Planning marketing for water gate valves at sao nam viet import export and trading co., ltd. The director plays an important roles and responsibilities in the company. Essentially, he has the right to hire all employees, as well as assessing the overall direction and strategy for his company. Moreover, he acts on behalf of the shareholders to run the day to day affairs of Sao Nam Viet. The director is accountable to the shareholders. Each year the company will hold an annual general meeting at which the directors provides a report to shareholders on the performance of Sao Nam Viet.
Planning marketing for water gate valves at sao nam viet import export and trading co., ltd..docx
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TON DUC THANG UNIVERSITY
FACULTY OF BUSINESS ADMINISTRATION
DEPARTMENT OF BUSINESS ADMINISTRATION
PROFESSIONAL INTERNSHIP
REPORT
PLANNING MARKETING FOR WATER GATE
VALVES AT SAO NAM VIET IMPORT EXPORT AND
TRADING CO., LTD.
SUPERVISOR: MBA. TO DIEP
PROFESSIONAL INSTRUCTOR: TRAN NGOC YEN PHUONG
STUDENT’S NAME: DUONG BOI NGOC
STUDENT ID: 71406301
CLASS ID: 14070610
FEEDBACK OF INTERNSHIP COMPANY
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Student’s name: Duong Boi Ngoc Student ID: 71406301
Class: 14070610 Academic Year: K18
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Ho Chi Minh City, Date………………
Supervisor
(Full name ands signature)
FEEDBACK OF SUPERVISOR
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Student’s name: Duong Boi Ngoc Student ID: 71406301
Class: 14070610 Academic Year: K18
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Ho Chi Minh City, Date…………………………………
Counterargument Lecturer
(Full name and signature)
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EVALUATION OF COUNTERARGUMENT
SUPERVISOR
Student’s name: Duong Boi Ngoc Student ID: 71406301
Class: 14070610 Academic Year: K18
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Ho Chi Minh City, Date…………………………………
Management Executive Officer
(Full name, Signed and Sealed)
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TABLES OF CONTENTS
TABLES OF CONTENTS..........................................................................................5
INTRODUCTION.......................................................................................................1
CHAPTER 1: OVERVIEW OF THE COMPANY FOR INTERNSHIP...................2
1.1 Overview of Sao Nam Viet Import Export And Trading Co., Ltd. (Sao Nam
Viet).........................................................................................................................2
1.1.1 Operation and Development.......................................................................2
1.1.2 Business Activities Fields of Sao Nam Viet...............................................3
1.1.3 Organization Structure of Sao Nam Viet....................................................4
1.1.4 Personnel situation of Sao Nam Viet..........................................................6
1.1.5. Business Operation Performance of Sao Nam Viet for the period 2015-
2017 .....................................................................................................................9
CHAPTER 2: ANALYZING THE OPERATIONAL PROCESS OF THE
COMPANY...............................................................................................................11
2.1 The Operational Process of Sao Nam Viet......................................................11
2.1.1. Analysis of Business activities ................................................................11
2.1.2. SWOT Analysis.......................................................................................12
2.1.3. Advantages of Sao Nam Viet ..................................................................13
2.1.4 Disadvantages of Sao Nam Viet...............................................................14
2.2 Marketing-Mix Plan for Water Gate Valves in Asian and European Markets.
...............................................................................................................................16
2.2.1 Developing Marketing Strategies and Plans.............................................16
2.2.2 Developing Marketing-Mix Plan for Water Gate Valves in Asian and
European Markets..............................................................................................23
CHAPTER 3: RECOMMENDATIONS AND SOLUTIONS..................................36
3.1 Target market...................................................Error! Bookmark not defined.
3.2 Branding ..........................................................Error! Bookmark not defined.
3.3 Advertising ......................................................Error! Bookmark not defined.
CONCLUSION.........................................................Error! Bookmark not defined.
REFERENCES..........................................................Error! Bookmark not defined.
CUSTOMER RESEARCH TABLE
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TABLE OF FIGURES, TABLES AND PICTURES
Figures
Figure 1.1: Sao Nam Viet Valves Products ....................................................................3
Figure 1.2: Organizational Structure...............................................................................4
Figure 1.3: Rate of Labour Age ......................................................................................7
Figure 1.4: Rate of Degree..............................................................................................8
Figure 1.5: Sales Revenue 2015-2017 ............................................................................9
Figure 1.6: Costs of Sao Nam Viet in 2015-2017.........................................................10
Figure 1.7: Operation Statistics.....................................................................................11
Figure 2.1: SWOT Analysis..........................................................................................12
Figure 2.2: Global Market forecast 2016-2024.............................................................17
Figure 2.3: % Breakdown of key end-use secotrs.........................................................18
Figure 2.4: Industrial vale market trend........................................................................19
Figure 2.5: Global Marketshare of gate vales in 2015-2017 ........................................20
Figure 2.6 The competitors ...........................................................................................21
Figure 2.7: Growth of construction spending in 2014-2019.........................................22
Tables
Table 1.1: Labour Age Statistics.........................................................................................7
Table 1.2: Degree of labour force .......................................................................................8
Table 1.3: Data of Sao Nam Viet Business Activities 2015-2017..........................................9
Table 2.1: Compare Sao Nam Viet Business Activities between 2016 and 2017..................11
Table 2.2: Global Marketshare of gate vales in 2015-2017.................................................19
Table 2.3: Industrial Valves Market, by Valve Type: .........................................................20
Table 2.4: Pricing of PPR gate valve.................................................................................28
Table 2. 5: Pricing of steel valve.......................................................................................29
Table 2.6: Pricing for Gate valve flange3 ..........................................................................29
Table 2.7: Pricing for Brass gate vale lock handle..............................................................30
Table 2.8: Pricing for Brass gate vale – Miha brand...........................................................31
Pictures
Picture 2.1: Three elements of the effective product strategy ..................................................24
Picture 2.2: Process of Product Strategy...................................................................................25
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INTRODUCTION
The global industrial valve market is expected to grow at a CAGR of 5.4%
over the next half-decade and is predicted to surpass $ 70 billion by 2019. Latin
America, the Middle East and Africa are expected to be the emerging market for
industrial valves. The Asia-Pacific market is expected to grow at the fastest rate
compared to other regions.
Industrial valves are devices used to regulate flow and control in piping
systems. Valves are used to adjust, start and stop, or control the direction of liquid
or gas, flowing through the piping system. The industrial valve market has been
segmented on the basic of its application in industries such as Petroleum, Chemical,
Urban Infrastructure, Electricity and other fields.
