar companies Understanding the competitive landscape is crucial for sustaining success and enhancing market presence.
Factors of business potential
Understanding the various elements of business potential is crucial for successfully organizing consumer activities Key components include financial capacity, labor, organizational structure, management quality, and corporate culture, along with the capacity for information As companies grow, consumers become more discerning in their product choices, shifting from price competition to cost competition Therefore, it is essential for sellers to obtain marketing information swiftly and accurately to inform their planning and marketing decisions.
All companies function within a marketing environment that includes various actors and forces influencing their ability to engage with target markets To succeed, businesses must adapt to these environmental factors and develop strategies that mitigate threats while capitalizing on available opportunities.
AN OVERVIEW OF THE COMPANY I Background of the company
Introduction of the company
Tien Dai Phat Company Limited, established on March 26, 2001, is a prominent private manufacturing company in Vietnam specializing in machinery and industrial equipment With a focus on producing educational tools, generators, and other industrial products, the company meets both domestic and export demands, aligning with Vietnam's economic development Despite its relatively short operational history, Tien Dai Phat has experienced significant growth in workforce and infrastructure Committed to excellence, the company ensures that quality and value are integral to all its offerings, earning an ISO 9001:200 certification in 2006 Recognized for its strong reputation in the industry, Tien Dai Phat continues to enhance its prestige in both local and international markets.
Tien Dai Phat Company Limited has achieved significant success in the Vietnamese market for trading mechanical and industrial machines and equipment, evidenced by winning numerous governmental and non-governmental tenders, leading to increased product offerings and earnings The company is actively exploring both current and potential markets to boost sales, positioning itself for continued success and growth in the future.
Tien Dai Phat Company Limited is committed to future growth by enhancing its core business operations while strategically investing in advertising, exhibitions, and information technology to connect manufacturers with consumers effectively.
The objectives of the company
Tien Dai Phat Company Limited is a private enterprise specializing in machinery and educational equipment, with a primary focus on profitability as its main objective.
To adapt to the evolving landscape, Tien Dai Phat Company Limited has enhanced its facilities and expanded production capacity, ensuring job security for its workforce while contributing to societal wealth and fostering the nation's economic development.
Areas of business
Tien Dai Phat Company Limited, established in 2001, is a reputable trading and manufacturing firm in Vietnam With extensive experience in sales, supply, import and export, the company specializes in consulting, design, manufacturing, installation, technology transfer, and after-sales services.
The main scopes of business:
- Manufacture and installation of the machinery, office equipment, furniture, medical equipment, mechanical equipment, education equipment.
- Supply, design, consultancy, and transfer of specialized electronics, information technology…
- Implementation of manufacturing projects: industrial automated equipment, upgrading automatic technology of the production line, plating technology transfer, thermal equipment, refrigeration, electrical equipment.
Technical facilities
The company primarily manufactures its machinery and equipment in Russia and Japan, focusing on replacing outdated machines In recent years, it has invested VND 150 billion to upgrade its production lines and incorporate modern machinery.
The mechanical industry in our country boasts relatively modern technical facilities; however, they still lag behind those of countries like Japan and China This technological gap hinders our ability to meet sophisticated market demands and significantly impacts our competitiveness against foreign companies, ultimately affecting the maintenance and expansion of our product markets.
Personnel structure
Despite being a relatively new company, Tien Dai Phat Company Limited has gained significant experience in the marketplace Currently, the company employs nearly 100 individuals across all departments.
Along with the development process, the company’s organizational structure is shown in the diagram below:
Figure 2.1: The Organizational Chart of Tien Dai Phat Company Limited
(Source: introduction of the company-2001-Tien Dai Phat Company limited)
5.2 The size of the company
The company has two production workshops such as:
Mechanical workshop: specializing in production of special mechanical equipment to provide for essential industries such as sugar industry, cement, paper…
Machine-tool workshop: this is a factory specializing in manufacturing and installation of machine-tool products of the company.
The department system consists of 8 departments:
General Manager : the head of the company, representing for rights and duties of the company before the senior authority and the law.
The Deputy General Manager plays a crucial role in overseeing all departments within their purview, in accordance with company regulations This position involves providing essential support to the General Director in the overall management of the organization.
The General Administration Department is tasked with overseeing labor organizations and executing key administrative functions This includes managing the reception and distribution of official documents from higher authorities and related entities, as well as handling stamp management Additionally, the department represents the company in foreign affairs.
