ONLINE MARKETING PLAN OF OSCPREFACE Handicraft products are found to have a long tradition in Vietnam and were exported quite early compared to other commodities; they have contributed p
Trang 1KẾ HOẠCH TIẾP THỊ TRỰC TUYẾN CỦA CÔNG TY OSC
TABLE OF CONTENTS
PREFACE 3
A.INTRODUCTION ABOUT OSC 4
1 Establishment and development 4
2 Business field and scope 4
B.MARKETING PLAN 5
1 Market analysis 5
1.1 Sector 5
1.2 Target market: 5
1.2.1 About export market: 5
1.2.2 About export categories: 6
1.2.3 Some main indicators of the first five months in 2011 (increase/decrease) over the same period in 2010 7
2 SWOT Analysis 8
3 Competitors 9
4 Marketing goals and plan 11
4.1 Customers’ preference 11
4.2 The concept of Marketing internet 12
4.3 Selecting and using marketing models, marketing tools in OSC’s e-commerce marketing 12 4.4 Programs of online media and advertisement 13
4.5 Online business methods: sales, delivery and payment 13
4.5.1 Traditional 4P model 13
4.5.2 4P Model and Internet Marketing 13
C.Conclusions 16
1.Mission 16
2.Business Philosophy 16
Trang 2ONLINE MARKETING PLAN OF OSC
PREFACE
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 These products have a quite high annual average growth rate of about 20% a year, with the total exported value reaching 300 million USD in 2004 and more than $ 750 million in 2007; in 2008, despite the impact of the global recession, the exported value of the whole country still reached nearly $ 1 billion Even though the exported value of handicrafts in recent years is not significant, but it has the important role in economic restructuring in rural areas and attracts many workers
In addition, the export value of these products bring great added value so it can be considered to be the key sector to focus to increase the export in the coming years Compared with some other products such as clothing, wood and leather which have to import raw materials so the real value of foreign exchange is only accounted for around 5-20% of the total value of imports But for this product, since the material was collected from scrap and secondary materials of agricultural and forestry products, the real value of foreign currency revenues are high; for example there are handmade items which almost reach 801-100% of export value For every 1 million USD export value of handicrafts sector, the profit is 5-10 times higher than the mining industry; creating approximately three to five thousand jobs; 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 (Source: Vinanet)
Trang 3A ABOUT OSC
1 Establishment and development
- Name: OSC Commercial and Service Joint Stock Company
- Address: 15th floor, Tosy Building, extended part of Nguyễn Phong Sắc street
OSC is OSC Commercial and Service Joint Stock Company established in 2005 The company is a member of Group 66; over 06 years in business, the employees of the company have constantly strived to create strong growth for the firm With these efforts, the company has established 03 sub-units including 03 processing and manufactoring factories and 02 branches
With the total number of staff of more than 300 and highly qualified executive management team which is experts and technicians graduated from university or college; the annual turnover of the company has reached from 200 to 300 billion Dong
2 Business field and scope
OSC’s business field and scope includes:
Manufacture fefined furnitures
Manufacture high quality handicrafts from ceramic, bamboo and wood
Exploit and process the forestry products
Import and export services, customs registering, freight forwarding, warehousing
Travelling, hotels and restaurants, events managing
Labor export service
House building and renting services
To improve the quality of products, the company is adopting the quality management systems with ISO 9001:2000 standards; with that, OSC has created trust with the client and the company's brand OSC is known more widely
3 Goals and development orientation until 2015
The plan of developing the business from 2015, the company will focus on several major following goals:
Improve quality of the products in order to make it able for handicraft products to enter the U.S and European market through online marketing
Trang 4 For the commercial service, will upgrade the OSC hotel to 3star scale with 80
-100 rooms, diversify tourism activities such as organizing events, flight ticket agents, organizing international travel tours, creating a fleet for toursist service The Customs registering service will gradually be transfomred into logistic service
These projects will be implemented through various forms such as bank loans, issuing more chartered capital, cooperating with the domestic and foreign investors
The goal of the OSC in the future is 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 Therefore, I chose the topic of "Online sale of souvenir and handicraft products of Vietnam" to analyze in my individual assignment
Nowadays, besides implementing marketing and traditional advertising through media such as newspapers, radio or through introducing that sellers and buyers meet each other at one point like in the past; online sales and marketing is a “flexible and proactive” sales and distribution channel which is indispensable for people’s life
In the scope of this individual assignment, I only mentioned an innovative marketing plan which is effective in today society It's the online marketing plan by selling online the souvenir and handicrafts products of OSC in order to ensure that the product reaches the customer of the following groups:
- Foreigner tourists visiting Vietnam
- Vietnamese people who live outside the country
- The collector of art and handicraft products of Vietnam
In order to conduct online marketing plan effectively, OSC should create a detailed plan and adopt one of the model and marketing tools that OSC consideres as a great way to achieve efficiency and maximum profits
B 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 markets:
1.2.1 About export market:
Trang 5Markets that achieve high value of export
(Source: The statistics Office)
1.2.2 About export categories:
(Source Vinanet)
Trang 61.2.3 Some main indicatorsof the first five months in 2011(increase/decrease) over the same period in 2010
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
Looking at the data of the tables from 1.2.1 to 1.2.3 we can see that:
