Improving the effectiveness of marketing mix activities for TL ballpoint pen products at thien long group

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING  GRADUATION THESIS Major: Industrial Management TOPIC: IMPROVING THE EFFECTIVENESS OF

HO CHI MINH CITY, DECEMBER 04, 2019

SKL 0 0 6 7 2 3

ADVISOR:VO THI XUAN HANH STUDENT’S NAME: LUONG THI THUY HANG STUDENT’S ID: 16131024

TOPIC: IMPROVING THE EFFECTIVENESS OF

MARKETING - MIX ACTIVITIES FOR TL - BALLPOINT

PEN PRODUCTS AT THIEN LONG GROUP

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION

GRADUATION THESIS MAJOR INDUSTRIAL MANAGEMENT

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION

FACULTY FOR HIGH QUALITY TRAINING

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GRADUATION THESIS

Major: Industrial Management

TOPIC: IMPROVING THE EFFECTIVENESS OF MARKETING - MIX

ACTIVITIES FOR TL - BALLPOINT PEN PRODUCTS AT

THIEN LONG GROUP

Student’s Name: Luong Thi Thuy Hang

Student's course: 2016

Student’s ID: 16131024 Advisor: MBA Vo Thi Xuan Hanh

Ho Chi Minh City, December 04, 2019

COMMENTS OF INSTRUCTOR

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Ho Chi Minh City, …/…/2019 Critical Lecture

Then, I would like to thank the employees who work at Thien Long Group Corporatio especially the Marketing Department members who have always been enthusiastic and support me during the internship So I have enough data to do my internship report and graduation thesis In addition, I would like to thank lecturers’s Faculty for High Quality Training for giving me the basic knowledge about the field of economics in the learning process, helping me have a good basis for implementing the thesis well

During this internship, I was exposed to the real environment, learning about the distribution of stationery products I was still quite limited of knowledge as well as the time when I only practiced for three months So, my graduation thesis also cannot avoid shortcomings Therefore, I really want to receive valuable suggestions from lecturers to improve the topic Finally, I wish the lecturers are always healthy, TLG always has good business results and grows stronger

I thank you all sincerely!

Ho Chi Minh City, December 04, 2019

Luong Thi Thuy Hang

LIST OF ACRONYMS

LIST OF FIGURES

Figure 1.1: The organizational structure of Thien Long Group Corporation 6

Figure 2.1: Distinguish marketing policies and marketing strategies 10

Figure 2.2: Basic Marketing – Mix Model 11

Figure 2.3: Types of distribution channels 15

Figure 2.4: The main activities of mixed promotion 17

Figure 3.1: The organizational structure of Marketing Department 20

Figure 3.2: Market share of pen products in 2019 29

Figure 3.3: Prices of TL ballpoint pen by market segment 32

Figure 3.4: Description of retail distribution channels directly to consumers 37

Figure 3.5: Photos of signs at Thien Long’s retail points 38

Figure 3.6: Billboard at Nguyen Thi Minh Khai Street 38

Figure 3.7: Customer conference 2019 39

Figure 3.8: TL - Ballpoint pen shelf at the 2019 customer conference 40

Figure 3.9: Student of HCMC University of Technology and Education participated

in the Exam Season Supporting Program 2018 42 Figure 3.10: Review Conference for the Exam Season Supporting Program 2018 42

LIST OF TABLES

Table 1.1: Business results of the Company in the period of 2016 - 2018 7 Table 3.1: Analysis of TL pen product’s revenue in the period of 2016 - 2018 30 Table 3.2: Revenue of pen products of the company for the period 2016 - 2018 43 Table 4.1: SWOT analysis of Thien Long Group 61

TABLE OF CONTENTS

PREFACE 1

CHAPTER 1: THE INTRODUCTION TO THIEN LONG GROUP 3

1.1 Overview of Thien Long Group 3

1.1.1 General information 3

1.1.2 Mission, vision, core values & 5-year strategic goals of TLG 3

1.1.3 Subsidiaries 4

1.2 History and development milestones 4

1.3 Scope of activities 5

1.3.1 Scope of activities of Thien Long Group and its subsidiaries 5

1.3.2 Main product lines of Thien Long Group 5

1.4 Organizational structure at Thien Long Group 6

1.5 The financial situation of TLG in the period 2016-2018 7

1.6 Summary of chapter 1 9

CHAPTER 2: THEORETICAL BASIS OF MARKETING-MIX ACTIVITIES 10 2.1 Marketing – Mix activities in the business 10

