Marketing mix strategy to expand the market for 3d shirt uniforms

LIST OF TABLESSUMMARY...1 ACKNOWLEDGEMENT...2 INTRODUCTION...3 LIST OF TABLES...4 CHAPTER 1: OVERVIEW ABOUT TO MARKETING STRATEFY TO EXPAND HANOI MARKET FOR PRODUCTS OF Zenco Co., Ltd...

PROFESSIONAL DEGREE IN MARKETING AND SALE (2015-2018)

INTERNSHIP REPORT

MARKETING MIX STRATEGY TO EXPAND THE

MARKET FOR 3D SHIRT UNIFORMS

Name : Le Hoai Nam

Tutor teacher : La Tien Dung, Prof Corinne Montoya

Tutor in the company : Hoang Van Thanh

HA NOI - 2018

Vietnam garment market is a very potential market, the demand for this item is endless.Stepping into this market, the profitability of the business is extremely large; however, thecompetition between business enterprises in the same industry is increasingly fierce Havingfavorable opportunities for business development, Zenco Co., also encountered manyobstacles Although the company has been established for nearly 7 years, it has just begun toproduce and market its own garments The volume of goods sold and profitability is still lowand unstable Therefore, maintaining and expanding the market is an urgent matter that need

to be addressed now if the company wants to stay in the domestic garment sector

Throughout my internship at Zenco with the kindly supervisor of Dr La Tien Dungaccompanying with my effort research, I have completed our graduation thesis on the subject:

" Marketing mix strategy to expand the market for 3D shirt uniforms."

I would like to thank all staffs and employees in Zenco limited liability company forcreating all best conditions and guiding me dedicatedly during the practice of your companyand providing data and information for me to complete this essay.

Due to several shortcomings, my lecture is still limited I look forward to receiving thecomments of teachers

Sincerely!

LIST OF TABLES

SUMMARY 1

ACKNOWLEDGEMENT 2

INTRODUCTION 3

LIST OF TABLES 4

CHAPTER 1: OVERVIEW ABOUT TO MARKETING STRATEFY TO EXPAND HANOI MARKET FOR PRODUCTS OF Zenco Co., Ltd 6

1.1 Research urgency of the project 6

1.2 Research objectives 6

1.3 Research scope 6

1.3 Research Methods 7

1.3.1 Data collection methods 7

1.3.2 Data Analyzing Method 8

CHAPTER 2 : BRIEF SUMMARY OF BASIC ISSUES IN MARKETING MIX SOLUTIONS TO EXPAND THE MARKET FOR COMPANY PRODUCTS 9

2.1 Market concept 9

2.1.1 The concept of market expansion 9

2.1.2 The role of market expansion for business 9

2.2 The basic content of the marketing mix solution to expand the market 10

2.2.1 Research and target market of the company 10

CHAPTER 3: ANALYSIS OF RESULTS OF MARKET RESEARCH IN MIX MARKETS TO PARTICIPATE IN HANOI MARKET FOR ZENCO PRODUCTS 11

3.1 Overview of the business of Zenco Ltd 11

3.1.1 About Zenco Co., Ltd 11

3.1.2 The business situation of the company 12

3.2 Analyzing the influence of environmental factors on marketing mix solutions to expand the market for products of Zenco limitted liability Company 12

