MARKETING INTERNATIONAL MKT601 FINAL ASSIGNMENT

Marketing quốc tế là công cụ giúp các doanh nghiệp mở rộng thương hiệu, mở rộng thị trường, mở rộng thị phận ở qui mô toàn cầu. Module này còn giúp chúng ta các công cụ để thâm nhập vào một thị trường quốc tế mới.

MARKETING PLAN FOR

UBIS

CONTENT

Page

Executive summary 3

Introdution 4

P a g e | 1

COURSE CODE:

COURSE TITLE:

MARKETING IN A GLOBAL

ENVIRONMENT

Lecturer:

UBIS

SEPTEMBER 202 00

COURSE CODE:

MKT 601

Page

Executive summary 3

Introdution 4

Marketing analysis 4

Marketing objectives 8

Marketing strategies 9

Marketing budget 11

Control & valuation 12

References 14

I EXECUTIVE SUMMARY

Nike is a world leading company in the field of sports equipment and accessories however this position is under severe competition by he competitors Adidad and Puma As the traditional markets such as North America, Europe is becoming cramped on the quick feet to develop and dominate in the new markets that are vital strategy to strengthen the leading position of, and Vietnam is one of the potential market, by:

- Vietnam is a country with a population ranking of 14th in the world, with over 92 million people, of which less than 65 years accounted for more than 92%

- A middle-income countries, about U.S $ 1,540.00 / year

- A national have traditional sports

- Economic growth, high income earners among the highest in the world - this is the class conditional demand possession of high quality designer goods

- There is an open culture, popular high-quality foreign goods

- With favorable geographical location and preferential policies for foreign investors

- As one of the countries with technical and production capacity world's largest shoe Marketing strategy:

- Select each of the footwear business with reputable co-production, the finished product in athletic shoes and sports apparel products

- Object target customers are young people, with incomes> 9,000 USD / year in the country and exported to other markets around the world

- Distribution: Found stores selling products in the largest commercial center in TPHM, Ha Noi, Da Nang and Can Tho as Diamon, Pakson, Vincom, Trang Tien for sale in the country and the warehouse on world …

- randing to finance sports athletes have famous, such as ethical: Nguyen Tien Minh -badminton racket international level, Le Quang Liem - chess players and chess world class, team Vietnam U19 ball - the team is well trained, and technically capable of bringing glory to the football through Vietnam

- Solution Value (CPV): create an online community Nike.

Financial Goals:

- Export 158 million pairs of shoes in 2014

- Domestic consumption of 2 million pairs of shoes in 2014

II INTRODUCTION

Nike is a multinational company based in the U.S Business activities are footwear and sports equipment Nike is the most country in the world and is planning to enter the market of Vietnam's 90 million people

Revenue and Fortune 500 ranking of Nike from 2008-2012 as follows:

Source: money.cnn.com

The products that Nike are trading as follows:

Clothing and accessories:

Footwear

The other sports equipment

Source: google.com.vn/images

Nike products that want to invest in Vietnam's major footwear and sports apparel products

III MARKET ANALYSIS (the approach: from close to far, from outside to inside, from the

macro to the micro)

1 Vietnam PEST Analysis

- Political & Legal Environment

Vietnam is a country with a stable political regime: from 04/30/1975 to now, Vietnam Communist Party is the only party leader and through Therefore, no riots national scale

and no competition, between the overthrow of political parties However, the reverse of the one party is a lack of transparency, lack of democracy and bureaucracy, corruption

As reported by the organization Transparency International in 2012, Vietnam ranked 123/176 countries and territories with 31/100 points, which ranks lowest in Somalia (Figure 1)

Vietnam has a policy calling for foreign investment with attractive incentives such as corporate income tax, import tax, rent, advertising costs proportion of the total cost Details refer to1:

However, a problem that developing countries are often vulnerable to the policies and laws have lower stability, intellectual property law is not yet operational management and strict policies often increase minimum wage faster than planned

