Luận văn marketing plan for santa l jsc 2018 2020 kế hoạch marketing công ty cổ phần sant al giai Đoạn 2018 2020

Ln response to this situation, it is necessary to build a marketing plan for SANTAL Joint Stock Company to help the company stand firmly in the market as well as boost business activitie

DECLARATION

The author confirms that the research outcome in the thesis is the result of

author’s independent work during study and research period and it is not yet

published in other’s research and article

The other’s research result and documentation (extraction, table, figure,

formula, and other document) used in the thesis are cited properly and the

permission (if required) is given

The author is responsible in front of the Thesis Assessment Committee,

Hanoi School of Business and Management, and the laws for above-mentioned

declaration,

Date.

ACKNOWLEDGEMENTS

I would like to express my deepest gratitude to all of the following people for helping me complete my thesis

Firstly, I would like to express my special thanks to my company for giving

favorable conditions for my study and my master thesis completion at Hanoi school

of business and management (HSB)

Secondly, I am extremely grateful to all of the lecturers from the Department

of Business Administration - HSB for providing me with research methods and

professional knowledge during the course, especially the active and creative

research skills,

My appreciation also goes to the teachers in the thesis review committee for giving me valuable ideas during my thesis completion process

My profound gratitude is also conveyed to my instructor for his helpful

assistance and guidance This thesis could have never been completed without his

enthusiastic counsel and support

Despite the efforts during the research period, there are still many limitations

in the thesis I would hope to receive valuable comments from the teachers and co-

workers to make this essay more complete

Thank you very much./

CHAPTER 1: THEORETICAL BASIS FOR MARKETING PLAN IN THE

1.2.2 Mission of the marketing plan c.ccccssscseueeeeeeeeeee 8 1.2.3 Role of marketing plaro caccccssccsssussssstessseeesensnnsee 2

1.4 Process of developine marketing, plan -22c:sst 12 1.4.1 1đentify marketing goaÏs 22s 22ccet 12

1.4.5 Budget estimates, evaluale the effectiveness of the plan 21

1.5 Content of the marketing plan .c.ccscccsoscssssesssieseseenseen M

CHAPTER 2: CURRENT SITUATION OF BUILDING MARKETING PLAN OF SANLAL JOINT STOCK COMPANY vu cneerrereiieneesnsoeo 22

2.1 General information about Santal Joint Stock Company sec

2.1.1 Overview of formation and development - 24

2.2.2The main business areas of the dompany Sesesee 24

i

2.2.3 Organizational struoitre c ccsscececee 25

2.2.4 Some outstanding services of SANTAL JSC 26

2.2 Analysis of operating environment of SANTAT ISC 28

2.2 Lextermal envionment cece ieee eeessieeeeeess ceases is 25

2.3.1 Summary of strengths, weaknesses, opportunities and challenges of

3.2 Tuplementation of markeling plan of SANTAI, T8Ơ, 64

3.2.1 Produet planning plementation Xneeserseero.Ô4

3.2.3 Implementation of distibution planning - - 66 3.2.4 Brand promotion mplemaerttation so 66 3.2.5 Iluman resource utilization and plan irnplemeniation từme 68 3.2.6 Financial planing, estimated implementation expenses 71 3.2.6 Hvaluate the effectiveness of marketing plans eo s72

il

CONCLUSION

1 Isc Joint Stock Company

2 DVP | Develop Value Proposition

3 GDP | Gross Domestic Product

4 VND | Viet Nam Dong

5 TCOR — | Incremental Capital - Output Ratio

Table 2.1: Top 10 famous beanty salon companies in Hanoi 36 'Table 2.2: Human resource structure of the Company

Table 2.3: Some indicators reflect the financial capacity of the company al Table 2.4: Some technologies being applied in the Company today 4 Table 2.6: Number of produts o£ SANTAL and its competitors 47 Table 2.7: Survey of products of SANTAL Company 48 Table 2.8: Service cosl for cach customer .49

‘Table 2.9: Survey on pnos of SAN TAL cơmpay seseceseeooeo 5U) Table 2.10: Survey on distribution channel oŸ SANTAT, Company .89 Table 2.11: Survey on advertising and promotion of SANTAL Coinpany 54

Table 3.1: Price list for advertising services in women's magazines

Table 3.2: Persorinel as8igtnehi 5 2120 ti iireeererrrerrrereecoee Ố 'Table 3.3: Implementation time of the marketing aotivities co 7Ô Table 3.1: Estimated financial budget for marketing implementation a

‘Table 3.5: Criteria for evaluating marketing effectiveness co cceooo.72

DIAGRAM AND PICTURE CONTENT

Picture 1.1: Marketing mix programs «00sec

Pichwe 1.2: Process of developing marketing plan

Diagram 2.2: ICOR of Vietnam economy in the period of 2011 - 2017 cece 3

Diagram 2.3: Customer chssatisfaction about physical characteristics 35

Diagram 2.4: Lixpenses for inviting traning experts -Š„44

Diagram 2.5: Number of the hame care customers of SANTAL - 51

Diagram 2.6: Average coal [or Online Marketing of SANTAL Company 3

vi

TNTRODUCTION

1, The urgency of the subject

Today, when our country has been deeply integrating into the global

economy, the competition among the businesses becomes more and more intense

As a result, development of a business plan is essential for the businesses if they

want lo survive and develop well A business plan is a description of the company's

business process over a period of time It describes how successful the company's

business is and seeks future prospects for the company In the business plan of the

arterprise, the marketing plan is considered as the most important factor as through anarketing plans, the businesses and develop their production and consumption

accoridngly to meet market demand, from which solving well the relationship between the businesses and the markel order (o harmonize the goals of the

business ‘'herefore, building a specific, detailed and clear marketing plan is the task that business managers always aim for in recent years

