Marketing plan for s a n t a l JSC ( 2018 – 2020 )

2 In response to this situation, it is necessary to build a marketing plan for SANTAL Joint Stock Company to help the company stand firmly in the market as well as boost business activit

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS TRẦN HUY PHƯƠNG

HÀ NỘI - 2019

DECLARATION

The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article

The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given

The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration

Date………

of business and management (HSB)

Secondly, I am extremely grateful to all of the lecturers from the Department

of Business Administration - HSB for providing me with research methods and professional knowledge during the course, especially the active and creative research skills

My appreciation also goes to the teachers in the thesis review committee for giving me valuable ideas during my thesis completion process

My profound gratitude is also conveyed to my instructor for his helpful assistance and guidance This thesis could have never been completed without his enthusiastic counsel and support

Despite the efforts during the research period, there are still many limitations

in the thesis I would hope to receive valuable comments from the teachers and workers to make this essay more complete

co-Thank you very much./

Ha Noi, 2019

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INDEX

INDEX i

LIST OF ACRONYMS iv

TABLE CONTENT v

DIAGRAM AND PICTURE CONTENT vi

INTRODUCTION 1

CHAPTER 1: THEORETICAL BASIS FOR MARKETING PLAN IN THE ENTERPRICES 7

1.1 Basic definition 7

1.1.1 Marketing definition 7

1.1.2 Marketing plan concept 7

1.2 Objectives, mission and roles of marketing plans 8

1.2.1 Objective of the marketing plan 8

1.2.2 Mission of the marketing plan 8

1.2.3 Role of marketing plan 9

1.3 Marketing mix tools 10

1.4 Process of developing marketing plan 12

1.4.1 Identify marketing goals 12

1.4.2 External environment analysis 13

1.4.3 Internal environment analysis 19

1.4.4 Plan your marketing plan 21

1.4.5 Budget estimates, evaluate the effectiveness of the plan 21

1.5 Content of the marketing plan 21

1.6SWOT matrix 22

CHAPTER 2: CURRENT SITUATION OF BUILDING MARKETING PLAN OF SANTAL JOINT STOCK COMPANY 24

2.1 General information about Santal Joint Stock Company 24

2.1.1 Overview of formation and development 24

2.2.2The main business areas of the company 24

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2.2.3 Organizational structure 25

2.2.4 Some outstanding services of SANTAL JSC 26

2.2 Analysis of operating environment of SANTAL JSC 28

2.2.1External environment 28

2.2.2Internal environment 39

2.3 Swot matrix analysis 54

2.3.1 Summary of strengths, weaknesses, opportunities and challenges of SANTAL Joint Stock Company 54

2.3.2 Building SWOT matrix 56

2.4 Marketing planning development 58

2.4.1 Product planning 58

2.4.2 Price planning 59

2.4.3 Expansion distribution plan 60

2.4.4 Promotion planning 60

CHAPTER 3: SOLUTIONS FOR IMPLEMENTING THE MARKETING PLAN OF SANTAL JOINT STOCK COMPANY PERIOD 2018-2020 62

3.1 Mission, perspective, marketing objectives of SANTAL Joint Stock Company 62

3.1.1 Mission 62

3.1.2 Development perspective 62

3.1.3 Development Goals 62

3.1.4 Target market 63

3.2 Implementation of marketing plan of SANTAL JSC 64

3.2.1 Product planning implementation 64

3.2.2 Implementation of price planning 65

3.2.3 Implementation of distribution planning 66

3.2.4 Brand promotion implementation 66

3.2.5 Human resource utilization and plan implementation time 68

3.2.6 Financial planning, estimated implementation expenses 71

3.2.6 Evaluate the effectiveness of marketing plans 72

iii CONCLUSION 73 REFERENCE DOCUMENTS 74

iv

LIST OF ACRONYMS

1 JSC Joint Stock Company

2 DVP Develop Value Proposition

3 GDP Gross Domestic Product

5 ICOR Incremental Capital - Output Ratio

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TABLE CONTENT

Table 1.1: Diagram of Swot matrix 23

Table 2.1: Top 10 famous beauty salon companies in Hanoi 36

Table 2.2: Human resource structure of the Company 39

Table 2.3: Some indicators reflect the financial capacity of the company 41

Table 2.4: Some technologies being applied in the Company today 43

Table 2.6: Number of products of SANTAL and its competitors 47

Table 2.7: Survey of products of SANTAL Company 48

Table 2.8: Service cost for each customer 49

Table 2.9: Survey on price of SANTAL company 50

Table 2.10: Survey on distribution channel of SANTAL Company 52

Table 2.11: Survey on advertising and promotion of SANTAL Company 54

Table 2.12: SWOT matrix synthesis 57

Table 3.1: Price list for advertising services in women's magazines 68

Table 3.2: Personnel assignment 69

Table 3.3: Implementation time of the marketing activities 70

Table 3.4: Estimated financial budget for marketing implementation 71

Table 3.5: Criteria for evaluating marketing effectiveness 72

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DIAGRAM AND PICTURE CONTENT

Picture 1.1: Marketing mix programs 10

Picture 1.2: Process of developing marketing plan 12

Picture 2.1: Internal organizational structure of SANTAL JSC 25

Diagram 2.1: Vietnam's GDP growth rate from 2013 to 2017 29

Diagram 2.2: ICOR of Vietnam economy in the period of 2011 - 2017 31

Diagram 2.3: Customer dissatisfaction about physical characteristics 35

Diagram 2.4: Expenses for inviting training experts 44

Diagram 2.5: Number of the home care customers of SANTAL 51

Diagram 2.6: Average cost for Online Marketing of SANTAL Company 53

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INTRODUCTION

1 The urgency of the subject

Today, when our country has been deeply integrating into the global economy, the competition among the businesses becomes more and more intense