The industrial valve market is expected to grow at a steady pace during the
first half of the next decade. The demand for industrial valves is expected to be
driven by significant expansion in the oil and gas industry (Valves for the Oil and
Gas industry), industrial valves, valves for the urban infrastructure sector.
marketing, and power industry. One of the fastest growing markets for industrial
valves is the Middle East and Africa. Demand for valves in the Middle East is
expected to play a direct role in global valve manufacturing; promote distribution
channels such as supplying raw materials and providing refined products for valve
manufacturing. Growth in oil and gas industry and energy applications is expected
to boost the demand for industrial valves in Africa. The demand for water and
wastewater treatment and the expansion of oil and gas fields to countries such as
India and China will boost the demand for industrial valves in the Asia-Pacific
region. Key markets such as Australia and South Africa have experienced a
downturn in the mining industry, thus directly reducing demand for valve products.
Since Sao Nam Viet main product is valve, I decided to choose the topic:
“Planning marketing for water gate valves at Sao Nam Viet Import Export and
Trading Co., Ltd.”. In addition, research on the subject also allows me to have the
opportunity to apply the knowledge in the field, to be exposed to new jobs, to learn
more in the industry. This is also an opportunity for me to equip myself with the
knowledge, skills and attitudes necessary to prepare myself for graduation.
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CHAPTER 1: OVERVIEW OF THE COMPANY FOR INTERNSHIP
1.1 Overview of Sao Nam Viet Import Export And Trading Co., Ltd. (Sao Nam
Viet)
1.1.1 Operation and Development
1.1.1 Establishment, Operation and Development history of Sao Nam Viet
Company name: Sao Nam Viet Import-Export Trading Service Co., Ltd
Address: 199/2 Road I 19, Block 5, Thoi An Ward, District 12, Ho Chi
Minh City
Tel: (08) 62502299, 0982.666.352 - 0982 541 359 / Fax: (08) 62502299
Email: minhhoathanh@gmail.com - YM/Skype: minhhoathanh
Vision: Sao Nam Viet always desire desires to create a Vietnamese
company with good brand name with the best service.
Mission:
For Market: Providing products - services according to international
standards, while providing unique and highly innovative
characteristics of Vietnamese people
For partners: Commitment to the spirit of cooperation and
development.
For staff: Always uphold and build a professional working
environment, dynamic, creative and humane.
For society: Express sense of civic responsibility to the community
and maintain ethnic pride
Core value: "CEREMONY - WISDOM - PRESTIGE” means “LỄ - TRÍ-
TÍN"
Sao Nam Viet was established in 2012. Sao Nam Viet is proud of being the
Vietnamese leading prestigious manufacturer and exporter of gate valves. During
six years of establishment and development, Sao Nam Viet has supplied customers
high quality, innovative, value-priced products with diversified styles and designs
which range in different categories of products.
Nowadays, with the wishes to meet customers’ different requirements,
promote trading and introduce our products to global markets, Sao Nam Viet has
built the close long-term cooperation with many customers all over the world. In
addition, Sao Nam Viet has been planning to take part in many annual domestic and
international Trade Fairs in Hong Kong, America, England, German, Belgium, etc.
As a result, the company has been affirming step by step its position in overseas
markets such as EU, America, Australia, Japan…. With the team of experienced
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and creative employees, Sao Nam Viet is ready to serve every potential customer,
and once purchasing from us, the customers are buying not only products but also
three 100% - 100% quality, 100% service, and 100% satisfaction. Sao Nam Viet
sincerely welcomes the friends from all over the world to mutual development and
friendly cooperation.
The year 2018 is the year in which there will be many changes in the
business. And when Vietnam integrates with TPP and ASEAN countries Sao Nam
Viet will take the chance and experience many great challenges. The company
needs more closely linked than to unite to overcome that challenge. With the great
effort, Sao Nam Viet has specific goal to enlarge export market
1.1.2 Business Activities Fields of Sao Nam Viet
Sao Nam Viet specializes in distributing gate valves with brand names of
MIHA, MBV and MI, manufactured by Minh Hoa Investment Joint Stock Company,
such as Check valve, butterfly Valves, ball valves, accessories Lace, welding
accessories, young tapes, supplies and fire protection, pressure relief valves, steel
pipe, brass foot valve, brass gate valve - gate valve, brass swing check valve, brass
ball valve - alloy ball valve, accessories stainless steel - stainless steel valve.
Figure 1.1: Sao Nam Viet Valves Products
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In addition, Sao Nam Viet also distributes water meters with brand names of
Unik (Taiwan), Zenner-Coma (Germany), Shinha (South Korea) ... With dynamic
and enthusiastic sales team, Sao Nam Viet is always willing to serve their customers
with thoughtfulness and dedication, always bring friendly feeling to their customers
in business.
1.1.3 Organization Structure of Sao Nam Viet
This is chart of Sao Nam Viet organizational structure
Figure 1.2: Organizational Structure
Director is the top power of Sao Nam Viet that directly manage five departments
consisting of sales department, technical department, R&D department, accounting
department and department of general administration.
Roles of Director
The director plays an important roles and responsibilities in the company.
Essentially, he has the right to hire all employees, as well as assessing the overall
direction and strategy for his company. Moreover, he acts on behalf of the
shareholders to run the day to day affairs of Sao Nam Viet. The director is
accountable to the shareholders. Each year the company will hold an annual general
meeting at which the directors provides a report to shareholders on the performance
of Sao Nam Viet.
Roles of Sales Department
Sales department is one of the most important department in Sao Nam Viet.
The sales staff are in charge of looking for the sales opportunities with the existing
and new customers to sell products and services. Whenever, the company has a
meeting, they will organize effective presentation to their customers for their target
products. The sales manager takes responsibilities to identify the target budget for
each year with following-up percent of the budget realization each quarter of year.
To do this, sales manager has to definite business opportunities with each customer
Directorate
Sales
Department
Technical
Department
Import-
Export
Department
Marketing
Department
Accounting
Department
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to be considered in the target budget or forecast list. Moreover, they should
development the rapports with all existing and new customers to know their future
plan as well as co-ordination with sales Department to reach the strategic goals.
Roles of Technical Department
Technical Department is responsible for diagnosing any hardware or
software faults with these systems and will solve the issues either in person or over
the phone. By the way, they are in charge of installation and configuration of a
company’s computer hardware operating systems and applications. Every day, IT
staff have to maintenance and monitor computer networks and systems, as well as
testing and evaluating new technology. In addition, they performing electrical safety
checks on the company’s computer equipment.
Roles of Marketing Department
Sao Nam Viet marketing department has overall responsibility for its
growing revenue, increasing market share and contributing to the company growth
and profitability.