SANTAL joint stock company is not an exception Being established in 2008 with a charter capital of VND 6 billion, the company has mainly been operating in

the field of supplying beauty and health care services in Hanoi During itsinitial

operation, the business efficiency of the Company was relatively positive as the

number of beauty spaswas still low while the demand for services was large

However, in the last few years, when the number of enterprises joining the industry

thas been continuously growing (in 2015, the number of licensed Spas increased by 23% compared to the previous year and in 2016 the number of newly opened

Spasgrew {0 31% compared lo 2015) and the consumers lend to tighten their

spending on expensive services, the company's business activities has started to

decline Reverme from service provision of the Company decreased from VND 16.4 bilhon im 2014 to VND 7.8 billion m 2016, the number of close cuslorners has

continuously decreased; the company cannot access to new oustomers, The company’s profit is seriously reduced, even lost in the business period of 2016-

3017 Ag a resulL, a branch of the Compariy had to close.

Ln response to this situation, it is necessary to build a marketing plan for SANTAL Joint Stock Company to help the company stand firmly in the market as well as boost business activities to collect dividends for public shareholders of the company However, the company management board has never had a specific marketing plan, the implementation of marketing activities has not been focused

With above prac!

of SANTAL Joint Stock Company in the period of 2018-2020" as a graduation thesis

1 issues, the author decided lo select Ihe topie "Marketing Plan

2 Research overview

Ho Thi Bich Nguyet (2009) conducted a study on "Busimess planning

development for Huy Nam Company T.imited" The study has achieved the

objectives such as delonnining the business objectives of the company, analyzing factors affecting the business environment of the company,determining the business direction for the company, buildingbusiness planning for the company in 2009, particularly salos plan, production plan, expense plan, financial plan; Through the builded plans, a general assessment of the feasibility of the plan was made in order

to form the solutions Although the research has achieved the set objectives, the

research only conducted a general analysis on the business plan of the business

without studying marketing plan of the business

Le Anh Tuan (2015) conducted a study on "Building marketing strategy for

producl consuming at PY Oil Lube Joi Stock Company (PVOTT.) tll 2020 and

vision to 2030", Through combining research methods such as comparative method,

invesligalion inethod,metheds of planning the product life cycle, experience curve anethod and SWOT analysis methed, the author systematized the rationale for developing marketing strategies in general and product marketing strategies in

particular, from which compleling addilional arguments related to the development

of marketing strategies for product consuming for the businesses in today’s volatile

‘business environment At the same time, based on the actual situation of PV Oil, the

yesearch has developed marketing strategies lo cousume producls it: accordance

with the business characteristics of the Company, consistent with the changes of the

economic environment and can be directly applied to actual business of PVOLL Company Ilowever, the research just offered a marketing strategy without

developing the plans for implementing the built strategy

Vu ‘Thi ‘Thu Nga (2016) conducted a study on “Building marketing strategy for tea products of Tan Cuong Tea Joint Stock Company - Hoang Binh" In the study, the

author systemalived and clarified the basic theoretical issuss of developing marketing

strategy for Tan Cuong tea joint stock company - Hoang Binh; Carried out the analysis

and assessment of the external environment and the intemal environment to show the

strengths, weaknesses, opporlumilies and risks for lea producls of Tan Cuong Tea Joi

Stock Company - Hoang Binh, At the same time, the author selected strategies and

‘built appropriate marketing - mix programs as well as solutions to implement the

sclecied strategy in the peried of 2016 - 2021 The basic lumitalion of the research is

that the research has not drawn a specific implementation schedule as well as the budget for implementing the praposed marketing plans

Dang Hoang Duong (2014) conducted a study on “Development of marketing planning for Basa fish products of Angiang Misheries Import Lxport Jom

Stock Company" The study analyzed and found out the factars that determine success,

developmentpotential and risks of Angiang Kisheries Import Export Jom Stock

Company in the present and in the future, from which developing suitable marketing plans for the public to attract customers and meet consumer needs The study also suggosled ways ta organize the company im order to successfully complete the

established marketing plan The research 1s a source of materials with high reference

value for the inamagement of the company but the business environment in the field of

seafood import and cxport is far from the business enviroment of the beauty care

industry so the research results cannot be used for the author's thesis

Through reference to the research published above, the author found that

above researched mainly analyze the factors affecting the business environment to find the strengths and weaknesses of the company, from which determining business direclion then making business plans and markehng phis However, hese

studies have not given a specific schedule and budget to implement the plans Also,

when studying the beauty field, the author could not find a study conducted for SANTAL joint stock company Therefore, the author's research is not overlapping

with previous studies and it will overcome the limitations of the published works by

through building a complete marketing plan from the stage of developing marketing strategies ta implementing (time and budget plans)

3 Objectives of the study

Research object of the thesis is the marketing plan of SANTAL joint stock

company in the period of 2018-2020

42 Research scape

Scope of space: SANTAL Joint Stock Company

Scope of time: Documents and data for the research are collected during the

period of 2014-2016

5 Research Methods

4.1 Information collection methods

5.1.1 Secondary informationcollecting method

Secondary information is gathered from published materials via sources such

ag libraries and research institules of domestic and foreign umiversities as well as

resources of SANT AL JSC anda number of related units such as:

- Documents related to the process of formation and development of the company;

- Rocuments related to some outstanding services of the Company

- Documents related to marketing activities to develop products and services

of SANTAL Joint Stock Company:

- Documents relate to the [actors of the external environment such as GDP,

ICOR of the economy, some competitors and their capacities

5.1.2 Primary information collection

Primary information collectionwas conducted by distributing survey questionnaires, collecting opinions on the level of customers’ assessment of some

marketing activities of SANTAT joint stock company As a matter of fact, the mimmber

of customers of the Company over the years is very large Therefore, it is very difficull

to survey customers ‘hus, the selection of research samples should follow certain principles According to Ilair et al (1998), the minimum sample size for research needs

to be guaranteed from 150-200 observations In the thesis, the author will conduct a

survey of customers who have made customer cards at SANTAL Throngh the

information provided by the customer, the author emails and calls the customers The umber of emails that the author sent to the customers was 500 emails, the number of

email recipients was ‘111 emails, of which only 378 emails were valid Therefore, the

author will conduct research with 378 survey papers

Survey lorms are designed in two parts:

Part 1: Information of the surveyed objects

Part 2: Information for the respondents to answer the corlerd oŸ marketing

activitics of the Company

The author uses a 5-point scale to regulate and score the employee's rating

levels according to the following convention:

1 Totally disagree;

2 Disagree;

3 Normal,

4, Agree;

5, Totally agree

5.2 Methods of information processing

Data processing with Fxcel sofware

Using Excel software to synthesize and calculate the results of primary

information and secondary infarmationcollection:

1 For primary mformation: Based on the survey results and the $ pomtscale,

the average score is calculated according to the formula as follows:

Average point = }( al*bl I a2*h2: a3*b3I a4*b4: a5*b5)/B

Tn which: a 1s 4 acore ona scale of Š

b is the number of comments for each type of point

Bis the total number of comments

The survey results will be calculaled and processed by Excel sollware through the above calculation

+ For secondary information: The author will arrange the information according to the evaluation criteria and each year Then the arranged information is synthesized in table form and the norms are compared to see the level of change

through the years

5.2.2 Data aggregation by graph system

In addition to summarizing information in the form of tables, the author also

synthesizes information in graph formstogive a more general and vivid look

6 Research structure

The research includes 3 chapters as follows

Chapter 1: Theoretical basis for marketing plan in the erlerprices

Chapter 2; Current situation of building marketing plan of SANTAL Jomt Stock Company

Chapler 3° Solutions (or implementing the marketing plan of SANTAT, Tom

Stock Company in period of 2018 - 2020

CHAPTER 1: FHEORETICAL BASIS FOR MARKETING PLAN IN THE

ENTERPRICES

1.1 Basic definition

1.1.1 Marketing definition

There arc many marketing definitions, below are some basic marketing

definitions that the author can list:

Marketing is a form of human activity in order to satisfy their needs and desires through comnnmication Marketing is working with the market to conduct exchanges with the purpose of satisfying needs and wants of humans (Philip Koller, 2005)

Marketing is a deliberate activity, whereby a flow of goods and services is

transferred [rom producers to consumers or users Markeling is an activity to ensure that all necessary goods and services are available at the right time, right price (Philip Koller, 2001}

Marketing is a social management process, whereby individuals and collectives get what they need and want through creating offering and exchanging valuable

products with others (Nguyeu Dmh Tho and Nguyen Thi Mai Trang, 2004)

Marketing is a planning and management process to conduct valuation,

promotion, and distribution of the ideas, goods, and services aimed for creating

transactions (o mect personal, organiaitional and social goals

From the given concept of marketing, it can be seen that the above concepts have similarities that marketing activity is derived from certain objectives of the business to satisfy customers’ needs, through which businesses can achieve the goals they have set

1.1.2 Marketing plan concept

A marketing plan is a lexl document derived from an analysis af the markel

and the enviranment in which an administrator sets out big strategies along with

short-term and medium-term goals for either a company or a specific product category; ‘Ihen it is necessary to identify the means needed to achieve the above objectives and actions to be taken; Finally, people calculate the revenues and

expenditures to set up the budget shown in a tracking table attached to the plan, allowing regular checking of the implementation of the plan Business marketing plan will show what the company hopes to achieve, the ways they implementand when can they achieve the objectives (Vo ‘Thi Kim ‘Tuyen, 2006)

‘The marketing plan of the business is considered as the marketing plan of the operational unit, Tl is specified from the planningdesk of the speciatis levelor the

regional level with one or more specific producis, a specific market and specific competitors Although the construction steps of the two levels, including senior and executive levels are the same, the details and scale of the steps of these two levelsare

deployed in differont scales, using different tools (Nguyen Quang Thu, 2007)

Develop a marketing plan that includes systemalic activities to help

businesses form specific action-based programs to enforce commong marketing strategies of the business

1.2 Objectives, mission and roles of marketing plans

1.2.1 Objective of the marketing plan

According to Tran Thi Bich Lien (2008), marketing plans are designed to aim at three main objectives:

- Satisfying customers: Satisfving customers is an important issue for the businesses Marketing plans of the businesses aim at mecting customers’ needs,

making customers more satisfied and Joyal to the business

- Enhancing competitive capacity: Marketing plans aim to help businesses

respond well to challenges in a competitive environment, ensuring the competitive position of businesses in the markel

- Fnsuring Jong-lerm profilabilily for the businesses: The marketing plan of the business is built to create the necessary profit level to help businesses

accumulate and develop

1.2.2 Mission of the marketing plan

According to Vo Ngov Toan (2004), the task of markeling plans is 1o make

enterprises definitely aware of business results and directions This is an important

method for the coordinating activities in enterprises

The marketing plan forms the framework for the activities of employees in different parts of the organization so that they can worktogether in a coordinated manner to well accomplish the goals of businesses

