Implementing marketing mix for logistics services of DHB logistics CO , LTD

Meanwhile, foreign companiesabout 25 multinational companies, accounting for 70-80% market share oflogistics services in Vietnam with a range of activities in nearly 100 differentcountri

Logistics activities make an important contribution to the distribution ofgoods from production to consumers and also a "global commercial bridge".Today's logistics activities are not only associated with warehousing, freightforwarding, but also planning, arranging raw flow, materials from suppliers tomanufacturers, then moving goods from production stage to the final consumer,creating interconnection in the whole society according to optimization plans,reducing the cost of rotation and storage

After 7 years of Vietnam joining WTO, the market of Vietnam's logisticsservices has seen positive changes with the number of enterprises operating inthe industry growing fast and having high growth rates If we look at the pace oftrade development in our country, which is also the development target oflogistics service industry, we will see import and export turnover increase by1.86 times, the domestic retail market will increase by 20- on average 25% peryear and as a result, the logistics service sector also increased by 20-25% peryear However, according to statistics, Vietnam logistics companies only operate

in domestic or some regional countries, and mainly act as agents or undertakeeach stage for international logistics enterprises Meanwhile, foreign companies(about 25 multinational companies, accounting for 70-80% market share oflogistics services in Vietnam) with a range of activities in nearly 100 differentcountries This is one of the obstacles for Vietnamese enterprises to providepackage services to customers Because, in the trend of globalization, shipperstend to outsource from many countries and territories around the world.Although it may take into account the role of agents established by Vietnamesecompanies in other countries, this relationship is often quite loose andheterogeneous

These are the basic reasons that make the competitiveness of Vietnameselogistics enterprises far below the current foreign enterprises, only undertakes anumber of single services in logistics operations such as customs clearance,transportation vehicles, warehouses, etc In the context when Vietnam's importand export activities are growing, domestic trade is expanding and the demandfor logistics services increases, this is an issue that needs special attention andovercome to limiting the loss on the domestic market for the sector consideredthe importance service sector of the economy, not only bringing great benefits tothe country but also playing an important role in renovating the current growthand economic restructuring model.

For all of the above reasons, it is very important to develop successfully inLogistic field at Vietnam market for DHB Logistics Co., LTD, which not onlycontributes to the development and enhancement of economic performance.jointly, create a source for the company, but also create a premise for expandingthe logistics activities of the company to other markets Therefore, it is necessary

to have an overall view of the marketing environment from which to developsolutions to improve the marketing strategy, help improve the efficiency oflogistics business

That is also the reason for the research: IMPLEMENTING MARKETINGMIX FOR LOGISTICS SERVICES OF DHB LOGISTICS CO., LTD

1 Research question

What factors influence marketing strategy of DHB Logistics Co.,Ltd?

How to develop a marketing strategy for DHB Logistics Co.,Ltd ?

2 Contribution of Research

- Researching the theory of marketing concept, mixed marketing strategy and how to formulate marketing strategy

- Analyzing the business situation of the company in 2013 - 2018

- SWOT analysis to propose company strategies that need to be implemented first

- Develop Marketing Mix strategy for Logistics activities

Methods for processing and analyzing data:

- For secondary data and primary data in qualitative research: Usinginductive method, synthetic analysis method, comparing collected results forresearch through SWOT matrix tool SWOT analysis method to identify marketneeds and volatility to determine characteristics of target customers

- For primary data in quantitative research: All collected data will be processed with the help of the MOS EXCEL 2010 software

4 Scope of the research

- Space: Main business activities of DHB Logistics Co.,LTD:Customs clearance, Warehouse leasing, Sea transport, Air freight forwarding,Domestic container transportation, Multilateral transport awake

- Time: analysis time from 2013 to 2018

4

CHAPTER 2: BACKGROUND OF DHB LOGISTICS CO.,LTD

CHAPTER 3: SOLUTIONS TO COMPLETE MARKETING STRATEGY FORLOGISTICS SERVICES

CHAPTER 1: LITERATURE REVIEW OF MARKETING MIX FOR

LOGISTICS SERVICE 1.1 Definition of Marketing mix

In the behavioral sciences, Marketing is one of the youngest industries.The appearance of Marketing only started in the 1990s, can generalize thedevelopment process of Marketing into two periods: (1) the period from thebeginning of the 20th century to the early 1960s and (2) the period from the1960s to the beginning of the 21st century

