Solutions for developing the market of VNT logistics

2.2.The current situation of developing the market of VNT Logistics 2011 –2014...28 2.2.1.Over view the current market of VNT logistics...28 2.2.2.Current situation development of the tr

NATIONAL ECONOMICS UNIVERSITY

EXCELLENT EDUCATION PROGRAMS

BACHELOR’S THESIS Major: International Business

Topic: Solutions for developing the market of VNT Logistics.

Student: Nguyen Thi Ngoc Dung

HANOI, 2015

NATIONAL ECONOMICS UNIVERSITYEXCELLENT EDUCATION PROGRAMS

BACHELOR’S THESIS

Topic: Solutions for developing the market of VNT Logistics.

Student : Nguyen Thi Ngoc Dung Major : International Business Administration Class : International Business K53

Student : Nguyen Thi Ngoc Dung Advisor : Ass Prof Dr Bui Huy Nhuong

HANOI, 2015

After a long hardworking time, finally this graduation report is completed It is aproduct accomplished not only with my efforts but also with many people to whom Iwould like to show my appreciation on this first page

First of all I would like to show gratitude to my supervisor, Ass.Prof Dr.Bui HuyNhuong, lecture of Faculty of trade and international economics, National EconomicsUniversity for his supports and helpful advices during this process

I also would like to thank all lecturers of National Economics University,especially lecturers of Trade and international economics department who provided mewith a lot of invaluable knowledge during the time I studied at the University

I am grateful to my colleagues at The van Cargoes and Foreign Trade JSC andcustomers for their valuable supports in the preparation of this thesis I also would like

to thank those who have read my thesis and given me valuable insight in order to makethis thesis as good as possible

Last but not least, I would verbalize my deepest thank to my beloved parents,brothers and sisters, and my friends who have inspired me with encouragement,compassion and great support during the course and in preparing for the final thesis

1.

STATUTORY DECLARATION

I here with formally declare that I myself have written the submitted Bachelor’s

Thesis independently I did not use any outside support except for the quoted literature

and other sources mentioned at the end of this paper

Hanoi, / / 2015Signature

Nguyen Thi Ngoc Dung

TABLE OF CONTENTS

ACKNOWLEDGEMENTS

STATUTORY DECLARATION

TABLE OF CONTENTS

ABBREVIATION

LIST OF FIGURE

LISTS OF TABLES

EXECUTIVE SUMMARY

INTRODUCTION 1

CHAPTER 1: THE BASIS OF THEORY OF MARKET AND DEVELOPING THE MARKET 3

1.1 The basis of theory of market 3

1.1.1 Definition of market 3

1.1.2.Elements of market 4

1.1.3.Functions of market 5

1.1.4.Criteria for market classification 6

1.1.5.The role of the market 8

1.2.The basis of theory of developing the market 9

1.2.1 Content of developing the market 9

1.2.2 Market development process of enterprises 12

1.2.2 Criteria to evaluate the market development 16

1.2.3.The role of developing market in the development of business 17

1.3.Factors impact to developing the market 18

1.3.1.Macro factors 18

1.3.2.Micro factors 19

CHAPTER 2: THE CURRENT SITUATION OF DEVELOPING THE MARKET IN VNT LOGISTICS 21

2.1.Overview of VNT Logistic 21

2.1.1.The history and development 21

2.1.2.The vision and mission statement 22

2.1.3.Organization structure 22

2.1.4.Logistics solution and services 22

2.1.5.Competitive advantages of VNT Logistics 25

2.1.6.Business operations result 26

2.2.The current situation of developing the market of VNT Logistics 2011 –

2014 28

2.2.1.Over view the current market of VNT logistics 28

2.2.2.Current situation development of the traditional market 31

2.2.3.Current situation development of the emerging market 36

2.3.Evaluation the current situation of developing the market in VNT Logistics in 2011 – 2014 38

2.3.1.Achievement of developing the market in VNT Logistics 38

2.3.2.Limitations of developing the market of VNT Logistic 39

2.3.3.The reasons of limitations in developing the market of VNT Logistics 40 CHAPTER 3: THE OPPORTUNITIES, THREATS AND PROPOSING SOM SOLUTIONS FOR VNT LOGISTIC TO DEVELOP THE MARKET 45

3.1.The opportunities and thread for developing the market of VNT Logistic 45

3.1.1.The opportunities for developing the market of VNT Logistics 45

3.1.2 The threads for developing the market of VNT Logistics 47

3.2.Proposing some solutions for developing the market of VNT Logistics 49

3.2.1 Solutions to develop market of VNT Logistic 49

3.2.2 Recommendations from VNT Logistic to the government 53

CONCLUSION 55

REFERRENCE 56

Join Stock Company

LIST OF FIGURE

Figure 1.1 – Ansoff Maxtrix 10

Figure 2.1 Organization structure of VNT logistics 22

Figure 2.2 Structure of revenue based on kind of services of 24

VNT logistic in 2014 24

Figure 2.3 Development of revenue based on kinds of services 25

Figure 2.4 The development of revenue in traditional market of VNT Logistics 31

Figure 2.5 Development of import and export revenue of traditional market countries from 2011 – 2014 33