2.1.1 Definition, distinguish marketing policies and marketing strategies 10

2.1.2 The role of Marketing - Mix policy in the business 10

2.1.3 The structure of Marketing – Mix policy in the business 11

2.1.4 The basic content of the Marketing – Mix policy 11

2.2 The criteria to evaluate the effectiveness of Marketing – Mix activities 18

2.2.1 Criteria for evaluating product policies effectiveness 18

2.2.2 Criteria to evaluate price policies effectiveness 18

2.2.3 Criteria for evaluating distribution policies effectiveness 19

2.2.4 Criteria for evaluating the promotion policies effectiveness 19

2.3 Summary of chapter 2 19

CHAPTER 3: CURRENT SITUATION OF MARKETING – MIX ACTIVITIES FOR TL - BALLPOINT PEN PRODUCTS AT THIEN LONG GROUP 20

3.1 The organizational structure and duties of the Marketing department 20

3.1.1 The organizational structure of Marketing Department 20

3.1.2 The Duty 20

3.2 Real situation of Marketing – Mix activities for TL - Ballpoint Pen Products at Thien Long Group 24

3.2.1 The position of the business; Characteristics of sales activities, customers 24 3.2.2 Product strategy 26

3.2.3 Price policy 30

3.2.4 Distribution policies 34

3.2.5 Promotion policy 37

3.3 General assessment of Marketing activities for TL - ballpoint pen products of Thien Long Group in the period 2016-2018 43

3.3.1 Achievements 43

3.3.2 Limitations Marketing - Mix activities for TL's ballpoint pen products 46

3.3.3 Factors influencing Marketing- Mix activities of Thien Long Group 46

3.4 Summary of chapter 3 60

CHAPTER 4: COMMENTS AND SOLUTIONS TO IMPROVE THE EFFECTIVENESS OF MARKETING - MIX ACTIVITIES FOR TL BALLPOINT PEN PRODUCTS AT THIEN LONG GROUP 60

4.1 SWOT analysis for Thien Long Group 61

4.2 The development orientation and business goals of TLG 62

4.2.1 Development orientation of TLG in 2020 62

4.2.2 Business goals 62

4.3 Solutions to improve effectiveness of Marketing Mix activities for

TL - ballpoint pen 63

4.3.1 Product policy 63

4.3.2 Price policy 64

4.3.3 Distribution policy 64

4.3.4 Mix - Promotion policy 65

4.4 Recommendations 67

4.4.1 For the Government 67

4.4.2 For Thien Long Group 68

4.5 Summary of chapter 4 68

CONCLUSION 69

REFERENCES 70

APPENDICES 72

PREFACE

1 Reason to choose the topic

According to Brand Vietnam, most Vietnamese businesses are currently operating in

a volatile business environment In the context that Vietnam is integrating with the region and the world as today, Marketing - Mix plays an important role for each business in product development, making reasonable and competitive pricing policies, developing the market through distribution channels as well as promotion policies By applying Marketing - Mix activities, Vietnamese businesses increasingly enhance their position in the international market, making a very important contribution to building the country TLG is a company specializing in manufacturing and trading of products in the field

of stationery such as pens, school supplies, art supplies, office supplies, ink supplies…TLG is gradually consolidating and developing its business activities to be able

to meet the needs of customers, improve the company's competitiveness against competitors to survive and have a firm foothold in the market

At Thien Long Group Corporation, marketing activities play an important role in helping the company meet a part of market demand During my internship at the company, through evaluating the mixed marketing activities specific to the TL – ballpoint pen product, I found that the marketing activities of the company besides the positive side still exist some shortcomings need improving to stand firm in the market Therefore, I would like to choose the topic: “Enhancing effectiveness of Marketing - Mix activities

for TL - Ballpoint Pen products at Thien Long Group Corporation” is topic

for my graduation thesis

2 Research objectives

- Analysis of Marketing – Mix activities for TL - Ballpoint Pen products at the company

- Assess the real situation, advantages and disadvantages of Marketing – Mix for

TL - Ballpoint Pen products at the company, then propose specific solutions suitable to the current business situation of the company and future development orientation

3 Object and scope of study

- Object: The thesis mainly studies issues related to Marketing – Mix activities for

TL - Ballpoint Pen products

- Scope of study:

 Space: The research was conducted at Thien Long Group Corporation

 Time: The topic only focuses on researching Marketing – Mix activities for

TL - Ballpoint Pen in the period 2016 - 2019

5 The layout of the topic

The layout of the graduation thesis consists of 4 chapters:

- Chapter 1: The introduction to Thien Long Group

- Chapter 2: Theoretical basis of Marketing activities

- Chapter 3: Real situation of Marketing – Mix activities for TL - Ballpoint Pen products at Thien Long Group

- Chapter 4: Comments and solutions to enhancing the effectiveness of Marketing – Mix activitive for TL - Ballpoint Pen products at Thien Long Group

CHAPTER 1: THE INTRODUCTION TO THIEN LONG GROUP

1.1 Overview of Thien Long Group

1.1.1 General information

or

(Source: Human Resource Department)

- Slogan: “Knowledge Strength”

- Company’s name: Thien Long Group Corporation

1.1.2 Mission, vision, core values & 5-year strategic goals of TLG

 Mission: “Thien Long is committed to bringing the best quality products,

stationery and services to the study, work and creativity to conquer the peak of

human knowledge”

 Vision: “Bring Thien Long products to every region of the country and around the world”

 Core values: “Pioneering in technology, creativity and breakthroughs to create

the best products, environmental friendliness, serving the needs of consumers Tireless efforts and enthusiasm in all activities to bring businesses growing To

be fair to customers, suppliers and partners Act honestly, transparently in all activities and transactions Considering people as a key factor, unanimously uniting to build a thriving Thien Long community, contributing to the progress

of society with the spirit of kindness and humanity.”

