Some solutions to complete mixed promotion policy for GEM TVT products of thai van tuong electromechanical construction joint stock company

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --- LÊ DUY TUẤN SOME SOLUTIONS TO COMPLETE MIXED PROMOTION POLICY FOR GEM-TVT PRODUCTS OF THAI VAN TUONG ELECTROMECHANICAL CONSTRUCTIO

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

-

LÊ DUY TUẤN

SOME SOLUTIONS TO COMPLETE MIXED PROMOTION POLICY FOR GEM-TVT PRODUCTS OF THAI VAN TUONG ELECTROMECHANICAL CONSTRUCTION JOINT STOCK

COMPANY

MỘT SỐ GIẢI PHÁP NHẰM HOÀN THIỆN CHÍNH SÁCH XÚC TIẾN HỖN HỢP CHO SẢN PHẨM GEM-TVT CỦA CÔNG TY

CÔ PHẦN CHẾ TẠO XÂY LẮP CƠ ĐIỆN THÁI VẠN TƯỜNG

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2019

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

-

LÊ DUY TUẤN

SOME SOLUTIONS TO COMPLETE MIXED PROMOTION POLICY FOR GEM-TVT PRODUCTS OF THAI VAN TUONG ELECTROMECHANICAL CONSTRUCTION JOINT STOCK

COMPANY

MỘT SỐ GIẢI PHÁP NHẰM HOÀN THIỆN CHÍNH SÁCH XÚC TIẾN HỖN HỢP CHO SẢN PHẨM GEM-TVT CỦA CÔNG TY

CÔ PHẦN CHẾ TẠO XÂY LẮP CƠ ĐIỆN THÁI VẠN TƯỜNG

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM VĂN HỒNG

HÀ NỘI - 2019

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DECLARATION

I commit that my thesis is completed on the basis of my understanding and

the process of my research, effort and performance under the guidance of Dr.Pham Van Hong My research study does not copy from any individual or organization

The data and results stated in the Thesis are honest And the information cited in the Thesis is clarified its origin

Hanoi, February 20, 2019

Student

Le Duy Tuan

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ACKNOWLEDGEMENT

I would like to send my sincere thanks to the Hanoi School of Business and Management for facilitating me all favorable conditions to complete my Master's degree in Business and Management

I would like to send my deep thanks to Dr.Pham Van Hong for his

enthusiastic and devoted instructions that help me well complete this thesis

I would also like to express my gratitude to my organization, teachers, colleagues, family and friends for their support, encouragement and share during

my study and completion of the thesis

Despite my effort, the thesis does certainly not avoid errors, so it is expected

to receive special attention and contribution of the management, colleagues and the people who are interested in my thesis for my completion

Yours sincerely,

Hanoi, February 20, 2019

Student

Le Duy Tuan

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TABLE OF CONTENTS

LIST OF FIGURES 7

LIST OF TABLES 8

INTRODUCTION 9

1 Rationale…….……… ……….9

2 Study review.…… ……….10

3 Study objectives… ……….10

4 Objects and scope of the study… ………11

5 Methodology……….11

6 New contributions of the thesis………12

7 Thesis structure……….12

CHAPTER 1: GENERAL THEORY ON MIXED PROMOTION POLICY 13

1.1 Some definitions of mixed promotion, promotion policies and policy development 13

1.1.1 Definition, nature, role and model of mixed promotion 13

1.1.2 Definition of mixed promotion policies 16

1.1.3 Definition of mixed promotion policy development 17

1.2 Theoretical bases on mixed promotion policies 18

1.3 Content classification of mixed promotion policies 20

1.3.1 Determination of message recipients 20

1.3.2 Determination of promotion objectives 20

1.3.3 Determination of mixed promotion fund 21

1.3.4 Selection of message and media channels 22

1.3.5 Determination of mixed promotion……… 23

CHAPTER 2: CURRENT SITUATION OF MIXED PROMOTION FOR GEM-TVT PRODUCTS OF THAI VAN TUONG ELECTROMECHANICAL JOINT-STOCK COMPANY 28

2.1 General introduction of Thai Van Tuong Electromechanical Construction Joint-stock Company and GEM-TVT products 28

2.1.1 Thai Van Tuong Company Introduction 28

2.1.2 Introduction of GEM-TVT products 37

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2.2 Current Situation of Mixed promotion policy in Thai Van Tuong Company 45

2.2.1 Personal sales policy 45

2.2.2 Marketing policy 47

2.3 Assessment 47

CHAPTER 3: SOME SOLUTIONS TO COMPLETE MIXED PROMOTION POLICY FOR GEM-TVT PRODUCTS OF THAI VAN TUONG ELECTROMECHANICAL JOINT-STOCK COMPANY 52

3.1 Market development objectives of Thai Van Tuong in the next 5 years 2019-2024 ……… 52

3.2 Some solutions to complete the mixed promotion policy 55

3.2.1 Application of social networking tools Facebook 56

3.2.2 Application of e-commerce channels 59

3.2.3 Some other support solutions 61 CONCLUSION, LIMITATION AND IMPLICATION 64

REFERENCES 66

APPENDIX 68

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LIST OF FIGURES

FIGURE 2.1: The organization chart of Thai Van Tuong Company…… 32 FIGURE 2.2: Revenue of grounding products during 2016 - 2018 ……… 37 FIGURE 2.3: Marketing organization chart of Thai Van Tuong Company…39 FIGURE 2.4: The challenges that GEM-TVT must face with ……… 44 FIGURE 2.5: Indirect distribution system of Thai Van Tuong ……… 49