Sales & Marketing Department : carrying out all business process such as purchasing, consuming products; to build relationships with clients, to manage distribution channels, and making sales’ decisions.
The Financial Accounting Department is tasked with overseeing the company's income and expenses, managing financial obligations related to material purchases, wages, and other costs It ensures transparency, consistency, and compliance with legal standards in all financial activities.
The Personnel Department plays a crucial role in administration by executing key functions such as recruitment and training to align with the company's growth objectives, while also ensuring a safe, suitable, and transparent work environment for all employees.
Technology Department : be responsible for planning and implementing to maintain or repair all producing machines, to guarantee to install equipments in right places, right technical requirements.
Production Department : carrying out operating the production process according to quality management systems in a safe, economical, productive and effective way.
KCS Department : be responsible for operating quality management systems, ensuring tests-experiments, carrying out measurements, managing equipments, tools and proposing appropriate improvements.
Business performance
(Source: Business performance-2009-Tien Dai Phat Company Limited)
The chart shows the revenue growth of Tien Dai Phat Company Limited from
From 2005 to 2009, Tien Dai Phat Company Limited experienced a steady revenue growth of 8% over five years, despite a slight decline between 2007 and 2008 This downturn can be attributed to several factors, including a highly competitive market, outdated technology, low product quality, high pricing, and ineffective promotional activities Additionally, weak consumer demand and insufficient marketing efforts negatively impacted sales Nevertheless, future projections indicate a gradual increase in revenue for the company.
Based on the orientation of development, Tien Dai Phat Company Limited estimated business results for the next 3 years:
Table 2.1: Estimation of business result from 2010 to 2012
(Source: Business performance-2009-Tien Dai Phat Company Limited)
Figure 2.2: Chart of revenue growth over years
THE ACTUAL STATE OF APPLYING THE MARKETING-MIX FOR EXPANDING THE MACHINERY MARKET
Characteristics of the machinery market in Vietnam
Vietnam represents a potentially huge machinery market, with a population of
Vietnam's machinery market has seen significant growth, with demand increasing by approximately 40% annually since 2002, leading to a domestic supply rise from 10% to 35% of national demand by 2008 In 2010, the market was valued at VND 38,590 billion, reflecting a 42.4% increase, and is projected to continue expanding at 10% per year The enterprise landscape includes nearly 1,700 mechanical businesses, with 393 state-owned enterprises and over 100 private corporations Additionally, 127 foreign companies are invested in Vietnam's machinery sector, 57 of which are fully foreign-owned, all aiming to enhance their market share both domestically and internationally.
The target customers of the machinery industry
The target customers of the machinery market can be grouped into categories:
Wholly foreign-owned and joint-venture companies which are manufacturing company.
The households who have demands for manufacturing.
Facing rising demand, Tien Dai Phat Company Limited identified key characteristics of the machinery market and its target customers, subsequently implementing a marketing-mix strategy to expand its presence in the machinery sector.
The current status of applying marketing-mix strategy for expanding the machinery market in Tien Dai Phat Company Limited
In the past year, product strategy has emerged as the key element in Tien Dai Phat Company Limited's marketing-mix strategy, guiding the activities of various departments and ensuring business success Specializing in manufacturing machinery, medical equipment, educational tools, interior furniture, generators, woodworking machines, and more, the company prioritizes machinery as its main product To enhance its offerings, Tien Dai Phat has implemented comprehensive product strategies, focusing on product types and categories, quality decisions, and robust after-sales services.
1.1 The decision on the types and categories of products
The company offers a diverse range of machinery for both production and consumption, with machinery being the primary focus and the oldest product category To adapt to changing market demands, the company has implemented a diversified product strategy For instance, it produces various models of lathes, including the T18A, T14A*1000, and T630, among others.
Table 3.1: The category of the machinery
No Name of products Types of products
1 Milling machine DM 180VS, CNC, DM 4V, DM 5VS, P62, …
2 Drilling machine K225, PB32, PB45, PB100, …
3 Shearing machine Epilog legend 36EXT, Epilog Helix, …
5 Wire cutting machine EDM, CNC, …
(source: The machinery –2005- Tien Dai Phat Company Limited)
Tien Dai Phat Company Limited adopted its strategy based on three key factors: the growing and diverse demand for machinery, the need for product diversification driven by technological advancements, and the competitive landscape among mechanical enterprises To stay relevant and seize new business opportunities, the company must enhance its product offerings A comparison of lathe sales in the market during 2009 highlights the competitive dynamics influencing their strategy.