 Strategic goals of TLG

- Becoming No 1 stationery company in Southeast Asia and leading in Asia in manufacturing and trading stationery products Professionalizing and automating production; promote R& D activities

- Professionalizing wholesale distribution and specialization of retail operations; developing all domestic sales channels; expand export market

- Become one of the leading companies in Vietnam to bring the highest benefits

to employees, customers, businesses and shareholders

1.1.3 Subsidiaries

Thien Long Group consists of 5 subsidiaries:

 Thien Long Hoan Cau Trading and Service Company Limited

 Thien Long Long Thanh Manufacturing and Trading Company Limited

 Tan Luc Trading and Service Company Limited - Southern Branch

 Tan Luc Trading and Service Company Limited – Northern Branch

 Tan Luc Trading and Service Company Limited – Central branch

1.2 History and development milestones

- 1981: Establishment of Thien Long ballpoint pens factory

- 1996: Renamed Thien Long Trading and Service company limited

- March, 2005: Thien Long Trading and Manufacturing Company Limited officially transformed into Thien Long Manufacturing and Trading Joint Stock

- Established Thien Long Long Thanh Joint Stock Company and renamed Thien Long Long Thanh Manufacturing and Trading Company Limited later

- 2007: Established Thien Long Hoan Cau Trading and Service Company Limited

- 2008: Change the name of Thien Long Trading and Manufacturing Joint Stock Company to Thien Long Group Corporation

- 2009: Established Tan Luc Trading and Service Company Limited – Southern Branch

- 2010: Establishment of Tan Luc Trading and Service One Member Company Limited – Northern Branch

- 2015: Establishment of Tan Luc Trading and Service Company Limited – Central Branch

1.3 Scope of activities

1.3.1 Scope of activities of Thien Long Group Coporation and its subsidiaries

 THIEN LONG GROUP CORPORATION

- Scope of activities: Manufacturing products such as pens, school supplies, art

supplies, office supplies…

 THIEN LONG HOAN CAU TRADING AND SERVICE COMPANY

LIMITED

- Scope of activities: Trading in stationery field including pens, stationery, school

supplies, art supplies, plastic covers…

 THIEN LONG LONG THANH MANUFACTURING AND TRADING

COMPANY LIMITED

- Scope of activities: Manufacturing stationery products such as plastic covers, record file

 TAN LUC TRADING AND SERVICE COMPANY LIMITED -

SOUTHERN BRANCH, NORTHERN BRANCH, CENTRAL BRANCH

- Scope of activities: Trading in stationery and office equipment, ink services and gift, maintain printers and network systems, photocopy service, printing and book

binding service…

1.3.2 Main product lines of Thien Long Group Corporation

Thien Long Group Corporation has 5 product lines:

 Fine art products and art tools: crayons, oil wax pens, colored plastic pens, colored pens, crayons, waxes, colored markers, washable colored

markers, watercolors…

 School supplies: Highlighter, fountain pen, pen nib, ink, wooden pencil, pencil sharpener, student scissors, student board, ruler, notebook, covers books, paper, pen box, calculation stick

 Pen products and other types: Ballpoint pens, gel pens, butter gel

pens, fountain pen, pen gut, butter gel gut pen, leaf file, report covers, notebook,

whiteboard markers, permanent markers, highlighter, erasable pens…

 Stationery products: leaf file, button file, adhesive tape, paper

clip, glue stick…

 High-end products: high-end ballpoint pens, high-grade

writing ink, high-grade ballpoint pens

1.4 Organizational structure at Thien Long Group

Figure 1.1: The organizational structure of Thien Long Group Corporation

(Source: www.thienlonggroup.com)

- Comments: We see the organizational structure by function of Thien Long Group

Corporation including Board of Director, the Control Board, Chairman of the Board of Directors, CEO, General Manager of Thien Long Hoan Cau Trading and Service Company Limited, General Manager of Thien Long Long Thanh Manufacturing and Trading Company Limited, Deputy General Manager of Human Resources, Deputy General Director of Finance and Accounting, Deputy General manager of comprehensive quality, Deputy General Director of Purchasing, Deputy General Manager of Production, Deputy General manager of International business development, Deputy General Director of Domestic Business Development, General Manager Of Tan Luc Trading And Service Company Limited – Northern branch, General Manager Of Tan Luc Trading And Service Company Limited – Southern branch, General Manager Of Tan Luc Trading And Service Company Limited – Central branch This ensures that the company is easily managed and operated Information is received directly, quickly, flexibly and efficiently The duties assigned by the Board of Directors and the business reporting of the departments to the Board of Directors also follow the two-way direction quickly

1.5 The financial situation of TLG in the period 2016-2018

Table 1.1: Business results of the Company in the period of 2016 - 2018

- Comments: Through the company's business results in the period of 2016 - 2018, we

can see that the company operated extremely effectively in the period of 2016 – 2018

Revenue continuously increase over the years: In 2017, revenue reached VND 2497,4 billion increasing of 15,5% compared to 2016 By 2018, revenue continues to increase

by 14,35% compared to 2017 is VND 2855,8 billion

 Over the years, the company's expenses also showed strong growth: expenses in

2017 increased by 15,9% compared to total costs in 2016 and in 2018, the total expenses continued to increase to 14,89% compared to 2017 Expenses in 2018 was VND 256,.4 billion