Marketing plan is the basis of every plan in the business, Just like market demand Business demand is a constant called a demand function of the enterprises This function depends on all factors affecting market demand and industry demand Business demand corresponds to sales achieved for different commercial efforts Therefore, businesses need to make a forecast of sales In other words, they need to selup markeling plans to perform forecasting tasks and build certain marketing programs appropriate to market conditions

1.23 Role of marketing plan

Mixcd Marketing and Marketing Plan are very important activities in business operations of the enterprises, especially commercial and service enterprises (Huynh Phu Thinh, 2008) Marketing plans help businesses find usefull information about the market, conditions to cxpand markcts and increase business scale The implementation of marketing plans helps busmesses dominate the market to increase market share, accelerate the consumption rate by improving competitiveness aud satisfying customer needs Thanks to the marketing plans, the activities of the business are implemented in a synchronous way, the enterprise will reach the potential market, conquer and entice customers and it can be said that the xrarketing plan is a bridge lo help businesses closer lo the markel (Ly Xuan TIeng, 2006)

Developing a marketing plan will help the businesses understand the purpose and direction of the business aimed at the target market This is the very factor that unites all individuals as well as parts of the organization to work together to achieve

common goals Plarming a marketing plan helps businesses lo grasp opportumiti

risks, understand strengths and weaknesses on that basis and be able to cope with market fluctuations and obtain appropriate strategies (Ly Xuan Ilong, 2006)

Markcling Plan will detnonstrale the enterprise's clloris to achieve a desired,

position in terms of its competitive position and fluctuations in the business

environment Only when setting up a marketing plan can the organization

implement synchronously marketing activities starting from understanding and identifying extemal environmental factors, assessing other internal conditions of the Company Since then, there are policies on products, prices, distribution and promotion in order to achieve the set goals (Pham Thi Thuy Nga, 2007)

1.3 Marketing mix tools

Marketing mix is a collection of marketing tools used by the businesses to

achieve a marketing focus in the target market In 1960, E Jerome McCarthy,

suggested sorting marketing mix through 4P and it has become the most widely

used classification in the world so far Marketing tools include: Product, Price, Distribution, Promotion

a

Picture 1.1: Marketing mix programs

Source: Pham Thi Thuy Nga (2007)

Product

Product policy is the foundation of mixed marketing policy, determined based

on a larger-scale business plan for new products and overall marketing strategy for all

10

existing products of the business When considering product policies, enterprises need

to consider the following issues: Product quality, product design, product features,

‘brand and product brand, packaging, service with products

Distribution channel

Mission of the distribution channel is to bring the product to the right place, at

the right ime and m the night quantily The basic content of the distribution policy is to

design and manage the sales network when the product is sold to the market

The sales network is a collection of channels with the participation of

dilTerent entities wilh different strengths and reputations to sucoess[ully bring goods from manufacturing enterprises to customers Managing new sales channels of the

enterprises must meet the following basic requirements:

- Consistent with the nature of the product

- Creating the most favorable conditions for customers to access and find

products easily

- Review the distribution channel of competitors

- Distribution charmels need to ensure increasing sales of the company and

establish sustainable relationships with intermediaries

policies io create a firm foothold in the markel

In the price policy for new products, businesses can pursue basic objectives

such as: Lo survive (iigher cos! prices), lo maximize immediate profits, lo increase

smarket share, to recover fast capital or some other competitive goals

Trade promotion (or communication)

Those marketing activilics include advertising, calalogs, public relalions and setail, specifically advertismg on television, radio, newspapers, tables announcing, bringing products into movies, talents support for television programs and massively waiched radio channels, sponscrship for loyally programs, tclomarkeling,

direct mail sales, product introduction At home, sending catalogs to customers,

public relations and especially now businesses often use paid advertising services

on Google and Facebook These forms help brand and reputation as well as produots / services spread farther and more widely know

1.4 Process of developing marketing plan

The process of developing a marketing plan is also the research model of the

dissertation Lopic as follows:

Marketing environmen analysis

Picture 1.2: Process of developing marketing plan

Source: Vu Thi Phi Nga (2007)

1.4.1 Identify marketing goats

The goal is the destination of the planrring end strategic proce

is the way bo

get there Marketing goals represent the requirements needed to be met during the

orgativation's operations ra specific time of the marketirys plans and other short-

term plans These arc growth objectives, compotitrve goals and safety goals

Growth target

Connnon growth largets are:

- Profit, expressed in the percentage of sales or an absolute amount that the

‘business expects to achieve after a period of time implementing the marketing plan

~ Sales, expressed im the market share that the busimess intends lo achieve or

absolute sales.

- The number of commercial intermediaries involved in product

consumption

- Recognization of the consumers and image reputation of the products and

busimesses in the market,

Depending on each stage in the business process, marketing activities focus

on specific important goa

Competitive goals

When building a marketing plan, it is necessary to identify competitors of the

business Every enterprise wants to avhieve a certain growth, development and strength in the market after a while ‘his is shown in following, factors:

- Products gradually dominate the market

- Role and position of the business Lo the competitors

- Antitrust trends in business

Safety gaals

Business always contains risk Because the businesses have to spend a huge amount of capital and only after a while can it be recovered ‘Therefore, business

plans must anticipate the safety of business plans

Sustainable development goals

In addition to the above objectives, marketing plans should support the goals

of ensuring stable jobs for employees and giving them a stable income from which

improving social life and helping socicly grow Besides, the issue of envirormental protection is one of the compulsory requirements that the State requires enterprises

to implement

1.4.2 External environment analysis

1.4.2.7 Macra environment - PESTEL

PUSTEL is a method of analyzing the elements of the macro environment

affecting businesses TL is au essential tool for admimstrators to regulate the

company and understand what is happening around their business Each letter in

PLUSTUL represents a factor of the business environment.