Figure 2.6 The development of revenue in emerging market of VNT Logistics 36

Figure 3.1 Import – export in Vietnam period 2011-2014 45

LISTS OF TABLES

Table 2.1 - Operating activities results of VNT Logistics 2011-2014 26

Table 2.2.– Structure of export and import quantity in air freight and sea freight forwarding service of VNT Logistics 2011- 2014 29

Table 2.3 Proportion of traditional and emerging market in the revenue of Sea and air freight forwarding services of VNT Logistics 30

Table 2.4 Proportion of traditional market in revenue of VNT Logistics 32

2011 – 2014 32

Table 2.5 Kinds of services and corresponding traditional market 34

Table 2.6 Kinds of services and corresponding emerging market 37

Table 2.7 The growth in revenues of the Indian market 40

EXECUTIVE SUMMARY

The market of The Van Cargoes and Foreign Trade Joint Stock Company isdeveloping, however in the time of the competition in the logistics services marketincreasingly fierce, the company did not have the activities to developing the marketeffectively To be able to stand on Vietnam's logistics market and compete with rivals

in the domestic and international, VNT Logistics not only have to focus on improvingthe quality of services to increase competitiveness, but also focus on works to researchand develop the market Enterprises must be aware and knowledgeable of the existingmarkets, as well as have some specific strategies to expand the market to newsegments That also the main theme of this thesis

Through the process of understanding and approaching to business, the thesis hasgone into studying the following part

Chapter 1: The basis of theory of market and developing the market

Give out the basis definition of market, the function, element, classification ofmarket and explain the role of market in the business operations Give out the basisconcept of developing market and introduce the Ansoff Matrix about marketdevelopment, explain the role of developing the market in business development.Analyse the macro and micro factors impact to the developing the market

Chapter 2: Analyse the current situation of developing the market of VNTLogistics in period of time from 2011 to 2014

Point out the current status of market development in VNT Logistics of air andsea freight forwarding services Study the development of traditional market andemerging market of VNT Logistics and the strategies of the company are applied todevelop these market

Evaluate the achievements and limitations of the company in developing marketduring the period 2011 – 2014 Based on these limitations, analyse the reasons inobjective and subjective sides

Chapter 3: The opportunities and threats of developing the market in general andproposing some solutions for developing the market of VNT Logistics

Point out the opportunities and threats for developing the market in logisticsindustry based on the prediction of economics growth and the orientation of generalmarket development

On the basis of chapter I and II, strongly suggested some business solutions andother support measures to overcome existing problems in the developing market of

VNT Logistics and further development in the future But for the development ofmarket of company is more efficient, it is not just the duty of the company but also thecooperation with the government.

This thesis aims at helping VNT Logistics with some more solutions todeveloping the market, enable more effectiveness of the business activities, bring backmore profits and create a strong stepping stone for further future of company

1 The necessary of studying topic

After nearly 30 years of reform and opening up, Vietnam's economy has madeimportant achievements in all fields of economic and society We are increasinglyintegrated into the local economy region and all over the world That not only offersthe Vietnam enterprises huge opportunities, but also creates many challenges as thefierce competition on the world market, the volatility of the global environment

In recent years, with the development of the economy, the increase in export activities and investments, logistics service in Vietnam is making strongprogress Especially since Vietnam became an official member of the World TradeOrganization, WTO, goods and services market in Vietnam is increasingly expanding,the demand of distribution is becoming increasingly urgent Logistics industry now hasthe highest growth rate in Vietnam

import-Logistics has an important role for the development of an economy Thedevelopment of logistics services meant to help the manufacturing operations, businessand other services are guaranteed on-time and quality Logistics in good developmentwill bring cost savings, improve the quality of products and services, economicdevelopment With billions in sales to logistics services are attractive to investors andthey are active investors in Vietnam Currently, there are 25 companies offeringlogistics services leading presence in Vietnam in many different forms

Established in 1996, VNT Logistics operates a full comprehensive door-to-doorlogistics service to any destination in the world In the recent years, they areconsistently enhancing and increasing their quality of services However, there aremany challenges come from the market that the company cannot develop as itspotential

Because of above reasons, studying reality of market development situation andproposed relevant solutions to enhance the competitiveness and meet the increasing

demand of market are crucially important Therefore, I decide to choose “Solutions

for developing the market of VNT Logistics” to be my internship report topic for

graduation

2 Purpose of studying subject:

The thesis report focuses on analyzing the current situation of developing themarket of VNT Logistics from 2011 – 2014 period of time and the development in thenext few years Based on that, the writer proposes the solutions and recommendationsfor further development in 2015 – 2020