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LIST OF TABLES

TABLE 2.1: Business results at the period of 2016 - 2018……….36 TABLE 2.2: Revenue of the key product in grounding area of Thai Van Tuong Company during 2016 - 2018……… 38 TABLE 2.3: Price list of GEM - TVT lines of Thai Van Tuong Company………… 42 TABLE 3.1: Result of 7 days try-on Facebook advertisement……… 61

is an integral part of any lightning protection system It ensures the conduction of lightning impulse currents from lightning protection devices to the ground and dissipates the energy of these pulses The grounding plays an important role in lightning protection If the lightning protection device is not well grounded (ground resistance is too high), lightning strikes can cause great consequences To obtain the desired ground resistance, in developed countries, Ground Enhancement Material (GEM) is widely used And the existing GEM products in Vietnam are imported from the US, Korea, Thailand, Spain, China with high cost, in each product at different prices that GEM products are also classified in quality, effective duration

of products

GEM is the most advanced product of its kind in the traditional grounding method with properties for medium construction works or more But in the age of constant technological development, together with continuous competition among brands and increasingly high demands of the construction works, GEM is more attractive than the rest of grounding products in all aspects Therefore, it can be said that GEM will be the "hottest" products in the world of lightning protection devices, and the new trend of Vietnamese grounding market in near future

On awareness of this, Thai Van Tuong Electromechanical Construction Joint Stock Company also studied and launched a new product range called GEM-TVT which has been decided to be strategic with the company, gradually replacing the traditional grounding products However, because GEM-TVT has just been at the beginning of its life cycle, the GEM market in Vietnam has only been at the period

of prosperity, so in order to enter this potential market, it is needed to have an

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overall look on marketing environment for the company's GEM-TVT products, thereby making solutions to perfect marketing strategies, helping improve the business performance of this strategic product range That is why I decided to make this thesis: “Some solution to complete mixed promotion policy for GEM-TVT Products of Thai Van Tuong Electromechanical Construction joint stock Company"

2 Study review

- Currently, studies on mixed promotion policy for products (In 4P Marketingpolicy) has not been available, especially there is no research on Mixed promotion policy applying for GEM products in particular

- During my reference, there have been some study theses on products such as

“Making Marketing mix strategies for timber products in domestic market at Tan Phuoc Company Limited” - Nguyen Tan Su, University of Da Nang - 2012 This topic focused on the business marketing environment, from which applying 4P marketing for timber products In addition, the topic "Making Marketing mix strategies for powder coffee of Dak Ha coffee import and export company"-Truong Thi Ngoc Anh, University of Da Nang - 2011 carried out research and analysis of marketing efficiency, then applying marketing mix for product market development

From the overview of the above research situation, I have found that there is

no study topic on Mixed Promotion policy for GEM-TVT products of Thai Van Tuong Electromechanical Construction Joint Stock Company Therefore, my thesis will analyze in depth and provide marketing solutions in this area

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- Proposing measures to improve Marketing strategy for GEM-TVT products

of Thai Van Tuong Electromechanical Construction Joint Stock Company

4 Objects and scope of the study

- The research object of this topic is the marketing mix policy of Thai Van Tuong Electromechanical Construction Joint Stock Company for GEM-TVT products

- Research scope of the project is GEM-TVT product and Marketing policy (product, price, distribution, customer service) of Thai Van Tuong Electromechanical Construction Joint Stock Company

- Table research method: By making use of the internet network, information

is gathered from books, newspapers, magazines, information and statistics from consulting companies Mechanical and Electromechanical Construction, internal company has also found most of the information needed to impress the company to customers Internal information sources are actual information in the company's projects performed outside There is also some information from projects from partners - Sam Long Construction Joint Stock Company - Representative of General Director: Nguyen Anh Tu

- Field survey method: The Company applied online survey method to mainlyperform this survey process The scope of the survey is in Hanoi with the main content of “Surveying the company’s marketing channels ability on Gem Products

” The survey content will be added to the appendix

- Expert method: is a method of economic significance, it saves time, effort,

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and finance to conduct research However, it is mainly based on the intuition or experience of the expert, so it should only be used when the methods have no conditions to implement, cannot be implemented or can be used in conjunction with the methods another method

Therefore, the company selected experts as partners from the company providing consulting and investment marketing services: Bizman Investment Joint Stock Company - Just 8, ASC building 434 Tran Khat Tran - Private expert : Pham Thi

Ha Anh - Head of Sales Department - Tel: 0918378993

6 New contributions of the thesis

- Thesis is the first project to study and develop policy theory of Mixed

promotion for products, showing the characteristics and characteristics of the Mixed Promotion for products and the need for Promotion applications Mixed to develop market for products