Table 3.2: The types of Lathe
No Name of products Revenue
(Source: Engine Lathe Market - http://market.buyer-buying.com/engine-lathe-market/)
The company's product diversification enables it to effectively meet a wide range of customer needs Despite a decrease in demand for the lathe T14L, the company continues to produce it to leverage current operational capabilities Additionally, the focus remains on the popular lathe T18A, ensuring alignment with market trends.
1.2 The decision on the quality of products
Product quality is a crucial element of the company's strategy, particularly as their offerings are key players in the manufacturing industry The company prioritizes attributes such as durability, safety, product lifespan, and adherence to proper technical design and manufacturing conditions to enhance their products' advantages.
In recent years, Tien Dai Phat Company Limited has consistently enhanced its product quality by upgrading technology and improving input materials This commitment to quality has led to a unified and high standard across their offerings As a result of these improvements, the company achieved ISO 9001:2000 quality standard certification in 2006.
1.3 The decision on after-sales services
Warranties play a crucial role in building customer trust, and Tien Dai Phat understands this importance All products sold by the company come with a twelve-month warranty, ensuring that any technical errors or failures due to production deficiencies are repaired at no cost Additionally, Tien Dai Phat offers free installation services, including trial operations and technical guidance, to enhance customer satisfaction These strategies have effectively helped the company expand its market reach and boost product consumption.
To address the high demand, the company offers its products to all customers without quantity restrictions Pricing is determined primarily by the final product price and production costs, meaning customers purchase varying quantities at a fixed price, regardless of whether it's wholesale or retail.
To encourage product consumption, the company implemented a sales discount strategy to incentivize early customer payments, offering discounts ranging from 2% to 5% Customers who pay immediately in cash receive a 5% discount, while those who pay within one month benefit from a 4% discount, and payments made within one to three months qualify for a 2% discount Furthermore, to enhance customer convenience, the company offers various payment methods, including cash, checks, and bank transfers.
Tien Dai Phat Company Limited operates three branches across Hanoi, Da Nang, and Ho Chi Minh City, with two agencies in Hanoi and one in Ho Chi Minh City Despite having a broad distribution network, the company holds only a 20% share of the domestic market Tien Dai Phat primarily utilizes direct distribution channels effectively, while its indirect distribution channel for the southern market has seen limited success, resulting in lower product consumption.
Comparing the performance of two channels in 2007 and in 2008:
Figure 3.1: Performance of direct channel and indirect channel
(Source: Performance results,2008, Tien Dai Phat Company Limited)
Despite having a higher reliance on direct channel systems, Tien Dai Phat Company Limited must focus on enhancing its distribution strategy, particularly by improving its indirect channels, which currently remain underutilized.
In today's competitive market, businesses recognize the importance of not only producing high-quality products but also actively engaging with customers to promote their brand Tien Dai Phat Company Limited has effectively implemented a comprehensive promotion strategy that includes advertising, sales promotions, and personal selling to enhance customer awareness and drive sales.
Advertising may not be the most effective way to boost consumption for capital goods manufacturers, but it plays a vital role in product purchasing and market expansion Tien Dai Phat Company Limited utilizes various advertising strategies, including showcasing its machinery in mechanical magazines and distributing catalogs at trade fairs Furthermore, the company enhances its promotional efforts by participating in industrial exhibitions and mechanical association conferences Notably, Tien Dai Phat publishes "Engineering Today," a magazine that highlights new products and provides valuable consultations to consumers on their machinery needs.
The sales promotion activities at Tien Dai Phat Company Limited are diverse and abundant, categorized based on the target audience These include promotions aimed at supporting and motivating the sales force, as well as initiatives designed to encourage consumers to try or continue using the company's products.
Tien Dai Phat Company Limited employs personal selling as a key promotional strategy, utilizing a dedicated sales team to effectively communicate with customers and understand their needs This approach allows the company to provide essential information regarding product quality, pricing, and specifications, particularly for machinery As a result, personal selling has significantly boosted sales revenues and expanded the company's sales network To enhance the professionalism of this activity, Tien Dai Phat has implemented training policies for its marketing staff, who play a crucial role in representing the company's image and prestige.
In short, Tien Dai Phat Company Limited applied relatively marketing-mix strategy for expanding the machinery market However, this application has many advantages, but still many disadvantages.