The Marketing team does the research that aims to identify market
opportunities and gain a better understanding of customer needs. They also do the
survey to understand competitors’ strengths and weaknesses so they can take action
to protect Sao Nam Viet business with their current customers or win business from
weaker competitors. Moreover, the marketing department works with internal or
external product development teams from technical department to develop new
products or improve existing ones. They also plan campaigns and develop
communications material to promote vale products to customers and prospects. In
addition, Sao Nam Viet marketing department is responsible for organizing events,
such as exhibitions, seminars, sales conferences or customer hospitality events.
Roles of Accounting Department
This is an important department in Sao Nam Viet. There are some specific
roles that the accounts maintain great relationships with vendors. the essential roles
and duties of virtually any accounting staff include some working as below
Firstly, they have to make money out. It means that they are in charge
of making payments and keeping the bills paid
Secondly, they have to make money in. It means that they are in
charge of processing incoming payments
Thirdly, they have to make payroll to make sure that everyone gets
paid on time.
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Fourthly, they have to do report. It means that they are preparing
financial reports such as profit and loss, balance sheets and budgets
Lastly, they have to control finance.
Roles of General Administration Department
General Administration Department occupies an important in Sao Nam Viet.
The department is incharge of providing comprehensive administrative planning,
leadership and organizational, as well as development of all departments in the
company. They also evaluate performance of all department heads and their
operations. In addition, administering all laws and policies established is their
responsibilities in Sao Nam Viet.
1.1.4 Personnel situation of Sao Nam Viet
Total labour forces of Sao Nam Viet are 471 people (Table 1.1) in which:
Directors and managers are 20 people consisting of 60% labour force having
age of 23-35, and 40% of labour force having age of 36-60.
There is no Foreign employee in Sao Nam Viet.
Professional staff are 43 people including 81% labour force having age of
23-35, and 19% of labour force having age of 36-60.
Total shippers are 10 people including 70% labour force having age of 23-35,
and 30% of labour force having age of 36-60.
Total warehouse staff are 6 people including 50% labour force having age of
23-35, and 50% of labour force having age of 36-60.
Total workers are 380 people including 70% labour force having age of 23-
35, and 30% of labour force having age of 36-60.
Total truck and car drivers are 12 people encompassing 50% labour force
having age of 23-35, and 50% of labour force having age of 36-60.
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Table 1.1: Labour Age Statistics
Labour
Labour Age
Quantity
Age
%
Age
%
23-35 36-60
Directors and
managers
20 12 60 8 40
Foreign employee 0 0 0
Professional staff 43 35 81 8 19
Shippers 10 7 70 3 30
Warehouse staff 6 3 50 3 50
Workers 380 266 70 114 30
Truck and car
drivers
12 6 50 6 50
Total 471 329 70 142 30
Moreover, the table 1.2 shows academic level of labour force in Sao Nam Viet.
In total, there is 70% people aging 23-35 and 30% ones aging 36-60, show in
figure 1.3.
Figure 1.3: Rate of Labour Age
70
3.2
Labour Age
23-35
36-60
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Table 1.2: Degree of labour force
Labour
Degree
High
school
% College % University %
Post
graduate
%
Directors and
managers
0 0 0 0 8 40 12 20
Foreign workers 0 0 0 0 0 0 0 0
Professional staff 0 0 3 7 40 93 0 0
Shippers 0 0 10
10
0
0 0 3 4
Warehouse staff 0 0 0 0 5 83 1 2
Workers 203 53 112 29 65 17 0 0
Truck and car
drivers
7 58 5 42 0 0 0 0
Total 210 45 127 27 118 25 16 3
Total labour force having high school degree are 210 that the workers have this
degree, accounted for 45%; Total labour force having college degree are 127 people,
accounted for 27%; Total labour force having university degree are 118 people,
accounted for 25%; Total labour force having postgraduate degree are 3 people,
accounted for 3%.
Figure 1.4: Rate of Degree
45
27
25
3
Degree
High school
College
University
Post graduate
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1.1.5. Business Operation Performance of Sao Nam Viet for the period 2015-
2017
Through three years of business activities, Sao Nam Viet achieved the profit which
in more and more increasing during three years, as in table 1.3
Table 1.3: Data of Sao Nam Viet Business Activities 2015-2017
Unit: VND
Items Year 2015 Year 2016 Year 2017
1- Sales revenue 25,394,877,565 40,024,986,544 45,392,876,432
2- Cost of sold goods 19,849,378,658 31,456,789,233 35,885,679,392
3 - Interest expenses 500,369,456 589,079,454 604,102,271
4 - Corporate income tax 230,567,888 305,678,943 350,564,478
5- Profit after tax 4,814,561,563 7,673,438,914 8,552,530,291
Sales and service delivery revenue sharply increased from more than 25
billion VND in 2015 to 40 billion VND in 2016, then gradually went up to more
than 43 billion VND in 2017 (Figure 1.3). This is a rewarding result for the
company's staff. It helps profit went up to 7,67 billion VND and 8,88 billion VND
respectively.
Figure 1.5: Sales Revenue 2015-2017
-
5,000,000,000
10,000,000,000
15,000,000,000
20,000,000,000
25,000,000,000
30,000,000,000
35,000,000,000
40,000,000,000
45,000,000,000
50,000,000,000
Year 2015 Year 2016 Year 2017
Sales revenue
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Costs have been also increased during three years as described in Figure 1.6.
Figure 1.6: Costs of Sao Nam Viet in 2015-2017
The costs of sold goods was high and has increased step by step during three
years because of increasing production and revenue. Moreover, interest expenses
also increased 3 years ago because interest rate and loans went up. Sao Nam Viet
borrowed more money from some banks to enlarge its business. Besides, income
tax also went up as well because of revenue going up.
-
5,000,000,000
10,000,000,000
15,000,000,000
20,000,000,000
25,000,000,000
30,000,000,000
35,000,000,000
40,000,000,000
Year 2015 Year 2016 Year 2017
2- Cost of sold goods 19,849,378,658 31,456,789,233 35,885,679,392
3 - Interest expenses 500,369,456 589,079,454 604,102,271
4 - Corporate income tax 230,567,888 305,678,943 350,564,478
Costs
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CHAPTER 2: ANALYZING THE OPERATIONAL PROCESS OF THE
COMPANY
2.1 The Operational Process of Sao Nam Viet
2.1.1. Analysis of Business activities
Firstly, sales and service delivery revenue increased by five billion VND
more than one in 2017, accounting for 13.41 percent. It shows that Sao Nam Viet’s
business is very good because its profit is always higher and higher during three
recent years.