 The company's profits increased continuously over the years: In 2017, the profit was VND 268,1 billion and increased by 11,7% compared to 2016, in 2018, the profit increased by 9,8% compared to 2017, reaching VND 294,4 billion

- The cause of the change:

 In 2016, despite the turmoil emerging in many regions and the global economy Vietnam's GDP maintained a growth rate of 6,2% compared to 2015 With the efforts and striving, the solidarity of the Board of Directors and all employees, TLG has achieved many encouraging achievements The Board of Directors has always stood side by side with all employees to discuss and implement orientations and strategies determined to successfully implement the identified strategic goals Focusing on improving management capacity, expanding the value chain, improving production capacity, promoting research, developing new products, developing distribution systems, increasing presence in the world market

 In 2017, the company began to improve its leadership structure, continuing to be consistent with policies to attract talent Completing the expansion of Nam Thien Long factory to meet the needs of market growth, implementing projects to enhance production capacity, gradually taking initiative in input materials, increasing competitive advantages Continue to invest in expanding domestic and foreign distribution systems, including implementing advanced technology application projects in distribution chain management and implementing e-commerce projects

 In 2018, in order to cope with the prices of plastics, chemicals, packaging are fluctuating in the market Thien Long has continued to improve production capacity,

take initiative in input materials, expand the value chain consistently and effectively In addition, the company has carried out synchronous key activities: promoting research, developing new products, improving the capacity of human resources, continuing to develop distribution systems, expanding export markets, enhance marketing activities and sales support

 In general, the company is having strong business development, revenue and profit increased over the years It is thanks to the best policies and solidarity between board of directors and entire company’s employees

1.5 Summary of chapter 1

The purpose of this chapter is to give an overview of Thien Long Group Corporation, overview of the history of establishment, organizational structure and business products as well as the situation of development at TLG in the period 2016 -

2018 As an enterprise operating in the field of stationery with more than 30 years in this industry, TLG has affirmed its position not only in the domestic market but also famous in the world market

CHAPTER 2: THEORETICAL BASIS OF MARKETING - MIX ACTIVITIES

2.1 Marketing – Mix activities in the business

2.1.1 Definition, distinguish marketing policies and marketing strategies

2.1.1.1 Definition

Marketing policy: According to James, A (2003) Policy is a process of purposeful

action that individuals or groups pursue consistently in solving problems Marketing

policies can be understood as a system of viewpoints, solutions and resources to achieve

marketing strategy goals Marketing policies include principles, evaluation criteria, a

theoretical basis system It’s designed to assist implementers to achieve the goals

Marketing strategy: There are many definitions of marketing strategy, but people often

define the strategy as a long-term orientation and scope in order to give the organization

competitive advantages through the identification of resources in the environment

constantly changing to meet the needs of the market Thus, the definitions show that

policy is only one of the factors that make up the strategy

Figure 2.1: Distinguish marketing policies and marketing strategies

(Source: The author has aggregated )

2.1.2 The role of Marketing - Mix policy in the business

Marketing – Mix policy marketing is important for a business The elements in

Marketing – Mix are closely related, always interdependent The smooth coordination

between the elements helps the departments in the business understand their

responsibilities and work well together, helping businesses achieve the set goals The

- Including decisions

- Being short-term goals

- Being specific activities of the enterprise to

achieve the goals

- Include goals and policies to achieve goals

- Being long-term goals

- Indicating business orientation for the enterprise

system of policies and marketing strategies is considered as a key point of the business that they can use to attack the market with a superiority compared to other competitors

in the industry

2.1.3 The structure of Marketing – Mix policy in the business

In the current market economy, Marketing – Mix has been developed according to the following model:

Figure 2.2: Basic Marketing – Mix Model (Source: According to Jame, A (2003))

 Product: is a set of services that businesses provide to the target market

 Price: The number of currencies required by a customer to have a product of a certain quality, at a certain time, at a certain place

 Place: The process of bringing goods easily to the target customers expressed through many different methods and activities

 Promotion: Activities of spreading information about products from enterprises

to customers through various means

2.1.4 The basic content of the Marketing – Mix policy

2.1.4.1 Product policy

The role of the product

Among the basic elements of mixed marketing, the product plays the most important role, which is the foundation and the backbone of the marketing strategy, help businesses identify business direction, design products to suit consumer needs to limit risks, direct the effective implementation of the remaining Ps in Merketing - Mix Businesses want

to build a successful marketing strategy, first to build a successful product policy

Decide on product quality

Quality of products is the first and most important attribute for customers when choosing products, so product quality must be customer-centric Appropriate quality is the quality that meets the target market needs When analyzing quality, it is based on market quality, not merely technical quality

In product decisions, the decision on product quality is a key one because all marketing efforts are meaningless if the product is bad Product quality is a decisive factor to the effectiveness of other marketing variables, so product quality must always be improved

Decide on the product portfolio

A business that does not trade in a certain product but often trades in a product portfolio

It is a collection of all kinds of products that the seller offers to the buyer A product portfolio of a business will have a certain width, length, depth and density The width of the product portfolio shows how many different products the business has product portfolio length showing the total number of items The product portfolio depth shows how many options each product has in the same product category The density of each product portfolio shows the close relationship between different types of products