As a result, development of a business plan is essential for the businesses if they want to survive and develop well A business plan is a description of the company's business process over a period of time It describes how successful the company's business is and seeks future prospects for the company In the business plan of the enterprise, the marketing plan is considered as the most important factor as through marketing plans, the businesses and develop their production and consumption accoridngly to meet market demand, from which solving well the relationship between the businesses and the market inorder to harmonize the goals of the business Therefore, building a specific, detailed and clear marketing plan is the task that business managers always aim for in recent years

SANTAL joint stock company is not an exception Being established in 2008 with a charter capital of VND 6 billion, the company has mainly been operating in the field of supplying beauty and health care services in Hanoi During itsinitial operation, the business efficiency of the Company was relatively positive as the number of beauty spaswas still low while the demand for services was large However, in the last few years, when the number of enterprises joining the industry has been continuously growing (in 2015, the number of licensed Spas increased by 23% compared to the previous year and in 2016 the number of newly opened Spasgrew to 31% compared to 2015) and the consumers tend to tighten their spending on expensive services, the company's business activities has started to decline Revenue from service provision of the Company decreased from VND 16.4 billion in 2014 to VND 7.8 billion in 2016; the number of close customers has continuously decreased; the company cannot access to new customers; The company's profit is seriously reduced, even lost in the business period of 2016-

2017 As a result, a branch of the Company had to close

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In response to this situation, it is necessary to build a marketing plan for SANTAL Joint Stock Company to help the company stand firmly in the market as well as boost business activities to collect dividends for public shareholders of the company However, the company management board has never had a specific marketing plan, the implementation of marketing activities has not been focused With above practical issues, the author decided to select the topic "Marketing Plan

of SANTAL Joint Stock Company in the period of 2018-2020" as a graduation

thesis

2 Research overview

Ho Thi Bich Nguyet (2009) conducted a study on "Business planning development for Huy Nam Company Limited" The study has achieved the objectives such as determining the business objectives of the company; analyzing factors affecting the business environment of the company,determining the business direction for the company, buildingbusiness planning for the company in 2009, particularly sales plan, production plan, expense plan, financial plan; Through the builded plans, a general assessment of the feasibility of the plan was made in order

to form the solutions Although the research has achieved the set objectives, the research only conducted a general analysis on the business plan of the business without studying marketing plan of the business

Le Anh Tuan (2015) conducted a study on "Building marketing strategy for product consuming at PV Oil Lube Joint Stock Company (PVOIL) till 2020 and vision to 2030" Through combining research methods such as comparative method, investigation method,methods of planning the product life cycle, experience curve method and SWOT analysis method, the author systematized the rationale for developing marketing strategies in general and product marketing strategies in particular, from which completing additional arguments related to the development

of marketing strategies for product consuming for the businesses in today's volatile business environment At the same time, based on the actual situation of PV Oil, the research has developed marketing strategies to consume products in accordance with the business characteristics of the Company, consistent with the changes of the

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economic environment and can be directly applied to actual business of PVOIL Company However, the research just offered a marketing strategy without developing the plans for implementing the built strategy

Vu Thi Thu Nga (2016) conducted a study on "Building marketing strategy for tea products of Tan Cuong Tea Joint Stock Company - Hoang Binh" In the study, the author systematized and clarified the basic theoretical issues of developing marketing strategy for Tan Cuong tea joint stock company - Hoang Binh; Carried out the analysis and assessment of the external environment and the internal environment to show the strengths, weaknesses, opportunities and risks for tea products of Tan Cuong Tea Joint Stock Company - Hoang Binh; At the same time, the author selected strategies and built appropriate marketing - mix programs as well as solutions to implement the selected strategy in the period of 2016 - 2021 The basic limitation of the research is that the research has not drawn a specific implementation schedule as well as the budget for implementing the proposed marketing plans

Dang Hoang Duong (2014) conducted a study on "Development of marketing planning for Basa fish products of Angiang Fisheries Import Export Join Stock Company".The study analyzed and found out the factors that determine success, developmentpotential and risks of Angiang Fisheries Import Export Join Stock Company in the present and in the future, from which developing suitable marketing plans for the public to attract customers and meet consumer needs The study also suggested ways to organize the company in order to successfully complete the established marketing plan The research is a source of materials with high reference value for the management of the company but the business environment in the field of seafood import and export is far from the business environment of the beauty care industry so the research results cannot be used for the author's thesis