- Economic Environment

Vietnam is one of countries with economic growth rates are very impressive in Southeast Asia and in the world at a rate of 7:23% growth from 2000 to 2010 (Figure 2)

Vietnam 2012 GDP of about 136 billion U.S dollars, per capita income of about U.S $ 1,540.00 / year, is between countries with average incomes

Growth millionaire Vietnam is growing rapidly, up 33% from 2011 to 2010 and the highest in Asia2

Vietnam has favorable geographical position in international trade, as an official member

of the largest organizations in the world economy such as the WTO, ASEAN, ASEM, APEC As of 09/18/2013 Vietnam is a member of 63 international organizations and relations with more than 500 non-governmental organizations worldwide3

- Social & Culture Environment

Vietnam Population as of May 7/2013 about 92.477 million people, ranked 14th in the world and accounted 1:32% of the global population 4

Vietnam Civil hobbyists prefer foreign goods, international brands of high quality Personality of Vietnam: less conservative, flexible, open to good and new ones, as advocated "inclusion not soluble" Passionate about fitness and sports Thousands of sports events held across the country each year as well the Phu Dong, the sport of the Board, industry, trade unions, can, by the Company, to the enterprise for the

1http://thuvienphapluat.vn/archive/Luat-dau-tu-2005-59-2005-QH11-vb6916.aspx

2Công ty Merrill Lynch Global Wealth Management và Hãng Tư vấn Capgemini (Mỹ) thực hiện năm 2011

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professional and semi-professional of business disciplines such as football, martial arts, badminton, table tennis, tennis, volleyball, golf

- Technological Environment

System information technology, media, and technology products in Vietnam are very popular and have a high growth rate According to WeAreSocial research - a research company on social media globally, Vietnam has 34% of the population equivalent of 30.8 million Internet users, 8.5 million Facebook users, more growth high and is rated as one

of the highest in the world (Figure 3)

In addition, the rate of use of television, radio of Vietnam nearly 100%, of which more than 60% of cable and satellite television

=> This enables the advertising, media products that are easy, quick and popular

According to Footwear Association, Vietnam currently has about 500 footwear enterprises, contribute about 10% of annual exports and ranks 4th in the world of footwear exports Especially TPP Union - economic cooperation agreements associated preparation Pacific force includes 12 countries: the U.S., Japan, Singapore, Mexico, Astralia and Vietnam Thus, if market participants in Vietnam, they will take advantage

of tax incentives, technical, personal and the system of production of footwear

2 Potential market

- Global Market

The world population is increasing, it is expected that nine billion people in 2050, including the percentage of income from about U.S $ 9,000.00 / year (this is the group of customers can use the product of) accounted for about 51.43% and this percentage is increasing (Figure 4) So the potential of the global market in the future will be extremely large

The sports shoe market is estimated to reach 84.4 billion in 2018 dollars, of which the Asian market accounted for more than 30% and still occupied the leading position (as Transparency Market Research)

China, India - these countries for the processing of shoes is steadily less attractive due to labor costs and other costs are higher While production costs in Vietnam are still relatively low

- Vietnam Market

Vietnam's income increased sharply, upcoming, expected income ratio> 9,000 USD / year accounted for over 10% of the population # nine million people This is a fertile ground for the development

Production capacity for sports shoes and apparel products leading, No 4

Vietnam prepares to become a member of the TPP (Trans-Pacific Strategic Economic Partnership Agreement), which makes the rate of the member countries will reduce the =

0, so the company in the United States, a TPP members will have many competitive advantages over investing in non-TPP countries

In addition, Vietnam is the work of many other large organizations around the world such

as the WTO, ASEM, BTA, AFTA , this is an opportunity for business environment with international standards

3 Vietnamese Consumer Behavior

- As a national sports enthusiast, so demand for footwear and sports accessories are great

- A high-quality foreign goods: best meets this standard

- Taking into account the high degree of, as well as most other Asian countries, with the largest communities: this maid pharmaceutical sale better Specifically in the following example: a chance to play tennis because the degree of a person buys a pair of shoes is the first to have a good quality service feet, the second is to be able to express themselves, play in style At the same time, as the community members in the Assembly should regularly sharing, exchanging, evaluating the quality plus the degree of it from other members of their shopping and branded shoeswith high quality