A product portfolio will include many different product categories Administrators need

to know the profitability of each item in the product category and the status of that product compared to a competitor's product to make decisions about the optimal product length, decide to diversify products or reduce the number of products in the product portfolio

The product category is a closely related product group, because they perform a similar function, sold to the same group of consumers, through the same sales channel or create

a specific price bracket

Decision on product brand

Trademarks are used to identify a product of a seller and to distinguish them from products of competitors Thanks to the trademarks, consumers can identify it

Trademarks not only helps consumers feel more secure, easy to compare, helps them save time when shopping but also helps businesses position their products in the minds

of consumers The reputation of the brand helps businesses be more competitive in competition Moreover, the company can reduce marketing costs for the product if the customer loyalty level for the product is high As a result, the company revenue is high but the cost is lower through creating a reputation for the brand

Decision on packaging and services for the product

This is an important tool to ensure the competitive advantage of businesses Packaging helps attract customers, describing the benefits of the product After-sales service, if done well with attractive packaging, will increase customer satisfaction This is really a good tool in making a difference for the product

(Source: According to Tran Minh Dao (2006))

2.1.4.2 Price policy

 The important role of price

Price is the basis for customers to decide to buy company’s products or other products,

as leverage to stimulate consumption For businesses, price is an equally important component in Marketing - Mix, bringing profits and revenue to the business Price decisions have a rapid impact on the market, impact on revenue, costs, profits, market share and product competitiveness

Previously, prices were determined through a process of negotiation between the two parties Sellers often offer higher prices, while sellers pay low prices Therefore, businesses need to choose a reasonable price to ensure profitability without affecting the attraction of customers

 Methods of pricing

Method of pricing comes from production costs

Product’s price = Costs of production and consumption + Expected profits

Production and consumption costs include production costs, marketing costs, and distribution costs The expected profit is the pre-calculated taxable income

Businesses often use this method to create product prices The advantage of this method

is that it is simple, easy to calculate and can control the quantities for calculating the selling price of products In essence, the application of this method is more fair to sellers and buyers The seller will have a reasonable profit and the buyer will accept it easily when knowing the seller's reasonable profit However, this method does not consider demand factors

Method of pricing based on consumer perceptions

Enterprises will base on the perceived value of customers through the following factors:

 Product quality

 Product characteristics & Product design

 Evaluation of target customers for the product

 The scarcity of products

 Services attached to the product

Method of pricing based on value

Method of pricing comes from the competitive situation Accordingly, businesses will

consider the price of their products compared to other competitors, and then set prices lower, higher or equal depending on the market situation Make up pricing in this way

is usually solved in two directions:

 Price based on current competition: Enterprises set prices based on competitors

in the market by offering equal, lower, and higher prices than competitors

 Price based on private bidding: At this time, businesses must carefully study competitors on resources, strengths and weaknesses, and businesses must find ways to reduce production costs to a minimum but still ensure the needs of investors Then make an estimate of the opponent's price to set the price for the business

Method of pricing based on demand

Follow this method, the price of the business must match the purchasing power of customers Based on the analysis of potential customer structure, businesses need to

choose the appropriate price for each customer

2.1.4.3 Distribution policy

 The role of building a distribution system

Through the company's distribution system, customers can easily access products and thanks to this distribution system, businesses can understand the demand of customers

The effectiveness of a successful distribution will drastically impact customer satisfaction and significantly reduce company costs Therefore, the construction of a distribution system helps businesses reduce worries about the distribution of goods to

the target market

 Distribution channel

Today, most manufacturers choose to deliver their products to the market through distribution intermediaries These distribution intermediaries constitute a distribution channel system Thanks to this distribution channel system, the company's products and services are quickly accessible to customers

 Types of distribution channels

Figure 2.3: Types of distribution channels (Source: According to Tran Minh Dao (2006))

Customers

Through Figure 2.3, we see there are 3 types of distribution channels that businesses can choose to design distribution channels:

- Direct distribution channel: Enterprises do not use intermediaries to distribute goods The sales force of the enterprise is directly responsible for selling the product to the customers

- Indirect channel: The business sells its products to product users through intermediaries From that, customers can buy directly from wholesale or retail In this case, the enterprise does not directly sell products to its users

- Mixed distribution channel: This is a distribution channel based on a combination of both direct and indirect distribution channels simultaneously Enterprises both organize direct sales and exploit the advantages in the distribution system of intermediaries

 Management of distribution channels

After setting up distribution channels, the management and operation of the channels are very important issues Manufacturers must regularly research, understand the needs

of intermediaries and have directions to help and solve In order to have appropriate incentives, businesses must really understand the members of the distribution channel system In addition, the administrator must establish appropriate penalties for inefficient members In addition, businesses must regularly evaluate the results Based on criteria such as sales volume, inventory, competitiveness to evaluate the performance of members of the distribution channel Through the assessment, businesses know which members are effective to implement the investment plan or eliminate in a timely manner, contributing to the perfect distribution channel structure to be able to meet demands of the market are constantly changing