3 Object and scale of studying subject:

Studying object: current situation of developing the market of sea and air freightforwarding and logistics services in VNT logistics and having strategy for developing

in the near future

Studying Scale: The current solutions of market development of VNT Logisticsduring 2011 – 2014 are the main studying scale

4 Studying method

To conduct the report, the writer also uses secondary data, statistic of numbers,comparison and analyses, logical reference, prediction

5 Structure of graduation thesis

Instead of Abbreviation List, Statistic of Table and Charts, Preface andConclusion, Reference List, the report is divided into 3 chapters as follow:

Chapter 1: The basis of theory of market and developing the market

Chapter 2: Analysis the current solution of developing market in VNT LogisticsChapter 3: The opportunities, threats and proposing some solutions for VNTlogistics to develop the market

CHAPTER 1: THE BASIS OF THEORY OF MARKET AND

DEVELOPING THE MARKET

1.1 The basis of theory of market

1.1.1 Definition of market

1.1.1.1.Market in Economics field

Market is always the term that used in the economics research and document Sowhat is the market? There are a lot of economists have studied on markets Market hasbeen understood from the basic, simple perspective and now has been expanded, withmore precision Depending on the stage of development, in a different field, the market

is understood in different ways

Some common concepts about market:

The market is a manifestation of the division of society, wherever and whenever

it is assigned by society and produce the goods there and then there is a market

A market is one of the many varieties of systems, institutions, procedures, socialrelations and infrastructures whereby parties engage in exchange

The market is a combination of economic relations formed in the buying andselling activities

Market is any structure that allows buyers and sellers to exchange any type ofgoods, services and information

Over the time and the economic theory, the market is defined as follows:

The classical perspective: The market is the place where people exchange,purchase and sale goods The market is understood in a narrow sense, be regarded as a

"fair", the specific location where buyers and sellers meet to exchange goods Thisview is just consistent with the period that producing is undeveloped or suitable forareas where market relations are not developed When the money was appear, markethas been seen in a broader perspective

P.A Samuelson: “A market is a mechanism through which buyers and sellersinteract to set prices and exchange goods and services” This perspective has beenconsidered in a broader meaning, no longer confined in a space The trading can takeplace without the association with a specific location

The modern perspective: "The market is a process in which buyers and sellersinteract with each other to fix prices and quantity of goods or services In other words

the overall market relations economic system of circulation of currency, goods,services and trading activities" This is the same as Samuelson's view but has beenadded the more clearly economic relationships that are formed in buying and selling.This definition describes complete and clear about the nature of the marketduring the current development However, in the business aspects, the concept ofmarket in modern perspective is too macro, not specific enough for businesses toidentify targets and development direction.

1.1.1.2.Market in enterprise

All the enterprises that want to survive, might have to research about its market

in order to make accurate production decisions If they just do the market research atthe macro level, the enterprises would not have sufficient backgrounds to make aviable business decision that will reduce the competitiveness of enterprises Hence,they need to do market research in more specific angles

Philip Kotler: “Market consist of all the potential customers sharing a particularneed or want who might be willing & able to engage in exchange to satisfy the need orwant”

E Jerome McCarthy: “The market is one or more groups of potential customerswith similar needs and the sellers who have ability to offer different products withdifferent ways to meet that demand.”

On the basis of market concept of McCarthy, modern marketing has given adefinition of the market of enterprises: “The market includes all the potentialcustomers who have the same needs or specific wishes, willing and have ability toparticipate in the exchange to satisfy their needs and wants.”

This definition has helped businesses identify market specific: it is a group ofcustomers with the needs and desires certain; they have sexual characteristics,psychological, age, certain buying power and living in a specific region

Demand: the need for solvency customer (buyer) Incorporate of customer needscreate demand of goods

Price: the interaction between buyers and sellers, or the interaction betweensupply and demand will not only determine the price of each commodity, specificservices, but also determine quantity, quality of product categories should be producedand thereby we can determine the direction of production and business.

Although market participants are both buyers and sellers, but the enterprisesconsider that all sellers (including themselves) are the suppliers, as the competitors ofeach other, while buyers are the market

In other words, the features, uses and characteristics of the products can meet,correspond customer demand or not This is admitting function of the market

When a product or service can satisfy the needs of consumers, in accordance withtheir tastes and solvency, it will be admitted by the market There for, the number ofproducts and goods be sold will increase, revenue grow, profitability of enterprisesincreases

In contrast, if products and services do not meet the needs of the consumers, theywill be immediately eliminated by the market that linked to the risk of losses andbankruptcy Therefore, to get market admitting, enterprises should focus on marketresearch, technical understanding of customer needs to be able to produce the goodsand services that meet the needs of the market about quantity, quality, price, style,design, etc

Implementing function

The market is where implement the value of the goods through trading activities

on the basis of equal value exchange between the buyer and seller Buyer and sellerwill negotiate to get agreement for offering a price reflecting the value of the goods

Adjusting and stimulating function

Through trading goods and services, the market will regulate the supply, demandand prices of goods and services When demand of a product excess its supply in themarket, it will stimulate business to expand production, increase supply up to thesupply may balance with demand of product

In contrast, products with oversupply will cause firms cut production Throughthe needs of the market, producers actively moving resources from one sector toanother, from one product to another product This function encourages entrepreneursenhance their qualification, and effective investment.

