The group of handicraft products is classified as group which has great export potential and high margins.. After studying the market of souvenir items and traditinal handicrafts of Viet
Trang 1"Create a marketing plan for an online shop selling souvenirs and crafts"
TALBLE OF CONTENTS
I GENERAL INTRODUCTION: 3
II MARKETING PLAN 3
1 Market Analysis: 4
1.1 Sector 4
1.2 Target customer: 4
1.3 Competitors 5
1.4 Factors of policies, regulations, environment and technology: 6
1.5 SWOT Analysis 6
1.6 Positioning, Market Penetration Plan: 8
2 Product Research & Development: 8
2.1 Marketing plan: 9
2.2 Establish effective and appropriate marketing budget: 10
2.3 Marketing effectiveness evaluation: 10
2.4 Delivery and after-sales customer services: 11
III CONCLUSIONS: 11
Trang 2I GENERAL INTRODUCTION
Handicraft products are found to have a long tradition in Vietnam and were exported quite early compared to other commodities; they have contributed positively to total exports of the country and have an important role in solving some social and economic problems in rural areas The group of handicraft products is classified as group which has great export potential and high margins It has also been listed in the list of top
10 items with highest growth
After studying the market of souvenir items and traditinal handicrafts of Vietnam, we have decided to establish a company specializing in manufacturing, trading and exporting handicrafts with the main following characteristics:
- Company name: Import and export commercial joint stock company Gia Hân (abbreviation: GH.JSC)
- Products provided: High quality souvenirs and handicraft product made from rattan, bamboo, sedge, pottery;
- Business model: Import and export the products made directly from the domestic ma-terials Online sales through website or “Online shop” is the main sales channel, with the headquater combined with showroom to introduce the selected items
- Slogan: “Oriental essence”
- Targets: Within the strategy of production and business development until 2015, the company will focus on improving product quality of handmade products in order for them to enter the U.S and European markets through online marketing Besides, building the company with a new and innovative marketing model; offer selected, high quality and thoroughly designed products , creating a stable position in the
Trang 3domestic market; try to access, familiarized itself and beome a trustworthy brand in the international market in the nearest future
II MARKETING PLAN
1 Market Analysis:
1.1 Sector
Crafts, art and household items made from Vietnam's traditional materials such as ceramic, porcelain, lacquer, rattan, bamboo, papyrus, wood, stone, silk, horn, ivory, silver, copper, through the skilled hands of the artist in traditional handicraft villages, became the consumer and export products that bear deep cultural and ethnic value of Vietnam In recent years, the handicrafts export market of Vietnam has been increasingly expanded, aside from major markets such as Germany, France, Korea, Japan ., the handicrafts of Vietnam are now present in 163 countries and territories around the world According to the Ministry of Industry and Commerce, the European markets has great demand for these products; in recent years EU has imported about 7 billion USD and Vietnam has also gained about 5.4% of that amount EU will be a promising market for handicraft product of Vietnam
1.2 Target customers:
Trang 4The group of customer which has demand for sourvenir and handicrafts products
in Vietnam is very diverse and comes from many countries, from many sources However, based on the company's targets, on the characteristics
of products offered, the potential customers (target) of the company are classified into the following groups:
- Vietnamese individuals / organizations who have demand for traditional arts; like giving gifts to friends, relatives and business partners and require high-quality product which are sophisticated and not high mass-produced The price should also be reasonable with the requirements, design and requested style With the impressive rate
of economic growth of 7-8% / year(GDP) during the previous decade, the number of this type of customer is increasing, concentrating mainly in big cities and key economic regions of the North (Hanoi), the Central (Hue, Da Nang) and the South (Ho Chi Minh)
- Vietnamese people who are living abroad: estimated to be 3 million people (half of which lives in the U.S.) who are looking forward to returning home; they always try
to handicraft products which strongly represents the Asian culture such as products made from natural material: furniture made from bamboo and rattan, ceramic trays and plates with delicate design which can be used as gifts with high cultural value From the role of direct consumer, they can also serve
as the recommender, an effective distribution channels of handicrafts to markets abroad
- Foreign tourists: in 2010, the nubmer of tourists coming to Vietnam has reached 5 million, increasing 34.8% compared to 2009 in which the number of visitors coming from the rich country such as France was 200,000, Australia was 280,000, Japan was 442.00, the U.S was 430,000 (source: VNAT) However, international visitors coming to Vietnam did not have many choices to spend on shopping, especially on handicraft products; instead they mainly just watched and photographed
Trang 5Some main indicators of the first 5 months of 2011 (increase/decrease) compared to the same period in 2010
Increase/Decrease Percentage (%)
2 The total amount of retails and consumer service revenue +22,5
6 Implemented investment of government budget compared to
7 Average Consumer Price Index for the first five months of 2011
(Source: The statistics office)
Looking at the figures we can see that the total export value and the number of international visitors coming to Vietnam continue to increase (+); it shows that the market to develop the sale and export of handicraft products is promising a lot of potential for GH to penetrate and develop its marketing plan, especially online marketing plan
Competitors
Trang 61.2.1 Domestic:
The rattan – bamboo products manufacturing company Handcraf
Thị trường chính là Châu Âu, Mỹ Doanh thu hàng năm hơn 30 tỷ đồng.