Evaluation of applying marketing-mix strategy for expanding the machinery market in Tien Dai Phat Company Limited
In recent years, particularly in 2007 and 2008, the company has successfully achieved key economic indicators, ensuring profitability and income for its staff while preserving and developing business capital This ongoing success reinforces the company's market prestige and power, attracting new customers and promoting rapid consumption growth.
Tien Dai Phat offers a diverse range of machinery products, including lathes like the T18A and T14L, as well as drilling machines such as the DM4V and P62 All products are manufactured to meet high standards, ensuring stable quality across the entire product line.
The successful implementation of a discount pricing policy by Tien Dai Phat Company Limited has attracted a significant number of customers, leading to increased sales revenues Most customers purchasing machinery from the company benefit from these sales discounts, contributing to the overall growth of the business.
Effective distribution channels enable Tien Dai Phat Company Limited to deliver products to customers promptly, ensuring their needs are met By utilizing direct distribution, the company has successfully supplied the market with adequate quantities of high-quality goods, thereby enhancing its reputation and credibility.
The promotional strategy of Tien Dai Phat Company Limited has proven successful by effectively connecting products with consumers Additionally, these promotional programs have fostered strong relationships with both customers and suppliers, ensuring a smooth and timely purchasing process.
Tien Dai Phat Company Limited successfully implemented a marketing-mix strategy to expand its presence in the machinery market, enabling rapid market access and boosting its confidence to compete effectively.
2 The limitations of applying marketing-mix strategy for expanding the machinery market in Tien Dai Phat Company Limited
In Vietnam, the machinery production sector faces low competition due to a history of subsidized centralized management, which led to a minimal focus on marketing However, with the evolution of the market economy, both domestic and international enterprises are now competing fiercely This shift necessitates a recognition of marketing's critical role in business operations While the implementation of marketing strategies has yielded positive business outcomes for the company, there remain significant errors in their application that need to be addressed.
The company is on the right track with its overall business policies and marketing-mix strategy for market development However, challenges remain in implementing this strategy effectively due to factors such as the internal organizational environment, the company's specific conditions, and the support activities for marketing These issues hinder the successful application of the company's marketing efforts.
Despite holding a significant market share, the company only captures 20% of the total market due to ineffective promotional strategies Additionally, the income statement reveals a decline in both output and consumer sales, indicating that the company is at risk of losing further market share.
The company has accurately identified its target market; however, it has failed to penetrate existing markets and expand into nearby ones By concentrating solely on traditional markets and manufacturing enterprises, the company has missed opportunities to invest in and grow within new potential markets.
A significant challenge faced by the company is the insufficient marketing knowledge among its staff While the company has established a marketing strategy, the lack of understanding and professional qualifications among employees hinders effective planning, monitoring, and control of marketing activities.
The company lacks a dedicated team to identify customer needs, hindering proactive design improvements and product diversification As a result, the product portfolio remains monotonous, and marketing decisions are based solely on qualitative business experiences, leading to a disconnect between the products offered and customer expectations.
The company's marketing efforts are lacking, leading to low product consumption primarily driven by inadequate sales and promotional activities Insufficient focus on promotional programs and minimal advertising budget hinder the company's ability to effectively implement external advertising strategies.
2.2 The basic reasons for the ineffective implementation of marketing-mix strategy
Tien Dai Phat Company Limited faces challenges in effectively implementing its marketing-mix strategy for the machinery market due to several key factors Firstly, the absence of a dedicated marketing department and a lack of professional marketing knowledge among staff hinder the planning and execution of marketing initiatives Secondly, limited funding for marketing, primarily sourced from sales revenue, indicates insufficient investment in marketing activities Thirdly, increasing competition from both domestic and international economic entities has intensified market dynamics, creating a more challenging environment Lastly, the company does not recognize the significance of a well-organized sales process, which is crucial for enhancing overall business performance.
To enhance business performance and boost product consumption at Tien Dai Phat Company Limited, it is recommended to increase the availability of goods This strategy will expand the consumer market, meet customer demand, streamline production processes, and reduce transportation costs.
RECOMMENDATIONS FOR APPLYING MARKETING-
Product
In order to achieve its objectives, the company should:
1.1 Improving the quality through internal capacity
To enhance product quality, it is essential to train staff and employees through various initiatives such as training courses, the adoption of new technologies, and the organization of seminars These efforts will encourage self-learning, improve workmanship, and provide valuable experience, ultimately leading to a more skilled workforce.
Investing in more technical facilities by renovating the outdated production lines and upgrading the modernization of equipment.