Through reference to the research published above, the author found that above researched mainly analyze the factors affecting the business environment to find the strengths and weaknesses of the company, from which determining business direction then making business plans and marketing plans However, these studies have not given a specific schedule and budget to implement the plans Also,

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when studying the beauty field, the author could not find a study conducted for SANTAL joint stock company Therefore, the author's research is not overlapping with previous studies and it will overcome the limitations of the published works by through building a complete marketing plan from the stage of developing marketing

strategies to implementing (time and budget plans)

3 Objectives of the study

-Develop marketing plans for SANTAL joint stock company in the period of 2018-2020

4 Object, scope of the research

4.1 Research objects

Research object of the thesis is the marketing plan of SANTAL joint stock

company in the period of 2018-2020

4.2 Research scope

Scope of space: SANTAL Joint Stock Company

Scope of time: Documents and data for the research are collected during the

period of 2014-2016

5 Research Methods

5.1 Information collection methods

5.1.1 Secondary informationcollecting method

Secondary information is gathered from published materials via sources such

as libraries and research institutes of domestic and foreign universities as well as resources of SANTAL JSC and a number of related units such as:

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- Documents related to the process of formation and development of the company;

- Documents related to some outstanding services of the Company

- Documents related to marketing activities to develop products and services

of SANTAL Joint Stock Company;

- Documents relate to the factors of the external environment such as GDP, ICOR of the economy, some competitors and their capacities

5.1.2 Primary information collection

Primary information collectionwas conducted by distributing survey questionnaires, collecting opinions on the level of customers' assessment of some marketing activities of SANTAL joint stock company As a matter of fact, the number

of customers of the Company over the years is very large Therefore, it is very difficult

to survey customers Thus, the selection of research samples should follow certain principles According to Hair et al (1998), the minimum sample size for research needs

to be guaranteed from 150-200 observations In the thesis, the author will conduct a survey of customers who have made customer cards at SANTAL Through the information provided by the customer, the author emails and calls the customers The number of emails that the author sent to the customers was 500 emails, the number of email recipients was 411 emails, of which only 378 emails were valid Therefore, the author will conduct research with 378 survey papers

Survey forms are designed in two parts:

Part 1: Information of the surveyed objects

Part 2: Information for the respondents to answer the content of marketing activities of the Company

The author uses a 5-point scale to regulate and score the employee's rating levels according to the following convention:

1 Totally disagree;

2 Disagree;

3 Normal;

4 Agree;

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5 Totally agree

5.2 Methods of information processing

5.2.1 Data processing with Excel software

Using Excel software to synthesize and calculate the results of primary information and secondary informationcollection:

+ For primary information: Based on the survey results and the 5 pointscale, the average score is calculated according to the formula as follows:

Average point = ∑( a1*b1+ a2*b2+ a3*b3+ a4*b4+ a5*b5)/B

In which: a is a score on a scale of 5

b is the number of comments for each type of point

B is the total number of comments

The survey results will be calculated and processed by Excel software through the above calculation

+ For secondary information: The author will arrange the information according to the evaluation criteria and each year Then the arranged information is synthesized in table form and the norms are compared to see the level of change through the years

5.2.2 Data aggregation by graph system

In addition to summarizing information in the form of tables, the author also

synthesizes information in graph formstogive a more general and vivid look

6 Research structure

The research includes 3 chapters as follows

Chapter 1: Theoretical basis for marketing plan in the enterprices

Chapter 2: Current situation of building marketing plan of SANTAL Joint Stock Company

Chapter 3: Solutions for implementing the marketing plan of SANTAL Joint Stock Company in period of 2018 - 2020

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CHAPTER 1: THEORETICAL BASIS FOR MARKETING PLAN IN THE

ENTERPRICES 1.1 Basic definition

Marketing is a deliberate activity, whereby a flow of goods and services is transferred from producers to consumers or users Marketing is an activity to ensure that all necessary goods and services are available at the right time, right price (Philip Koller, 2001)

Marketing is a social management process, whereby individuals and collectives get what they need and want through creating, offering and exchanging valuable products with others (Nguyen Dinh Tho and Nguyen Thi Mai Trang, 2004)

Marketing is a planning and management process to conduct valuation, promotion, and distribution of the ideas, goods, and services aimed for creating transactions to meet personal, organizational and social goals

From the given concept of marketing, it can be seen that the above concepts have similarities that marketing activity is derived from certain objectives of the business to satisfy customers' needs, through which businesses can achieve the

goals they have set

1.1.2 Marketing plan concept

A marketing plan is a text document derived from an analysis of the market and the environment in which an administrator sets out big strategies along with short-term and medium-term goals for either a company or a specific product category; Then it is necessary to identify the means needed to achieve the above objectives and actions to be taken; Finally, people calculate the revenues and

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expenditures to set up the budget shown in a tracking table attached to the plan, allowing regular checking of the implementation of the plan Business marketing plan will show what the company hopes to achieve, the ways they implementand when can they achieve the objectives (Vo Thi Kim Tuyen, 2006)