- Proposing solutions and proposing the practical capabilities of the

application of the Mixed Promotion to develop markets for specific products such

as GEM-TVT products

- The thesis provides a scientific methodology to review, evaluate and analyzethe practice of marketing activities at Thai Van Tuong Electromechanical Construction Joint-stock Company

7 Thesis structure

In addition to the foreword and conclusion, the thesis layout includes three main chapters as follows:

- Chapter 1: General rationale on Mixed promotion policy

- Chapter 2: Current situation of mixed promotion policy for GEM-TVT products of Thai Van Tuong Electromechanical Joint-stock Company

- Chapter 3: Some solutions to complete mixed promotion policy for TVT products of Thai Van Tuong Electromechanical Joint-stock Company

There are many different definitions and ideas on mixed promotion:

In the book "Essentials of Marketing" by Jermone and William: "Mixed

promotion is the transmission of information between sellers and buyers or other potential customers to influence client’s behavior and viewpoints."

Bussiness Today magazine defines that: "mixed promotion and business

support is the way enterprises widely use techniques to convince different customers

to contact with the target market and the public"

In the textbook "Commercial Marketing" by the National Economics

University, edited by Assoc Prof Nguyen Xuan Quang, from a commercial

perspective in enterprises: "Mixed promotion is one of intentional activities in

marketing by enterprises to seek and promote opportunities to buy and sell goods and provide commercial services Mixed promotion includes main activities such as advertisement, fairs, exhibitions, direct sales, public relations and other promotion activities”

Vietnam Commercial Law 1999 defines: "Mixed promotion is an activity

seeking and promoting opportunities to buy and sell goods and provide commercial services, including advertisement fairs and promotions"

In the Commercial Marketing curriculum of the University, exhibition

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of Commerce edited by Assoc.Prof.Nguyen Bach Khoa who also gave a definition

of mixed promotion: "Mixed promotion is a special and intentional marketing

activity that is directed at offering and attracting customers and establishing a favorable relationship between companies and their partners with key potential customers to coordinate their selected strategic activities and mixed marketing program.”

Thus, mixed promotion is an integral part of mixed marketing, a bridge between production, supply and consumption that directly or indirectly affects customers’ behaviors through information, convince or reminders

 Nature of mixed promotion

An important tool, a core issue of any organization to implement marketing strategies and programs

A function to provide information about products/services to target

customers to convince them

Include messages designed to raise awareness, interest and decision to buy different products or services from customers or consumers as a bridge between supply and demand

 The role of mixed promotion

 For the company

- Mixed promotion promotes conditions for companies in the process of

participation to exist and develop in the market in the most effective way, reducing costs and risks in production and business

- Mixed promotion makes sales easier and more dynamic, thereby, increasing sales and profits

- Improve the image and position of the company in the market

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- Better satisfy the needs of buyers, reduce risks in business

- Mixed promotion activities will help businesses have the opportunity to

develop trade relations with their partners through mixed promotion activities of enterprises with mutual understanding, setting trade relations, applying products and services

- Mixed promotion is not only support for product policies, price policies, and

distribution policies but also enhances the results of implementing those policies

- Mixed promotion is not only support for product policies, price policies, and

distribution policies but also enhances the results of implementing those policies

 For customers

- Mixed promotion is a useful tool to help supply and demand meet, helping

suppliers to understand the needs of the market, thus better meeting the needs of customers

- Help customers have more information to evaluate products/services about

businesses and make the right decisions

 General model of mixed promotion process

- The model emphasizes the key elements in effective mixed promotion process

Companies have to know which customers they want to target, and which ones they want The company must be skillful in coding messages, taking into account how key customers will tend to code the information The company must pass messages through effective communication channels to reach a key customer The company must develop a feedback channel so that customers can respond to their promotion messages

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- Sender: The sender of the message to the other party (also known as the source

or party of the broadcast)

- Message: Gather all the icons that contain the communication content that the

party transmits

- Communication channel: The channel of communication through which the

message goes from the sender to the receiver

- Decoding: The process by which the recipient has a meaning for the symbols

sent by the other party

- Recipient: The recipient of the message sent by the other party (also known as

the audience or destination)

- Adaption: A set of reactions that recipients get after receiving the message

- Response: Part of the response of the person receiving the communication

back to the sender

- Disturbance: Unexpected noise or distortion during the communication

process, the received message is deviated from the original

1.1.2 Definition of mixed promotion policies

According to strategic management book:

"Policy is a system of instructions, leading businesses in the process of

making and implementing strategic decisions."