1.2 Having specific strategy for new products
To enhance market expansion and boost market share, the company is committed to not only leveraging its existing products but also innovating machinery with advanced features, including high accuracy and automation.
To successfully launch new products, a company must develop a targeted strategy that includes analyzing competitor offerings and clearly defining product benefits, styles, and technical specifications Additionally, effective strategies for introducing these new products and services to the market are essential for ensuring a successful launch.
1.3 Paying attention to after-sale services
For manufacturing companies, it is crucial to focus on staff training to enhance positive thinking and mitigate negative attitudes, particularly in warranty repair services, despite the high level of workmanship already present.
The company can increase warranty period of the products two years so that the customers can feel more satisfy about the quality of the products.
To remain competitive, the company must actively research and develop innovative products that align with consumer market demands It is essential to focus on enhancing the features of existing products while also investing in the development of new offerings to complement and advance traditional product lines.
Price
Pricing plays a crucial role in a company's success in producing and selling goods Currently, the company's prices are significantly higher than those of similar products in the market, leading to challenges in product sales To expand its market reach, the company must implement strategies to lower product prices This can be achieved by reducing material and management costs, enabling the company to become more competitive.
For the costs of materials, the company must choose the stable material sources to reduce the costs of materials
For the costs of management, the company can reduce the number of employees in business management and strengthen economic measures which can promote production consumption.
To enhance sales and manage payment timelines effectively, the company should implement strategic discounts that encourage prompt customer payments while discouraging delays It is essential for the company to determine the appropriate discount rate to optimize this approach.
Place
To meet customer demands effectively, the company relies on direct distribution channels and must enhance its logistics by upgrading, repairing, and acquiring additional vehicles to ensure timely and accurate deliveries.
To enhance indirect channels, the company should increase the number of channel supervisors and implement policies that motivate channel members Additionally, understanding their needs and providing necessary support is crucial Reforming the sales management system will facilitate convenient transactions for customers, making product purchases easier.
Promotion
The company prioritizes personal selling and recognizes the importance of training programs for its sales staff To enhance product visibility and customer engagement, participation in trade fairs is essential Additionally, organizing an annual customer conference allows for direct product introductions to clients To further incentivize customer loyalty, the company can implement strategies such as offering gifts to repeat purchasers.
To effectively attract customers, the company should select the most suitable advertising methods, such as sending introductory letters to various enterprises This approach not only informs potential customers about the products being manufactured but also enhances the company's reputation and prestige in the market.
To ensure long-term growth and sustainability, companies must leverage their advantages while swiftly addressing challenges and difficulties Implementing effective solutions is crucial for overcoming obstacles and fostering development.
To foster a positive working environment for employees, the company must develop a renovation plan for its infrastructure Additionally, enhancing the synchronization of production lines is essential to improve technical equipment, ultimately leading to better product quality.
To enhance the skills of its workforce, the company should implement internal training programs that focus on the latest advancements in mechanical engineering and related technologies.
In the domestic market, the primary focus is on machinery, while in the international market, the company must develop a strategic marketing approach to leverage potential opportunities for future growth.
The robust growth of Tien Dai Phat Company Limited parallels the strong development of our country's economy Despite facing numerous challenges in business development, I am committed to ensuring that my ideas contribute to the company's trade integration and overall success.
In today's dynamic business environment, the marketing-mix strategy is crucial for enhancing competitive positioning and ensuring the survival and growth of enterprises in the marketplace.
During my internship at Tien Dai Phat Company Limited, I learned the significance of the marketing-mix strategy I successfully completed my internship report on the topic of "Applying Marketing-Mix Strategy for Expanding the Machinery Market."
To enhance the marketing effectiveness of Tien Dai Phat Company Limited in Vietnam, a comprehensive understanding of the market and strategic thinking is essential This study evaluates the marketing mix to identify the company's strengths and weaknesses in developing its consumer market Based on this analysis, I recommend solutions focused on improving product quality, implementing specific strategies for new products, enhancing after-sale services, justifying pricing, optimizing distribution channels, and boosting promotional activities to address shortcomings and elevate the company's business performance.
Appendix 1: Sales Revenue Report of Products
Unit: Billions Vietnamese Dong ( Source: Income Statement, 2009, Tien Dai Phat Company Limited)
Appendix 2: The Market of Machinery
Unit: Billions Vietnamese Dong ( Source: The machinery, 2009, Tien Dai Phat Company Limited)