In the consumer point of view, through the operation of the market economy law,consumers are forced to consider their buying process The market enables consumershave the right decision of purchase process to fit their affordability

Informing function

The market provide information for all decisions of production and businessactivities of enterprises, such as information on suppliers, the competitors, customerdemand, total supply and demand, etc Market also provide information for thepurchasing decisions of consumers about the products, goods or services such asdesign, price, quantity, etc

However, information on the market is not all right There are a lot ofinformation are complicated, incorrect or no longer suitable for the current situation.Hence, enterprises and consumers need to know how to search and screening themarket information to be able to make the right decisions

1.1.4.Criteria for market classification

There are many ways to classify the market with various criteria Markets areoften classified follow to several criteria:

1.1.4.1.Market classification on the basis of geography

Local market: The market and production business sector goods and serviceswithin a local or a few provinces

National market: The market and production business sector goods and serviceswithin a country

International markets: The market place exchange operations, purchase and sale

of goods and services between the countries of the world together The business wentbeyond national borders

1.1.4.2.Market classification on the basis of structure

Perfect Competition market: It refers to that situation where there exists a largenumber of buyers and sellers selling homogenous goods at single price fixed by themarket forces (demand & supply) Since the conditions for perfect competition arestrict, there are few of any perfect competition markets Still, buyers and sellers insome closeout sort markets, say for products or some monetary resources, may

approximate the concept As a Pareto productive assignment of monetary assets,immaculate rivalry serves as a characteristic benchmark against which to differenceother business sector structures.

- Imperfect Competition market: is a type of market structure showing some butnot all features of competitive markets Forms of imperfect competition include:

+ Oligopoly: The form of market having few number of sellers with substantialmarket share Oligopolies can result from various forms of collusion which reducecompetition and lead to higher prices for consumers

+ Monopolistic competition, in which there are many sellers producing highlydifferentiated products This is a type of imperfect competition such that manyproducers sell products that are differentiated from one another (e.g by branding orquality) and hence are not perfect substitutes In monopolistic competition, a firmtakes the prices charged by its rivals as given and ignores the impact of its own prices

on the prices of other firms In the presence of coercive government, monopolisticcompetition will fall into government-granted monopoly Not at all like perfectcompetition, has the firm kept up spare capacity Models of monopolistic competitionare regularly used to model businesses

+ Monopsony, where there are many sellers but only one buyer, and oligopsony,where there are many sellers but few buyers The monopsonist can dictate terms to itssuppliers, as the only purchaser of a good or service, much in the same manner that amonopolist is said to control the market for its buyers in a monopoly, in which onlyone seller faces many buyers

1.1.4.3.Market classification on the basis of process

a) Input market:

Market provide inputs for production and business of enterprises: capitalmarkets, labor markets, technologies

The input market is divided by three criteria:

The geographical criteria: domestic supply, international supply

The product criteria: market goods and services, capital markets, labor markets.The supply criteria: product groups or individuals providing goods and servicesfor business input

b) Output market:

Output market is where enterprises conduct business activities, businesstransactions to consume its output

Output market is divided by three criteria:

According to geographic: the domestic market, foreign markets

This division helps businesses identify market geographic scope reachesphotography business to business development

According to the criterion of the product: the market is determined according tothe product line, business sectors that produce, business, sold on the market for buyers.According to customer demand: market described by groups of customers whosebusinesses going, to satisfy demand due to limited resources, including existing clientsand potential customers

1.1.4.4.Market classification on the basis of development

Traditional market: the current consumers that are consuming the services andproducts of the company In traditional marker, customers are familiar and havemutual understanding

Emerge market: the markets that have demand but not been exploited, or noability to pay

1.1.5.The role of the market

1.1.5.1 The overall role of the market

The market plays a central role in the economy in general and the marketeconomy in particular The products or services are transacted, purchased and sold onagreement by buyers and sellers on the market The market has the following keyroles:

First, the market is the bond between buyer and seller, the link betweenproducers and consumers, between buyers and between the sellers together

Second, market demand and supply ensures conditioning when they lost balanceand reserve goods for production and consumption to reduce reserves in other phases.Third, stimulate market demand, suggest consumer demand, promotemanufacturers, businesses create new products, giving consumers much more choice,contributing to the diversity of the market

Fourth, the market is a tool to help the State to regulate, manage macro-economicand social development Through market policies, State processes impact on economicactivity of enterprises to manage the activities that impact purchase behavior ofconsumers

Finally, a stable market with great impact to stabilize production and business,stability of people's lives Market ensures the production, reproduction of businesses

run smoothly and continuously, ensuring consumer goods to meet their needs Thuscreating the basis for national development.