Policy is a means to achieve the goals of the business According to the author FREDR.DAVID: “Policy is a guide for making decisions and demonstrating

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repeated or periodical situations” is outlined in the book “Concept of Strategic Management” of the Statistical publisher

Based on the views on policies and mixed promotion of Prof Dr Nguyen

Bach Khoa: “Mixed promotion policies are the principles and orientations in

offering customers, establishing the most favorable relationship between companies and customers with targeted customers to coordinate the company's strategic and selected marketing program”

In Vietnam, since the 1990s, promotion activities have an important role that

is indispensable in business operations of enterprises, an effective tool to dominate the market and increase the competitiveness of products/services and business in the target market From the role of mixed promotion, the promotion policy also plays a very important role, because the implementation of mixed promotion activities is not a simple task but it combines a lot of tools and measures, and many factors such

as goals, messages, budgets, etc, mixed promotion activities will be ineffective and harmful to businesses if there is no proper orientation and policy Mixed promotion policies help enterprises to implement strategic objectives of mixed promotion, help enterprises to use effectively, synchronously coordinate promotion tools, promote strengths and limit weaknesses of contact tools, thereby increasing investment efficiency, saving costs, supporting business capacity of enterprises

1.1.3 Definition of mixed promotion policy development

In the textbook, basic principles of Marxism-Leninism give two opinions:

In metaphysical viewpoint: Development is only an increase or a pure decrease in quantity, there is no qualitative change of things and phenomena; At the same time, it sees development as a continuous process, not through complicated, tortuous steps

In dialectical viewpoint: Development is a concept used to generalize movements in the direction of advancing from low to high, from simple to complex, from less perfect to more complete

And the reality shows that the concept of development in the dialectical

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viewpoint is more objective and relevant

The development of this framework-based mixed promotion policy is the search for the most appropriate way and method, including the addition and perfection of the mixed promotion policy already in place to create overall promotion, bringing the greatest effect when finished

1.2 Theoretical bases on mixed promotion policies

Marketers must understand how mixed promotion works and capture the basic elements of the mixed promotion process and the relationship between them There are several different views about this process:

 In the opinion of Prof Dr Nguyen Bach Khoa – Commercial

Marketing Program

In the Commercial Marketing textbook of the University of Commerce, Prof

Dr Nguyen Bach Khoa defined: "Mixed promotion is a special, intentional and

oriented marketing activity in offering, attracting customers and establish a most profitable relationship between the company and key prospective customers to coordinate the selected strategic activities and mixed marketing programs ”

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Prof.Dr.Nguyen Bach Khoa invented a model to plan mixed promotion in the Figure 1.1 as belows:

Recipient

Figure 1.1: The model to plan mixed promotion

According to this model, for each key market segment, the planning process starts with deciding who receives the key and assesses the current acceptance of the brand, image or company brand The next step is through the goal setting and the budget to implement them, proceeding to decide the message and communication channel of the message, encryption and communication when it is received, the message code is solved by the recipient Finally note the response and decide to organize the feedback channel to adjust a communication cycle

 Based on the viewpoint of Philip Kotler

According to Philip Kotler: “Promotion is the information activity aiming at

potential customers It is the activities of exchanging, conveying to customers the necessary information about businesses, service methods and other benefits that customers can gain from buying products or services of businesses as well as feedback from customers so that businesses can find the best way to meet customer requirements.”

Proper design of mixed promotion is a complex process involving understanding what mixed promotion can and cannot do and understanding the

on target

Make a decision on mixed promotion mix

Make a decision on message content

Make a decision

on fund

Make a decision

on channel

Message transmission

Encoding

Satisfaction Decoding

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nature of each tool, the mixed promotion consists of four main components that they must be combined to create a general marketing strategy These four components include: advertising, direct sales, promotions and public relations (PR)

1.3 Content classification of mixed promotion policies

1.3.1 Determination of message recipients

Before implementing mixed promotion activities, the company needs to identify mixed promotion activities with a focus on which customer groups are central, on which market segment determining the key customer; the new company has appropriate deployment programs For example, if the company's key customers are teenagers, middle-aged people, children, women or men, individuals or

organizations, the promotion activities for each of them are different

1.3.2 Determination of promotion objectives

Any strategy or action of an enterprise must have a clear, specific goal, derived from the reality of the business Development of a mixed promotion infrastructure is the same, the goal is the goal that the whole activity promotes, it helps to develop the promotion strategy and orient the use of resources effectively Promotion programs are administered in a clear, reasonable and completed manner, requiring the establishment of carefully interpreted goals, compatible with each program and each company's budget These objectives are explained at the level of permissible and delineated when implementing

The objective of mixed promotion policy should meet the following conditions:

- Suitable for the ability of the business

- Clear, specific, associated with a certain period of time

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 Information objective: Information about new products, notice of special reasons for customers to buy immediately, create awareness about the existence of products, brands, provide information related to benefits of products and usage that these products bring

 Persuasive objective: Convince customers to try products and buy

products, convert competitors' customers into corporate customers, persuade them

to visit some galleries and exhibitions to visit the department and the size of the company

 Reminder objective: Remind customers to choose the best and most

affordable brand to buy: remind, persuade them to renew the use of the product, linking the purchase with some special events, and build a good image of the business

1.3.3 Determination of mixed promotion fund

In order to implement promotion activities, enterprises need to point out a certain budget level based on the financial capacity of the enterprise and in line with the objectives of promotion policies This is a relatively difficult decision for

businesses Now businesses need to make those decisions including: what is the total budget for promotion programs and how to allocate funds to promotion tools? Four methods can be used to determine the budget for mixed promotion as follows:

Methods depending on ability: The requirement of this method is that the company is capable of making decision on the budget for mixed promotion at that level This method does not take into account the impact of media on consumption,

on sales So this budget is not stable every year and hinders the formation of the company's long-term market strategy