Environmental facters

Figure 1.3: PESTEL model

Source: Micheal Porter, 1996

legal ‘ate management of the economy The promulgation of a quality

legal system is the first condition to ensure an equal business environment for the

businesses so that they have to do business in a true and responsible manner

tem is incomplete, it will have a significant impact on the

However, if the legal

business environment, causing difficulties in production and business activities of

enterprises

Environmental Forces

This is a very important factor that attracts the attention of all managers The

impact of the economic environment factors is more direct and dynamic than those

of some other factors in general environment, The evolution of the economic

environment always contains different opportunities and threats for each business

in different industries and ha

a potential impact on the strategies of the business

14

‘There are many factors of the macro environment but it can be said that the

following factors have a great influence on the business operations of enterprises

They are economic growth rate, Interest rates and the trend of interest rates in the

coonomy; Monctary policy and exchange rate

Social Forces

Socio-cultural environment inchides standards and values accepted and rospevted by a parlicular socicly or culture The change of social cullural factors is partly a consequence of castle influence of other macro factors so it often happens more slowly than other factors One of the characteristics that managers need to pay atfontion to is that the impact of social and cultural factors is often longer and more subtle than other factors, sometimes it is even difficult to identify The aspects of social and cultwal environment formation have a strong influence on business aclivilies such as: Concepts of morality, aesthetics, lifestyle, occupation, Customs, practices, traditions; Social concerns and priorities; General level of awareness and

education of society

Besides, population or demographic environment is also a very important factor

affecting olher clements of the macro crvirormenl, especially social factors and

economic factors Changes in the population environment will directly affect the change of the economic and social environment as well as the business strategy of the

‘business The information of the population enviroment provides important data for

inanagers in product strategy planning, market strategy, marketing strategy, distribution

and advertising The areas of concem for the population environment include: Total

population of society, population growth rate; Structure and trends of population

changes in aze, gender, ethnicity, and income distribution; Life expectancy and natural birth rate; Trends in population movement among the regions, ete

Technalogical Forces

This is one of many opportunilics aud Uncats that affect the marketing plans

of businesses, Pressure and threats from the technology environment ean be:

15

- The advent of new technology appears and enhances the competitive advantage of alternative products, threatening the traditional products of the existing

industry

- The explosion of new technology makes existing technology obsolete and

creates pressures Ihal require businesses

Tn addition to these threats, opportunities that may come from the tectmology

environment for businesses include:

- New technology can facilitate the production of cheaper products with higher quality, making products more competitive Nonnally, enterprises coming

later have many chances lo take advardage of this point rather than existing

Dusinesses in the industry

- The advent of new technology can make the produck more functional and

thereby create new markets for the company's products and services

1.4.2.2 Micro and industry environment

‘the micro environment consists of intemal sector factors and acts as external

factors to the business, determining the nature and extent of competition in the business industry According to M.Poter, there are five basic factors, including competitors, customers, suppliers, potential new competitors and alternative

products These factors are interrelated and interacted, affecting the business

operations of the business In order to set a successful marketing strategy, key factors must be given into analysis Understanding these factors helps the business

reahze ils strengths and weaknesses in relation to the opporlunities and risks of the

business.

Figure 1.4: 5 competitive pressure model

Source: Micheal Porter, 1996

Potential competitors

Emergence of new businesses directly reduces the size of competition due to increased production capacity and production volume in the industry The

emergence of new competitors is likely to cause strong shocks to existing

businesses because normally the latter ones often have many bases in decision

making and their moves are often unpredictable

To beat potential competitors, businesses often implement product differentiation strategies, improve quality, add new features of products, constantly improve products to make their products different or outstanding in the market, or strive to reduce production and consumption costs

Pressure of suppliers

As a supplier of inputs to the production process, supplier power is expressed through material price pressures Some of the following characteristics of suppliers have a great influence on the competition in the industry:

- Number of suppliers:-Demonstrate high or low supply levels of raw materials and suppliers Many suppliers create competition in the raw material market, which has the effect of reducing input costs for manufacturers

- Monopoly of suppliers-Creating them the conditions to keep the price as they want, causing difficulties in competing with prices

Relationship between suppliers and manufacturers: When the supplier is also

a production unit doing business in the same organization with the manufacturer, the internal linkage is promoted to enable producers to compete with price

Tn order to reduce the negative offects from supplicrs, businesses need io

have good relationships with them or buy from many people in wluch they choose the main supplier and actively research and find alternative material, reserve reasonable materials,

Pressure from the customers

The pressure of customers on enterprises is reflected through the price reduction, bargaining for better quality and more scrvice and making opponents fight each other All of them cause loss of profitability of the industry in general and

of enterprises in particular The power of each group of customers depends on a series of characteristics of the market situation of the group and the importance of the goods that customers buy from the business, Customers create great pressure if the following conditions are met

- A group of alfiliated customers or a customer buys a large volume of goods

compared to the seller's volume

- Products of the enterprise are not really different and can be replaced by products of other businesses Buyers can definitely tind another provider and will be able to push this business against other businesses

The appearance of substitutes

the advent of alternative products is an indispensable to meet the changing demands of the market more and more diversified, rich and high-class and it yeduces the compeliliveness of (healterative produetmarket