1.1.5.2 The role of market to enterprises

To enterprises, the role of market are as follows:

Firstly, the market helps businesses identify consumer needs, the needs ofsociety That is the basis for enterprises to make business decisions of its production, isthe basis for determining the business strategy of the business This is an importantrole for businesses that want to exist, their products must meet the needs of the market.Second, the market is the place to assess the effectiveness of production andbusiness of enterprises Production and business efficiency of the business is reflected

in the market through product market acceptance of goods and services now that at anyrate, revenue, profit, market share From this happen and help businesses makedecisions to expand or shrink the scale of production and business

Thirdly, the market is a provider of inputs and capital goods for business andensure the conditions for developing production continuity despite the scale ofproduction has expanded or contracted

Finally, the market environment is motivating for business development,increases the competitiveness of enterprises, promote enterprise technologicalimprovement, human resources, management to be able to improve efficiencybusiness

1.2.The basis of theory of developing the market

1.2.1 Content of developing the market

The market is changing complexly, fast and unstably Competitions are more andmore increasing, competitiveness among enterprises are fiercely growing Therefore,

to survive and stay grow, every enterprise needs to focus on mobilizing the internalresources of its potential, keep constantly developing and expanding the market

In the view of modern marketing: "Developing the market is the construction ofmarket portfolio for strategic business unit of the company in the future, on the basis

of the analysis of the current market outlook and new markets for the business unit orexisting products, and detect new business opportunities on the market to proposestrategies for the new business unit "

Another conception of market development: “Developing the market ofenterprises are synthetic ways to increase the consumption of products by providingthe goods and services in in new markets and exploit existing markets and seek

measures to attract customers of competitors, the study forecasts the market to offernew products that meet current market needs and new market.”

The Ansoff growth matrix assists organizations to map strategic product marketgrowth

Figure 1.1 – Ansoff Maxtrix

The Ansoff Matrix also known as the Ansoff product and market growth matrix

is a marketing planning tool which usually aids a business in determining its productand market growth This is generally dictated by concentrating on whether theproducts are new or existing and whether the business sector is new or existing

The model was designed by H Igor Ansoff Ansoff was basically amathematician with a specialist understanding into business administration It isaccepted that the idea of strategic management is broadly credited to the great man.The Ansoff Matrix has four choices of marketing strategies; Market Penetration,product development, market development and diversification

- Market Penetration

When we look at market penetration, it generally covers items that are presenceand that are additionally existent in current market In this strategy, there can befurther exploitation of the products without necessarily changing the product or thestandpoint of the product This will be possible through the use of promotionalmethods, putting various pricing policies that may attract more clientele, or one canmake the distribution more extensive

In Market Penetration, the risk included in its marketing strategies is normallythe least since the products are already well known to the purchasers as is the built inthe market Another way in which market penetration can be increased is by thinking

of different activities that will energize expanded use of the product

- Product Development

In product development growth strategy, new products are introduced intoexisting markets Product development can differ from the introduction of a newproduct in an existing market or it can involve the modification of an existing product

By modifying the product one would probably change its outlook or presentation,increase the products performance or quality By doing so, it can appeal more to thealready existing market A good example is car manufacturers who offer a range of carparts so as to target the car owners in purchasing a replica of the models, clothing andpens

- Market Development

The third marketing strategy is Market Development It may also be known asMarket Extension In this strategy, the business sells its existing products to newmarkets This can be made possible through further market segmentation to aid inidentifying a new clientele base This strategy assumes that the existing markets havebeen fully exploited thus the need to venture into new markets There are variousapproaches to this strategy, which include: New geographical markets, newdistribution channels, new product packaging, and different pricing policies In Newgeographical markets, the business can expound by exporting their products to othernew countries It would also mean setting up other branches of the business in otherareas that the business had not ventured yet Various businesses have adopted thefranchise method as a way of setting up other branches in new markets

- Diversification

The last strategy is Diversification This growth strategy involves an organizationmarketing or selling new products to new markets at the same time It is the most riskystrategy among the others as it involves two unknowns, new products being createdand the business does not know the development problems that may occur in theprocess There is also the fact that there is a new market being targeted, which willbring the problem of having unknown characteristics For a business to take a step intodiversification, they need to have their facts right regarding what it expects to gainfrom the strategy and have a clear assessment of the risks involved

There are two types of diversification There is related diversification andunrelated diversification In related diversification, this means that the businessremains in the same industry in which it is familiar with

1.2.2 Market development process of enterprises

Market development is one of the most important elements in the businessstrategy of enterprises Even following any strategies, the process of marketdevelopment of enterprises market usually follow the procedures: Market research,plan building, implementing the development plan, Inspection and evaluate.