The marketing plan of the business is considered as the marketing plan of the operational unit It is specified from the planningdesk of the specialist levelor the regional level with one or more specific products, a specific market and specific competitors Although the construction steps of the two levels, including senior and executive levels are the same, the details and scale of the steps of these two levelsare deployed in different scales, using different tools (Nguyen Quang Thu, 2007)

Develop a marketing plan that includes systematic activities to help businesses form specific action-based programs to enforce commong marketing

strategies of the business

1.2 Objectives, mission and roles of marketing plans

1.2.1 Objective of the marketing plan

According to Tran Thi Bich Lien (2008), marketing plans are designed to aim at three main objectives:

- Satisfying customers: Satisfying customers is an important issue for the businesses Marketing plans of the businesses aim at meeting customers' needs, making customers more satisfied and loyal to the business

- Enhancing competitive capacity: Marketing plans aim to help businesses respond well to challenges in a competitive environment, ensuring the competitive position of businesses in the market

- Ensuring long-term profitability for the businesses: The marketing plan of the business is built to create the necessary profit level to help businesses accumulate and develop

1.2.2 Mission of the marketing plan

According to Vo Ngoc Toan (2004), the task of marketing plans is to make enterprises definitely aware of business results and directions This is an important method for the coordinating activities in enterprises

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The marketing plan forms the framework for the activities of employees in different parts of the organization so that they can worktogether in a coordinated manner to well accomplish the goals of businesses

Marketing plan is the basis of every plan in the business: Just like market demand Business demand is a constant called a demand function of the enterprises This function depends on all factors affecting market demand and industry demand Business demand corresponds to sales achieved for different commercial efforts Therefore, businesses need to make a forecast of sales In other words, they need to setup marketing plans to perform forecasting tasks and build certain marketing

programs appropriate to market conditions

1.2.3 Role of marketing plan

Mixed Marketing and Marketing Plan are very important activities in business operations of the enterprises, especially commercial and service enterprises (Huynh Phu Thinh, 2008) Marketing plans help businesses find useful information about the market, conditions to expand markets and increase business scale The implementation of marketing plans helps businesses dominate the market to increase market share, accelerate the consumption rate by improving competitiveness and satisfying customer needs Thanks to the marketing plans, the activities of the business are implemented in a synchronous way, the enterprise will reach the potential market, conquer and entice customers and it can be said that the marketing plan is a bridge to help businesses closer to the market (Ly Xuan Hong, 2006)

Developing a marketing plan will help the businesses understand the purpose and direction of the business aimed at the target market This is the very factor that unites all individuals as well as parts of the organization to work together to achieve common goals Planning a marketing plan helps businesses to grasp opportunities, risks, understand strengths and weaknesses on that basis and be able to cope with market fluctuations and obtain appropriate strategies (Ly Xuan Hong, 2006)

Marketing Plan will demonstrate the enterprise's efforts to achieve a desired position in terms of its competitive position and fluctuations in the business

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environment Only when setting up a marketing plan can the organization implement synchronously marketing activities starting from understanding and identifying external environmental factors, assessing other internal conditions of the Company Since then, there are policies on products, prices, distribution and

promotion in order to achieve the set goals (Pham Thi Thuy Nga, 2007)

1.3 Marketing mix tools

Marketing mix is a collection of marketing tools used by the businesses to achieve a marketing focus in the target market In 1960, E Jerome McCarthy, suggested sorting marketing mix through 4P and it has become the most widely used classification in the world so far Marketing tools include: Product, Price, Distribution, Promotion

Picture 1.1: Marketing mix programs

Source: Pham Thi Thuy Nga (2007)

Product

Product policy is the foundation of mixed marketing policy, determined based

on a larger-scale business plan for new products and overall marketing strategy for all

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existing products of the business When considering product policies, enterprises need

to consider the following issues: Product quality, product design, product features, brand and product brand, packaging, service with products

Distribution channel

Mission of the distribution channel is to bring the product to the right place, at the right time and in the right quantity The basic content of the distribution policy is to design and manage the sales network when the product is sold to the market

The sales network is a collection of channels with the participation of different entities with different strengths and reputations to successfully bring goods from manufacturing enterprises to customers Managing new sales channels of the enterprises must meet the following basic requirements:

- Consistent with the nature of the product

- Creating the most favorable conditions for customers to access and find products easily

- Review the distribution channel of competitors

- Distribution channels need to ensure increasing sales of the company and establish sustainable relationships with intermediaries

Price

Price is always one of the leading competitive factors, especially in markets where population income is still low Along with product programs, enterprises must have appropriate price policies to create a firm foothold in the market

In the price policy for new products, businesses can pursue basic objectives such as: to survive (higher cost prices), to maximize immediate profits; to increase market share, to recover fast capital or some other competitive goals

Trade promotion (or communication)

These marketing activities include advertising, catalogs, public relations and retail, specifically advertising on television, radio, newspapers, tables announcing, bringing products into movies, talents support for television programs and massively watched radio channels, sponsorship for loyalty programs, telemarketing, direct mail sales, product introduction At home, sending catalogs to customers,