Marketing comes from an English term "market." The term "marketing"was first used in 1902 on the lecture hall of Michigan State University in the US

In 1910, all General Universities An important case in the United States beganteaching Marketing, and for nearly half a century, Marketing was taught only inEnglish-speaking countries, but only after the world economic crisis (1929 -1932) and especially after the Second World War (1941-1945), marketingactivities have made great leaps, strongly developed to really become a popularscientific field like today

In the 50s and 60s Marketing was spread to Western Europe and Japan, toEastern European countries in the 60s and 70s, to Vietnam in the 80s of thetwentieth century The internationalization process of Marketing has grown veryfast Today, almost all countries in America, Europe, Asia, Australia, Africahave taught and applied Marketing in production and business effectively

As Philip Kotler explains in his book Marketing Management:

“Marketing is an administrative and social process through which individuals and groups obtain what they need and desire by the generation, offering and exchange of valuable products with their equals”.

Marketing research, conducted for the purpose of new productdevelopment or product improvement, is often concerned with identifying the

consumer's unmet needs Customer needs are central to market segmentationwhich is concerned with dividing markets into distinct groups of buyers on thebasis of "distinct needs, characteristics, or behaviors who might require separateproducts or marketing mixes." Needs-based segmentation (also known as benefitsegmentation) "places the customers' desires at the forefront of how a companydesigns and markets products or services." Although needs-based segmentation

is difficult to do in practice, it has been proved to be one of the most effectiveways to segment a market In addition, a great deal of advertising and promotion

is designed to show how a given product's benefits meet the customer's needs,wants or expectations in a unique way

The marketing mix (also known as the 4 Ps) is a foundation model It hasbeen defined as the "set of marketing tools that the firm uses to pursue itsmarketing objectives in the target market" Therefore, it refers to four broadlevels of marketing decision, namely: product, price, promotion, and place.Marketing practice has been occurring for millennia, but marketing theoryemerged in the early twentieth century The contemporary marketing mix, or the

4 Ps, which has become the dominant framework for marketing managementdecisions, was first published in 1960 In services marketing, an extendedmarketing mix is used, typically comprising 7 Ps, made up of the original 4 Psextended by process, people, and physical evidence Occasionally servicemarketers will refer to 8 Ps, comprising these 7 Ps plus performance

1.2 The importance of Marketing mix

1.2.1 The necessity of developing marketing MIX

 It helps in a clean mix creation

Your marketing mix should have all the P’s compatible with each other.The price should be compatible with the placement of the product The product

should be compatible with the promotions In general, all the P’s are intrinsicallylinked to each other.

As a result, when you are making a marketing mix, it becomes a chain ofstrong bonds And these bonds then guide you forward in making the chainlonger Whenever you are considering adding a new feature or changing existingthings, you have to look at the overall picture, which helps in creating a cleanmarketing mix for the product

 Marketing mix helps in New product development

While designing an existing product, there are any number of ideas whichcan come up for a related product that can be designed by the company Thepricing, place and promotions might be different for such a product Nonetheless,

it can be classified as a new product and hence while designing the marketingmix, the company can come up with good ideas for NPD as well

 Marketing mix helps increase the product portfolio

Whenever you want to increase the product depth or product line andlength, you have to make minor changes to the product In essence, you aremaking minor changes in the marketing mix itself You are making changes tothe product features, to its pricing and possible to its promotions As a result, byaltering the marketing mix and certain features within it, you can end up with anenlarged product portfolio

 It is a guide to improve a business

Physical evidence was an important P in the service marketing mix If arestaurant or an interior design business realises its important, then naturally theycan act on it and improve the physical evidence of their business therebybringing in more business

The importance of marketing mix is evident in more then a single P.People and process are important to the organization too and optimizing both canimprove the overall working of the organization Hence, marketing mix is anexcellent guide if someone wants to improve their business and is doing gapanalysis.