Table 2.1: Compare Sao Nam Viet Business Activities between 2016 and 2017
Item Year 2016 Year 2017
Difference between
2016 and 2017
VND %
1- Sales revenue 40,024,986,544 45,392,876,432 5,367,889,888 13.41
2- Cost of sold
goods
31,456,789,233 35,885,679,392 4,428,890,159 14.08
3 - Interest expenses 589,079,454 604,102,271 15,022,817 2.55
4 - Corporate
income tax
305,678,943 350,564,478 44,885,535 14.68
5- Profit after tax 7,673,438,914 8,552,530,291 879,091,377 11.46
Figure 1.7: Operation Statistics
40,024,986,544
45,392,876,432
31,456,789,233
35,885,679,392
7,673,438,914 8,552,530,291
0
5,000,000,000
10,000,000,000
15,000,000,000
20,000,000,000
25,000,000,000
30,000,000,000
35,000,000,000
40,000,000,000
45,000,000,000
50,000,000,000
2016 2017
1- Sales revenue
2- Cost of sold goods
3 - Interest expenses
4 - Corporate income tax
5- Profit after tax
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Secondly, cost of sold goods also increased during 2016-2017, it is 4.429
billion VND of increase in 2016 more than 2017, accounting for 14.08 percent. Cost
of sold goods rises because of hiring more staff during previous year and cost for
customer service increasing.
Thirdly, interest expenses increased by 15 million VND in 2017, accounting
for 2.55 percent. It is the cause of Sao Nam Viet’s increasing loans. In 2017, Sao
Nam Viet borrows more money for widden business with increasing budget for HR
department and sales department to develop market share.
Fourthly, Corporate income tax went to nearly 45 million VND in 2016,
accounting for 14.68 percent more than one in 2017. Due to revenue increased,
income tax increase as well.
To sum up business activities, it shows that Sao Nam Viet business activities are
good because positive elements such sales and service delivery revenue and Profit
after tax increase during recent years. It presents for Sao Nam Viet’s stable
development.
2.1.2. SWOT Analysis
To identify Strength – Weakness – Opportunity – Threat of Sao Nam Viet,
SWOT analysis has been deployed.
Figure 2.1: SWOT Analysis
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SWOT analysis is used essentially for Sao Nam Viet’s business and marketing
purposes. As the result, the company can set up a good marketing strategy.
2.1.3. Advantages of Sao Nam Viet
Internal advantages
Sao Nam Viet has variety of products that create product differentiation for
the company. To survive in the global competitive market, Sao Nam Viet keeps
creating new products that enable them to remain relevant. Sao Nam Viet competes
to create unique products that satisfy customer demands through differentiation.
Companies can improve on existing products to make them more effective and
attractive. Product differentiation is a powerful way of enhancing customers'
responsiveness by providing them with a wide array of gate vales in the
international market. Sao Nam Viet also develops differentiate products to respond
to customers' preferences. Product differentiation attracts customers to different
segments of the market a wide variety of goods to choose from.
Moreover, Sao Nam Viet has variety has good sales team. The sales team
takes responsibilities to create sales projections for the coming year based on
comprehensive observations of the marketplace, sales activity within the company
and sales trends within the industry. An experienced sales team helps Sao Nam Viet
achieve big revenue and enlarge company growth. By the way, the good sales team
is a valuable resource for your sales professionals and the entire company as well.
Thanks to the experienced sales team, Sao Nam Viet can recognize the competition,
marketplace tendencies and pending developments within their industry. Over time,
the sales team also offers valuable insight to the marketing, engineering and
executive teams as well as the sales department. Especially, the sales team also
becomes a valuable resource to the sales professionals for advice on sales
techniques and ways to overcome customer challenges for Sao Nam Viet.
In addition, Sao Nam Viet has good facilities, timely respond to their
production. With good manufacturing facilities, Sao Nam Viet business is able to
operate effectively, as well as continuing producing products with the addition of
overtime and extending operation of hours to cover most. Especially, there are
potential savings opportunities from having good facilities, because operating cost
is one of the most important consideration to do business.
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External advantages
There is a good chance for gate vale product to export. Last time, Vietnam
imported a wide range of product portfolio. Especially high tech and industrial
products. Since local technology is still at low level. A huge amount of goods is
imported from China. Our big neighbor has advantage on economy of scale, so we
imported even products we can produce domestically due to the low price. However,
Viet Nam reduces imports and boosts exports these high tech and industrial
products in which there are gate vale products. One leading high potential sector is
the furniture industry with an increasing demand for modern equipment and
technology in the furniture manufacturing process. The industrial products have a
high export chances and can be provided by foreign players.
Sao Nam Viet takes advantage from exporting their gate vales when Vietnam
joins trade agreement with the countries in the world. For instance, regarding trade
in goods, under the ASEAN Trade in Goods Agreement (ATIGA), Vietnam has
applied the zero percent duty rate to about 90 percent of tariff lines and will abolish
about 97 percent of tariff lines and tariff quotas before 2018. Regarding
opportunities, tariff barriers will be lifted; non-tariff barriers will be reduced to
facilitate the movement of Vietnamese goods.
Besides, Vietnamese labour cost is cheap that helps Sao Nam Viet reduce its
pressure in manufacturing. It means that Sao Nam Viet can earn more money from
their business when hiring cheap labour. As the result, the company can save more
money for their business and invest into high technology.
2.1.4 Disadvantages of Sao Nam Viet
Internal disadvantages
Sao Nam Viet marketing strategy is not good enough that limited its
development. Their customers are becoming more and more fed up with marketing,
but the truth is that they are just tired and annoyed by bad marketing. When the
market team was less saturated, their customers had more time to listen, and media
channels were more interesting to them. Today customers don't listen, not only
because there are more marketers trying to capture their attention or because they
have less time, but also because Sao Nam Viet Marketing team have no caring,
helpful and entertaining enough. Part of the problem is that Sao Nam Viet does not
have enough resources, relevant information and time to do a good Marketing
strategy at trying to target so many potential customers.
Besides, Sao Nam Viet lack of money to enlarge their business. Inadequate
amount of capital creates a lot of financial problems to Sao Nam Viet to do business.
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Then they have to get loans from some banks. As the result, the company has to pay
very high Interest expenses that affect to their profit as analysis above. Moreover,
raw materials cannot be purchased on time and payment of labor and other expenses
can not be made on time that sometimes happens in Sao Nam Viet.
In addition, Sao Nam Viet is also bad at management on employees and
costs. Bad management practices deflate employee morale, cause stress that results
in sometimes serious health issues, and cost the company more than just the cost of
high turnover. Then the problems between the company and some employees
happens, as the result, they serve their customers poorly and quit their jobs.