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public relations and especially now businesses often use paid advertising services

on Google and Facebook These forms help brand and reputation as well as

products / services spread farther and more widely known

1.4 Process of developing marketing plan

The process of developing a marketing plan is also the research model of the dissertation topic as follows:

Picture 1.2: Process of developing marketing plan

Source: Vu Thi Phi Nga (2007) 1.4.1 Identify marketing goals

The goal is the destination of the planning and strategic processis the way to get there Marketing goals represent the requirements needed to be met during the organization's operations in a specific time of the marketing plans and other short-term plans These are growth objectives, competitive goals and safety goals

Growth target

Common growth targets are:

- Profit, expressed in the percentage of sales or an absolute amount that the business expects to achieve after a period of time implementing the marketing plan

- Sales, expressed in the market share that the business intends to achieve or absolute sales

Marketing goals Macro environment

Industry environment

Enterprise environment

Marketing environment analysis

Marketing planning

Budget estimation, evaluation of the effectiveness of the plan

Depending on each stage in the business process, marketing activities focus

on specific important goals

Competitive goals

When building a marketing plan, it is necessary to identify competitors of the business Every enterprise wants to achieve a certain growth, development and strength in the market after a while This is shown in following factors:

- Products gradually dominate the market

- Role and position of the business to the competitors

- Antitrust trends in business

Safety goals

Business always contains risk Because the businesses have to spend a huge amount of capital and only after a while can it be recovered Therefore, business plans must anticipate the safety of business plans

Sustainable development goals

In addition to the above objectives, marketing plans should support the goals

of ensuring stable jobs for employees and giving them a stable income from which improving social life and helping society grow Besides, the issue of environmental protection is one of the compulsory requirements that the State requires enterprises

to implement

1.4.2 External environment analysis

1.4.2.1 Macro environment - PESTEL

PESTEL is a method of analyzing the elements of the macro environment affecting businesses It is an essential tool for administrators to regulate the company and understand what is happening around their business Each letter in PESTEL represents a factor of the business environment

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Figure 1.3: PESTEL model

Source: Micheal Porter, 1996

Legslative Forces

Creating a healthy or unhealthy business environment depends entirely on legal factors and state management of the economy The promulgation of a quality legal system is the first condition to ensure an equal business environment for the businesses so that they have to do business in a true and responsible manner However, if the legal system is incomplete, it will have a significant impact on the business environment, causing difficulties in production and business activities of enterprises

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There are many factors of the macro environment but it can be said that the following factors have a great influence on the business operations of enterprises They are economic growth rate; Interest rates and the trend of interest rates in the economy; Monetary policy and exchange rate

Social Forces

Socio-cultural environment includes standards and values accepted and respected by a particular society or culture The change of social cultural factors is partly a consequence of castle influence of other macro factors so it often happens more slowly than other factors One of the characteristics that managers need to pay attention to is that the impact of social and cultural factors is often longer and more subtle than other factors, sometimes it is even difficult to identify The aspects of social and cultural environment formation have a strong influence on business activities such as: Concepts of morality, aesthetics, lifestyle, occupation; Customs, practices, traditions; Social concerns and priorities; General level of awareness and education of society

Besides, population or demographic environment is also a very important factor affecting other elements of the macro environment, especially social factors and economic factors Changes in the population environment will directly affect the change of the economic and social environment as well as the business strategy of the business The information of the population environment provides important data for managers in product strategy planning, market strategy, marketing strategy, distribution and advertising The areas of concern for the population environment include: Total population of society, population growth rate; Structure and trends of population changes in age, gender, ethnicity, and income distribution; Life expectancy and natural birth rate; Trends in population movement among the regions, etc

Technological Forces

This is one of many opportunities and threats that affect the marketing plans

of businesses Pressure and threats from the technology environment can be:

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- The advent of new technology appears and enhances the competitive advantage of alternative products, threatening the traditional products of the existing industry

- The explosion of new technology makes existing technology obsolete and creates pressures that require businesses to innovate technology to enhance competitiveness

- The explosion of new technology makes the technology life cycle tended to shorten, from which increasing the pressure to shorten the depreciation period

In addition to these threats, opportunities that may come from the technology environment for businesses include:

- New technology can facilitate the production of cheaper products with higher quality, making products more competitive Normally, enterprises coming later have many chances to take advantage of this point rather than existing businesses in the industry

- The advent of new technology can make the product more functional and thereby create new markets for the company's products and services

1.4.2.2 Micro and industry environment

The micro environment consists of internal sector factors and acts as external factors to the business, determining the nature and extent of competition in the business industry According to M.Poter, there are five basic factors, including competitors, customers, suppliers, potential new competitors and alternative products These factors are interrelated and interacted, affecting the business operations of the business In order to set a successful marketing strategy, key factors must be given into analysis Understanding these factors helps the business realize its strengths and weaknesses in relation to the opportunities and risks of the business

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Figure 1.4: 5 competitive pressure model

Source: Micheal Porter, 1996

Potential competitors

Emergence of new businesses directly reduces the size of competition due to increased production capacity and production volume in the industry The emergence of new competitors is likely to cause strong shocks to existing businesses because normally the latter ones often have many bases in decision making and their moves are often unpredictable