3.2.1 Macro environment 12

3.2.2 Micro environment 14

3.3 Current situation of marketing mix solution to expand Hanoi market for 3D uniform products of Zenco Co., Ltd 15

3.3.1 Determine the target market of the company 15

3.3.2 Current situation of marketing mix solution to expand Hanoi market for products of the company 16

CHAPTER 4: CONCLUSION AND RECOMMENDATIONS FOR MARKETING MIX

TO EXPAND HANOI MARKET OPPORTUNITY FOR ZENCO’S PRODUCTS 21

4.1 Conclusions and findings from the study 21

4.1.1 The achievements 21

4.1.2 Existing limitations 21

4.1.3 Cause of the shortcomings 22

4.2 Targets and directions to expand the garment market of Zenco Co., Ltd 22

4.2.1 The goal of expanding the market and expanding the market of garments of Zenco Co., Ltd 22

4.3 Proposals and recommendations on marketing mix solutions to expand the Hanoi market for Zenco products 23

4.3.1 Proposal in market research activities 23

4.3.2 Proposal marketing mix solution to expand Hanoi market for products of Zenco Ltd 23

CHAPTER 5: THE ACTUAL PRACTICE SITUATION AT ZENCO 28

5.1 Admin 28

5.1.1 Essential skills of a website administrator 28

5.1.2 Experience to develop websites 28

5.2 Market 29

5.2.1 Select Agents and retailers 29

CHAPTER 1: OVERVIEW ABOUT TO MARKETING STRATEFY TO EXPAND

HANOI MARKET FOR PRODUCTS OF Zenco Co., Ltd.

1.1 Research urgency of the project

For any business, issues related to consumer markets are also vital The market is theplace where the business sells products and services, serves the needs of consumers and getprofits from it But the economic situation is always fluctuating; as a result, the market alsochanges and there is no long-term stability In order to survive, develop and affirm theposition, every business needs to make good use of its resources and adapt to change flexiblyand to constantly develop strategies to occupy market share

Vietnam, with a population of nearly 90 million, is a country with a young populationstructure, people's income is constantly increasing, the demand for garment is diverse, so thebusiness of garment is a rich and potential business In recent years, thanks to the variety ofmodels and good quality, Vietnam's garments are increasingly popular among consumers,promising to bring many benefits for domestic enterprises By running a business and movingtowards a promising market such as the apparel market, plus companies starting to make theirown and branding themselves as Zenco, competition is fierce From the business sector isinevitable Not to mention the businesses have confirmed the status and growth in the countrysuch as Gấu uniform, Zumi.com, Zenco also faces many difficulties when Vietnameseconsumers are also favored foreign products – the famous and affordable brands such as Zara,Mango, H & M,

Due to the company's market issues and the fierce competition that I have mentionedabove, it is imperative to research the marketing solutions to help Zenco Ltd expand themarket for its products garment company

1.3 Research scope

The scope of the study includes: research subjects, research scope, research productsand study period

- Research subjects:

+ Content of the research: marketing solutions to expand the company's garmentmarket, focusing on variables: products, pricing, distribution and promotion.

+ Customers: mainly institutional customers and schools

- Scope of market research: the research activity is limited at Zenco Co., Ltd in the area

of Hanoi

- Research products: the company's 3D uniform

- Research time: research on the data from 2015 to 2017 Then introduce mixedmarketing solutions to develop the market in 3 years 2018-2020

1.3 Research Methods

1.3.1 Data collection methods

1.3.1.1 Secondary data

a, Collected data

+ History and development of the company

+ Business lines, organizational structure

+ Business results in 3 years 2015-2017

+ List of products, policy of discount

+ The list of customers of the company

+ Budget for promotion activities

+ Marketing concepts and theories

b, Source:

+ Source inside company: Collect data about the list and price of the company'sproducts through the Zenco.vn website; Obtain reports on business results from marketingdepartment and financial reports of the company through the years especially 3 years 2015-2017

+ Source outside the company: Basic Marketing Curriculum – Assoc Prof Tran MinhDao, Marketing Manager - Philip Kotler,

1.3.1.2 Primary data

a, Collected data

For administrators:

+ The market and target customers of the company

+ Objectives and strategies of the company

+ The current marketing solutions that the company is using

+ The urgent issue that the company sets

For customers:

+ Interest and preferences of customers about the company's products

+ Assessment and evaluation of quality, price, product design.