Moreover, disgruntled and mishandled employees stop caring about how well they
perform their jobs, are more likely to demand more money for extra tasks, and may
even hurt the company via theft. The bad management also creates high costs that
Sao Nam Viet has to bear. This is the root of reduction of profit in 2017.
External disadvantages
Firstly, Sao Nam Viet face tough competition in export market. Moreover, it
is very difficult for Sao Nam Viet to find foreign buyers last few years. The supply
is profuse and oversupply, other markets have tightened control over the import
quality, thus, Sao Nam Viet faces tough competition from regional peers in
providing an attractive environment with their gate vales. Especially, Sao Nam Viet
gate vales face fierce competition from similar products from China, this leads the
company to lose market share. Moreover, several countries devalued their local
currencies to promote their exports together with strengthening protection for the
products, affecting Sao Nam Viet gate vales, too. The company also realizes that
further difficulties and challenges due to the slow recovery of the world economy
and fierce competition will come to them next few years.
The most important disadvantage that Sao Nam Viet face is problem-solving
in foreign markets. Because their staff lack of international knowledge about law
and regulation, thus, whenever they have problems the company can not solve well.
Geographical challenges are inevitable for the company that needs to export goods
that have low value compared to their weight and size primarily. Thus, lack of
insight into the law and regulations of other countries is a great obstacle for Sao
Nam Viet trying to enter new international markets. Moreover, their brand name is
also registered in foreign market, protection of intellectual property rights is poor.
As the result, Sao Nam Viet brand names can not compete well in foreign market.
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2.2 Marketing-Mix Plan for Water Gate Valves in Asian and European
Markets.
2.2.1 Developing Marketing Strategies and Plans
2.2.1.1 Collecting Information and Forecasting Demand
Collecting Information
Sao Nam Viet will collect information by desk research
With desk research, at first Sao Nam Viet carry out internal desk research by
starting point of research for all departments in the company. They will collect
much information generated internally, and account related information which
indicates some kinds of products are sold to the customers. And the amount of
products are manufactured and sole per month. Then, the total costs for production,
business operation. Especially, the types of customers including their geographical
location are Sao Nam Viet target customers.
The main advantage here in performing internal desk research is that it
involves internal and existing Sao Nam Viet resources to organize the collected data
in such a way that it is not only efficient but also usable. Internal desk research is
comparatively very cheap and effective as internal recourses are deputed and the
expenditure in getting data from outside is less.
Moreover, Sao Nam Viet also does External Desk Research by the internet.
There is incredible amount of data available online on internet that important for the
company to be information specific about gate vales’ prices, potential customers,
and goverment policies, as well as export market’s policies about Sao Nam Viet
Products.
The global market fro industrial vales is forcast to reach USD112 billion by
2024 in Asian and European markets
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Figure 2.2: Global Market forecast 2016-2024
(Source: strategyr.com)
Forecasting Demand
After collecting information, Sao Nam Viet can forecast demand based on
the statistics collected from external desk research and external desk research.
Firstly, Sao Nam Viet will take the quantity sold per month, then comparing to
demand from the current market to make decision for forecasting demand. It can be
plus +/- 10% to make sure that Sao Nam Viet have enough gate vales supplying for
its customers.
There are four end-use sectors for forecast:
Asian markets - Category 1, accounting for 45%
European markets – Category 2, accounting for 30%
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Other markets – category 3, accounting for 18%
African markets – category 4, accounting for 7%
Figure 2.3: % Breakdown of key end-use secotrs
2.2.1.2 Conducting Marketing Research
Marketing Research is conducted based on two main markets including
Asian markets and European markets.
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Figure 2.4: Industrial vale market trend
(Source: strategyr.com)
Global market for industrial vales is projected to surpass US$78.4 billion by
2020 driven by industrial expansion in developing economics, and increase in plant
automation projects. Growing global energy needs and the ensuing increase oil and
gas exploration, energy generation and petroleum refining activities will continue to
benefit sales of industrial vales. Use of vales in application such as etching
chemicals, ultrapure water system, and chip washing is poised to benefit from the
outlook for semi-conductor and electronics industries. Asia-pacific present the
largest market worldwide, supported by development in water infrastructure, and
expansion of manufacturing sector. The region is forecast to grow at a projected of
2.2.
Table 2.2: Global Marketshare of gate vales in 2015-2017
Regions 2015 2016 2017
Asian Markets 16.734 30.3525 37.7055
Eroupean Markets 16.734 20.235 25.137
Other Markets 10.0404 12.141 15.0822
African Market 3.9046 4.7215 5.8653
Total 55.78 67.45 83.79
(Source: Market and market)
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The overall market grows from USD 67.45 Billion in 2016 to USD 83.79 Billionin
2018. There is steadily growth in revenue of gate vales in the world during 2015-
2017.
Figure 2.5: Global Marketshare of gate vales in 2015-2017
There are industrial valves market by valve Type showed below
Table 2.3: Industrial Valves Market, by Valve Type:
Types of vales Asian Markets Eroupean
Markets
Other Markets African
Market
Ball Valves 15% 10% 11.00% 21.00%
Butterfly
Valves
12% 14% 8.00% 11.00%
Gate Valves 32% 22% 25.00% 27.00%
Glove Valves 5% 6% 3.00% 5.00%
Plug Valves 11% 9% 13.00% 16.00%
Check Valves 4% 5% 6.00% 3.00%
Diaphragm
Valves
11% 19% 17.00% 10.00%
Safety Valves 10% 15% 17.00% 7.00%
0
5
10
15
20
25
30
35
40
Asian
Markets
Eroupean
Markets
Other
Markets
African
Market
2015 16.734 16.734 10.0404 3.9046
2016 30.3525 20.235 12.141 4.7215
2017 37.7055 25.137 15.0822 5.8653
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The competitors
There are not many competitors in the world. However, the quality and brand
name are the key factors help the companies win foreign markets.
Figure 2.6 The competitors
(Source: strategyr.com)
The most competitors are in The Unites States and European markets.
Moreover, the quality is required best for these market. As the result, Sao Nam Viet
will face troubles when entering these countries.
2.2.1.3 Establishing Marketing Objectives and Strategies
The market share include domestics market and foreign markets in which
60% products for domestic market and 40% products for foreign market.
In foreign market encompass 80% products for Asian market and 20%
products for others market.
Marketing objectives following:
Increase sales
Build brand awareness
Grow market share
Launch new products
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Target new customers
A marketing strategies:
Firstly, Key markets are some Asian countries such as Laos, Cambodia,
Brunei, China India, Indonesia, Japan, Malaysia, Myanmar, Philippines, Thailand....