Replacement products are often more competitive due to being produced on more advanced production lines Although it is subject to the resistance of replaced

products, the replacement products are more advantageous, thns gradually

narrowing the market of substituted products (especially products that social market

demand is blocked) Substituted products will reduce the competitiveness of

replaced producis The remedy of this business is towards new products or

customers seeking new utility

Pressure of current competitors in the industry

Compelilion among exishng businesses in the imdustry is one of the factors

that reflect the nature of this environment The presence of major competitors in the

market and their operation situation is a powerful, immediate impact force on the

operations of businesses In an industry, there are always many different businesses but there are only a few of them play a key role as the main competitors and are

able to dominate the market

Therefore, mission of cach busincss is to find information, analyze and

evaluate accurately the ability of competitors, especially the main competitors to

build their own competitive strategy appropriate to the general environment

1.43 Internal environment analysis

Luman resource management

Human resource management includes activities undertaken to recruit, train,

develop and pay for all levels of employees Human resource management affcots all activities in the value chain Improving workers! skills and maintaining good labor relations is crucial for creating value and reducing costs By training workers

in a variety of jobs, the administrators can help their companies react to markets fastor through increascd efficioncy, quality, productivity and job satisfaction People are the company's most valuable asseL and a very flexible form of capital

Moreover, in a rapidly changing and unpredictable environment, it is necessary to

develop the workforce so that they can adapt quickly to changes in the environment

Technology application

Technology is associated with all value activities in an organization It affects all broad activities from producl and process development to recciving orders and delivering products and services to customers This means that technology development goes beyond traditional development and research concepts However, investing in technology is also a source of risk for business operalims Nol only large investments arc implemented, but also many

uncerlainties relaled Lo many faclors, sush as changes in cuslomers' needs, rapid

imitation of competitors, and change right in technology there are

Research and development activities

Research and development not only help businesses consolidale their current

position bul also help businesses reach higher posilions in the industry, gaining real

prowth The more we promate the role of research and development in the current period, the more important it is to assess the level of implementation of this work in enterprises Most Vietnamese enterprises have never implemented this task For

these businesses, this is a challenge They need lo have specific plans in

implementing this type of work In order to carry out research and development, it

is necessary to use a lot of equipment, especially in manufacturing industries with high technology content and profound financial potential ‘Lhis work step cannot be considered well if the business does not have enough equipment for this work

Financial situation

This is a decisive factor for production and business activities in general and

is also the foundation for planning business strategy of each enterprise A financially capable enterprise ensures thal il will have an advanilage in investment in

auachinery and equipment innovation, conduct other activities to improve its business performance When analyzing the financial situation of enterprises,the

content of the assessment should focus on the following

- Capital demand and capital structure inside the enterprises, working capital, flexibility of investment capital structure, eto

ses)

- Financial scale

- General financial indicators assess the position of enterprises in the market.

- Ability to mobilize short-term and long-term capital, ratio of loan and equity

- Capital of the company, cost of capital compared ta industry and

competitors, effectively using production and business capital in enterprises

if businesses have difficulties im capital, 1 will be very difficult to create,

maintain and implement their business strategies

1.44 Plan your marketing plan

In this step, on the basis of analyzing and setting up marketing strategies,

executives who aggregate marketing activities will make into a table to have an

overall picture of the aclivities, time, person in chargeand needed resources

1.4.5 Budget estimates, evaluate the effectiveness of the plan

Tn order to assess the effectiveness and implement the functional activities

set oul in the marketing plan, it is necessary lo identify the resource needed Lor cach functional activity, then aggregate the demand for resources for the whole business plan Then, the enterprises can identift additional needs and prepare resource smobilization At this stage, planners who have practical experience and specific imowledge of functional areas will have more advantages in identifying, using

information and data to quantify resources

1.5 Content of the marketing plan

Typically, a marketing plan of an enterprise includes the following

information:

Overview: Presenting the markel context, introducing the context of the

marketing plan, evaluating the business situation in previous years, determining the

raarketing olyeclives of enterprises

Analysis: Macro and micro analysis, focusing on emphasizing unusual trends

and developments in needs, rivals, identifying challenges that may have an impact

on business operations of erilerprises

Identify target market: Identify target market segments in order of priority,

identify segments that are not competitive to exploit the market

Positioning: In this content, enterprises perform positioning of brands / products / services in each segment corresponding to positioning analysis of

competitors

Strategy and value proposition: Identify key strategic directions, develop value proposition (VP) for each segment, and specify marketing mix (1Ps) of each

segment,

Implementation plan: Coneretize the contents of marketing mix into specific

action that can be implemented, associated with the allocation of resources (human

resources, time, arid budget implementation)

Financial forecast: Forecast of financial targets and plans which are

associated with the marketing plan of the enterprise

1.6 SWOT matrix

‘The swot matrix is a method and tool for strategic management awareness Tour relevant points to identify the company's status and opportunities

include:

- Strengths: What is the company's advantage? What work does the company

do best? What resources can be used? What is the advantage that others see in the

company’? Consider the problem from the perspective of the company itself and the

people around, Reality is required in stead of the modest The advantages are often formed when comparing to competitors For example, if all competitors provide high-quality products, such a quality produption process is nol an advarage bul a

zaust-have to exist in the market

~ Weakness: What cart be improved? Which company does the worst job? Whal should be avoided? The issue must be considered on an intemal and extemal basis Others may see weaknesses that the company itself cannot see Why can competitors

do beller? AU his lime, you must make a real judgrnont and {ace the tru

- Opportunity: Where are good opportunities? What interesting trends are

mown? Opportunities may stem from changes in technology and markets in both

international and nesrow range From chenges in stale policies related to the field of

company operations, from changes in social patterns, population structures or

fashion structures, from places of event taking in the region ‘the most useful searching method is to review your advantages and ask yourself whether these

advantages can open up new opportunities or not You can also do the opposite,

seview your weaknesses and ask yourself if there are any opportunities arising if they are removed

- Challenge: Obslacles are encountered? Whal are the competitors doing?

Are there specific changes in job requirements, product or service requirements?