+ Advantages and disadvantages when buying goods

+ Information accessing

+ The contributions that helps the company to improve the product to the customer

b, Source: synthesized from the observation, investigation, interviews directly with themembers of the company about issues related to business and marketing solutions to expandthe company's garment market recently; and from customers through interview questionsabout wants, preferences, reviews and opinions about the company's products

1.3.2 Data Analyzing Method

1.3.2.1 Secondary data

+ Comparison method: It is used in analyzing the selling data and financial situation bycomparing with previous years Consequently, realize the trend in selling effectiveness tosuggest the suitable solutions for the next period

+ Ratio method: Usually used with comparison method to show the change of statisticsthrough years,

1.3.2.2 Elementary data

+ Synthesis method: Summary of questionnaires, interviews to analyze the datacollected; synthesize and select information logically, in accordance with the content of thetopic

+ Statistics method: Statistics results in the coupon template, emulation From that,extracting percentage of percentage, judge the current problems accurately

+ Comparison method: Comparing among ideas and suggestion to figure out the coreproblems

CHAPTER 2 : BRIEF SUMMARY OF BASIC ISSUES IN MARKETING MIX SOLUTIONS TO EXPAND THE MARKET FOR COMPANY PRODUCTS 2.1 Market concept

Market is closely stick to the term “commodity of manufacture”, it is environment forprocess of the business transaction of every company Accompany with the product-manufacturing development, the term “market” is becoming more popular and variable Thereare some concepts about the term “Market”:

Philip Kotler’s concept: "the organization's marketing task is to determine the needs,wants and interests of target markets and to achieve the desired results more effectively andefficiently than competitors, in a way that preserves or enhances the consumer's or society'swell-being

According to marketing perspective, the term marketing is judged in two aspects:

In macroscopic aspect: Market is understood as a complex and continuous set ofbusiness environment, attractive goods-exchange relationships executing in an open space ofproviding objects and the interactive relationship between them

- In microscopic aspect: Market is understood as a set of customers who have the samedemand for the product of the companies and its rivals

2.1.1 The concept of market expansion

Market expansion or market development is understood to be an extension to meet theunsatisfactory need to create new opportunities for the business Market expansion is theprocess of enhancing the ability to exploit the market and develop new markets of thebusiness company to achieve business goals and improve the position of the company in thespecified period

2.1.2 The role of market expansion for business

Market expansion is a condition of business survival In the modern manufacturingeconomy, science and technology are increasingly advanced, the competition is fierce on theglobal scale To be successful in business, a business must not only gain market share, but thecompany must the top of the market In order to do that, it is imperative that businesses keepexpanding their markets and gaining a firm foothold

Expanding the market helps businesses speed up the consumption of products, exploitall potential of the market thoroughly

Expanding the market shortens product life cycle in the process of circulation,accelerates the cycle of expanded reproduction, increases the turnover of capital, andincreases profitability

Expand the market to develop stably, increase market share, improve its position in thedomestic and international market The higher the market share, the more competitive yourbusiness is, so it can easily enter the new market.

2.2 The basic content of the marketing mix solution to expand the market

2.2.1 Research and target market of the company

2.2.1.1 Company market research

Market research is the first and most important step of every marketing strategy topenetrate and expand your business A well-executed market research will provide businesseswith accurate information about the market and factors that influence the market of thebusiness From there, it creates the conditions for the manager to make appropriate andeffective marketing decisions Market research will focus on the matter subject of thepurchase and the type of merchandise that the business is producing, and the structure of thecommodity market as well The enterprise must determine its market share In comparisonwith competitors' market share, there are specific marketing solutions Market research mustanswer the question: Who are the customers? What characteristics do they have? How muchthey buy? Structure type of goods? Where do they buy it? What is the purpose of thepurchase? Who is competitors?

