Marketing strategies in Vinh Son Joint Stock Company

Life is a sea – if they can not swim up, it will be submerged”. This has become the rule in both natural and proper business of business. One of the key success factor of that’s the business marketing strategy. This term is no stranger to anyone from pupils, students to entrepreneurs.

MINISTRY OF EDUCATIONAND TRAINING

HANOI UNIVERSITY OF BUSINESS AND TECHNOLOGY

TABLE OF CONTENTS

TABLE OF CONTENTS i

ACKNOWLEDGMENTS iii

LIST OF ABBREVIATION iv

LIST OF FIGURES AND TABLES v

INTRODUCTION 1

CHAPTER 1: THEORETICAL MARKETING OPERATION PROCESS 3

1.1.Definition of Marketing 3

1.2 The marketing process 4

1.2.1 The old marketing process 5

1.2.2 The new marketing process 6

1.3 Marketing mix 8

1.3.1 Traditional marketing mix 8

1.3.1.1 Modern marketing mix (4Cs) 9

1.3.1.2 SWOT analysis 9

1.4 Strategic content Marketing 10

1.4.1 Markets 11

1.4.2 Segmentation 11

1.4.2.1 Product policy 12

1.4.2.2 Price policy 12

1.4.2.3 Place policy 13

1.4.2.4 Promotion policy 14

1.5 Factors affecting the marketing strategies of business 14 1.5.1 Group companies outside factors (internal environment sector) 14

1.5.2 Group internal factor in business 14

CHATER 2: ANALYSIS OF THE MARKETING STRATEGIES OF VINH SON JSC 15

2.1 Vinh Son JSC profile 15

2.2 Organization and finance 16

2.3 Business operation 17

2.4 Marketing activities of Vinh Son JSC 17

2.4.1 Vinh Son JSC’s Product Activities 18

2.4.2 Vinh Son JSC’s Price Activities 19

2.4.3 Vinh Son JSC’s Place activities 20

2.4.4 Vinh Son JSC’s Promotion Activities 21

2.5 Overall assessment of the company’s marketing activities .21

2.5.1 Some positive aspects of the marketing in company 22

2.5.2 The limitations and problems resolved 22

CHAPTER 3: ORIENTATION OF DEVELOPMENT AND SOME SOLUTIONS TO ENHANCING MARKETING STRATEGIES IN VINH SON JOINT STOCK COMPANY 23 3.1 Development orientation of the company in the future 23

3.2 Some solutions to building marketing strategies for Vinh Son JSC 23

3.2.1 Extremely perfect marketing strategy 23

3.2.1.1 Perfecting product policy 24

3.2.1.2 Development of pricing strategies for the company’s products 24

3.2.1.3 Perfecting the system of placing channels 25

3.2.1 4 Perfecting promotion policies 25

3.3 The solutions – oriented through the SWOT matrix of Vinh Son JSC 26

3.3.1 The solution combines SO (use power to take opportunity) 26

3.3.2 The solution combines ST(Using the strength to overcome the threat) 26

3.3.3 The solution combines WO (Use the opportunity to rectify weaknesses) 27

3.3.4 The solution combines WT (Limit weaknesses and avoid threats) 27

CONCLUSION 28

BIBLIOGRAPHY 29

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First of all, I would like to express my deepest gratitude to mysupervisor, Vu Thi Thanh Ha, M.A, for her time, materials,valuable suggestions and advice and her enthusiastic guidanceduring the time I was writing this graduation paper

Secondly, I would like to thanks all my teachers of English atHanoi University of Business and Technology who gave mebackground on methodology, especially knowledge of English andlanguage skills as well as studying and researching skills

Thirdly, I would also like to express my sincere gratitude to Mr.Tran Anh Tho for his valuable suggestion, my family and myfriends for both material and spiritual supports in completing mywork

Last but not least, I would like to thanks all the manager andstaff of Vinh Son Joint Stock Company for their helpful guidanceand great supports so that I have been able to fulfill my graduationpaper successfully

Hanoi, July 2010 Student NGUYEN THI VAN

TA 1103

LIST OF ABBREVIATION

 BOM: Business Organization

 DSS: Dynamic Security Software Manager

 DP: Department

 JSC: Joint Stock Company

 Ps: P words

 SWOT: Strengths, Weaknesses, Opportunities, Threats

 VAT: Values Added Tax

 VND: Vietnam Dong

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LIST OF FIGURES AND TABLES

Figure 1: The Old Marketing Process.(Page 5)

Figure 2: The New Marketing Process (Page 6)

Figure 3: SWOT (Page 9)

Chart 1: Vinh Son’s Organization.(Page 16)

Chart 2: Vinh Son JSC’s Pricing strategy.(Page 25)

Chart 3: Vinh Son JSC’s Promotion policies.(Page 26)

Table 1: Product list of Vinh Son JSC (Page 19)