 It helps in differentiation

When you analyse the marketing mix of Competitors, there are manydifferent ways that you can differentiate yourself from the competitor Thecompetitor might have poor promotions and by analysing them, you can createbetter promotions of your own product

The competitor might have poor placement of products or he might havethe wrong process or the wrong people in place All this can be improved upongiving you a better marketing mix and therefore a competitive advantage in themarket

 Finally, it helps you in being dynamic

A company which is well prepared is also prepared when disaster strikes.During recession or during a poor business environment, a company should beready to respond At such times, the company needs to be dynamic in nature.Such a company needs to understand its product, processes, people, promotionsand all other P’s better If it understands them, it will respond with a betteragility

Thus, there are many ways that marketing mix may be important to anorganization The best part is, analysing and understanding the marketing mix isnot a lengthy procedure and the ROI on the time spent is much higher

1.2.2 The role of marketing strategy

Marketing plays a very important role in business It guides, directs andcoordinates the production and business activities of businesses Thanks tomarketing activities, the decisions made in production and business have a moresolid scientific basis, the enterprise has more conditions and more information tosatisfy all requirements of customers The role of Marketing is shown in thefollowing aspects:

 For production

- Helping to survey the market, production and consumption activities, to meet customers' needs in a practical way

- Marketing is a method to concretize business plans at enterprises

- Help to harmonize the objectives of the enterprise, stimulate research and improve production

 For the market

Applying Marketing has the effect of stimulating the social market in andoutside the country, closely associated with the mechanism of economic life.Marketing is essential when dealing with market problems, in the relationshipbetween the company and the market

 For planning

As a means, a tool finds the direction and path of future operations of thecompany Marketing reflects centralized economic planning Planning andMarketing are closely related: Marketing serves first the processes ofimplementing plans and creating an objective scientific basis for the plan;whereby the science and reality of the plan are enhanced On the basis ofmarketing research, draw conclusions about the ability to consume productsobtained through the operation of corresponding investment capital

1.3 The process of developing marketing MIX

The Marketing mix is a set of decision that needs to be considered prior tointroducing a new product These variables are also called the P's of marketing.They help an industry in making strategic decisions required for the smoothrunning of an organization These variables are:

Figure 1: Marketing mix 7P model

1.3.1 Product

This is the 1st p which is the unit that an organization wants to supply inthe market It might be a tangible object or an intangible service Tangibleproducts are items such as consumer goods (soaps, toothpaste, and spoons) whileintangible can be services like tourism This is the most crucial thing in anorganization

A tangible product should have certain characteristics such as direction ofusage, warranty, service, ingredients or contents, manufactured date and theexpiry date In addition, a product should have distinguishing characteristics that

is, Unique Selling Proposition (USP) This will assist you to differentiate aproduct from another Moreover, the packaging concept and the phenomena oforiginality play a very crucial role

It is as very essential to understand the nature and dynamics of the product

in question Each item that the marketing strategist considers consists of levels ofproducts There are just three levels of products They include augmentedproduct, actual product and core product

1.3.2 Price

This is the 2nd P which is simply the amount paid by a consumer for theproduct It is the amount that a firm will charge a customer for offering theproduct to him This is another very crucial step whereby if the pricing of certainitem is too low, the general trend of the consumers that the item is of sub-standard quality, shows on the sale Alternatively, if the pricing of an item is toohigh, very few people would be interested with the product since the price tagshocks them off However, it is also hard to decide on the pricing strategy as attimes some of the consumers tends to believe that if a product charges high it has

to be good

1.3.3 Place

This is the 3rd P that also contributes very much to the marketing mix.Place is the location where an item can be bought and it focuses more on theavailability of an item at the desired place and time This strategy becomes anobligation as the items have to be available to the consumers when they wantthem These places might be virtual stores such as e-malls and e-market, onlinewhile physical stores are like departmental stores and supermarkets Thisencourages the consumer to pay heed to the item and this offers the place utility

to the customer

1.3.4 Promotion

This is the 4th P that involves publicizing of the product Thischaracterizes of all the communications that a promoter can use in themarketplace to raise the awareness of the product along with its benefits to theaimed segment Promotion has four different elements: public relation,advertising, sales promotion and personal selling Another effective and cheapway of promoting a product is internet Promotion is better started before theproduct is introduced in the market since it increases the interest of thecustomers and gets him eager to find out what the item is Promotion alsodetermines the positioning of the item as well as the segmentation targeting Theright way of promoting affects all the above three variables, the product, priceand place If there are effective promotions the distribution points might go up,the price might increase due to increasing brand equity of the item and get thesupport to introduce other products Nevertheless, the amount of cash requiredfor broad promotions are high