The countries that have high export turnover (target market) of the OSC which mostly are neighboring countries such as Taiwan, Korea, Japan to Germany, Italy, Netherlands,
UK, Spain are all developed countries where using internet as a tool for work, entertainment, shopping, reference is really inevitable and indispensable in life This can be seen as an opportunity as well as a challenge for the OSC to improve the selling method to online method The opportunity lies in the fact that the product of OSC is very diverse; the company has many skilled, qualified staff with skills and enthusiasm
in work; it also has the manufacturing factories and a wide network of branches One more advantage over other sectors, since it’s mainly produced from materials available
in the country, the actually earned foreign currency from exporting handicrafts are quite high, from 95% to 97% However, the challenge is that online sales actually is a new style, which requires more investment and technology than the traditional selling method Besides, it’s a must to be able to keep the trust and confidence of foreign customers when they view, select and purchase products by looking at the photos on the online sales website Some markets such as Japan and Canada which have the high imported rate of handicrafts, so the competition is very strong Exporters who wish to enter these markets should consider the factors of producing sample faster, answering requests within a day, the delivered products match the specifications agreed upon or match the agreed sample; continuity of supply, maintaining high quality at competitive prices; suitable packaging for sea transporting In addition, the price of handicrafts depends on the quality factor which relies upon the craftsmen and raw materials used In particular, most of these markets require the products to have high-quality, durable, and must be in good condition when being placed on sale Therefore, the exporter should pay attention to the specific requirements for labeling and packing accuracy Every craft
to be used outside must be able to withstand temperature and humidity, while the products for children have to meet safety requirements and standards However, the increase (+) in total exports and the number of international visitors to Vietnam shows that the market to develop the sale and export of handicraft products and souvenirs has a lot of potentials for OSC to penetrate and develop the marketing plan, especially online marketing plan
Trang 72 SWOT Analysis
- The management board is competent,
trustworthy, have wide network of
contacts and experience in the field of
trading and processing, manufacturing
handicraft products, focused management
- 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 company has import and export
services, customs registering, logistics
and warehousing, travel, hotels,
restaurants, events management, labor
export service this is also an advantage
in serving international tourists and
identifying the needs of tourists, abroad
living Vietnamese about handicraft
products in other countries
- The company has high prestige in the
field of hotels and restaurants service,
events management, and with this
advantage the company will be able to
promote further about their products
- The contract acquired due to the connection of the General Director
- 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 industry of processing,
manufacturing and exporting handicrafts,
souvenirs are promising potential as
Vietnam is integrating into the world
economy; the introduction of the
traditional culture of Vietnam's to the
world is essential
- The number of visitors visiting and
coming to Vietnam is increasing
- The number of living abroad
Vietnamese return to develop and
- 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 modern technology
- The challenges for the employees (need
Trang 8contribute for the country is also
increasing
- The experience in management, prestige
and fame in the field are the great
advantages of the company in the
upcoming time
- 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
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
3 Competitors
Export has an important role in the development of a nation’s economy; it facilitates the economic development in a healthy way and also help countries to identify and effectively use their comparative advantages
Along with the global trend, Vietnam is increasingly integrating into the regional as well as the world economy In order to survive and stand firmly in the market, all the companies always have to fierely compete with not only domestic firms, but also with the even more dangerous competitors which are foreign companies and transnational corporations
Being a company which was established and developed in the volatile and competitive market economy, OSC has constantly tried to thrive is business and production, in addition to frequently analyse the competitors in order to become more complete and get the best of its competence
The first to be analysed are the domestic companies producing and exporting products made from bamboo and rattan as well as handicraft products, as they are the one who compete directly with the OSC on the export market of bamboo and rattan products :
The bamboo-rattan products manufacturing and exporting company
THAI BINH :
The main markets are USA and EU Annual revenue: more than 30 billion
dongs
Trang 9 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
The bamboo-rattan import and export company ĐOÀN KẾT 1 :
Main markets are Germany and Japan, annual revenue from 2,5- 3 million USD
Being the most competent company
of the famous bamboo-rattan village
Phu Vinh
Have 3 manufacturing factories with
more than 200 skilled workers along
with hundreds of temporary workers
The products’ brand has been
established in many countries with a
lot of types and diversified designs
Modern technology
Always focus on the human resource
training and developing
Being a well-known and reliable
company
Unstable and passive supply source
Inconsistent product quality
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
resource
Large territory with many material
areas
Highly developed technology
environment, have already applied
Inconsistent product quality, there are still many fake products
Trang 10modern 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…
4 Marketing goals and plan
4.1 Customers’ preference
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 choose 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)