And I have been lucky enough to study in the Business EnglishFaculty at HUBT, which is one of the best private Universities inVietnam Here I have change to study both English and Business thatare the two essentials things for me to find a good job to earn a living.The most important thing is that I have been equipped with the basicknowledge of business, marketing, finance, banking… all of which Ihave found very necessary for me to deal with my future job All thesewere proved very clearly during my practical period in Vinh Son JointStock Company What has been learnt could be used effectivelyduring my field trip After my training trip at Vinh Son Joint StockCompany, I discovered that what I need now is the knowledge ofMarketing as well as Business English I must improve these twothings for the better so that I can get ahead in my career, which is thereason why I have chosen Vinh Son Joint Stock Company for my

Graduation Assignment with title “Vinh Son Joint Stock Company

and Solutions to Enhancing Its Marketing Strategies” for my

graduation paper

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The methods applied to write this paper include:

 Vinh Son Joint Stock Company’s documents are collectedcarefully studied

 All the figures, documents and reports retrieved in the jobtraining trip are used to write this paper

 Ideals about the corporation marketing and sales operation havebeen consulted from experts and marketing board

This Graduation Assignment is divided into 3 chapters:

Chapter 1: Theoretical Marketing Operation Process

Chapter 2: Analysis of the Marketing Strategies at Vinh SonJoint Stock Company

Chapter 3: Orientations of Development and Solutions toEnhancing Marketing Strategies in Vinh Son Joint Stock Company

However, with my limited knowledge & experience, there may besome shortcomings in my essay, which is why I really am lookingforward to receiving help and assistance from my teachers to make theassignment successful

OPERATION PROCESS

1.1 Definition of Marketing.

Actually, it is not easy to define exactly what marketing is? It ispartially because this field is quiet large and long lasting for ages Inaddition to, it is made more difficult by fact that many people thinktheir definitions of marketing are excellent and nothing will be better.Therefore, whether the most accurate understanding about this isconcluded has still been unknown.

Nigel Hill, in his Tutor Guide Book named “Marketing”, has defined Marketing as follow “Marketing is a kind of matching process It

seeks to learn what people want and then tries to match the resources of the company to supplying those wants”.(Page 25)

The father of marketing studies, Phillip Kotler, also spoke what he

thought about Marketing, “Marketing in the market is to satisfy wants

and needs of customer So, marketing is human beings’ action and meets the demand of human being through exchanging”

The definitions above have some things in common, which are veryeasy to recognize when they are being made comparison Firstly,marketing is considered to be process, which includes many stagesand points Therefore, if any organization wants to do marketing welland then to generate much profit, they must learn how to carry out theright stages and arrange these stages in the suitable and accurateorders Secondly, although, Marketing is understood to be a process, it

is not the ordinary one, it must be the creative process Once they are

defined the creative process, it must “seek to identify and satisfy

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customer needs profitably by matching company strengths to market opportunities” (Page 47, Nigel Hill.)

1.2 The marketing process.

As mentioned in two definitions, marketing is s process, in whichmany points and stages will be arranged respectively However,marketing processes are not the same time to time, industry or area toarea Time is the most accurate illustration for this Because marketinghas been existed for a long time, marketing process in old time mostlydiffers from the one in modern time because trading, the model ofeconomy and society have been changing profoundly after many yearshad passed In old times, trading are not as complicated as that ofnowadays because at that time the global economy has beenseparated, one common marketing for the whole world has not beenborn yet In addition to, the outlook of traders, manufacturers islimited, they don’t find out much about the customer as well as themarket Their knowledge of marketing is so simple Perhaps the onlyknowledge helped them conduct business is experience they gainedwithin many years The picture of trading today has been muchchanging in comparison with previous time Globalization is thepopular trend; therefore, the marketing has enlarging, which leads tomore complicated market Obviously, marketing process must bechanged to adapt the new conditions According to John Thomas

French wrote in the book of “You are in business”; Marketing process

is made two categories; the old process and the new process

1.2.1 The old marketing process.

Figure 1: The Old Marketing Process.

In the old time, they only concentrated on producing products andselling them The process was started by producing and manufacturingthe kinds of product that producers or manufacturers think he can sellwell In this process, Marketing played the role to bridge the gapbetween the producers and the customers directly In other words,Marketing is the tool to sell all the number of products which hadbeen produced In this case, all the factors of Marketing such asadvertising, promoting or distributing and contacting customer wereimplemented simultaneously As consequence, customers were notsupplied what they wanted to buy, but they had to purchase what wasavailable in the market At the time, when the market was small andproducts were not as various as today, this seemed to be accepted.However, with a large and globalize market like today, if marketing isstill conducted like it used to be, the producers will be kick out of thecompetition and the choice of customer Therefore, a new marketingprocess appeared to adapt conditions in a new economy

1.2.2 The new marketing process.

Figure 2: The New Marketing Process.

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Distributin g

Advertisin g

Promoting After

sales

Service

Products Customer

The new Marketing Concept distinguished greatly from the old one.