What is the risk of technology change for the company? Is there a problem with

overdue debt or cash flow? Ts there any weakness that threaten the company? These analysis often help find things to do and turn weaknesses into prospects

Tirpose of Swot analysis is to identify feasible strategies as a premise for

strategic planning, the Chapter lakes appropriate action; Based on the analysis of external and intemal factors affecting business operations

Swot analysis model often gives 4 basic strategies

Table1.1: Diagram of Swot matrix

Opportunities 5-0 strategy:based on the

W-O siraleyy-overcome the

company's advantages, taking

weaknesses of the company

advanlage of markel

by maximizing its strengths

Threats opportunities S-I strategy:based on the ST strategy: develop

company's superiority to avoid defensive plans to combat market risks risks, avoid the harms of

weaknesses

CHAPTER 1: CURRENT SITUA ĐƠN ĐÈ BUILDING MARKETING PLAN

OF SANTAL JOINT STOCK COMPANY

2.1 General information about Santal Joint Stock Company

2.1.1 Overview of formation and development

Santal Joint Stock Company SANTAT was established in 2008 under the

‘business license number 0102699355, The company is located at 11th Floor, Hilton

Garden Inn [lotel, No 20 Phan Chu Trinh, Phan Chu ‘Trinh Ward, lloan Kiem

District, Ha Cabinet

‘The company operates in the field of spa, health care and beauty Santal

stands out with its luxurious and sophisticated design, with traditional Vietnamese features, evoking a sense of peace The open space of Santal Spa, as well as the

treatment area, has different stylesbut they all aim to bring an absolute satisfaction

to customers

Currently, SANTAI JSC operales with the following steps: Corlanuously

updating advanced Spa and beauty technologies in the world through training with

foreign experts for thestaff, therapists Customers come to the company depending

on the needs of cuslomers combined with the advice of counselors, will be laken:

care of with appropriate and advanced processes, ensuring the highest satisfaction

of customers Customers can reserve in advance, choose the type of care service,

choose the lype of drug, cosmetic ant the basis of the advice of the care slalT, receive the service and pay for those services With professional operation process, SANTAT, JSC always receives good reviews [rom customers and businesses operating in the same field,

2.1.2 The main business areas of the company

The company operates in 3 main areas including: Spa services; Beauty

services and high-tech therapy services

+ Tor Spa services, the Company provides services including: Swedish

miassge services; dry, wet service, aromatic leaf bath service; love bath service,

Samal Beautiful Bliss service; ‘The City Indulgence service; Silky Paradise service;

Sothys ginger exfoliating service

+ Kor cosmetic services, the Company provides services inclading: facial

care, exfoliation, Nail care and hair removal

1 For high-tech therapy services: acne treatment, tattoo removal, melaleuca

removal, hair removal, pore reduction, acne treatment

Curently, the company is developing quite a lot of spa with a team of

experienced spa lechmicians and modern equipment to bring the best service quahty

to each customer High-tech therapy and aesthetics are still on the rise

HR &GA Service Marketing Customer service

Human Accaunta High-lech Reauly Spa Recept Consult,

Director:directly manage and make business decisions of enterprises and

jake legal responsibility before the law

HR & GA Department Be in charge of activities related to management,

recruitment, training, personnel in the company

+ Human Resources: in charge of jobs such as car keeping, sccurity

bà a

+ Accouting: undertake accounting, financial affairs management, tax reporting, annual business reports

Service room: specialize in service businesses

+ High-tech therapy: Includes specialists, medical doctors and staffs in the

field of high-tech therapy for customers such as melasma treatment, mole removal,

permanent hair removal, etc

+ Sumery: Including specialists, medical doctors and staff for beauty surgery

such as breast augmentation surgery, abdominal liposuction, eyelid surgery, etc

+ Spa: Includes a team of medical doctors and staff with experience im

amassage such as facial massage, foot massage, ete

Marketing department specializes in research, development and deployment

of markcling, sales promotion for businessos, directly build and implomont advertising plans for businesses

Customer service depariment: Be in charge of customer service

+ Reception: Welcome and instruct the customers

+ Consultant: Answercustomer inquiries and consulton business services for

Uelps to cleanse the skin and pores, reduce sebum secretion, prevent the

development of acne, make skin become smooth and clean

3 Skin care for normal te dry skin

Time: 95 minutes

Holps strongihen blood circulation for skin, provides nutrients wilh rich

vitamins to give customers soft and moist skin like mist

3 Care for mixed skin

Tine: 95 minutes

Balance the cycle of cell regeneration, clean the skin and creates a bright, plowing skin

4 Aging skin care

‘Tune: 70 minutes

The company uses ingredients rich in fatty acids, lecithin and vitamins, a mixture

of egy yolks, honey and yogurt to do the skin carefor the aging skin of the customers

5, Special care for pigmentation, freckle skin

Time: 120 minutes

Balance the cell turnover cycle, treating meclastna and darkening arcas by using specialized products to remove dead skin cells, allergens and giving the

customers a bright, healthy white skin strong

Whale hody relaxing

1 Thai body massage

A relaxing massage method using warmed herbs applied to the bedy This

anethod helps to release the body, enhance circulation, create relaxation thanks to the delicate combination of touch and natural scent