- Market research activities:

Market research is an important task for each business beginning operations orpenetration and developing the market Because the market is where they will conductbusiness activities Market research is to learn the characteristics of the market, such ascustomer and their needs; economic factors, technology, politics, law, culture Thepurpose of the research is to predict the trends of the market, identify opportunities andchallenges but businesses may encounter in the market That is the basis for enterprises

to devise their own business decisions such as target market selection andimplementation of marketing activities

Step 1: Define problems and research objectives

The first step in any marketing research study is to define the problem, whiletaking into account the purpose of the study, the relevant background information,what information is needed, and how it will be used in decision making This stageinvolves discussion with the decision makers, interviews with industry experts,analysis of secondary data, and, perhaps, some qualitative research, such as focusgroups There are three types of objectives that can be deployed in marketing research:exploratory research, descriptive research, and causal research Exploratory research isGathering preliminary information that will help define the problem and suggesthypotheses; Descriptive research is describing things such as consumers’ attitudes anddemographics or market potential for a product; Causal research is tests hypothesesabout cause-and-effect relationships

Step 2: Developing the research plan for collecting information

Once the research problem and objectives have been defined, researchers mustdetermine the exact information needed, develop a plan for gathering it efficiently, andpresent the plan to management The research plan outlines sources of existing dataand spells out the specific research approaches, contact methods, sampling plans, andinstruments that researchers will use to gather new data

The research plan should be presented in a written proposal A written proposal isespecially important when the research project is large and complex or when anoutside firm carries it out The proposal should cover the management problemsaddressed, the research objectives, the information to be obtained, and how the results

will help management decision making The proposal also should include estimatedresearch costs The research plan can call for gathering secondary data, primary data,

or both Secondary data consist of information that already exists somewhere, havingbeen collected for another purpose Primary data consist of information collected forthe specific purpose at hand

Step 3: Implementing the Research Plan

The researcher next puts the marketing research plan into action This involvescollecting, processing, and analyzing the information Data collection can be carriedout by the company’s marketing research staff or outside firms Researchers shouldwatch closely to make sure that the plan is implemented correctly They must guardagainst problems with interacting with respondents, with the quality of participants’response, and with interviewers who make mistakes or take shortcuts

Researchers must also process and analyze the collected data to isolate importantinformation and insight They need to check data for accuracy and completeness andcode it for analysis The researchers then tabulate the results and compute statisticalmeasures

Step 4: Interpreting and Reporting the Findings

The market researcher must now interpret the findings, draw conclusions, andreport them to management The researcher should not try to overwhelm managerswith numbers and fancy statistical techniques Rather, the researcher should presentimportant findings and insights that are useful in the major decisions faced bymanagement

However, interpretation should not be left only to researchers They are oftenexperts in research design and statistics, but the marketing manager knows more aboutthe problem and the decisions that must be made The best research means little if themanager blindly accepts faulty interpretations from the researcher Similarly,managers may be biased; they might tend to accept research results that show whatthey expected and reject those that they did not expect or hope for In many cases,findings can be interpreted in different ways, and discussions between researchers andmanagers will help point to the best interpretations Thus, managers and researchersmust work together closely when interpreting research results, and both must shareresponsibility for the research process and resulting decisions

- Building the market development plan

Step 1: Segmentation

According to the point of modern marketing: "Segmentation is the process ofdividing the overall market segment into smaller groups based on differences in theneeds, desires and characteristics of behavior" Among them, "The market is a group

of customers in the overall market demand (response) the same for a set of marketingstimuli."

Segmentation aims to help businesses identify target market segments and keymarkets to achieve high business efficiency The basis of market segments including: According geographic: the overall market will be divided according togeographic variables, the climate, population density This section applies popularitybecause it is quite clearly, differences the needs, desires and behavior are linked togeographical factors

According to the demographic: customers are divided into groups based ongender, age, occupation, education, culture, family size, marital status, income, socialclass, ethnic, racial The criteria has always been regarded as the base used toclassify the most popular market, it is easy to measure

According to psychology: the market is divided into customer groups based onsocial status, lifestyle and their personality Segmenting the market according to thespecial psychological significance in finding solutions to communications andadvertising

According behavior: consumer market will be split into homogeneous groups offeatures such as a purchase reason, search interests, loyalty, quantity and rate of use,intensity targets sales, usage, level ready to buy, the attitude (Popular, lethargy,boycott ) This is the best starting point for the establishment of market segments,identify solutions to increase sales

Step 2: Select the target market

After the segment, the enterprise will assess the market segments according tothese criteria: size and growth of the market segment, the attractiveness of the marketstructure, the objectives and the ability of business now through the informationcollected and the results of the analysis and evaluation of market research stages.Based on the, they can select target market segments to decide to focus developmentefforts that market segment

Step 3: Select Market Development strategy

Based on market development objectives, the results of the evaluation phase ofmarket development front, the selected target markets which now choose their own

development strategies as appropriate markets with resources businesses in thestrategy: intensive market development or extensive market development.