2.1.4.4 Promotion policy

The role of mixed promotion

Mixed promotion activities help businesses perform tasks such as motivating consumers

to try products and create opportunities for products to accurately communicate information Encourage external resources so that they have a good sympathy for the

product as well as the business, create a product impression for customers, remind them

of the characteristics and benefits that the product brings Help the company build and protect their image as well as product image in the minds of consumers

When businesses build a good mixed promotion strategies, they will gain a lot of benefits such as increasing revenue, sales More than that, they will create and maintain good public relations with our customers and create a love for the brand

 Basic content of mixed promotion

Mixed promotion includes many activities aimed at bringing products to market:

Figure 2.4: The main activities of mixed promotion

(Source: The author has aggregated)

Advertisement: According to Philip Kotler (2009), advertisement is a form of direct

communication, conducted through paid media and clearly defined funding sources to introduce goods and services of for the market, for the target customers to make an impression of the company's products to customers

Promotion: It is all business activities to convey information about the advantages of

goods manufactured by the business and persuade target customers to buy Promotion

to attract new customers, reinforce loyalty to old customers or stimulate new customers

to buy more

Direct selling: Is a commercial behavior of traders, having direct contact of salespeople

with potential customers to introduce products Seller is responsible for delivering, transferring ownership to the buyer and receiving money from the customer

Public relations: Is the communication activities to build and protect the reputation of

businesses and products in public Enterprise don’t need to pay for public relations, so

it is not personal for a product or a business because it will bring commercially significant news about the business and the product on the media

Direct marketing: Using telephone, email, television, or other promotional tools to

communicate, meet the demand of customers is considered as a tool of direct marketing

2.2 The criteria to evaluate the effectiveness of Marketing – Mix activities

2.2.1 Criteria for evaluating product policies effectiveness

 The product always ensures safety and high reliability for users

 Products that businesses are trading must match the trends and meet the constantly changing demand of the market

 Positioning the product properly, promoting the strength of the product

 Products are differentiated from competitors in terms of quality and service, variety of designs, styles

2.2.2 Criteria to evaluate price policies effectiveness

 Price must match the strategic goal of the business and target customer

 Reasonable pricing to maximize the amount of goods sold in the market and bring big revenue to the business

 Prices must be based on market and enterprise costs but when deciding cannot ignore the price information of competitors

 Prices are stable on the basis of building product quality and business reputation

 Enterprises must adjust prices according to both internal and external impacts

2.2.3 Criteria for evaluating distribution policies effectiveness

 Customers can buy products as quickly as possible, in the nearest place possible

 Applying technology to strictly manage the distribution system, bringing reputation to businesses

 Shipping products to customers quickly and conveniently

2.2.4 Criteria for evaluating the promotion policies effectiveness

 Promotion activities must be associated with marketing objectives and products must be known to the majority of consumers

 Making an impression on customers is expressed through growing numbers

 Customers respond to promotion programs and express customer satisfaction after the end of the program

(Source: According to Tran Minh Dao (2006))

2.3 Summary of chapter 2

The content in chapter 2 gives an overview of the theoretical basis from the references cited directly and indirectly from the authors, so that readers can better understand the theories related to Marketing and Marketing - Mix in the business The author bases on this theoretical basis to express the status of the company From there it is possible to compare between the theory and the actual situation of the company

CHAPTER 3: CURRENT SITUATION OF MARKETING – MIX ACTIVITIES FOR TL - BALLPOINT PEN PRODUCTS AT THIEN LONG GROUP 3.1 The organizational structure and duties of the Marketing department

3.1.1 The organizational structure of Marketing Department

Figure 3.1: The organizational structure of Marketing Department

(Source: Marketing Department) 3.1.2 The Duty

3.1.2.1 The duties of Marketing Department

 Organizing the implementation of new product development programs as well as sales promotion activitiesPhân khúc thị trường, xác định mục tiêu, định vị thương hiệu

 Develop and implement a marketing strategy plant

 Establish an effective relationship with the media

 Research marketing, forecast sales and conduct surveys behavior of potential customers

3.1.2.2 The main task of Marketing staff

Marketing Director

 Plan the company's sales and marketing strategy

 Set a Marketing budget Responsible within the assigned budget

 Organize the implementation of the company's goals and policies for business and marketing activities

 Building and directing the implementation of research, development, training and application of science and technology programs in business activities

 Responsible for all activities, managing all employees of the Marketing Department

 Helping the Board Of Director to effectively manage all marketing activities of the company to ensure business resources

Communication Manager

 Building relationships with the press, media and related partners

 Aggregating and reporting on information about the company in the press and the media

 Research and forecast public opinion trends that are likely to affect the company

 Building and managing the company's website as well as internal PR forms Marketting staffs under the management of the Communication Manager are responsible for:

- Digital Marketing Staff: Design a digital media campaign in accordance with

business’s goals; Collaborate in creating digital content such as Web pages, Blogs ; Set up company Web to increase brand awareness…

- E – Commerce Marketing Staff: Introduce product information, sell directly on

e-commerce sites; Website administration, Fanpage, run FB ad or Google Ad and offer specific solutions to increase sales efficiency