The Asian region accounts for 60 percent of the world’s populace and is filled with
tremendous market opportunities. The economies of ASEAN countries are
consumer-driven. In the last fifteen years, the Asian middle class has increased
sevenfold. A study by Brookings Institution indicates that, by 2030, the Asian
middle class will constitute about 66 percent of the global share.
A healthy spread of construction product supports the stability of the Asian
markets. The share between residential, industrial and infrastructural projects is
almost evenly distributed. By government intervention there is a slight majority of
projects on the infrastructure side. Almost all Asian countries are expected to
increase their budgets for infrastructure in the next five years. With increased
spending of about 7% China, India and Vietnam are about to take the lead by 2020.
Figure 2.7: Growth of construction spending in 2014-2019
(Source: buildingradar.com)
Moreover, Oil demand in the Asia Pacific region is forecast to account for
almost 90% of the increase in global demand between 2014 and 2040. By 2035, the
region is expected to contribute 35% of total global energy production.
Thus, there are great opportunities to export gate vales to Asian markets.
Penetration pricing is the initial pricing strategy for a product or service that is
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lower than the market price. Sao Nam Viet will use this strategy to profit in the
short term to reach the expectation of its products will be more widely accepted
market. It is a market of customers who have never bought a product or who are
loyal to a competitor's product, and who also use it for long-life products. Market
penetration strategies will often attract buyers by offering cheaper goods and
services than marketplaces. While many new companies use this approach to attract
customers' attention, market penetration tends to lead to a loss of start-up capital.
Gradually, the reputation of the business in the market can bring profit and make the
brand stand out among the industry. Often, after entering the market at a certain
level, companies often begin to raise prices to better reflect their position in the
market and bring in interest rates.
Secondly, the target customers are wholesales and retailers specializing in oil
and gas, the constructors. Breaking into a foreign market, especially one with strict
rules and regulations, can be a very daunting task. Thus, Sao Nam Viet must have
the ambition to go international market to reach their target customers. The most
important factor to reach target customer is marketing online.
Sao Nam Viet can get a partner in a foreign country who is just as invested in all
facets of Sao Nam Viet business as the company is. Of course, Sao Nam Viet has to
vet the potential partners thoroughly and make sure that the company is doing
business with someone who will actually help Sao Nam Viet – not slow the
company down. As the result, Sao Nam Viet can get a good partner, the company is
able to get a grip on the new market much more easily..
2.2.2 Developing Marketing-Mix Plan for Water Gate Valves in Asian and
European Markets
2.2.2.1. Product Strategy
Analyzing the Elements of the effective product strategy
There are three elements of the effective product strategy including market
and need; key features and differentiators; and business goal showing in picture 2.1
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Picture 2.1: Three elements of the effective product strategy
(Source: www.romanpichler.com)
Firstly, the target customers and users of Sao Nam Viet products are the
buyers who are likely to purchase and to use them. Without the needs, the
company’s products become useless, it means that no one wants to use these
products. As the result, the best products also become zero as well. Thus, Sao Nam
Viet has to think if Gate vales can export to other countries. The company has to
compare their products to other products that people ask for. It allows Sao Nam Viet
to reach new markets easily.
Secondly, the key features and the differentiators are those aspects in which
the company’s products create special impression to their customers. As the result,
the differentiators make their customers choose them over competing offers.
Thirdly, the business goals also go with Sao Nam Viet product strategy that
benefits the company. The product strategy is carried with the aim to generate
revenue, help sell a lot of product, reduce cost, or increase the brand equity.
Process of Product Strategy
To enter the new markets, Sao Nam Viet needs to follow the process below:
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Picture 2.2: Process of Product Strategy
The first is generating that the company analysis SWOT to find out strengths,
weaknesses, opportunities, threats. As the result, Sao Nam Viet understand current
market trends to generate ideas. Moreover, Sao Nam Viet can develop several
different roadmaps to suit different types of projects along with risks management
involved.
The second is screening the idea. In this step, Sao Nam Viet will set specific
criteria for ideas of gate vales to make sure that the products for new markets are
suitable or not.
The third is testing the concept. Sao Nam Viet deploys quantitative or
qualitative responses to evaluate consumer responses to the product idea before
introducing gate vales to the marketplace.
The fourth is business analytics. It is said that a detailed marketing strategy
will be included in terms of whether the product will be profitable in the
marketplace. This will also include the reactions from the target markets and gate
vale positioning to evaluate if there's demand from the market.
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The fifth is marketability tests. Sao Nam Viet give prototype product to the
target customers to test the customers’ interest for the product along with the
proposed marketing plan. Then, the company discovers if categories of gate vales
exporting satisfy the target customer or not. As the result, modification can be made
when necessary.
The sixth is technicalities and product development. Sao Nam Viet create
prototype based on exact and real life investigations, product specifications and any
manufacturing methods. This stage also includes the process of logistics plan,
supplier collaboration, engineering operations planning and quality management.
The seventh is commercialization. Sao Nam Viet launches categories of gate
vales into the market alongside advertisements and other promotions.
The eighth is post launch review and perfect pricing. Sao Nam Viet will
review the market performance to evaluate the success on the entire gate vale
portfolio. The company forecasts product costs and future profit and revenue, the
the company differs price and uses competitive technologies for competition in the
market. Value chain analysis will be useful for this step of the process.
2.2.2.2. Sale Strategy
Sale strategy plays a fundamental role in the marketing mix of a product. To
determine which distribution method is used, Sao Nam Viet must understand the
needs of their consumers and determine which avenue provides the best ability to
put gate vales in front of the potential customers. Place also refers to distribution or
the methods and location Sao Nam Viet uses for their gate vales to be easily
accessible to their target customers.To distribute the product to their customers at
the right place at the right time, Sao Nam Viet has to set up an efficient and
effective distribution that is very important to meet its overall marketing objectives.
If the company underestimates demand, profitability will be affected. so Sao Nam
Viet will two methods of business: wholesale and retail.
Wholesale
Wholesaling is a form of selling goods and services in large quantities or in lots
with high discount prices or original prices. Wholesale is usually applied, or
directed to the intermediary trade as agents, general agents, distributors ... In the
form of wholesale there are two specific methods: wholesale goods through
warehouse and wholesale goods direct shipping
-Merchandise through the warehouse: Sao Nam Viet sale of goods, services must be
exported directly from the warehouse. With the wholesale through the warehouse,
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Sao Nam Viet can deliver directly to customers at the warehouse or to the
warehouse of the buyer or the place under the contract.
- Direct freight trading: Sao Nam Viet Trading after buying goods, receiving goods,
not brought into the warehouse but sold directly to the buyer. With this form, Nam
Viet Star also has two forms of direct delivery or delivery.