Step 4: Develop strategies for market development in the short, medium and longterm

Develop market positioning strategy, making decisions about product, pricedecisions, and distribution decisions, marketing communication, marketing mix

- Implementing the development plan

After building market development strategy, enterprises will carry out activities

in accordance with market development strategy set out in the following order:

Step 1: Look back again the development objectives, current market conditions,existing enterprise resources and market development strategies compatible with eachother if there is not Otherwise, businesses need to adjust development strategies asappropriate markets with the remaining elements

Step 2: Allocate the resources now available to the departments to conductmarket development activities The resources include: financial resources, humanresources, technology resources, physical capital and intangible resources

Enterprises should pay attention distribution of resources so that the rational,efficient use, avoiding waste for unnecessary activities

Step 3: Using the tools and policies to implement marketing market developmentactivities, including the implementation of decisions in the strategic planning ofmarket development about production, pricing, distribution and promotion

- Inspecting and evaluating

After the implementation of market strategy, it is essential for businesses thatneed to check and assess market development activities by these criteria, the successesachieved, the limitations and the cause, the difficulties encountered to draw thelessons learned as a basis for the formulation and implementation of strategic marketdevelopment next stage

1.2.2 Criteria to evaluate the market development

To evaluate consumer market is performing well or not, large or small, consumermarket has brought profits for businesses or not, enterprises always need to evaluatethe market development by different criteria, on different aspects Therefore, it cantake a comprehensive view of market development activities, lessons learned and thebasis for adjustment or new construction market development strategy in the nextphase to match the capacity and the current situation of the business In general,enterprises often evaluate the market development through market share, product salessituation, revenue, profit, brand and reputation because this is the direct results and

is the ultimate business goal to achieve the implementation of market developmentactivities

1.2.2.1 Criteria to evaluate the intensive market development

a) The development of market share

The market share of the enterprise is the percentage of market that the enterprisedominate Includes:

Absolute market share (F): the proportion of the turnover of the whole businessthan the same products being sold on the market

F= Revernue of the firm

totalrevenue of other firms∈the market × 100 %

The larger T demonstrated market development activities to bring greaterefficiency.

Criteria evaluated by total revenue are generic high, but total revenue isinfluenced by the changing exchange rates, inflation There are many cases due toinflation over the period, revenue actually increased but consumption does notincrease Therefore, the evaluation criteria under total revenue only reflects the parteffective market development

c) Profit (π))

A financial benefit that is realized when the amount of revenue gained from abusiness activity exceeds the expenses, costs and taxes needed to sustain the activity.The bigger of profit of enterprises, the larger business efficiency of enterprises thatdemonstrates market development activities are effective

1.2.2.2 Criteria to evaluate the extensive market development

a) Numbers of new markets

Number of new markets as far proved increasingly deploy enterprise marketdevelopment in width Since then, effectively increasing market development

b) The proportion of revenue from new markets on total revenue

The proportion of revenue from new markets on revenues greater means thatmarket extensive development has brought positive effects, revenue from new markets

is highly increase, even increasing revenue growth from emerging markets is higherthan the revenue growth of current market

1.2.3.The role of developing market in the development of business

Competitions of the market economy that would be extremely harsh will rejectall enterprises if they do not keep up the development of the market In the modernmarket, competition among enterprises is unavoidable The competitors appear moreand more, the pie of market share is more shrinking, profitability of the business at risk

of falling To avoid this problem, enterprises need to promote market development, toensure the profits are not diminished as a basis for stable production and business, notthe competitors crush That is the most effective way to avoid falling behind thecompetition On the other hand, many products prices to follow the general price level

of the market, the manufacturing enterprise and business products if they want to

increase profits, it had no choice but to promote market development, increasing sales,which increased revenues, increased profits for enterprises.