Able to take advantage of the local
labor resource with more than 20000
workers
Was established in a traditional
handicraft village
Able to take advantage of the
support of capital and land from the
local government
The workers still mainly work based
on self experience, therefore the skills are underdeveloped
Having difficulty about investment capital to expand production and train employees
Production technology hasn’t been invested appropriately
Local material can only meet 20%
of the demand, unstable and costly supply source
The design and diversification of the products haven’t been given enough attention
Trang 71.2.2 International:
China is the country which has the biggest market share of exporting bamboo-rattan products in the competing markets with Vietnamese companies such as USA,
EU, Japan… Generally, Chinese companies have the following notable
characteristics:
Abundant and low cost human
re-source
Large territory with many material
areas
Highly developed technology
envi-ronment, have already applied
mod-ern technology in many production
steps
Competitive prices
Broad distribution channels in many
countries
There are a lot of big corporation with
strong economic resources such as:
Hengyang Da Wei Bamboo Product
Co.Ltd, Xiamen PEKE Co.Ltd…
Inconsistent product quality, there are still many fake products
Besides, there are showrooms at the handicraft villages which belong to the manufacturing factory; they always cooperate with other travel companies to sell products to the tourists visiting villages
Trang 81.3 Factors of policies, regulations, environment and technology:
With the economy slowly integrated to WTO, the policies and regulations are all supportive towards the development of handicraft villages and the company specializing
in manufacturing and exporting handicraft products since it helps to create jobs for people as well as contribute to the development of the economy and promote the image
of the traditional culture of Vietnam to the world On the other hand, the exploitation of raw materials to produce and process the handicrafts should follow the regulations about exploitation of precious resources (precious wood, metals ), as well as habitat and ecology protection
1.4 SWOT Analysis
Trang 9 Well-trained employees with knowledge,
devotion and commitment for the
company
The company directly selects the input
material for processing and outsourcing,
diversified product types and designs
which meet the requirements of
customers in strict country such as
The material is in danger of depletion This situation occurs for most types of products Bad and unstable supply of rattan, bamboo , the source of precious wood become more and more scarce due to forests being cut down by people This fact has greatly impacted the cost, price and competitiveness of Vietnamese products to products of other countries
The demand of foreign tourists for handicraft is very diverse and seasonally changing The life cycle of
a product is very short; therefore it requires the company to be very flexible to be able to meet those requirements
The demand of foreign tourists for
handicraft is very diverse and seasonally
changing The life cycle of a product is
very short; therefore it requires the
company to be very flexible to be able to
meet those requirements
The number of visitors visiting and
com-ing to Vietnam is increascom-ing
Diversify the business scope, broaden the online businees in order to meet the demand of foreign customers who don’t have time to really learn about Vietnam or wish to know more about the traditional products which carry the cultural traits of Vietnam
The challenge of accessibility to new
Trang 10 The number of living abroad Vietnamese
return to develop and contribute for the
country is also increasing
The ability to access, to learn the modern
technology in the world will help the
company to promote its position and
develop the products design competence
In order to save time, cost, and to satisfy
the selection demand People are
increasing the demand for trading, selling
and buying through Online Store (Shopa
on Internet), or the websites of
introducing and selling products
modern technology
The challenges for the employees (need knowledge and experience about law and regulations, good language ability, good negotiation skills… ability to get used to information technology (IT) and use the supporting tools such as facebook, blog 360o, website… as well as the ability to design the products quickly along with the new trends of the world
Improve the competitive advantage to other domestic companies
1.5 Positioning, Market penetration plan:
The company identifies its goals as followed:
- The company will focus to improve the quality of products in order to make it able for handicraft products to enter the U.S and European market through online marketing besides building the company with a new and innovative marketing model, offer selected, high quality and well-designed products, maintain a stable position in the domestic market, access, familiarize and become a trustworthy brand in the international market in the nearest future
- Target customers are the target customer groups analyzed in section 1.2., focus on customers who have not / can not directly contact with the handicraft villages of Vietnam
Trang 112 Product research & development:
In reality, travelers are all interested in buying some souvenir to memorize the trip Foreign tourists are also quite interested in the handicraft products of Vietnam However, many tourists coming to the craft store in Hanoi mainly just for seeing The souvenirs for visitors of the Hanoi market can be divided into two types: to be used and to be displayed In the first group – products to be used, the quality and the style are the most important The embroidered bags or silk shirts are good examples Mrs Jenifer, an American tourist said: 'I love the silk products, but the design is too poor Compared to a few years ago, there’s nothing new ' Moreover, these handicraft products can’t last long and look clearly deteriorated just after a short period due to being worn out and broken The T-shirts with the flag of Vietnam, or the words 'I love Pho' have very low quality
As for handicrafts to be displayed, visitors can pass the money factor to buy beautiful products However many items still make people disappointed Japanese customers normally prefer lacquer products However, lacquer items now are mainly made with Japanese lacquers, so many Japanese tourists refuse such items
Additionally, the preference of tourists from each country is different However, due to the lack of understanding about taste and preference of each customer group, there is no appropriate product which can make them willing to buy immediately once seeing it ' One item which is very symbolic of the culture of Vietnam is the wooden figure of girls wearing conical hats and long dress; this item has been presented in many souvenir shops but did not sell very well The reason for it is not because tourists don’t like them, but because they are quite cumbersome Similarly are the water puppets, very eye-catching, very distinctive for Vietnamese culture, but tourists mostly stop just to photograph The producers did not think through about the fact that when traveling many days, tourists have to bring their own belongings and it would be very inconvenient if they have to carry the bulky and fragile sourvenirs Thus, it’s hard enough for them to
Trang 12choose what to buy for themselves, not even mention buying some gifts for friends During the launching ceremony of tourism stimulus program in 2010, The Director of Travelling Bureau (Vietnam Administration of Tourism) Mr Vu The Binh has reported the sad figure of poor spending of international tourists: In the total cost of the trip to Vietnam, tourists spend only about 10 to 15% for shopping This figure in Thailand ranged from 50-55% In addition, the average spending of tourists in Vietnam is lower than other countries in the region Among many reasons, there is the cause of the lack of appeal of souvenir products (Source: Nhan dan)
Therefore to thoroughly research about product, market and customers’ preferences is very important and can affect the chance of being successful of the enterprise Handicraft items can be classified into two groups: (I) Strongly traditional group (II) Group of products that are mixture of traditional and modern features to create beautiful yet practical items
2.1 Marketing plan:
2.1.1 Design and create the website (Online store):
- “About the company” part should demonstrate the dedication and commitment at the high levels of the company, with high quality and dinstinctive products;
- “About the product” part: clearly show on the website the details of products according to customer demands (products listed under the list with detailed images of sizes, materials, safety requirements, climate conditions in order to preserve ); models designed to suit the aesthetic value and practical value Moreover, also introduce the payment method, the ordering cost and delivery of products according to geographic regions
- Introduce about the culture, characteristics and Asian art, traditions of Vietnamto customer all around the World