Retail
-Retailing is the method of selling goods and services in small quantities, small and
stable prices. This method usually applies directly to consumers of such goods or
services. Retailing is more diversified than wholesale. Detail:
-Direct debit: is the form of the seller's immediate cash collection.
Pledged sale is the sale of goods to the customer and pay multiple times. In this
form Nam Viet will receive an additional interest due to deferred payment.
-Self-service retail: Plan to buy goods and take them to the payment desk. Major
supermarkets that adopt this form are quite popular.
-Auto sales: Sao Nam Viet Commercial uses vending machines to sell their
products and services.
-To send agents for sale, consignment: Sao Nam Viet is ready to bring their goods
to dealers to sell or send agents to sell their products directly.
* Export
Two main modes of application are direct export and consignment export.
-Direct export: Sao Nam Viet directly works with importers, directly sign contracts,
deliver goods and receive money.
-Mandate export: Sao Nam Viet Sao does not directly export goods or collect goods
but is approved by a reputable import / export company to export to them.
2.2.2.3. Price Strategy
In strategy of marketing mix, the price makes sense to bring revenue to the
business. Price-related factors including: pricing, pricing strategies and payment
methods.The company has two methods of valuation are as follows:
Valuation according to the manufacturer: The manufacturer of a regulated
product for the price of the company according to each specific item. Then the
company decides the price of the manufacturer to the dealer directly. Besides, the
company is entitled to some benefits but must comply with the conditions from the
manufacturer. Bulb products, switches, connection boxes, watches, buttons ...
Valuation according to the discount: When the company purchased the
manufacturer's products will enjoy a certain discount rate. The product of the lamps
is also applied in this way. The company is entitled to discounted rate%
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certain/product, below is the price list of companies buy and sell to shops and public
buildings. Often the company enjoy discounted according to the picture often
discount according to the number.
Table 2.4: Pricing of PPR gate valve
Unit: VND
Steel gate valve
Steel gate valves are available in three bonnet designs. The first design is the
Bolted Bonnet, with male-female joint, spiral wound gasket, made in F304/graphite.
Ring joint gasket are also available on request. The second design is the welded
bonnet with a threaded and seal welded joint. On request a full penetration strength
welded joint is available. The third design is the pressure seal bonnet, with a
threaded and pressure seal bonnet joint.
The price for new export market is 1, 920,000 VND lower than current ones
that is 2,080,000 VND. The purpose is to attract new customers based on low prices.
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Table 2. 5: Pricing of steel valve
Unit: VND
Gate valve flange3
Ti gate valve is submerged line valve cap Shinji origin Taiwan Taiwan brand
produced in Vietnam according to BS, Jis big pressure. Wing valve is designed with
rubber anticorrosion surely designs. Ti gate valve cap Shinji sink used to open or
change the flow rate is often used for water supply and irrigation.
The price for new export market is 1, 380,000 VND lower than current ones
that is 1,495,000 VND. The purpose is to attract new customers based on low prices.
Table 2.6: Pricing for Gate valve flange3
Unit: VND
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Brass gate vale lock handle
Sao Nam Viet is engaged in manufacturing, exporting and supplying
excellent quality Brass Gate Valve Lock Handle to the valuable customers. The
item has no rising stem, solid wedge, full bore, screwed ends. Manufacturing is
according ro BS 5154:1991 Standard; BS 21 / ISO 228-1-2000 Standard threads;
Max working pressure 10 bar; Max working temperature 120ºC.
The price for new export market is 1, 500,000 VND lower than current ones
that is 1,625,000 VND. The purpose is to attract new customers based on low prices.
Table 2.7: Pricing for Brass gate vale lock handle
Unit: VND
Brass gate valve MIHA
Brass gate valve MIHA brand by Sao Nam Viet Company from Viet Nam.
MIHA brand is specified class product to exporting and used in large construction
project.
Brass gate valves, MIHA brand (export), have no rising stem, solid wedge,
screwed ends. They have green colour handwheel; BS 21/ISO 228-1-2000 threads
standard; Max. working pressure. 20 bars; Max. working temperature: 120oC.
The price for new export market is 1,860,000 VND lower than current ones
that is 2,015,000 VND. The purpose is to attract new customers based on low prices
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Table 2.8: Pricing for Brass gate vale – Miha brand
Unit: VND
* Customer Services
- After-sale service :
+ A professional sales staff will keep in touch with customers even after reaching an
agreement. Never miss their call.
+ Call them at least once during a contract period.
+ Give them the support they need. Help them install, maintain or operate a particular
product. Sales professionals selling laptops must ensure that software is configured in the
system and that customers can use the network without difficulty.
+ Any product found to be damaged or in a damaged condition must be replaced
immediately by professional sales. Do not disturb the customer. Listen to their complaints
and make them feel comfortable.
+ Create a separate area of your website where customers can register their claims. Each
organization should have a toll-free number where customers can call and discuss their
issues. Customer service personnel should act quickly on customer queries. Problems must
be resolved immediately.
+ Get feedback on the products and services of customers. Feedback helps organizations
better know their customers and incorporate the changes needed to better satisfy their
customers.
+ Ask the customer to sign a maintenance contract (AMC) with your organization. AMC is
an agreement entered into between organizations and clients where the organization
promises to provide post-sale services to a second party for a specified period of time at
nominal cost.
+ Transition policies must be transparent and beneficial to the customer. The clients
coming for exchange should be treated the same as they first come to this place. Talk to
him properly and offer this client the best alternative.
- Some forms of discount for customers :
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+ Discount in% - The most common form of discount is a reduction in% of products. It can
be as small as 5% or 10%, or larger to actually increase sales like 20% or 25%, even more
50% + usually for liquidation of old or inventories.
+ Discount by default - This form is based on a predefined value. This will make
customers feel they are wasting money without using it. In some studies, the percentage of
use of this form in comparison to the percentage discount could be as much as 175%.
+ Free shipping - Shipping costs are often considered the number one reason why
customers leave your shopping cart. The free shipping application is a great way to
minimize this problem and increase conversion rates. It is usually used with a minimum
order value to help achieve the average order value.
+ Free Gifts - A free gift when shopping can be a great way to provide value to your
customers. If used strategically, it can help increase the average order value or help solve
an inventory problem.
- When and where to use discount :
+ Use week-to-month discounts to increase orders and sales : This is the traditional way to
increase sales. It is usually used at the end of the month or at the end of a quarter to
achieve the sales target.
+ Use discounted promotions before launching : If Sao Nam Viet is about to launch or
have a new product, they can use it to drive traffic and generate interest from customers.