Firstly, market development has an important role, decided to processreproducible and turnaround of the business capital One business if marketdevelopment activities bring positive effects will contribute to increased profitabilityfor the enterprise, helping businesses quickly recover capital, business expansion.Secondly, market development will help businesses confirmed their reputation,increase market share and positioning in the market of corporate image in the market

in general and in the minds of consumers in particular

Thirdly, the development of market-driven businesses constantly innovate todevelop and exploit the maximum internal resources of the enterprise Wants toexpand the product market, the business needs to constantly innovate technology,management, quality, design, product packaging to better meet customer demand,avoid lagging behind with competitors

1.3.Factors impact to developing the market

1.3.1.Macro factors

Economics factors

Economic situation: growth, slowdown, recession impact on issues such asinterest rates, investment income, inflation, creating the opportunity or challenge forevery business Since it affects the development activities of the enterprise market Forexample, high inflation, high interest rates led to increased costs, so sales and profitsfell while high inflation rates also make consumers' purchasing power decline, reducedconsumer demand; exchange rate: local currency value decrease will increase exportopportunities

Policy factors

The provisions of the state policy, the Party lines and policies, strategies andpolicies for economic development - social, political environment in the country andinternationally will be the factors that create favorable conditions or cause barriers toenterprises entering general business and market development in particular

Culture and Social factors

The conception of ethics, lifestyle, career, beauty, traditional customs andpractices, the level of awareness, education of the society are the factors affecting theconstruction market development strategy, strategic product strategy, businessstrategies of enterprises

Natural conditions factors

Natural conditions such as geographical location, climate, and naturalresources will affect the savings and resource utilization, using artificial materials,environmental protection, and waste disposal of business Industry, which affects thedevelopment of the business market

1.3.2.Micro factors

Suppliers

Raw material suppliers may put pressure on prices, quality of materials, deliveryterms, payment conditions which affect the production and supply of businessproducts, image premium quality and product costs lead to influence the development

of the business market

New entrants

New entrants threatens to intensify competition within the industry Study factorshelp enterprises see the barriers to entry, reaction ability of firms in the sector, certainunforeseen situations occur to suggest solutions when businesses want to participatesector new business, expanding new markets or make decisions and solutions onnarrow, stable or deep penetrating existing markets

Barriers to entry are factors that hinder businesses involved in industry orminimal costs that a company incurs to participate in activities in a particular sector;including barriers to trade (access to distribution channels), technical barriers(technology used, product differentiation), financial barriers (capital requirements,economies of scale), Barriers resources (copyrights, sources of raw materials, high-quality workforce, government policies )

Substitutes

Products which meet the current demand would reduce the ability of marketdevelopment of existing products due in part to customers switching to alternativeproducts instead of the current product

Customers

Customers can put pressure on prices, product quality, delivery terms, paymentconditions clients are important factors affecting the decision to develop the market.Enterprises want to develop the market for the first product, the product must meet theneeds of customers, which means that the product must be accepted by the market.The distributors are also a factor that affects market development Gooddistribution system will create favorable conditions for developing the market for now

Conversely, managing distribution channels less system will inhibit the development

of the business market

Competitors

Competitive enterprises in the industry always moves to dominate theirrespective markets Therefore, to develop the market for its products, enterprisesshould also pay attention to the behavior of competitors to timely adjust marketdevelopment activities

Sector retreated barriers are factors that hinder businesses to withdraw from asector includes a number of barriers, such as specific manufacturing tools,commitment to employees, social ties, strategic ties enterprise

In short, environmental analysis sector to help businesses identify the level ofcompetition in developing a market for the product, thereby making the solutions tocope with the actual situation in order to develop the market

CHAPTER 2: THE CURRENT SITUATION OF DEVELOPING THE MARKET IN VNT LOGISTICS.

2.1.Overview of VNT Logistic

2.1.1.The history and development

2.1.1.1.General information

Company’s name: The Van Cargoes and Foreign Trade Logistics JSC

Vietnamese name: Công ty cổ phần Giao nhận Vận tải Ngoại thương

Abbreviations: VNT Logistics

Authorized and paid-up capital: legal capital: 54.720.000.000 VND

Office’s address: 2 Bich Cau street, Quoc Tu Giam, Dong Da district, Hanoi

8/2009 officially listed on the Hanoi Stock Exchange

5/2011 rebranding new identity from VINATRANS HA NOI to VNT Logistics

VNT Logistics is one of the specialized enterprise provides multimodal freightforwarders services and international logistics solutions currently leading with nearly

20 years of experience operating in the Vietnamese market and internationally

2.1.2.The vision and mission statement

With VNT Logistics, logistics forwarding is something more than justtransportation It is an art, for we have the specialized knowledge and expertise toensure a smooth and trouble-free operation though a team of organized and efficientpersonnel, committed to quality service We set out to provide a premium service at acompetitive price and we feel that our reputation is proof of our success in meetingtheir ideals We believe that a satisfied customer will always come back

2.1.3.Organization structure

Organizational structure of management, administration and control of theCompany include:

Source: The Van Cargoes and Foreign Trade Logistics JSC

Figure 2.1 Organization structure of VNT logistics

2.1.4.Logistics solution and services

BOARD OF MANAGEMENT

HANOITRANS HEADQUARTER HAIPHONG

BRANCH

QUANGNINH BRANCH

HOCHIMINH BRANCH