- Communication Staff: Along with Communication Manager to build, develop and

maintain relationships with press agencies, television stations, media partners; Create creative ideas to produce, edit media content; Monitor and update broadcast information through media channels

Brand Marketing Manager - This is the main person responsible for allocating

resources for the marketing activities of TL - ballpoint pen products

 Develop a brand development strategy to achieve the assigned target market share

 Develop a marketing program for each product line monthly, quarterly and yearly

 Develop consumer stimulation activities for each brand

 Coordinate communication, bring the brand to consumers

 Ensure the implementation schedule of activities will be synchronized and effective

Marketting staffs under the management of the Brand Marketing Manager are responsible for:

Brand Marketing Executive, Brand Markeing Staff: Gather quantitative and qualitative

data about the campaign to analyze the market and study competitors' activities to launch new products; Survey and learn about customer needs as well as customer interest; Supporting the implementation of sales promotion programs

Designer: Designing promotional images for the Company's product chain; Perform

image management to ensure consistency and recognition of the brand; Coordinate with all Marketing Staff to organize activities related to advertising and communication…

Trade Marketing Manager

 Planning promotions, exhibiting in regions through discussions with ASM

 Survey the market to check and ensure that the proposed programs are effective and targeted for sales, coverage, and images

 Plan to counter competitors and revive weak markets through specific KPIs implemented for Sales system

 Proposing ideas for effective implementation of the program

Marketting staffs under the management of the Trade Marketing Manager are responsible for:

Merchandise Executive, Advertising Staff: Deploy and display POSM; Control and

report display situation at the store; Proposing investment on display for the store; Change the old display design and information about the new agent and the display investment proposal

Fair Staff, Trade Marketing Staff: Wtogether to survey the market, check customer

needs according to the market in different regions when organizing fairs and events there; Planning and implementing events, organizing fairs, outdoor advertising to bring Company information, products and brands to consumers; Coordinate PR staff to conduct PR programs on events and fairs on the Internet and outdoors; Manage product brand image information in events, fairs and outdoor advertising; Coordinate well with the Warehouse Department to store and manage the goods for events and fairs

Comment: The organization structure of the marketing department is expressed according to the type of structure by function

 Easy to generate different ideas and suggestions, inconsistent in the department

3.2 Real situation of Marketing – Mix activities for TL - Ballpoint Pen Products at Thien Long Group Corporation

3.2.1 The position of the business; Characteristics of sales activities, customers

3.2.1.1 The position of the business

Currently, Thien Long Company is one of the leading companies in Vietnam in the field of manufacturing ballpoint pens and other stationery products Thien Long ball pen is a reputable product that has been accepted by the market with nice design and good quality According to Brand Vietnam, although the writing segment is no longer growing strongly in 2017, Thien Long still holds 65% of the domestic pen market share Key product lines such as TL - ballpoint pens and Bizner high-end pens, FlexOffice office supplies, Ten-Point school supplies and Colokit – Fine art product and art tool are currently distributed at more than 60,000 retail points across the country

Not stopping in the domestic market, Thien Long also proceeds to export to countries such as Australia, Taiwan, and Hong Kong even the fastidious market such as the US and Europe Especially, TL - ballpoint pen product has about 50% market share

in Cambodia Each product has a unique design that meets all consumer needs, all of which are of very good quality and are made from stable imported fuels from leading companies like Germany, Switzerland According to Brand VietNam, Thien Long has exported to 60 countries and covered 11/11 Southeast Asian countries In 2017, Thien Long's products grew highly in markets such as the Philippines, Thailand and gradually dominated the market in Southeast Asia in terms of market coverage, sales and brands

When the products on the market are of the same good quality, the prices are the same, what determines the existence of products and businesses is the brand and after-sales policy With authorized capital of over VND 600 billion and a modern production line equipped with high technology and a team of skilled workers who are constantly creative and striving to improve product quality Thien Long Group has achieved its position today The prestigious awards such as the national brand award, the top 15 best

trading partners in the world in the stationery industry, the Top 100 sustainable development enterprises in Vietnam in 2016, the top 50 most effective business enterprises in Vietnam 2016 is the best evidences for Thien Long's competitiveness in Vietnam compared to other competitors in the same industry

3.2.1.2 Characteristics of sales activities, customers

Thien Long is building a sales method in the direction of optimizing the GT channel and strengthening the MT channel With more than 60,000 retailers and the development of many other sales channels such as direct sales channels for schools, channel for selling advertising services (B2B) Thien Long's distribution system always ensures that Thien Long's products reach consumers in 64 provinces and cities Thien Long focuses on selling its products mainly through the GT distribution channel

According to this distribution channel, the product will go from manufacturer - wholesaler (agent) - retailer - consumer Not only this traditional distribution channel, TLG also set up two other distribution channels including Modern trade channel, which

is a supermarket system such as Big C, Aeon Mall , Nhan Van and Nguyen Van Cu bookstores and the channel for selling advertising services (B2B) Thien Long also researched and developed online trading method similar to buying goods through websites like Tiki, Shopee, Lazada and customers can pay by credit card or similar forms

In addition to sales activities, TLG also engages in advertising services such as designing, printing, and producing pen samples of customers' requests Customers can customize the designs, colors, logos of their companies on products to serve for promotions, branding