1.3.5 Process

The systems and processes of the organization affect the execution of theservice So, you have to make sure that you have a well-tailored process in place

to minimize costs It could be your entire sales funnel, a pay system, distributionsystem and other systematic procedures and steps to ensure a working businessthat is running effectively Tweaking and enhancements can come later to

“tighten up” a business to minimize costs and maximise profits

1.3.6 People

Of both target market and people directly related to the business.Thorough research is important to discover whether there are enough people inyour target market that is in demand for certain types of products and services.The company’s employees are important in marketing because they are the oneswho deliver the service It is important to hire and train the right people todeliver superior service to the clients, whether they run a support desk, customerservice, copywriters, programmers…etc When a business finds people whogenuinely believe in the products or services that the particular business creates,it's is highly likely that the employees will perform the best they can.Additionally, they'll be more open to honest feedback about the business andinput their own thoughts and passions which can scale and grow the business.This is a secret, “internal” competitive advantage a business can have over othercompetitors which can inherently affect a business's position in the marketplace

1.3.7 Physical Evidence

In the service industries, there should be physical evidence that the servicewas delivered Additionally, physical evidence pertains also to how a businessand its products are perceived in the marketplace It is the physical evidence of abusiness' presence and establishment A concept of this is branding For

example, when you think of “fast food”, you think of McDonalds.Whe n youthink of sports, the names Nike and Adidas come to mind You immediately

know exactly what their presence is in the marketplace, as they are generallymarket leaders and have established a physical evidence as well as psychologicalevidence in their marketing They have manipulated their consumer perception

so well to the point where their brands appear first in line when an individual isasked to broadly “name a brand” in their niche or industry

Hence the 7Ps explain the meaning of marketing mix in a detailed manner.They give you the overall appearance of a product

1.4 Nature of Logistics services

1.4.1 Definition of Logistics

Logistics - the science of planning, controlling and managingtransportation, warehousing and other tangible and intangible operationsperformed in the process of bringing raw materials and materials to theproduction enterprise , in-plant processing of raw materials, materials and semi-finished products, bringing finished products to the consumer in accordance withthe interests and requirements of the latter, as well as transfer, storage andprocessing related information

This definition, as follows from its content, treats logistics as a science As

an economic activity, logistics is represented in the following definition:Logistics is the process of managing the movement and storage of raw materials,components and finished products in economic turnover from the moment ofpaying money to suppliers until the money is received for delivering finishedproducts to the consumer (the principle of paying money - receiving money)

A business that sells products has to find a way to get those items to

customers Even if the items are sold online, they’ll still move from Point A toPoint B, usually through a shipping service If you’re a one-person operation,you may take each item to the post office, but over time you’ll want to upgrade

to a shipping provider Grow even further, and things will get a little complicatedsince you’ll deal with shipments using multiple carriers on a regular basis That’swhere logistics services providers come in They specialize in managing theshipment process for business, coordinating things so that products end up wherethey need to be in as efficiently a manner possible.

In Vietnam, domestic trade in goods has increased rapidly over the years,besides, import and export of goods has also grown steadily, thus, the demandfor logistics services for production, circulation and distribution processes andimport and export is also increasing, especially the demand for outsourcedservices In the future, the demand for full-service, high-quality logistics servicesacross the country, the AEC region and the global scope will also increase

1.4.3 Competitors

In the trend of fierce competition and integration, cutting costs to increasecompetitiveness for goods is an urgent requirement for most businesses Inparticular, logistics activities are increasingly concerned by businesses tooptimize production costs Vietnamese businesses not only compete with eachother but also compete with large foreign enterprises