4, Relaxing fool massage

‘Time: 60 minutes

w 8

Special Santal Massage includes: 1 self-selected exfoliation; | elective facial

care; Body skin care with Phyris product

3 The City Indulgence

2 Spa serviees [or "pregnant mother"

Relaxing body massage with essential oils or herbs

Special foot massage for pregnant women

Anli-strelching massage (waisl, thigh, chest) lor pregnanl women

Health recovery aud postpartum care package

2.2 Analysis of operating cnvironment of SANTAL JSC

22.1 External environment

2.2.1.1 Macro environment

a, Economic environment

GDP growth

After the rough difficulties in 2012, our economy is on a steady growth trend

and always higher than the average growth in the period of 2011 - 2017

28

Diagram 2.1: Vietnam's GDP growth rate from 2013 to 2017

681

Source: General Statistics Office

In 2007, economic growth reached 6.81%, exceeding the target of 6.7% set by

the National Assembly and reaching the highest growth rate in the past 10 years, according to new figures published by the General Statistics Office In particular, the economy in the last two quarters recorded a growth rate of over 7%, For the first time

in many years, Vietnam has achieved and exceeded all 13 socio-economic targets in the year Thus, the economy has beenin a stable period, this creates opportunities for businesses in general and SANTAL Joint Stock Company to expand and develop

business due to the factors of the business environment are not volatile

Sustainable growth prospects

Vietnam economy has a stable growth prospect in the next period with the context of variables reflecting improved economic stability, specifically

Firstly, about inflation rate,in recent years, the inflation rate tends to

decrease remarkablely, expected to be lower than 5% in 2018 (lower than the average inflation rate in the period of 2011-2017 of 6 , 5%)

Secondly, about public debt / GDP ratio From 63.6% in 2016, the public debt / GDP ratio in 2017 fell to 62% In addition, in the period of 2011-2015, the average public debt growth reached 18.4%, until 2016, it increased by 15% and in

29

2017 it was 9%, expected to increase by 11% in 2018 At the same time, budget overspending is declining, recurrent expenditure on budget spending has fallen to 64.9% this year and is expected to be 64% by 2018

Thirdly, about gross domestic product In recent years, GDP rate of our country has continuously increased rapidly In 2013, GDP growth rate was 5.12%;

unlil 2014, ilincreased lo 5.98% and in 2015, this rate was 6.68%, in 2016, ibwas

6.21% and m 2017, st was 6.81%

Fourthly, trade balance improved from trade deficit in 2015 (US $ 3.2

bilhon), 2016 trade surplus was 2.68 billion USD and il is expected to reach surplus

trade balance until 2018

Thus, economic growth is accelerating on a stronger macroeconomic

foundation This reflects thal many macroeconomic policies are going on the right

direction to create a stable environment for businesses to expand business

development, including SANTAL Joint Stock Company

Growth 1o improve investment efficiency

Besides the positive movements of economic indicators such as budget

overspending, public debt, trade balance, inflation rate, erte.The economy has

improved in investment efficiency and competition capacity [COR coefficient in

2017 reached 4.93, lower than the year of 2016 of 5.15 Although the fluctuation

situation might be up and down due to many factors, it is clear that the ICOR trend

line tends to drop This reflects that the investment efficiency of the economy is

pradually improving,

Diagram 2.2: ICOR of Vietnam economy in the period of 2011 - 2017

Source: General Statistics Office

In addition, according to the Global Competitiveness Report of the World

Economic Forum (WEF), Vietnam's competitiveness index increased from 4.31 in

2016 to 4.4 in 2017 The competitiveness level of Vietnam's economy increased by

5 grades compared to 2016 and increased by 20 steps compared to 5 years ago

Thus, it can be said that Vietnam's economy in the upcoming time will have good prospects GDP growth rate will tend to increase, stimulating the domestic economy to develop, creating many prospects for business activities of enterprises,

promoting SANTAL joint stock company to develop, expand business environment,

expand service supply

b,Legal - political environment

The system of legal documents related to enterprises is gradually being improved in a positive direction for businesses

The legal system of Vietnam has become more and more complete, there are

many progressive laws promulgated and amended, partly creating favorable conditions and open environment for the investors and enterprises to develop

Related authorities has consulted to build legal documents, creating favorable legal

corridors, removing unnecessary procedures for businesses

31

Enterprise Law is a law having special significance for the development of the social economy In 1999, the Law on Lnterprises was established and the Law

on Enterprise in 2015 was a breakthrough in creating a unified and equal legal

corridor, promoting domestic investment as well as attracting foreign investment,

creating a different appearance and stature than the previous period Ilowever,

during the iuplemertalion, over Lhe past 10 years, besides the achievements, the old

Enterprise Law also revealed many shortcomings which were unable to keep up

with the domestic economic development situation as well as the global trend Due

fo Thai silualion, in November 26° 2014, the National Assembly passed a new Enterprise Law with 10 Chapters, 213 things, bringing many new positive points,

which can be considered a new breakthrough, overcoming many weaknesses during

amore than 10 years of implementing the Law on Enterprises and the old investment law before,creating an orientation basis for the enterprises to establish and developing, helping businesses in general and SANTAL Joint Stock Company in particular fecl scoure to expand business in a well-ventilated operating, cnvironment

‘The legal system also has many overlaps

Although in the past few years the Government of Vietnam has formed a

working group to review all legal documents, eliminate conflicts, the overlapsamong

the legal policy systems Ilowever, when giving general assessment about the legal environment of Viemam, many experts and businesses think that it isstill insufficient,

weak and confusing, unpredictable Some administrative procedures arc still complicated and time-consuming for the enterprises Information technology

apphicalion i administrative reform bas nol been promoted Admimstrative reforms an

localities are uncven This makes it difficult for the businesses with many branches to implement large-scale programs in many provinces As a result, investment activities to

expand business, cstiblish more branches of enterprises in general and SANTAL Join Stock Company in patticular has been facing many challenges due to difficulties investment policies of the State

Besides, administrative procedures on tax and customs are still Inmmited The

level of improvement of administrative procedures on taxes and customs is not