Method of determining by percentage of sales volume: This method requires the company to set a budget for communication by a certain percentage compared to the expected sales Companies often take the previous year's sales or the adjacent business cycle to fix

Competitive equilibrium method: This method requires the company to determine its communication budget level equal to that of competitors in the market area and in the business cycle

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Methods of goals and work: This method requires businesses to form their own communication budgets on the basis of specific goals and tasks that need to be addressed This means that you must first determine the costs of those

communications

1.3.4 Selection of message and media channels

1.3.4.1 Selection of mixed promotion message:

Selection of mixed promotion message includes basic content as follows:

 Message content: The message communicator must visualize what will tell the target public to create the desired response This process is called in different ways to draft the invitation, the topic or the idea In general it is to mention some of the benefits, motives, characteristics or reasons why the public needs to think about or research products

Can distinguish three types of offers:

A reasonable invitation aims at public interest These offers will be quality

presentation messages, economic, value or use of the product

A sentimental invitation to try to evoke bad or good emotions motivates the

purchase

A moral invitation aims at the public's sense of right and serious They are

often used to encourage people to support social careers, such as keeping the environment cleaner, having a more legitimate clan relationship, ensuring equal rights for women and helping the vulnerable people

 Message structure: The message structure must be logically logical to enhance the awareness and attractiveness of the content to the recipients when defining the message structure that the messenger must solve the following three issues

Firstly: Should it make a definitive conclusion or reserve that part for the

recipient? Usually the conclusions made beforehand for customers will be more effective

Secondly: Present only "should" or both "should" and "should not" Usually

the argument on one side is more effective than analyzing both sides

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Thirdly: Should we make a persuasive argument right at the beginning or

after that? If presented at the beginning, it will attract attention, but at the end of the attention will be greatly reduced

 Form of the message: The message is passed through the media to the recipient so the message needs to have a vivid form In a print advertisement, the media must decide on the title, words, illustrations and colors To attract attention, the message needs novelty, contrast, catchy title images, special sizes and locations

 Source of the message: The messages are coming from but the source of attraction will be noticed and remembered more Highly reliable sources will increase persuasion; there are three factors increasing the credibility of the source: expertise, credibility, and affection

1.3.4.2 Selection of media channels

Choosing effective media is a very important issue Currently the media consists of two distinct media channels and mass media channels

- Communication channel is unique: In this channel, two or more people will directly communicate with each other They can communicate face to face, over the phone or by mail on a personal communication basis

- Mass media channel: Is the orientation of communication methods, conveying messages without personal contact or feedback Includes mass media and selective media including print media (newspapers, magazines, direct mail), electronic media (radio, television), display media (table advertisements, signs ) aimed at specific recipients

Although individual communication is often more effective than mass media, mass media is still the main method to stimulate individual communication

1.3.5 Determination of mixed promotion

1.3.5.1 Mixed promotion tools

 Advertisement:

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A form of business information services that is non-personal about the ideas of goods and services paid by the advertising owner to persuade or influence purchase behaviors of a certain group of people

Advertisement contains some basic characteristics such as: Public introduction, spread, expression and amplitude, insensitivity Advertisement can be made in panels, newspapers, on radio, TV, internet, etc so information will be transmitted very quickly, contacting with many good customers to create the brand image for businesses However, advertisement does not select customers to evaluate their feelings

 Personal sales:

It is the commercial behavior of traders, the direct communication between sellers and potential customers Personal sales is one of the most effective tools for commercial businesses in a certain stage of buying process, especially in giving buyers a preference, confidence and action There are three characteristics in featured sales:

 Cultivation

 Direct sales satisfaction: Causing buyers to feel certain constraints to hear what sellers say, buyers must pay attention and respond, even if it is just a polite thanks

 Direct interaction: Direct sales involves a lively, instant and interactive relationship between two or more people Each side can observe each other's needs and personalities with their own eyes and make arrangements with each other

 Digital Marketing Promotion:

Communicate directly with key customers for sales purposes Digital

Marketing Promotion has some of the following characteristics:

Non-public: Messages are often delivered to a specific person, not to others Customer discretion: Messages can be drafted based on customers’ demands

to attract them

Update: can draft the message very quickly and send it to someone

 Public Relations:

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Making good relationships with different public types by making people sympathetic to you, building up a good image and handling or preventing gossip, stories and incidents Public relations include the following characteristics:

- Higher reliability: Stories and details seem authentic and credible to recipients and advertisers

- Overcoming prevention: Promoting offers can reach many prospective customers who have shied away from offers and advertisements The message comes to them as news, rather than communication for sales

- Dramatic: Like advertising, visitors have the potential to make the company or items more attractive

- The solicitation, which clearly contains the invitation to push customers faster

1.3.5.2 Bases to determine mixed promotion

As discussed above, each tool has its own characteristics and costs Therefore, enterprises need to consider and coordinate the tools together to form the most effective mixed promotion

 Determinants of mixed promotion:

- Characteristics of items - market: Performance of mixed promotion tools varies depending on consumer market or industry market Commercial companies often spend most of their advertising and Personal sales, followed by promotion and eventually public relations Companies that trade in industrial goods prioritize funds for personal sales, followed by promotion, advertising and eventually public