- Consumer Behavior Trend: - With the inherent properties as analyzed above plus incomes lead to increasing demand for high-quality branded thrive

4 Competition

Sports footwear and clothing products are one sector with fierce competition In addition, competing with products such as the international brand Adidas, Puma, Reebok, new balance ., also compete with domestic companies such as Bita's, Biti's, Hiep Hung, Thien Loc Since more than 90% market share in Vietnam sports shoe belong to the Company in the country, the remaining 10% of the premium segment for luxury brands like

5 SWOT Analysis

- Strengths

Brand sports shoe and accessories world number 1: so easily attract customers

The management, supervision, operation of professional, modern this ensuring product quality, service quality

Engage a team of highly qualified human resources: strategic planning will be correct and appropriate

Having long experience in multinational business => control and contingency planning policy, exchange rates, raw materials, personel, communications and cost

- Weaknesses

Product quality inconsistency: hardly has own factory to product quality depends largely

on the manufacturing partner Although making process is a very rigorous quality and direct staff supervision, but this still does not guarantee the quality of each product in the similar distribution outlets

Quality of service heterogeneity: by systematic business stretches worldwide, with hundreds of thousands of personnel from many countries with different cultures and different knowledge levels should the quality of service is the difference between the point of business is inevitable

Easy to catch receiving criticism from international human rights community, trade unions, environmental management by just about product quality, the problem is due

to the outsourcing partner self-control: such as recruitment, welfare policy, environmental policy, tax policy and compliance with laws So when there is a problem due to the processing caused constructive criticism well, leading to image, brand also affected by

's strategy of producing products in Vietnam only needs serving overseas in Vietnam needs to be met from imports in 3rd countries like Thailand, Indonesia should be a very high price, speed delayed supply of goods and high inventory costs

- Opportunities

Vietnam is a member of the TPP should tax import and export of raw materials in the block = 0, so the strategies to take advantage of this is to increase investment in Vietnam; Export production from Vietnam Men in the transshipment warehouses and demand for the country in the cubic

Vietnam political stability should be the limit of social unrest, making long-term peace of mind

Cost of labor, land, buildings, water and electricity in Vietnam is quite low So costs will reduce, and increase efficiency

- Threats

The high-quality materials in the industry has to import most of it will increase costs 90% share of the sports shoe are domestic companies, income is not high Vietnam must take steps to fit firmly and pull as well as market share

Industry of Vietnam logistic stub should export transportation is largely dependent on foreign shipping lines => time-consuming and cost

6 Market entry strategies

- For the production: implementation of strategic contract manufacturing, processing with the shoe manufacturing company in Vietnam This strategy has the following advantages: Consistent with the overall strategy of

Infiltration and exit the market quickly

Reduce the cost of investment and financial personnel management

Take advantage of market products

There are downsides to the analysis of the weaknesses in the SWOT matrix

- For the local business market and product quality control: Establishment of company 100% with the following functions:

Vietnam Market Research

Suggested product strategy: what products sell, features and performance characteristics, style, size, source: imported or produced from domestic partners

Establish pricing strategies and distribution channels

Center warranty, maintenance, after-sales and customer care

There is also an important function is to monitor manufacturing processes, monitor contract compliance and product quality of contract manufacturing partners

IV MARKETING OBJECTIVES:

Financial:

- Export 158 million pairs of shoes in 2014

- Domestic consumption of 2 million pairs of shoes in 2014

Non financial

- Brand is at least 50 million people in Vietnam know 2014

V MARKETING STRATEGIES:

1 Strategic orientation of 's global:

- Regarding the product: Focus on the product segment sports shoes, the product sports apparel and sports equipment to high-quality value-added

- Regarding income: focus on class with average income (about 9,000 USD / year) or more, as this is the group of customers can afford to use high-end products by