The main purpose of market research in market penetration and expansion is to studyconsumer attitudes, habits and characteristics From there, businesses seek the adaption orinfluence on other impact factors In other words, this is the study of potential customers ofthe business in all aspects such as scale, financial status, affordability, behavior, motivation tobuy, so that it can meet the needs of the customer

2.2.1.2 Customer set and characteristics of customer sets

With the strategy of penetrating and expanding the market, the target customers of thebusiness are new customers and current customers in the new market and the current market.New customers haven’t known or used products of the business, they may be customers ofcompetitors and have no trust in the product of the business In this case, businesses need totake measures to entice them to use their products by enhancing their credibility and position

in the marketplace, creating credibility and satisfaction about the product in customer Withcurrent customers, they are the ones who have used and have had a certain belief in theproduct of the business However, depending on the needs and conditions allowed, they onlybuy in certain quantities, they can also fluctuate and switch to other competitors' productswith greater benefits To do that, the company needs detailed research and specify itscustomer

CHAPTER 3: ANALYSIS OF RESULTS OF MARKET RESEARCH IN MIX MARKETS TO PARTICIPATE IN HANOI MARKET FOR ZENCO PRODUCTS 3.1 Overview of the business of Zenco Ltd

3.1.1 About Zenco Co., Ltd.

Company Name: Zenco Co Ltd.,

Head office: 55/5 - Huynh Thuc Khang - Dong Da - Hanoi

Chartered capital: VND 6,171,000,000

Zenco Co Ltd., is a state-owned enterprise operating under the Business License No

0106115850 dated 06/03/20012 issued by the Department of Planning and Investment ofHanoi City

The company has been named Zenco since its inception and has continued existing forsix years

In the early years of establishment and operation of the company, there is only a fewsamples of uniforms with simple monochromatic colors Later, when the demand foraesthetics increased, the company has researched and developed many different models andtypes, specially the product of 3D clothing launched in mid-November 2017

Currently, the company has a business capital of VND 6 billion and 150 employees areassigned tasks in accordance with the professional level of each person

The organizational structure of the company

 The organizational structure of the company

Company director

Vice director – in charge of production

Vice director – in charge of technique

Organization and administration department

Financial department

Profession and major department

Marketing department

Technology and electricity department

Main business fields of the company

 The organizational structure of the company

- Producing and processing textile and garment products for export and domesticconsumption

- The main activity of the company is processing customers provide raw materials,designs, models, technical documents, the company manufactures according to the request ofcustomers, then export the products This activity is the majority of the company's annualrevenue

- However, the company has been gradually improving business activities with the goal

of long-term development is to trade company-branding products in the domestic market andexport to the major markets like USA, EU, Japan,

3.1.2 The business situation of the company

Table 3.1: Business results of the company in the past 3 years (2015 - 2017)

(unit: million VND)No

Targets

Year2015

Year2016

Year2017

2016/2015 2017/2016Quantit

y

Proportio

n (%)

Quantity

Proportion(%)

1 Revenue 63.14

2

63.874

58.346

- Revenue from 2016-2017 increased significantly (revenue in 2017 increased by morethan 2 billion, equivalent to 3.28%), and profit also increased (profit in 2017 increased 20%compared to 2016) This is an optimistic sign that the business performance when thecompany has boldly turned to garment self-production This is a great encouragement to thewhole management team as well as employees throughout the company

3.2 Analyzing the influence of environmental factors on marketing mix solutions

to expand the market for products of Zenco limitted liability Company.

3.2.1 Macro environment

3.2.1.1 Demographic environment

Vietnam has about 90 million people with a growing population of young people withincreasing incomes and the demand for fashion - garment is constantly increasing as the basis

for the garment industry to grow Hanoi is a relatively large population, of which Zenco hasthe only branch in Dong Da District, one of the four most densely populated districts in andlocate closely to 3 fast-urbanized districts and stable living standards: Hai Ba Trung, HoangMai and Hoan Kiem districts, the management of the company was wise to set up its firstbranch in Dong Da district.