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relations In general, personal sales are mainly used in the sale of value, quality, high-tech, high-risk goods and in markets with a small but large number of sellers

Advertisement is less important than Personal sales in the industry, but it still plays a important role Advertisement can raise awareness and understanding of products, opening up purchase clues, creating legitimacy and protecting buyers

On the contrary, Personal sales can contribute significantly to the consumer goods market

- Push and pull promotion mechanisms: Mixed mixed promotion is strongly influenced by the company choosing a push and pull mechanism to generate sales volume

The push mechanism requires marketing activities to use dynamic sales and commercial advertising forces to push goods across the channel to key consumers The cost-effective pull mechanism for marketing activities is advertising and consumer promotion to create market demand If effective, consumers will ask to buy from retailers; retail companies will ask to buy and put pressure on the wholesale companies and continue to attract the manufacturing company

- The availability and acceptance phases of buyers: The promotion tools are cost-effective in different stages of the buyer Advertising and public relations hold the most important roles in the known period Full understanding of customers is influenced mainly by advertising and personal sales Customer confidence is influenced by personal sales and a smaller part of advertising and promotion The end of the deal is primarily influenced by personal sales and promotion The re-order is also subject to the main impact of personal sales and promotion, and a certain part of advertising reminders It is clear that advertising and propaganda are the most cost-effective in the early stages of the process through buyer decisions, and personal sales and promotion are most effective in the end stages

- The life cycle stages of the item: Different stages of the life cycle adapt to different communications:

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+ During the deployment phase, advertising and propaganda activities are very appropriate to create awareness It must be followed by personal sale and sales promotion

+ In the period of growth, advertising and propaganda as appropriate to accelerate sales, other activities may decrease depending on conditions

+ During the saturation phase, promotion activities are most effective Other activities can be maintained at a moderate level

+ During the recession period all communication activities were reduced and some were excluded Advertisement is only maintained at the prompting level, promotion becomes important because it needs to promote positive effects

1.3.6 Inspection and assessment on promotion effectiveness

After conducting the mixed promotion, enterprises need to re-check the results, and then make an assessment of the effectiveness, the aspects that have been done and not done in the plan and objectives, to have the improvement measures The results of mixed promotion policies can be assessed through two groups of indicators:

- Sales: Compare sales before and after implementation of CSXT and estimate sales generated by promotion tools in order to evaluate the cost effectiveness and human resources for promotion policies

- Communication efficiency: After implementing the enterprise model,

assessing the effectiveness of using communication channels, how does it affect customers?

The objective of the inspection and evaluation of the effectiveness of the mixed promotion is to find out what can be done or not, compared to the original goal and the different business stages from which to suitably adjust The adjustment measures must be consistent with the business situation and existing resources of the enterprise, the managers need to be cautious, not to be impatient Adjustment is not only used with completed jobs, but also to adjust the objectives and budget of mixed promotion in the coming years

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CHAPTER 2: CURRENT SITUATION OF MIXED

PROMOTION FOR GEM-TVT PRODUCTS OF THAI VAN TUONG ELECTROMECHANICAL JOINT-STOCK

COMPANY

2.1 General introduction of Thai Van Tuong Electromechanical Construction Joint-stock Company and GEM-TVT products

2.1.1 Thai Van Tuong Company Introduction

2.1.1.1 Overview of establishment and development process of Thai Van Tuong Electromechanical Construction Joint-stock Company

Thai Van Tuong Electromechanical Construction Joint-stock Company was established on September 04, 2009 and issued the business registration certificate

No 0103039568 by Hanoi Department of Planning and Investment in compliance with the Corporate Law of the Socialist Republic of Vietnam

Company name in Vietnamese: CÔNG TY CỔ PHẦN CHẾ TẠO XÂY LẮP CƠ ĐIỆN THÁI VẠN TƯỜNG

ELECTROMECHANICAL CONSTRUCTION MANUFACTURE JOINT STOCK COMPANY

Abbreviated name: TVT.EC, JSC

Head Office: No 1122 Nguyen Khoai Street, Group 1, Linh Nam Ward, Hoang Mai District, Hanoi

Tel: 84-4- 36442478

Fax: 84-4- 36434642

Email: thaivantuong@gmail.com

After 8 years of construction and development from a manufacturing facility

of motorbike parts (supplying to Northern provinces), in 2009, Thai Van Tuong Electromechanical Construction Joint Stock Company (abbreviated as TVT EC, JSC) was officially established, expanding business investment in manufacturing products in the mechanical industry Activities of TV EC., JSC are not limited to the

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whole North in Vietnam, but also, in 2010, branch representatives of Thai Van Tuong Company were present and operated in all three regions, products of the company have gradually become popular nationwide Thanks to focusing on construction of the company right from the first years by its firm steps, Thai Van Tuong Company has overcome many difficulties and challenges to become one of the companies with the scale and reputation in electromechanical fabrication and construction

2.1.1.2 Organization chart of Thai Van Tuong Company

Figure 2.1: The organization chart of Thai Van Tuong Company

(Source: HR Department)

Strengths:

- Avoid overlapping in management

- Highly specialized

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- Clear assignment to each department and staff