+Use promotional discounts seasonally or on festivals - Black Friday, Christmas or New
Year's are great events, however during the year there are countless other occasions Sao
Nam Viet can use to increase sales.
+Use Discount Coupons for Email Subscription ; Building an email list is extremely
important for all online retailers. By offering a customer email invitation that not only
helps increase conversions, but you also get emails, this will give Sao Nam Viet the
opportunity to promote new products or programs. Other promotions to them in the future.
+Use Promotional Discounts When Like, Follow or Share on Social Networks -. Give Sao
Nam Viet’s website visitors and their customers an attractive promotion when they share
information on social networks. This is a very effective way to create cheap word of
mouth marketing.
+Use referral promotion - : People who usually Sao Nam Viet’s product most when
introduced by friends or family. Please turn this into their advantage and encourage them
to introduce. Sao Nam Viet can choose to offer the promotion to a sharer, to the shared
one, or both.
+Offer discounts on first-time purchases
+Use discounted promotions based on wages / order value - Promotion based on total
basket value is an effective way to encourage more customers to pay, increasing average
order value. The strategic way to combine this for Sao Nam Viet is to calculate your
average order value in the last few months, thereby offering a fake discount or free
shipping on all orders over 10-20. % compared to the previous average.
+Use discounted promotional offers exclusively for social networks - Social-dedicated
promotions are a powerful way to build relationships with everyone who follows Sao Nam
Viet and gives them a sense of what they are. do for new people to do it. This gives Sao
Nam Viet the opportunity to promote to them in the future
+Use loyalty discount promotions - A dedicated loyalty reward can help build a stronger
relationship and offer discounts to people who've already paid for it. friend. It can be as
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simple as sending the best customers a personal email with special offers, using automated
email tools like Klaviyo, Mailchimp or GetResponse.
+Use Remarketing Promotion - This type of promotion is very effective because it is only
seen by people who have visited Sao Nam Viet so they already know about the company
Remarketing ads serve as a reminder to customers to return and motivate for purchase. Try
using Propel Ads or AdRoll to do remarketing.
2.2.2.4. Promotion Strategy
- Social media websites such as Facebook, LinkedIn, YouTube and Google+ will
help Sao Nam Viet promote gate vales in a more relaxed environment. This is direct
marketing at its best. Social networks connect with a world of potential customers that can
view Sao Nam Viet from a different perspective. Rather than seeing the company as
"trying to sell" something, the social network can see a company that is in touch with
potential customers on a more personal level. This can help lessen the divide between Sao
Nam Viet and their customers, which in turn presents a more appealing and familiar image
of the company.Today, they become powerful marketing and communication tools. The
company easily communicate with your customers is an excellent habit when using them.
Add content to the company’s page as often as possible and keep their customers up-do-
date on all that is new and exciting. One of the key advantages of social media for
businesses is to help Sao Nam Viet interact with their customers. Going through the
Youtube and Facebook updates that are posted by the customer base gives the company
insight into what their customers need. This is useful for helping the company formulate
marketing strategies that address customers’ needs. ao Nam Viet has to create A social
media mission statement. The social media mission statement will drive Sao Nam Viet
future actions, so make sure the company puts some thought into it. This statement will
make it clear exactly what Sao Nam Viet plans to use their social media presence for and
should reflect their brand identity. The most important thing is that the company should
keep in mind the ideal customer when trying to create this statement.
-Some of the strategies for Sao Nam Viet :
+ Social networking sites :Create a Facebook or Twitter account to take full advantage of
the power of social networking to promote brand and increase sales. These are considered
the best communication channels to sell because they are free, fast, convenient and easy to
implement o, do not forget to ask customer what social networking they are using and
connect with them online.
+Email marketing : Regularly update product and business information for the customers
through email marketing and newsletter. Create an email list of regular customers, send
weekly and monthly emails so they always remember Sao Nam Viet . Thereby, contribute
to the brand identity.
+ Communication channels :Promoting marketing and promoting your business on media
such as TV, radio, newspapers and magazines, etc. While displaying products in stores will
cost a lot. As a result, advertising through the above channels is considered a direct
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marketing method that can easily measure the customer's reaction and bring about
maximum efficiency.
+Promotions and incentives :One of the quick and effective ways to market products is to
organize promotions, discounts, gifts, free experiences, etc. This will be a chance to
introduce the product. to customers widely and increase the spread of brand.
+Set up strong partnerships: Enhance search and establish strong partnerships with
businesses that are relevant to thebusiness. At the same time, put forward projects and
plans for long-term and beneficial cooperation for both parties. This will help Sao Nam
Viet to attract attention, expand your network of partners and scope of activities.
+Event: Get ideas and plan events related to the product and hand out flyers in the event
area. Sao Nam Viet can also organize a seminar with the participation of the local chamber
of commerce or participate in a charity program and donate the products of the business to
the organizers as sponsors. This type of marketing will help to increase the brand identity
and build the image of the business.
+Enhance interaction with customers : Spend time chatting with customers through
surveys to gather feedback about the aspects of the product or service Sao Nam Viet is
offering. In particular, focus on the types of products / services that customers expect from
the business and based on their evaluation to improve the quality of products / services
better.
2.2.2.5. Distribution channel
Distribution channels will be divided into 2 main groups:
A. Direct Distribution Channels (Non-Intermediate Distribution Channels)
The direct distribution channel is the distribution channel in which the participating
component is only the manufacturer and the consumer. The goods will be distributed
directly to the consumer without any intermediary distribution.
Direct channel distribution model: P (producer) -> C (Consumer)
B. Group of indirect distribution channels (intermediary distribution channels)
It will be divided into:
+ Traditional distribution channels: The goods produced will be distributed from the
manufacturer through all intermediaries and then delivered to consumers, including
Level 1 distribution channel:
Model: P (Producer) -> R-> C. Manufacturers -> Retailers -> Consumers.
The goods produced will be distributed to consumers through retailers.
2-level distribution channel:
Model: P -> W -> R -> C. Manufacturer -> Wholesalers / Wholesalers -> Retailers ->
Consumers.
3-level distribution channel:
Model: P -> A & B (Agents and Brokers) -> W -> R -> C. Producer -> Egret ->
Wholesaler / Wholesaler -> Retailer -> Person consumption.
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Produced goods will be distributed through 3 intermediary chains including termites,
wholesalers / wholesalers, retailers and then to the consumers.
Modern distribution channels: Producers and intermediaries will integrate into a unified
body. The goods will be distributed directly from the unity to the consumer.
The advantage of modern distribution channels compared to traditional distribution
channels is the saving time and cost of transporting goods to consumers.
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CHAPTER 3: RECOMMENDATIONS AND SOLUTIONS