3.2.1.2 Economic environment

In recent years, the Vietnamese economy has faced many difficulties, especially afterthe economic crisis in 2016 This has a great impact on garment enterprises in general andZenco in particular

In recent years, the inflation rate has been high (in 2016: 6.81%, in 2017: 6.04%), theinput price is constantly increasing, the labor price also increases while the output tends toincrease Reduction has made it difficult for the company to balance revenue, cost andprofitable

The growth rate directly affects the financial status and affordability of consumers By

2015, the GDP growth rate will be 5.89%, 2016 to 5.03% and 5.4% in 2017 respectively Theaverage economic growth rate in 2015-2017 is only 5.6% / year (the lowest level in 5 recentyears, far lower than the planned average growth target of 6.5 - 7%) Therefore, the domesticgarment market is quiet, slow consumption, inventory increase as consumers have tightenedspending Many businesses suffer losses

3.2.1.4 Legal and political environment

In the garment business, the political environment - the law has a strong influence onthe decisions of the company In recent years, textile and garment industry has been identified

as a spearheaded industry by the Party and the state Therefore, there are many regimes,policies, legal documents, regulations to support and facilitate the development of thegarment industry Approved by the Prime Minister, the Ministry of Industry and Trade alsoissued Decision No 320 / QD-TTg dated 8/02/2013 approving the development plan ofVietnam textile and apparel industry to 2015, orientation by 2020 Accordingly, some generalobjectives: textile and garment industry to become one of the key industries, spearheaded forexport; and enhance competitiveness, firmly integrate regional and world economy.Therefore, the business opportunities for businesses in the field of textile and garmentindustry are growing

Besides, Vietnam is also considered to have political stability and security That is theopportunity and conditions for foreign investors to invest in Vietnam

3.2.1.5 Technological - technical environment

Today, the technology is modern and has a great influence on the commercial business

of the business Modern technology supports enterprises from manufacturing, managingquality and consulting sales-payment- transportation The garment enterprises in Vietnam inrecent years are well aware of the importance of technology in production Companiescontinually import machinery and equipment of foreign countries to replace peanut equipmentfor example, the manufacturing system has changed from foot pedal machines to modernautomatic sewing lines Thanks to modern technology, Vietnamese enterprises have improvedtheir labor productivity and product quality and lowered product prices to increase theircompetitiveness

3.2.2 Micro environment

3.2.2.1 Customer

Hanoi is a city with rapid economic development of in country, which is concentratedlarge number of customers have high living standards and stable income With the increase inliving standards, they are willing to spend more on clothing - most of which show socialstatus and personal style They are increasingly demanding in shopping and require the higherlevel of quality, design and brand reputation Developing business to meet the maximumcustomer demand and completing the services is the necessary act that Zenco have to achieve.3.2.2.2 Competitors

Having a business is sure to have competitors, especially in the garment market which istrending to be saturated As a company engaged in both fashion and production, Zenco needs

to face a lot of competitors in order to maintain its track record and develop its market

The first competitor is the domestic textile and garment enterprises It is the past thatVietnamese consumers bought cheap clothes, cheap Chinese goods People increasinglyprefer to use textile products of domestic enterprises because of following reasons: the model

is increasingly beautiful, the price is more suitable, good material, less toxic worries.Prominent among them are the famous Gấu Uniform with uniforms of various designs andcolors, ZUmi with excellent marketing team and good quality products are favored for variety

of types and prices

The second competitor is the foreign fashion brands The most popular brands inVietnam are F5, Cava, Anima They are fashion brands from Malaysia, very popular for itsmodern color, trendy design, fast pace of change, affordable price and now dominates thefashion market In Viet Nam F5 has a huge fan base in Vietnam because of low price, simplyand fast-update In order to deepen the market, Zenco needs to learn the advantages of thesebrands in product design, then have to quickly promote their brands and also take the price as

a competitive advantage