Weaknesses:

- Rather bulky management model, big cost

- Slow communication between departments

- Complicated work coordination between departments

- Ineffective cooperation between departments

2.1.1.3 Objectives of the company

* Vision and mission of the company

Vision: In the branding strategy at the period of 2010-2020, Thai Van Tuong Company is striving to become one of the leading private companies in electrical mechanics in Vietnam by 2020

Mission: Supply products to improve the quality of life, meeting the maximum demand of customers, protecting the environment, continuously innovating, increasing production efficiency and product quality, meanwhile, building up the organizational structure in the spirit of solidarity and mutual benefits Thai Van Tuong Company makes always their efforts and promises to bring a good material life and spiritual values not only to the company but also to their customers, partners, shareholders and the community

* Objectives of the company

The first objective of Thai Van Tuong Company at the beginning of 2015 is

to achieve about 30% market share of total GEM in Vietnam with annual growth rate of 200% It is a rather challenging number for the company’s production and sales team, but it is not an impossible goal if the company offers a marketing strategy completely and effectively for this new product line to enter this new market

The second objective is diversification of models, product types, creating suitable products with customers’ demands, actively looking for outputs in markets, training and upgrading of sales skills for employees in order to obtain the final goal

- Sales of industrial and civil power equipment;

- Manufacture, consultancy and installation of electrical boards, panels of all kinds and power distribution devices;

- Consultancy, supply of solutions for relevant industries;

- Construction of industrial and civil power works 110kV;

- Sales and installation of electromechanical systems such as ventilation system, air conditioning system, heat supply system, industrial refrigeration system, water supply and drainage system, communication system, fire protection system, security system, lifting system, etc

- Construction of industrial and civil works;

- Supply and manufacture of equipment for relevant industries, etc

With the cooperation of foreign experts, together with technical staff, professional design consultants, the company always tries their best to meet the customers’ satisfaction

2.1.1.5 Products and markets

** Products

* Equipment supply and solutions for industrial and civil works

- Medium-voltage switch gears up to 35kV (OEMB - Italy)

- Low-voltage switch gears (Mitsubishi)

- Industrial automatic devices (Solcon, Mitsubishi, INVT)

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- Fire resistance power equipment (Feam - Italy, Walsall - UK)

- Propagative and direct lightning protection equipment (KEC - Korea, LPS - Malaysia, LEA - USA)

- Partial discharge diagnostic and monitoring system for high voltage equipment (PowerPD - USA)

- Grounding and classical lightning protection system (Kumwell - Thailand)

- Electrochemical anti-corrosion system (Coromatter - India)

- Insulation and anti-corrosion coating (Midsun - USA, SK Formulations - India)

- Materials and equipment manufactured by TVT.EC., JSC

* Consultancy design and construction of industrial and civil works

- Consulting, designing, supplying and constructing mechanical and electrical systems (M&E) for industrial plants, buildings and civil works;

- Consultancy, design, supply and construction of lightning protection and grounding systems for factories, power stations, high buildings;

- Consulting, designing, supplying and installing electrochemical corrosion systems for petroleum plants, hydro-power plants, irrigation dams, steel pipelines and underground structural units

anti-** Markets

At present, Thai Van Tuong Company is focusing on 3 main markets: construction enterprises, branches of EVN and telecommunications companies; general mechanical and electrical contractors However, the main revenue of the company is from sales of products supplied to construction firms

For EVN branches and communication firms: Due to the impact of the economic crisis and weaknesses in management, ineffective operation of EVN subsidiaries, causing the delay in settlement, affecting profits and business operations of TV EC., JSC The fierce competition in supplying goods to

Revenue from business activities of the company has not been stable recently Business results for the last 3 years, from 2016 to 2018 are shown in Table 2.1

Table 2.1: Business results at the period of 2016 - 2018

(Source: Financial and Accounting Department)

The data in Table 2.1 shows that the business situation of the Company for the past few years has not been good, the turnover and profit have fluctuated for years, and the revenue in 2016 was 123 billion VND, down to 96 billion VND in

2017 due to the impact of economic crisis The main cause of this event was due to the increasingly difficult business environment where the rival companies had to compete fiercely in both price and new product features and technologies Moreover, as the international petroleum price constantly increased, all costs of raw materials and transportation raised significantly, resulting in higher production cost while the product price still had to keep in competition It made business activities

of the company more difficult

2.1.1.6 Result of manufacturing grounding products of Thai Van Tuong company 2016-2018

After the time of hot growth, since 2008 Vietnamese economy has entered the difficult period due to the direct impact of global and regional crises However, macro-economic policy of the Government has stabilized operations for businesses and helped production and circulation not delayed The transportation businesses in general and Thai Van Tuong Company in particular have still developed through the income obtained

Unit: Million VND

Revenue of both products 27,001 29,200 32,396

Table 2.2: Revenue of the key product in grounding area of Thai Van Tuong

Company during 2016 - 2018

(Source: Business Department)

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Figure 2.2: Revenue of grounding products during 2016 - 2018

GEM-TVT has made a great contribution to the business on grounding products (80% in average) Growth is, however, slower than that of total grounding products Changing this structure in favor of the company is the responsibility of marketing activities