- For ages: focus on the customer group aged 14-30, according to the study because of , this age need to use twice the remaining age groups

- On the national focus on sales to the U.S market (the market is up over 40% of global revenues ) and developed countries, gradually shifting to the developing countries as well

as the Potential markets At the time of the contract manufacturing outsourcing production in the country has a competitive advantage

2 Assessing market potential and choosing target markets or segments: Characteristics of Vietnam market are more compatible with the selected strategic force

- For the supply of product strategy, Vietnam is the best selection for power:

Production level of world-class industries

Competitive cost

Favorable trade position

As a member of many important economic alliance

- For business strategy, Vietnam is a good choice because:

Ages 14-30 segment of Vietnam more than 20 million people

Segment income> 9,000 USD / year more than 9 million people and income growth rate

is increasing

Culture and personality of Vietnam is very convenient to

The main competitors of the world was in Vietnam Nam , cannot procrastinate

3 Product-market decision

Products selected for Vietnam market: focus on sports shoe and apparel products, and other products are subsidiary

4 Strategic target approach

- For the manufacture of finished products

held a launch event in Vietnam, in which the key ingredient is inviting businesses in the footwear and apparel industry

Organization of procurement contract manufacturers, selected approximately 40-50 business reputable, qualified, with professional management system and without scandal

To supervise compliance with the contract manufacturing business of winning bid

Distribution to focus on fine ordered by at US

- For business: due to market high-end sports shoes Vietnam is still relatively primitive understanding of product features in extent and magnitude of the relatively small market segment should minimize the charges proposed approach applied marketing strategies regardless selective, as follows:

- Products regardless of age

- Differentiated products in terms of features such as: football shoes, tennis shoes, running shoes, tennis dresses, outfits soccer match specific size of South East Asia

In particular, products sold in Vietnam must be imported, not the products produced in Vietnam, this has been the following benefits:

- Branded imported

- Higher profits without fear of authorities looking.

- Avoid the smuggled goods from the processing facility to disrupt markets and market prices of brand

5 Positioning

Promoting the advantages of brand further cultural features of Vietnam, to the option proposed in the direction "of sport performance for the discerning professional." With this positioning product requirements: high quality, suitable for hot and humid climate of Southeast Asia, youthful design, fashion and color with bright colors, luxurious

6 4P1C (strategy for commercial banks in Vietnam market)

a Product

- The product size fit people of Vietnam and Southeast Asia: about 37 to 42

- Being imported from the warehouse in Southeast Asia, participating TPP as Malaysia, Singapore

- There is sweat absorbent material strengths to match the characteristics of the humid Southeast Asia

- There distinguishing product features: soccer shoes, tennis shoes But do not distinguish the taste of the age and gender

- In addition, the main products are shoes, sports shoes and clothing, also sell other products such as bags, luggage, socks, backpacks

b Price

The value of global policies to keep brand and profit

c Place

- Distribution system, divided intothree phases:

Phase 1: open approximately 20 business locations in major cities such as Ho Chi Minh City, Hanoi, Da Nang and Can Tho Position is located in the major commercial centers such as Pakson, Diamon, Vincom, Trang Tien Plaza

Phase 2: open of business in 10 provinces to develop as: Ba Ria-Vung Tau, Dong Nai, Binh Duong, An Giang, Hai Phong, Bac Ninh ., well placement in the major commercial centers

Stage 3: Allow some franchise businesses for sale products in provinces and regions that have not store

Set up two cubic center is located in Ho Chi Minh City and Hanoi to import and distribute goods to the business location

d Promotion

- Set one customer care center in the city, we can set location to the distribution center, the center's mission:

Free Switchboard Toll 24/7: professional receiving, forwarding and processing feedback information to customers, partners, agencies and internal management

Make warranty and product maintenance

Designed for the advertising, PR, promotion, event

Registration of intellectual property rights

Established website with full information: leadership, product information, functionality, utility, price, and store the list of agents, information cooperation, sharing forum, the communication, consultation, and feedback received orders, receive and respond to inquiries, complaints