To beat potential competitors, businesses often implement product differentiation strategies, improve quality, add new features of products, constantly improve products to make their products different or outstanding in the market, or strive to reduce production and consumption costs

Pressure of suppliers

As a supplier of inputs to the production process, supplier power is expressed through material price pressures Some of the following characteristics of suppliers have a great influence on the competition in the industry:

Current competitors

Alternative products Potential competitors

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- Number of suppliers:Demonstrate high or low supply levels of raw

materials and suppliers Many suppliers create competition in the raw material market, which has the effect of reducing input costs for manufacturers

- Monopoly of suppliers:Creating them the conditions to keep the price as

they want, causing difficulties in competing with prices

Relationship between suppliers and manufacturers:When the supplier is also

a production unit doing business in the same organization with the manufacturer, the internal linkage is promoted to enable producers to compete with price

In order to reduce the negative effects from suppliers, businesses need to have good relationships with them or buy from many people in which they choose the main supplier and actively research and find alternative material, reserve reasonable materials

Pressure from the customers

The pressure of customers on enterprises is reflected through the price reduction, bargaining for better quality and more service and making opponents fight each other All of them cause loss of profitability of the industry in general and

of enterprises in particular The power of each group of customers depends on a series of characteristics of the market situation of the group and the importance of the goods that customers buy from the business Customers create great pressure if the following conditions are met:

- A group of affiliated customers or a customer buys a large volume of goods compared to the seller's volume

- Products of the enterprise are not really different and can be replaced by products of other businesses Buyers can definitely find another provider and will be able to push this business against other businesses

The appearance of substitutes

The advent of alternative products is an indispensable to meet the changing demands of the market more and more diversified, rich and high-class and it reduces the competitiveness of thealternative productmarket

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Replacement products are often more competitive due to being produced on more advanced production lines Although it is subject to the resistance of replaced products, the replacement products are more advantageous, thus gradually narrowing the market of substituted products (especially products that social market demand is blocked) Substituted products will reduce the competitiveness of replaced products The remedy of this business is towards new products or customers seeking new utility

Pressure of current competitors in the industry

Competition among existing businesses in the industry is one of the factors that reflect the nature of this environment The presence of major competitors in the market and their operation situation is a powerful, immediate impact force on the operations of businesses In an industry, there are always many different businesses but there are only a few of them play a key role as the main competitors and are able to dominate the market

Therefore, mission of each business is to find information, analyze and evaluate accurately the ability of competitors, especially the main competitors to

build their own competitive strategy appropriate to the general environment

1.4.3 Internal environment analysis

Human resource management

Human resource management includes activities undertaken to recruit, train, develop and pay for all levels of employees Human resource management affects all activities in the value chain Improving workers' skills and maintaining good labor relations is crucial for creating value and reducing costs By training workers

in a variety of jobs, the administrators can help their companies react to markets faster through increased efficiency, quality, productivity and job satisfaction People are the company's most valuable asset and a very flexible form of capital Moreover, in a rapidly changing and unpredictable environment, it is necessary to develop the workforce so that they can adapt quickly to changes in the environment

Technology application

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Technology is associated with all value activities in an organization It affects all broad activities from product and process development to receiving orders and delivering products and services to customers This means that technology development goes beyond traditional development and research concepts However, investing in technology is also a source of risk for business operations Not only large investments are implemented, but also many uncertainties related to many factors, such as changes in customers' needs, rapid imitation of competitors, and change right in technology there are

Research and development activities

Research and development not only help businesses consolidate their current position but also help businesses reach higher positions in the industry, gaining real growth The more we promote the role of research and development in the current period, the more important it is to assess the level of implementation of this work in enterprises Most Vietnamese enterprises have never implemented this task For these businesses, this is a challenge They need to have specific plans in implementing this type of work In order to carry out research and development, it

is necessary to use a lot of equipment, especially in manufacturing industries with high technology content and profound financial potential This work step cannot be considered well if the business does not have enough equipment for this work

Financial situation

This is a decisive factor for production and business activities in general and

is also the foundation for planning business strategy of each enterprise A financially capable enterprise ensures that it will have an advantage in investment in machinery and equipment innovation, conduct other activities to improve its business performance When analyzing the financial situation of enterprises,the content of the assessment should focus on the following issues:

- Capital demand and capital structure inside the enterprises, working capital, flexibility of investment capital structure, etc

- Financial scale

- General financial indicators assess the position of enterprises in the market

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- Ability to mobilize short-term and long-term capital, ratio of loan and equity

- Capital of the company, cost of capital compared to industry and competitors, effectively using production and business capital in enterprises

If businesses have difficulties in capital, it will be very difficult to create,

maintain and implement their business strategies

1.4.4 Plan your marketing plan

In this step, on the basis of analyzing and setting up marketing strategies, executives who aggregate marketing activities will make into a table to have an overall picture of the activities, time, person in chargeand needed resources