Statistics of Vietnam Logistics Business Association show that there aremore than 1,300 logistics enterprises operating in the country; 80% of which aredomestic logistics enterprises but only 20% of logistics market share in Vietnam

The remaining 80% market share belongs to foreign-invested logisticsenterprises Many powerful logistics corporations in the world have beengradually penetrating and dominating our country markets such as APL, OOCL,Mitsui OSK Line, Maerks Logistics, NYK Logistic, ect These firms not onlyprovide a full range of services from international transport to inland transportbut also have a wide international network, strong finance and moderninformation technology systems Meanwhile, Vietnam logistics enterprisescurrently only perform a very small part of the above series of activities, or areonly subcontractors to foreign logistics investors.

Vietnam logistics market is increasingly attracting domestic and foreignenterprises to participate with exciting competition However, the number ofinefficient enterprises and withdrawing from the market is not less because thedevelopment is largely spontaneous, lack of orientation, lack of capital,inadequate capacity for long-term competition Moreover, the service of theseunits is single, not yet highly integrated Currently, only a few large logisticscompanies in Vietnam have a closed chain of services such as Vinatrans,Vinalinks, Sotran, etc mainly small and medium enterprises, mainly doingsingle supply services in the field Vietnamese territory such as forwardingservices, packaging services, warehousing, customs services, etc Meanwhile,international intergrated, integrated services are handled by foreign logisticscompanies Vietnam logistics enterprises operate inefficiently and increasinglyfeel more difficult in the competition for this service

1.4.4 Marketing mix in Logistics service

There is no universally agreed definition for logistics services, and the rolemay be interpreted in very different ways across the region At the same time,globalization and increased use of technology are changing customerexpectations and the way services are delivered These factors have

consequences for the development of logistics policy, as the traditional ways ofdoing business in logistics, and therefore the way the industry is regulated andpromoted, may no longer be appropriate.

The detailed list of services provided by logistics service providers(beyond services by carrier, warehouse provider, terminal operator, freightforwarders, NVOCC and MTO) presented in Table 2 can be grouped asfollows:

 Assembly: There is a wide range of assembly activities that can be

carried out in the context of logistics services, covering both low-end assembly(such as kitting) and high-end assembly (e.g assembly of final product based onstore requirements) Tahese activities can take place at client premises or thewarehouses of logistics service providers Kitting services could also be included inthe role of freight forwarder as they may involve basic labeling and repackagingservices

 Supply chain: Logistics service providers increasingly offer services

from the perspective of supply chain rather than transport This can includelogistics consulting and supply chain design, management of supply chain,operation of supply chain, operating as lead logistics provider, procurementresponsibilities or inventory management

 Quality control: Logistics service providers may provide technical

testing, localization and quality inspection services, either as in-plant services or atthe warehouse

 Financial services: Some providers may choose to provide collateral

management services, and act as insurance brokers for

18

their clients upon request.

 Customer services: Logistics service providers may assume

responsibility of such back-end customer service activities as returns and repairs,operate the call centre (particularly relating to warranty and technical support), andprovide reverse logistics services

Table 1: Mapping of logistics services

warehousing and inventory)

or insurance brokering

returns and repairs

warranty enquiries)

* Some companies may choose to outsource some services they offer In the context of this table, outsourced services are also considered to be included in the role in question.

**(x) indicates that the service is considered to be sometimes relevant to the role in question.

According to the assessment of logistics customer, logistics services arenow provided with a variety of prices, but there is a shortage of service qualityand the number of logistics companies can meet All stages in the chainaccording to user requirements Through the assessment results, the importantfactors that service providers should pay attention to improve the quality oflogistics services are (1) Flexibility (83.8%); (2) Price (78.4%); and (3) Quality

of service (75.7%) ovided with a variety of prices, but there is a shortage ofservice quality and the number of service providers can meet All stages in thechain according to user requirements Through the assessment results, importantfactors that service providers should pay attention to improve the quality oflogistics services, the three most important factors are (1) Flexibility (83.8%);(2) Price (78.4%); and (3) Quality of service (75.7%)

Figure 2: Evaluate important factors to improve the quality of logistics

services

Unit: %

Reputation Human Information support system

Customer support policy

Reliability Time Quality of service

Price Flexibility

Source: Survey of Ho Chi Minh City University of Transport and VLI team

Flexibility means the ability of businesses to change policies and servicepackages to meet the needs of customers in each specific situation Customersrequire logistics companies to be ready to provide foreign transport services,have agents abroad to support customers, the ability to integrate services

Sometimes customers also require relatively special services such as C / Odeclaration (certificate of origin), transporting bulky goods or tying specialgoods.