With the characteristics of a B2B company, in order to order Thien Long's products, businesses and agents will often call the ordering staff at Tan Luc system to order stationery including: pens, Bizner, stationery, school supplies, art supplies, plastic covers In addition, businesses or agents can order online through the Flexoffice.com website

3.2.2 Product strategy

Currently, Thien Long Group Corporation is a leading company in the stationery industry in Asia in general and Vietnam in particular However, to achieve such success, the company always put the interests of customers first, increasing the benefit for customers is creating more profits for the company To accomplish this task, the company's Marketing department determines the Marketing policies for the product as follows:

3.2.2.1 The main TL - ballpoint pen products of Thien Long Group Corporation

The main TL - ballpoint pen products of Thien Long Group Corporation refers to Appendix 1

3.2.2.2 Product characteristics

Product description of some TL - ballpoint pen products refers to Appendix 2

3.2.2.3 Deciding product quality

For quality control, Thien Long operates the production process according to ISO 9001: 2008 quality management system Input materials are assessed and selected by Thien Long on the basis of close cooperation with suppliers

Every stage in the manufacturing process, semi-finished products are tested to withdraw samples according to AQL (Acceptable Quality Level) to ensure the quality

of semi-finished products before moving to the next stage and prevent incidents from causing damage high fees With finished products, before being put into warehouse, Thien Long has a QC team (Quality Control) that will check the quality according to product quality standards For raw materials and finished products, the QC team will check and evaluate the quality every month to prevent and remedy immediately when there is an incident Product preservation is also widely deployed to distributors throughout the country

To be present in the market and stand up to this day, all products must go through the process of research, testing and quality control Therefore, at any stage, Thien Long also invests in the most modern and advanced machinery and equipment From the stage

of creating plastic products, it is done on plastic injection machines with the support of industrial robots Next is the assembly that is carried out on a semi-automatic assembly machine with high productivity and accuracy Then the product is printed on specialized printers such as Tranfer Film, Flexo printer (5 colors), Hotstamping printer There is continuous packing system on conveyor To make these synchronous lines, the design and processing are done completely automatically on CNC machines originating from Japan, Korea

3.2.2.4 Product brand

Thien Long brand is beautifully designed and easily impresses consumers Each company's product is printed with TL symbol T stands for "Thien", L stands for "Long" With the slogan "Knowledge Strength", Thien Long Group wants to remind that knowledge creates different position and value for people Knowledge brings spiritual power to humanity Knowledge helps people to control themselves, to control work and

to control nature " Knowledge Strength" - it is also a guideline to bring Thien Long brand to the leading position in the domestic and international stationery industry Originating from the parent brand, TL has been developed into a separate brand with the slogan "Cong viec hanh thong" TL brand has helped Thien Long Group maintain its own unique characteristics of the company

3.2.2.5 Product quality and product packaging

 Pen’s body is printed company’s logo

- The product packaging is divided into 2 types

 Packed in paper box

 Packed in blister

When transporting products are packed in cardboard boxes

Description of packaging specifications for TL - ballpoint pen products refers to Appendix 3

3.2.2.6 Product support services

Aftersales policy and customer care are one of the important determinants of a brand's success Thien Long always values all the opinions of consumers The company's website has a user-friendly interface, providing full product information for users to capture product information quickly and promptly In addition, customers can contact the company at any time via mail, hotline (08) 37543866 for support and advice Thien Long always encourages customers to comment on products so that company’s products are better and better

3.2.2.7 Developing new products

Instead of advertising and media headlines every new product launch like consumer goods manufacturers Since 2008, Thien Long has launched many new product lines to explore and integrate with Below The Line activities such as PR, sponsorship, events, promotions to introduce new products to customers

In the development trend of society, in order to meet the higher demands of consumers, Thien Long is trying to launch new ballpoint pen products, using high-grade ink technology for better handwriting In 2019, the company has launched breakthrough products that impress the market like the TL 095 0.6mm pen tip Another product is Trandee TL - 079 with 0.5 mm pen tip shaped Needle suitable for high school students and those who need to write shorthand The pen has three colors: blue, red, and black, suitable for diverse requirements of customers

3.2.2.8 Market Share

Thien Long was established in 1981 and for more than 35 years has always considered the domestic market - Vietnamese consumers as the number one priority

This success is due in large part to Thien Long's marketing strategy according to the product life cycle In addition to investing in high-end technology, machinery, equipment and materials, Thien Long also focuses on developing and maintaining the strength of brands and distribution systems throughout Vietnam, ASEAN and China Up

to now, Thien Long has 100 distributors, more than 60,000 wholesale and retail stationery stations across the country and 3 systems of North - Central - South warehouses which are ready to serve the storage and transshipment of real goods anytime and anywhere According to Brand Vietnam, Thien Long takes the lead with 60% market share in pen products, while the other two long-term local businesses, Hong

Ha and Ben Nghe, account for about 12% The rest of the share belongs to imported products, including from China and foreign luxury brands

Figure 3.2: Market share of pen products in 2018

(Source: The author has aggregated )

60%

7%

5%

28%

MARKET SHARE OF PEN PRODUCTS IN 2018

Thien Long GroupBen Nghe

Hong HaOthers