1.4.5 Budget estimates, evaluate the effectiveness of the plan

In order to assess the effectiveness and implement the functional activities set out in the marketing plan, it is necessary to identify the resource needed for each functional activity, then aggregate the demand for resources for the whole business plan Then, the enterprises can identift additional needs and prepare resource mobilization At this stage, planners who have practical experience and specific knowledge of functional areas will have more advantages in identifying, using information and data to quantify resources

1.5 Content of the marketing plan

Typically, a marketing plan of an enterprise includes the following information:

Overview: Presenting the market context, introducing the context of the marketing plan, evaluating the business situation in previous years, determining the marketing objectives of enterprises

Analysis: Macro and micro analysis, focusing on emphasizing unusual trends and developments in needs, rivals, identifying challenges that may have an impact

on business operations of enterprises

Identify target market: Identify target market segments in order of priority, identify segments that are not competitive to exploit the market

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Positioning: In this content, enterprises perform positioning of brands / products / services in each segment corresponding to positioning analysis of competitors

Strategy and value proposition: Identify key strategic directions, develop value proposition (DVP) for each segment, and specify marketing mix (4Ps) of each segment

Implementation plan: Concretize the contents of marketing mix into specific action that can be implemented, associated with the allocation of resources (human resources, time, and budget implementation)

Financial forecast: Forecast of financial targets and plans which are associated with the marketing plan of the enterprise

1.6 SWOT matrix

The swot matrix is a method and tool for strategic management awareness.Four relevant points to identify the company's status and opportunities include:

- Strengths: What is the company's advantage? What work does the company

do best? What resources can be used? What is the advantage that others see in the company? Consider the problem from the perspective of the company itself and the people around Reality is required in stead of the modest The advantages are often formed when comparing to competitors For example, if all competitors provide high-quality products, such a quality production process is not an advantage but a must-have to exist in the market

- Weakness: What can be improved? Which company does the worst job? What should be avoided? The issue must be considered on an internal and external basis Others may see weaknesses that the company itself cannot see Why can competitors

do better? At this time, you must make a real judgment and face the truth

- Opportunity: Where are good opportunities? What interesting trends are known? Opportunities may stem from changes in technology and markets in both international and narrow range.From changes in state policies related to the field of company operations, from changes in social patterns, population structures or

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fashion structures, from places of event taking in the region The most useful searching method is to review your advantages and ask yourself whether these advantages can open up new opportunities or not You can also do the opposite, review your weaknesses and ask yourself if there are any opportunities arising if they are removed

- Challenge: Obstacles are encountered? What are the competitors doing? Are there specific changes in job requirements, product or service requirements? What is the risk of technology change for the company? Is there a problem with overdue debt or cash flow? Is there any weakness that threaten the company? These analysis often help find things to do and turn weaknesses into prospects

Purpose of Swot analysis is to identify feasible strategies as a premise for strategic planning, the Chapter takes appropriate action; Based on the analysis of external and internal factors affecting business operations

Swot analysis model often gives 4 basic strategies:

Table1.1: Diagram of Swot matrix

Opportunities S-O strategy:based on the

company's advantages, taking advantage of market

opportunities

W-O strategy:overcome the weaknesses of the company

by maximizing its strengths

Threats S-T strategy:based on the

company's superiority to avoid market risks

S-T strategy: develop defensive plans to combat risks, avoid the harms of weaknesses

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CHAPTER 2: CURRENT SITUATION OF BUILDING MARKETING PLAN

OF SANTAL JOINT STOCK COMPANY 2.1 General information about Santal Joint Stock Company

2.1.1 Overview of formation and development

Santal Joint Stock Company SANTAL was established in 2008 under the business license number 0102699355 The company is located at 11th Floor, Hilton Garden Inn Hotel, No 20 Phan Chu Trinh, Phan Chu Trinh Ward, Hoan Kiem District, Ha Cabinet

The company operates in the field of spa, health care and beauty Santal stands out with its luxurious and sophisticated design, with traditional Vietnamese features, evoking a sense of peace The open space of Santal Spa, as well as the treatment area, has different stylesbut they all aim to bring an absolute satisfaction

to customers

Currently, SANTAL JSC operates with the following steps: Continuously updating advanced Spa and beauty technologies in the world through training with foreign experts for thestaff, therapists Customers come to the company, depending

on the needs of customers combined with the advice of counselors, will be taken care of with appropriate and advanced processes, ensuring the highest satisfaction

of customers Customers can reserve in advance, choose the type of care service, choose the type of drug, cosmetic on the basis of the advice of the care staff, receive the service and pay for those services With professional operation process, SANTAL JSC always receives good reviews from customers and businesses operating in the same field

2.1.2 The main business areas of the company

The company operates in 3 main areas including: Spa services; Beauty services and high-tech therapy services

+ For Spa services, the Company provides services including: Swedish massge services; dry, wet service; aromatic leaf bath service; love bath service; Santal Beautiful Bliss service; The City Indulgence service; Silky Paradise service; Sothys ginger exfoliating service

Picture 2.1:Internal organizational structure of SANTAL JSC

(Source: Human Resources Administration Department)