Price is an important factor affecting the choice of service users and thecompetitiveness of service providers, so the manufacturing enterprises also want

to be able to cooperate with suppliers services to become strategic partners(logistics companies use products of manufacturing enterprises andmanufacturing enterprises using logistics services) to have stable and long-termcontracts, minimize risks ro As a result, logistics businesses can also rely onprice tools to create competitiveness by reducing prices for loyal customers,customers go in large numbers However, sometimes there are situations thatarise that increase because of fluctuations in freight rates, which greatly affectcustomer satisfaction

In order to improve the quality of service, a specific issue is mentionedthat the supply of empty containers needs to ensure the demand for containers intime and better container quality This is a concern for shipping lines andlogistics service enterprises Another proposal was to develop the self-printing ofBill (transport documents) at the enterprise for export goods In addition,businesses need to have an effective grasp and update of tax policy knowledge,which is an opportunity for LSP to consult and support customers In addition,some businesses want to improve the coverage and delivery time of logisticscompanies, such as the supply of new roads, the transport time of North-Southlines should be shortened

Providers are also suggested to have a long-term development plan andlink with other suppliers to meet the diverse needs of users with a full range ofservices for example, the lack of transportation in the peak season Therefore, it

is recommended that transport businesses should invest in fleets or combine with

other motorbikes to save costs, make use of the distance with both the departureand departure stages However, in order to do this, it is necessary to eliminatecompetition as well as use transport applications to find empty vehicles on thejourney.

Logistics companies are advised to closely monitor each order andcontinuously review customer feedback at the smallest stages as well as invest orimprove hotlines so customers can reflect and Search for information quickly.And the problem should be concerned and invested is the integration ofapplication tracking and retrieval on the website so customers can actively checkthe status of goods in the process of transport quickly

In terms of information technology, logistics service providers areexpected to have a uniform, flexible, more stable logistics system and have thefollowing services better met in the future: ERP applications servicemanagement, integrated distribution system, EDI container management system

as well as warehouse management, inventory management services Theproposed JIT principle applies in transportation and order control to save costsand significantly reduce inventory

Quality of service staff also needs to be considered and improved.Currently, when the issue of the last delivery has brought a lot of added value,sometimes the driver or delivery staff is an important factor in direct contactwith the customer and determine the satisfaction of the customer goods aboutservice quality Therefore, business and production enterprises also recommendlogistics enterprises to train non-professional staff to improve soft skills such asthe ability to communicate with customers, contributing to improving servicequality of the business In addition, a team of planning consultants, supply chainoperation consultants, logistics specialists and supply chain management also

need to be invested in both quantity and quality because the team cannot respondmeet the current market demand.

CHAPTER 2: DHB LOGISTICS CO.,LTD INSIGHTS OF MARKETING

MIX 2.1 A brief Introduction of the company

Company name: DHB LOGISTICS COMPANY LIMITED

Company name abbreviated: DHB LOGISTICS CO., LTD

Type of company Economic organization of production and service

business Charter capital: ONE BILLION

Year of establishment: August 9, 2012 Tax code: 0105965238

Main market: Nationwide

Head office address: No 3 Ngo 92 Nguyen Khanh Toan, Ward Quan Hoa, CauGiay District, Hanoi

Phone: 02435553558

Owner - The legal representative of the company: LE VIEN HIEU

DHB LOGISTICS CO., LTD specializing in freight forwarding by sea freight and air freight, trucking land and leasing warehouses, bonded warehouses, DHB means:

- Bonded customs clearance

With seniority and experience in the field of logistics, company has beenproud that the staff active and enthusiastic, DHB are fully independent andactive in his field Especially with foreign companies, DHB LOGISTICSprovides investment advisory services, import and export procedures, proceduresfor obtaining the C/O, customs procedures and other legal procedures company

we appreciate the cooperation with customers Such cooperation is mutuallybeneficial trend was the top priority, clients will save a lot of time and cost andalso the credibility of they, DHB LOGISTICS will devote our best to bring aboutthe best results customers desire With 3 offices in Hai Phong, Da Nang and HoChi Minh city

Address: 05FL, No 3 Lane 92 Nguyen Khanh Toan, Quan Hoa Ward, Cau GiayDist, Ha Noi, Viet Nam

Hai Phong Office: No 388 Lot 22 Le Hong Phong, Ngo Quyen Dist, Hai PhongCity

Da Nang office: 03 Dong Da street, Hai Chau Dist, Da Nang City

Ho Chi Minh office: 158 Dinh Bo Linh street, Ward 26, Binh Thanh Dist, HoChi Minh City

DHB can serve customers at every time and it is aiming at setting up moreoffices and facilities in Vietnam next time to enhance our services Besides, thecompany also will develop an agency network in countries and territories to meetcustomers demand for logistics service all over the world

In a more and more developing, integrating and competing freightforwarding market, DHB always aims to a mutual benefit business cooperation.With its business, DHB would like to be the organizer and performer for

“connecting benefits” of involving parties, including clients, local and

international partners, sub-contractors and DHB itself Therefore, our core valuesare:

- Prestige: once we made our commitment, we will never break it.

- Integrity: we based our business on honesty, responsibility, and

ethicality

- Professional staff: we create a friendly, supportive, creative workingenvironment with extensive training programs for our people, so that you can enjoytheir sense of service, responsiveness, and professionalism

DHB supplies optimal logistics solutions on demand with internationalstandard- To become an expert in logistics that customers and partners canalways trust and rely on To offer unique services, and accomplish challengingtasks entrusted by customers and partners no matter how hard the tasks may be.DHB’s commitment:

- Offering the most simple - most effective logistics solutions

- Competitive price

- Free of charge consultancy

- Maximum saving time & money of customers

- Easy payment method

- Enthusiasm - thoughtful style of serving

2.2 The areas of operation of the company

DHB LOGISTICS CO., LTD is a solution to save import and export costs;international and domestic transport is safe and effective; Customs declarationexactly according to the import tariff; Strong support for the most profitablecustomers on taxes that are completely free DHB always offers effective costcontrol solutions:

- Control the cost of taking goods from the customer's warehouse (term DDU- Delivery at the warehouse)

- Control transportation costs and local costs term FOB, CIF, FCA,

EXM, DDU

- Control the time limit for temporary import for re-export

- Control the post-clearance consultation, avoid import and export tax increase

DHB's strength is a large containerized cargo (FCL), providing packageservices for international forwarding Dealer system is spread across allcontinents, especially China, Korea, ASIAN, EU, USA

Services and areas of operation of DHB LOGISTICS:

- International freight forwarding (FCL)

- Collection of goods and international retail freight (LCL)

- Customs procedures

- Packing, labeling, warehousing, warehousing

- Consulting and making import and export documents and other

services

2.3. Structure of the organizational management

Figure 3: ORGANIZATIONAL STRUCTURE OF DHB LOGISTICS CO.,

- Store records and vouchers

- Check import and export papers, ensure validity and law

- Check and classify goods, ensure goods are legal

- Performing customs declaration activities through software

- Instruct field staff to do necessary procedures to clear goods

2.3.3 Export- Import Department

- Receive and process information of shipments

- Get D/O, authorization letter at shipping company, agent

- Support and advise customers to provide optimal solutions

- Arrange and transfer means to support transportation

- Coordinate with relevant departments to serve customers in the best way

- Track delivery progress

2.3.4 Bussiness Department

This is a very important part, playing a key role in the Company Ensureinput and output of the Company, access and market research, productintroduction and market expansion as well as attract new customers Organizethe implementation of business plans, calculate prices and make contracts withcustomers

Provide information, translate documents, translate for management.Monitor and supervise the implementation schedule of departments in time withcontracts with customers and promptly propose the most effective productionand business plans