In this concept, Customers are the first factor to be considered andthen come to Product, which mean only after the products have beenproved to be ready for sales in certain markets, will they be actuallyproduced The producers and manufacturers must do market researchthoroughly to find out who are going to buy their products, how largethe market is and which products will appeal to the market Thismethod seemed to be more effective than producing products first andfind the way to launch it Applying this way, the producers will behave some precious information about their customers and markets, sothat they can produce what they can sell instead of selling what theyhad produced In terms of customers, they also can be benefit fromthis new one They will be served what they want with preferentialconditions accompanied

What is more, advertising and promoting take part in the process asthe crucial factors As far as you may concern, Advertising andpromoting bring goods and service to the customer because these helpthem with available information as well as specifications of certainproducts The customers’ choices are mainly influenced by thesefactors As a result, any entrepreneur joining this competition should

use these tools to make the products be appealed to the selectedmarkets.

Another aspect of production, Distributing also get involved in thisprocess The more popular the globalization is, the more importantrole distribution play At the moment, after being manufactured,goods must find the way to reach the customer suitably andcomfortably Goods should be produced at the place with availability

of raw materials and labor force and should be distributed to the placewith high demand

Finally, “After sales” service acts as the finishing point in the modern

process If other stages aim at attracting the customer and make themtake the real actions (purchase the products and service), this stagefocuses on the old customers by satisfying them and then to partnerwith them for the next deal The formers target every kind ofcustomers such as loyal customers, potential customers, meanwhileonly customers are taken care in the latter stage

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1.3 Marketing mix.

1.3.1 Traditional marketing mix.

In the past, they used to define marketing as the combination andcoordination from wide range of activities, which represent all aspects

in business that will take us a long time to list them To some extend,Marketing has four basic things that arise the concern of businessmenindividually and companies collectively

Four things are encompassed like Products (what to product and sell),Price (How much to sell or How much are determined to sell), Place(Where is the most convenient place to sell and supply), Promotion(How to make implementation activities to arise the public’sawareness)

In my opinion, these actives share one common thing: to find the bestway to meet the customer’s requirement and support them withconvenient conditions for purchasing This is well-understood becausethese activities are carried by businessmen and businessmen will donothing except for making money Therefore, meeting customer’sdemand is among the most reasonable method for getting profit SirJohn Egant, Chairman of Jaguar has expressed his same ideas:

“Business is about making money from satisfied customers Without satisfied customers, there can be no future for commercial organization”

1.3.1.1 Modern marketing mix (4Cs)

When given the task of introducing a product to market there are

simple objectives to focus on called the “Four Ps of marketing”,

which help defined your Marketing strategy: Product, Place,Promotion and Price What is the Product you intend market? Where

is the Place it will be sold? How will you implement the Promotion ofthe product/service? And finally, what is the Price the product will besold at?

However, business today is not as simple as that in the past, it is morecomplex than ever before Instead of product oriented like in the past,

a new trend has just appearance so-called customer oriented (Four Cs

of Marketing), which help define the organization’s marketingstrategy: Customer, Change, Convenience, Communication

1.3.1.2 SWOT analysis.

Figure 3: SWOT

Of course nobody can launch an effective plan they know thoroughlywhere they are starting from meaning that they must know whatexactly they own and they are lacking SWOT is invented to take thatrole SWOT is the most common way of analyzing the current

situation of a business In other words, SWOT is an analysis of acrucial mean for figuring out the overall strategic position of abusiness and its environment SWOT is an abbreviation for Strengths,Weaknesses, Opportunities, and Threats.

The SWOT was launched in the late 1960s by famous economists,Emund P Learned and Kenneth Andrew in their books name BusinessPolicy From then on, it has been widely position existing in acompany Actually, SWOT is separated into two branches, in whichare known as Internal and External respectively

1.4 Strategic content Marketing.

Marketing is the process trade organization, management and controlactivities in order to create possibilities and achieve the most effectiveconsumer products of a number of organizations based on the bestway to satisfy a need requirement of suppliers, the trade andconsumers

Marketing strategy refers to the combination of the Systemic betweenmarketing mix and key markets (Marketing = Marketing Mix + KeyMarkets)

Marketing mix is a synchronous system of tools that can control theamazing effects you can use business to influence and conquestcustomers Marketing mixes four basic parameters (4P): Product,Price, Place, and Promotion The parameter of the marketing mix isdetermined, and leads a group of clients specific target market In thisway, the products strategy, price, place, promotion will be oriented inaccordance with the specific characteristics of the object to createeffects greater competitiveness and efficiency

1.4.1 Markets

Market is the place to make business consumption, where businessand feed a mirror, reflecting the economic relationships are takingplace in the market The business market is often divided into twotypes of market input and output markets

First to market is said to supply inputs for production and businessactivities of enterprise, such as labor, raw materials, capital…

And market output is said to market products of the enterprise.Consumer market is often described as the basic criteria likepublication line, by geography…

1.4.2 Segmentation

Segmentation is the division of consumers into different groups ofcustomer’s needs, personality or behavior based on some specificcriteria

In strategic market, enterprises must identify the key market forcustomer groups that will conquer the enterprise The two issues thatenterprises should pay attention when building strategic markets:Enterprises need to develop the overall strategy of the enterprisemarket that is forecast to be its market share on market size, marketcrawl space, the development trend of the market and ability todominate expand market share of the business

Enterprises must develop key strategic market size and specificcapacity in market share as well as their target customer groups andoffer methods of market segmentation

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