Department functions and mission

Director:directly manage and make business decisions of enterprises and

take legal responsibility before the law

HR & GA Department: Be in charge of activities related to management,

recruitment, training, personnel in the company

+ Human Resources: in charge of jobs such as car keeping, security

Director

Service Department

Marketing Department

Customer service Department

Spa

ant

Recept ionist

HR & GA

Department

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+ Accouting: undertake accounting, financial affairs management, tax reporting, annual business reports

Service room: specialize in service businesses

+ High-tech therapy: Includes specialists, medical doctors and staffs in the field of high-tech therapy for customers such as melasma treatment, mole removal, permanent hair removal, etc

+ Surgery: Including specialists, medical doctors and staff for beauty surgery such as breast augmentation surgery, abdominal liposuction, eyelid surgery, etc

+ Spa: Includes a team of medical doctors and staff with experience in massage such as facial massage, foot massage, etc

Marketing department: specializes in research, development and deployment

of marketing, sales promotion for businesses, directly build and implement advertising plans for businesses

Customer service department: Be in charge of customer service

+ Reception: Welcome and instruct the customers

+ Consultant: Answercustomer inquiries and consulton business services for customers

2.1.4 Some outstanding services of SANTAL JSC

The company uses ingredients rich in fatty acids, lecithin and vitamins, a mixture

of egg yolks, honey and yogurt to do the skin carefor the aging skin of the customers

5 Special care for pigmentation, freckle skin

Time: 120 minutes

Balance the cell turnover cycle, treating melasma and darkening areas by using specialized products to remove dead skin cells, allergens and giving the customers a bright, healthy white skin strong

Whole body relaxing

1 Thai body massage

Time: 95 minutes

Thai massage is a treatment based on the impact on the main energy circuits (also called Sen vessels) that run throughout the body to help regulate imbalance, from which circulatory and respiratory problems, fatigue, allergy problems are all improved

2 Shiatsu body massage

Time: 95 minutes

With Shiatsu Massage method - Japanese traditional Shiatsu reflexology massage technique is a therapy to preserve the customers’ beauty in an extremely effectively way

3 Herb Body Massage

Time: 95 minutes

A relaxing massage method using warmed herbs applied to the body This method helps to release the body, enhance circulation, create relaxation thanks to the delicate combination of touch and natural scent

4 Relaxing foot massage

Time: 60 minutes

2 Spa services for "pregnant mother"

Relaxing body massage with essential oils or herbs

Special foot massage for pregnant women

Anti-stretching massage (waist, thigh, chest) for pregnant women

Health recovery and postpartum care package

2.2 Analysis of operating environment of SANTAL JSC

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Diagram 2.1: Vietnam's GDP growth rate from 2013 to 2017

Source: General Statistics Office

In 2007, economic growth reached 6.81%, exceeding the target of 6.7% set by the National Assembly and reaching the highest growth rate in the past 10 years, according to new figures published by the General Statistics Office In particular, the economy in the last two quarters recorded a growth rate of over 7% For the first time

in many years, Vietnam has achieved and exceeded all 13 socio-economic targets in the year Thus, the economy has beenin a stable period, this creates opportunities for businesses in general and SANTAL Joint Stock Company to expand and develop business due to the factors of the business environment are not volatile

Sustainable growth prospects

Vietnam economy has a stable growth prospect in the next period with the context of variables reflecting improved economic stability, specifically:

Firstly, about inflation rate,in recent years, the inflation rate tends to

decrease remarkablely, expected to be lower than 5% in 2018 (lower than the

average inflation rate in the period of 2011-2017 of 6 , 5%)

Secondly, about public debt / GDP ratio From 63.6% in 2016, the public

debt / GDP ratio in 2017 fell to 62% In addition, in the period of 2011-2015, the average public debt growth reached 18.4%, until 2016, it increased by 15% and in

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2017 it was 9%, expected to increase by 11% in 2018 At the same time, budget overspending is declining, recurrent expenditure on budget spending has fallen to

64.9% this year and is expected to be 64% by 2018

Thirdly, about gross domestic product In recent years, GDP rate of our

country has continuously increased rapidly In 2013, GDP growth rate was 5.42%; until 2014, itincreased to 5.98% and in 2015, this rate was 6.68%; in 2016, itwas

6.21% and in 2017, it was 6.81%

Fourthly, trade balance improved from trade deficit in 2015 (US $ 3.2

billion), 2016 trade surplus was 2.68 billion USD and it is expected to reach surplus

trade balance until 2018

Thus, economic growth is accelerating on a stronger macroeconomic foundation This reflects that many macroeconomic policies are going on the right direction to create a stable environment for businesses to expand business development, including SANTAL Joint Stock Company

Growth to improve investment efficiency

Besides the positive movements of economic indicators such as budget overspending, public debt, trade balance, inflation rate, ertc.The economy has improved in investment efficiency and competition capacity ICOR coefficient in

2017 reached 4.93, lower than the year of 2016 of 5.15 Although the fluctuation situation might be up and down due to many factors, it is clear that the ICOR trend line tends to drop This reflects that the investment efficiency of the economy is gradually improving