The current research and development activities are under responsibility of the Research & Production and Planning & Investment Department Making proposals to the company leader’s research projects on new products and technologies Inspecting, controlling and testing input materials in compliance of production requirements Researching and improving production technologies, detecting irrationalities in project construction

- Strengths: Use modern technologies in business production and management

- Weaknesses: Coordination with other Departments and units is poor in researching and developing new technologies and products

2.1.1.7 Marketing organization chart of Thai Van Tuong Company

At present, in the organizational structure of Thai Van Tuong Company, there is a Marketing department However, the research on real estate market has not been paid much attention; the market situation has been informed mainly through newspapers, widely publicized studies of consultancy companies These figures are usually not highly accuracy, but information is for the purposes of the organization who would like to post

Figure 2.3 shows that the marketing organization chart of Thai Van Tuong Company is geographically structured The head of business department in charge

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of marketing covers the whole marketing process of the company Assisting the head of the business department is the responsibility of the regional specialist, performing all marketing functions and directing the regional chiefs of business offices on operations Marketing activities of the company are mainly advertising, marketing, relying on communication programs, press, exhibitions and fairs etc For recent years, Marketing has obtained some certain achievements According to

a survey of customers, 62% of them know about the company’s projects through advertisement information Thus Marketing has created an image in the mind of customers

Figure 2.3: Marketing organization chart of Thai Van Tuong Company

(Source: HR Department)

The advantage of this model is very suitable with businesses that have wide market coverage nationwide such as Thai Van Tuong Company However, because the marketing force is still weak, regional specialists have to perform their operations on both product and service areas with very different characteristics, so the work efficiency is not high This is also the problem arising to complete the

HEAD OF BUSINESS DEPARTMENT

Phụ trách marketing Marketing

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Marketing organizational structure of Thai Van Tuong Company in the direction of specialization

In terms of sales, the business department is in charge of it This department

is responsible for seeking and developing customer system Customers will contact directly with the department staff if they have demands on products or using consultancy, design and construction services of electrical and mechanical works The business and marketing departments are liable for receiving any feedback from customers in any form Customer feedbacks will be collected by the staff in the two departments and analyzed for causes, taking appropriate measures In the case that feedbacks are customer complaints, the two departments above will open the request forms to handle their feedbacks

The Director is responsible for assigning staff members to follow up with customers, gathering opinions of customers on products and services

- Strengths: Sales staff is professional, dynamic, enthusiastic, marketing activities have focused on building up the image and brand for the company

- Weaknesses: Market research has not been properly paid attention by the company, the distribution and sales systems are still narrow, not widely developed

2.1.2 Introduction of GEM-TVT products

2.1.2.1 Characteristics and cost of products GEM-TVT

Grounding resistance plays an important role in electrical and lightning protection engineering In principles, the ground resistance value is as low as possible However, in arid, gravel and sand regions, hills, etc., the grounding resistance value is very high Therefore, reduction of grounding resistance in the system is very important and necessary The problem is how to make an efficient and economical grounding solution

In many cases, the cost to reduce the grounding resistance to less than 10W

is very high, not the case of under 1W The usual solution is to increase the number

of metal electrodes, or add salt, charcoal, and other conductors around electrodes

to create a new apparent electrode with a diameter of 100-200mm Thus, the grounding resistance value is significantly reduced, possibly from 50% to 90%.

That kind of chemical, in English, is called GEM (Ground Enhancing Material, is a superior conductive material that improves grounding effectiveness, especially in areas of poor conductivity) And in Vietnamese, it is called GĐT, standing for the 3 first letters of Resistance Reduction In Vietnam, this product has been used for some recent years These products are imported from USA, Japan, Thailand, China, Korea, India, etc with high price

Thai Van Tuong Electromechanical Construction Joint Stock Company has researched and manufactured GEM product successfully and named GEM-TVT with the cheaper price, equivalent quality and certified for quality accreditation by Vietnam Institute of Agricultural Engineering and Post-Harvest Technology - Electrical and mechanical Laboratory VILAS 019

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8 GT-XDE 55 - T1 DE 55% content of barrels is 11.34kg 619,000 619,000

9 GT-XDE 55 - T2 DE 55% content of barrels is 22.68kg 909,000 909,000

Table 2.3: Price list of GEM - TVT lines of Thai Van Tuong Company

(Source: Sales Department)

to maintain electrical conductivity

Environmental protection: Does not affect the soil nature; Do not make toxicity or water pollution

Usage: Easy to transport and use; use in dry or wet form; quickly absorb moisture from the soil and freeze; reduce the size of the grounding system when traditional methods can not meet

* Specifications

- Resistivity of Resistance Reduction is r ≤ 12 Wcm

- GEM in packaged powder form (normally 11.36 kg/package)

* The scope of use

Resistance Reduction chemical is used in grounding systems of power, telecommunications and lightning protection, especially in areas with high resistivity that traditional treatments can not handle to meet grounding requirements

as allowed or the cost of which is very high Particularly:

- Grounding systems of transformer stations, power stations;

- Grounding systems of electrical poles on super-high voltage, high voltage, medium voltage and low voltage lines;