- Sales staff offer prices, provide necessary information and convince customers to use the company's services

- Maintain the existing customer base by keeping in touch regularly, updating policies, new incentives

- Expanding customer groups by promoting new services and customer care

- In charge of support and supervision when problems arise to ensure thebest service quality to customers

- Provide necessary documents for customers

- Handling customer requests quickly and effectively

- Notice of goods status on the way of transportation to customers

- Keep track of large orders, solve customer requests promptly

2.3.5 Finance Department

- Managing financial activities throughout the company

- Prepare monthly, quarterly and annual financial plans and periodicallyreport or report at the request of the Director on the financial situation of thecompany

- Financial analysis, financial assessment of all business activities of the company

- Prepare accounting statistics, monitor financial implementation topropose effective capital use measures Provide fast and accurate economicinformation as prescribed by the Director

2.4 Customers

Any organization, business that wants to do business, operate, survive andgrow in the market must be customer centric, identify its target customers andsatisfy the needs of those that customer Therefore, the Company needs toconstantly improve service quality, cut costs to increase price competitiveness, tomaintain orders of old customers while attracting new customers for company.Current customers of the company are quite diverse, in which the appointedgoods have 3 big customers: Duy Minh Joint Stock Company, Kiara Garments

Vietnam Co., Ltd., TAV Company Limited In addition, the company has manyother partners such as Truong Loc Company Limited, Truong Thanh Co., Ltd.,

Figure 4: Customers of DHB Logistics Co.,Ltd 2.5 Competitors

Along with the economic development and increasing international tradeactivities, Vietnam's logistics services market has been explored and has beenquite active According to Vietnam Logistics Services Association, Vietnam hasmore than 1,000 enterprises providing logistics services but the number ofbusinesses operating in the field of transport, warehousing, wholesale, retail andfast moving up to nearly 140,000 The number of domestic enterprises accountsfor 80% of the total logistics enterprises in Vietnam but only accounts for nearly25% of the market share More and more large corporations in the world appearand operate: APL Logistics, Sun Express, Schenker, BirKart, BJ, Errmey, SunilMezario, Hapag Lloyd, Zim, Maersk Logistics, NYK Logistics, TWT, ect thathave high quality and professional human resources, strong and abundantfinancial resources are taking up 75% market share This poses a big challengefor the company in the context of Vietnam's logistics market

However, the company can still compete well with the right steps DHBhas surpassed its rivals to win the right to transport equipment for the Hanoi -Lao Cai Expressway project; transporting goods for Hyundai aluminum factoryproject in Diem Thuy Industrial Zone, Thai Nguyen; Cargo transportation for theproject Labor Safety Training Center (Son Tay Town) funded by Koica ofKorea, ect In order to achieve this, DHB LOGISTICS has implemented 3PL(third party logistics) package from storage, packaging, distribution, storage,order fulfillment to delivery, delivery, Troubleshooting, supportingmanufacturer's marketing, transport, distribution programs, providing solutions

to optimize customer profitability

DHB company determined to invest in infrastructure, improve servicequality, the system operates according to international standards is the leadingcompetitive value The company invests in management system, specializes insupplying 3PL services in strategic economic locations such as Hanoi, HaiPhong, Da Nang, Tp Ho Chi Minh City, capable of managing and regulatinggoods on many locations within the region, country and area DHB alsoimplemented the most advanced management software, which helps reduce 50%

of employees' working time in seeking vouchers, tightening relationships withpartners, and responding quickly to market changes

2.6 Situation of business activities of the company

2.6.1 Service structure of the company (2013 - 2018)

DHB Co., Ltd provides services in freight forwarding business to meet thediverse needs of customers Below is a summary of the company's revenue andservice rates from 2015 to the end of 2017

Table 2: Types of services and company revenues (2013 - 2018)

Source: Authors' calculations based on financial statements

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Figure 5: Revenue of services (2013 - 2018)

778.9 718.8 716.6

658.3

616.5 575.5

77.379.2

67.9 56.853.6

Customs declaration Packaging & Warehousing International sea Transportation by air Domestic container Multi - modal

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